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Kevin Brown
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Posted: 05 May 2008 at 9:45pm | IP Logged | 1  

Note:  If you want coffee, don't ask Hillary:

http://www.youtube.com/watch?v=-C9bkuJliMY

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Michael Roberts
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Posted: 05 May 2008 at 9:51pm | IP Logged | 2  

I really have no sympathy for people who went out and borrowed to buy a
$500,000 house when all they needed was a small bungalow or a condo.

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In my area, $500,000 IS a small condo.
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Mike O'Brien
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Posted: 05 May 2008 at 9:52pm | IP Logged | 3  

Is this who I want making me a cup of coffee at 3am?

Vote Obama.  The man knows how to make a damn cup of coffee.

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Mark McKay
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Posted: 05 May 2008 at 9:56pm | IP Logged | 4  

The really sad part is that all of this was spelled out in the loan contracts. The lenders are partly at fault for lowering the standards for obtaining a loan, but the borrowers are more at fault for not understanding the contract.

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This is true. I believe, though, (at least here in Minnesota), that the laws for lenders have become more stringent, requiring lenders to spell out a bit more clearly what you are getting yourself into.

Also, a bit of perspective. Foreclosures represented around 4% of mortgages in the past year. Meaning that the other 96% of mortgages issued are just fine!
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Neil Lindholm
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Posted: 05 May 2008 at 10:02pm | IP Logged | 5  

But Michael, it wasn't worth that much until every person decided to jump into the market and buy everything in sight, raising the prices. Unless you are in NY or something. 
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Michael Roberts
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Posted: 05 May 2008 at 10:14pm | IP Logged | 6  

But Michael, it wasn't worth that much until every person decided to jump
into the market and buy everything in sight, raising the prices. Unless you
are in NY or something.

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Yes, I understand that. My only point is that when the housing market went
crazy, it wasn't always the case of people buying more house than they
needed, but just wanting to buy one at all.
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Teod Tomlinson
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Posted: 05 May 2008 at 10:52pm | IP Logged | 7  

I have bought two houses in my life, one in 1999, I made some money I guess I was lucky. I bought my second house 2006, it appears I might lose everything, not so lucky. This plan seemed to work great for past generations, my parents wealth was created through home ownership. My house is now worth less than when I bought it. I try not to dwell on it or I feel sick. I hope a new direction in our country can somehow turn things around. 

Edited by Teod Tomlinson on 05 May 2008 at 11:09pm
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Neil Lindholm
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Posted: 05 May 2008 at 11:03pm | IP Logged | 8  

All this talk about housing reminded me of an article in Harpers a few years back. In it, the author used diagrams and pictures to illustrate quite simply what is wrong with the then current bubble. It was written in 2006. I found a copy of it on the author's web page. A good, quick introduction to the problem.

Road to Serfdom

It is a pdf file.


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Mike O'Brien
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Posted: 05 May 2008 at 11:43pm | IP Logged | 9  

Oh, I agree, Neil - that's one of the reasons I was so tired of people telling me to buy - I had a cousin who worked in home loans, and he told me this was coming.

It was no secret.

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Neil Lindholm
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Posted: 06 May 2008 at 12:07am | IP Logged | 10  

I initially felt bad that I was in no position to buy anything a few years back but I realized even then that it would burst. All of my acquaintances had bought rental properties and when i asked them, who would rent these places out if everyone was buying, they just looked sort of confused. I wonder if they are hurting now? Then again, in Canada, we did not have the same type of mortgages so the meltdown has not been so great. Yet. There are a lot of places for sale right now and no buyers.

If it makes the Americans on the board feel better, I read it has been worse in Ireland.
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Mike O'Brien
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Posted: 06 May 2008 at 1:23am | IP Logged | 11  

Allow me to present a historical anticdote as means of making a point.

A century ago, before the dawn of cars, people got around in horse and buggy.

The fuel for a horse was various grains - usually corn, rice, wheat - and the leading horse food companies were General Mills, Post and Quaker.

When the automobile came on the scene, these businesses took a huge hit, as less and less people were buying horse fuel.  And it was too late for these horse feed industry giants to get into the petrolium business.

However, around this time, Dr Kellogg was experimenting with giving horse feed to his patients, mixed with milk.  The patients (these were pre-Atkins, for sure!) enjoyed it, and it seemed to do them good, so....

Next thing you know, the former horse feed companies have had a century of successful business feeding us every morning with breakfast cereal.

Now...

There are a LOT of lessons in that one story about our future - it's true what Brother Truman said - the only new thing under the sun is the history you haven't read yet  - keep this in mind -

We are heading into a huge economic depression.  For many reasons - but most of all because a number of factors are happening at the same time - if there was just the mortgage crisis, if fuel prices alone went up, if the marketplace was changing due to new technology alone, if the world economy was changing, etc - any of these things on their own would lead the natual economic cycle to recession - but that they're all happening at the same time?

But there's hope.  Sure we're losing jobs to obsolescence in many sectors, but like the cereal feed companies before us, new industry - (Lead by the same tycoons!) will spring up in their place.  Sure, oil prices are insane - but it will just spur us - America is good at reacting to this sort of pressure - to come up with something new!  We went from horse to car in the last century - what's next?

We're in a tight spot, but history tells us that things have a way of working out.

Now - it would help things if we had a wise leader running the show to help navigate the ship - in my opinion, Barack Obama is the best candidate for the job - but I suppose it's up to each of us to reflect on the candidates, look at their records, their plans, their goals, their background, education, and experiences and decide who is best to lead us through these upcoming trying times.

Choose wisely.

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Scott Richards
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Posted: 06 May 2008 at 6:53am | IP Logged | 12  

Now - it would help things if we had a wise leader running the show to help navigate the ship ... it's up to each of us to reflect on the candidates, look at their records, their plans, their goals, their background, education, and experiences and decide who is best to lead us through these upcoming trying times.

This, I completely agree with.

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