MikeJ-2009

The direct cause of it was the federal reserve and thier easy credit policy. The federal reserve was enacted in 1913 by a President who came to power because JP Morgan paid for the election. The reason JP Morgan paid for Woodrow Wilson to win is because he knew that Wilson would enact the federal reserve and allow these crooked bankers to control our currency, which is strictly forbidden in the Constitution.

Today, Bear Stearns goes under because of a crisis created by the federal reserve, and JP Morgan buys them for pennies on the dollar. Not only that, but the federal reserve insures that they'll cover any losses of buying Bear Stearns, with taxpayer dollars. JP Morgan, corrupt bankers, and the government are screwing us. Free market my ***.

signorelli21

bigwig you must live in california, here in the midwest prices have not fluctuated that much, I just looked at several properties (foreclosures, or bank owned) that were being offered at what was actually owed on the mortgage, but the banks are willing to take a pretty big loss to get rid of the non performing asset. like one was a 3 story 6 bedroom house built in 1920, selling for 12,000, you put 20-30 grand into it and sell it for 70-90, even though its appraised at 120.

anyway the buble has not burst yet, the fed bailed out bear sturns remember? wait until they can't lower interest rates anymore and then become concerned, sure a recession is a normal part of the buisness cycle but the fed has prolonged this one for so long its going to be alot worse. who cares anyway, everyone says were not in a recession so why worry? too bad you can't tell if you had a recession until 6 months later (has to be 2 consecutive quarters of negative growth to be technically a recession, obviously we have to wait a few months for that :1)

miss-piggy

The low hasn't come yet. Get it? Buying on a downward swing when you have no idea when an upward swing is going to happen is called a risky investment.

Steve, you blame the government but rally behind Ron Paul asking for a free economy. Which is it? If you want the FED to step in and regulate, you can't have a free economy. End result was the banks gave loans they shouldn't, the investment firms packaged said shitty loans and sold them on the free market with a BS rating system and it all blew up in everyone's face. This happens in unregulated free markets. New ideas sometimes fail. Looking back and saying, "Man, the FED should have stepped in there." when you lobby for a free economy is just nuts. I honestly don't blame the FED. The blame is soley put on the shoulders of the banks. They should have never offered such shitty loans to people. I don't honestly understand how the FED works, and I won't claim to. I'm sure there is a reason why saving Bear Stern was a wiser decision than letting them be purchased for $2.50 a share. That is economics that only the elite understand.

Signorelli, the midwest is huge. You can't over generalize like that. There are no foreclosures in my neighborhood, but it doesn't mean they aren't happening at a record pace. The extremes happen in specific local areas, but the ripple effect will be felt across the US and even the world. This isn't my opinion, this is the opinion of just about every economist. The idea that people believe that housing prices will just keep going up and we have nothing to worry about is insane. People reach a salary cap and can't make any more money unless they get another job, why doesn't the same rule apply to homes? Because we say so? Com'on....

Dr.Boost

....and you know this, how??
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Jorsher

My bad, housing in every market doesn't always go up, and there are occasional times when it drops. But I will put whatever amount of money that you want, that in 10 years the value will go up. Of course crap is going to rise and fall, but more people are being made and not more land. There is no way in hell land value WON'T go up.

Oh, unless we all move to another planet.

Dr.Boost

EXACTLY. It has been proven time and time again. House prices have been known to DOUBLE in value every decade. Look back in history. You used to be able to buy a house for $200. Guess what happened!

Obviously trying to buy a house and sell it within a few months is a retarded idea right now, but it WILL turn around and house prices WILL sky rocket again. You can quote me on that ----.
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buk9tp

+1

but ontop of signing a paper you will also have to renounce your citizenship

BigBird

Buying real estate and holding it for 10 years while making tax payments and upkeep doesn't sound like very good investment sense unless you are into the slum landlord thing. I'll agree with bigwig, it hasn't hit bottom yet. The government will try to bail the economy out but the bottom line is they have no ------- money either.

Dr.Boost

It's a tax write-off. It might not sound like a good investment to you, but to the millions of people who have gotten FILTHY ------- RICH from real estate it seems like a good investment.

I wonder how Donald Trump made his money? It wouldn't have been with real estate, nah.....he had to have invented something.... There is no money in real estate.
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Jorsher

Bottom line: Property is about the only "non-renewable resource" that everyone in the world wants/needs.

It WILL go up. It's up to you to have some common sense and buy land that people will want to buy, and then taxes won't make a bit of difference.