People Finally Learning...

[Eric P]

People finally cutting back on their debt...

http://news.yahoo.com/s/ap/20081211/ap_on_bi_go_ec_fi/economy_consumer_debt;_ylt=AjynMxhZQjriEfadGfVWd3o Gw_IE

[raystone]

People finally cutting back on their debt...

http://news.yahoo.com/s/ap/20081211/ap_on_bi_go_ec_fi/economy_consumer_debt;_ylt=AjynMxhZQjriEfadGfVWd3o Gw_IE


Score one, at least, for the free market.

[Elwar]

I'm currently buying a home well beyond the range that I would have previously even considered. Mainly because I'm betting on some major inflation. That $300k house I'm buying now on a short sale will be worth over a million in a few years. My payment will be $1500 a month but by then my grocery bill will probably be about $1500 a month as well.

I could probably get a job delivering pizzas and use my $100 tips to pay off my mortgage each month.

[thechitowncubs]

I'm currently buying a home well beyond the range that I would have previously even considered. Mainly because I'm betting on some major inflation. That $300k house I'm buying now on a short sale will be worth over a million in a few years. My payment will be $1500 a month but by then my grocery bill will probably be about $1500 a month as well.

I could probably get a job delivering pizzas and use my $100 tips to pay off my mortgage each month.

Dude, don't do that :p

[Chase]

Score one, at least, for the free market.

Why keep score? The free market *always* wins in the end.

[paulitics]

The best thing that could happen to this country is if the stock market to completely pop, as well as the real estate market. You can see the effect some of this has had on gas prices. The real estate market is still overvalued by about 30 to 50% and needs to crash, so it can begin its track back up.

If the economy would fully contract within a short time, (the smart ones who saved for a rainy day) will come and buy at the lower prices. First time homebuyers can also afford a house at the lower prices. All of the paper assets with no intrinsic value needs to die a painful deeath.

But of course, the fed will not allow this. Instead we will have a prolonged recession, depression, with aritifically high prices that will hamper spending and investment. There will continue to be mailaise until an equilibrium is reached between supply and demand, which may take many many years due to the Fed's printing money like there is no tomorrow. THis whole crisis was spawned by too much money, and not enough tangible assets. Incredible that the magic pill they are prescribing is the culprit.

[RCA]

I'm currently buying a home well beyond the range that I would have previously even considered. Mainly because I'm betting on some major inflation. That $300k house I'm buying now on a short sale will be worth over a million in a few years. My payment will be $1500 a month but by then my grocery bill will probably be about $1500 a month as well.

I could probably get a job delivering pizzas and use my $100 tips to pay off my mortgage each month.

This was the thinking that got us into this mess. You don't buy a home (aka shelter) and hope that the value goes up. Shelter is for you to live in or someone else to live in (rental business).

The only reason to buy a home vs. renting a home is to know that you'll be rent free in 30 or less years and won't have to pay rent for the rest of your life. If the cost of buying is more than renting, you rent!

Besides, real wages are the last to go up. By the time you see your "raise" you'll already be broke from paying $10/gallon of gas and $10 for a gallon of milk. In other words, you'll be seeing your raise kick in a few years after you've had to foreclose on your "bet".

Godspeed.