graphrix_IHB
New member
[quote author="tmare" date=1238673396]I think you are absolutely correct. However, we have a seriously ingrained attitude in our culture that feeds the current frenzy to buy up the foreclosures, short sales and other distressed properties in desirable locations such as Irvine, Huntington Beach and even in my own neighborhood. This is still the attitude of "buy now or be priced out forever (or at least for a while)" or "you can't lose with real estate". A few chats with people older than 50 and you will find that they hold these ideals near and dear. The thought that the paradigm may have changed is just a bit too much for some to bear. There are still those on the sidelines who have held out and have cash and just can't or don't want to wait any longer. I believe that we will run out of these people before we run out of distressed properties and then the perceived "bounce" and massive bidding and over-bidding will come to a halt. It can only be so long before the economy, job loss, lack of opportunity for the young, losses of the close-to-retirement crowd all appear as huge factors in this declining market. <strong>I, myself was actually starting to believe the hype until our own Graphrix set me straight and made a lot of sense.</strong> The banks are overwhelmed and are starting to crack under the pressure of dealing with these foreclosures and will soon start dumping them quickly instead of playing games and holding while they lose. When this happens, all properties will decline further.</blockquote>
I didn't even rant about the job losses that are coming to the non-RE sectors. Lets put it this way, if I were an engineer or someone who has a position at an engineering firm, then I would be very thankful to have a job. I'm even a bit shocked by what I am hearing at law firms. But, they are service industry, and they were servicing industries that were service related.
I also didn't rant about how poorly the ALT-A, option ARM, and prime MBS pools are performing. We are all subprime now! Many of the 05, 06, and 07 ALT-A and option ARM pools are performing as badly as subprime pools from those vintages. And... those pools are larger and greater than the subprime pools.
The economy will recover before the housing market does. It always has, it always will. Those who say you can't time the bottom do not understand that history always repeats itself, or they have no f'ing clue of history.
I didn't even rant about the job losses that are coming to the non-RE sectors. Lets put it this way, if I were an engineer or someone who has a position at an engineering firm, then I would be very thankful to have a job. I'm even a bit shocked by what I am hearing at law firms. But, they are service industry, and they were servicing industries that were service related.
I also didn't rant about how poorly the ALT-A, option ARM, and prime MBS pools are performing. We are all subprime now! Many of the 05, 06, and 07 ALT-A and option ARM pools are performing as badly as subprime pools from those vintages. And... those pools are larger and greater than the subprime pools.
The economy will recover before the housing market does. It always has, it always will. Those who say you can't time the bottom do not understand that history always repeats itself, or they have no f'ing clue of history.
