Slow Learners in Washington

[quote]We are in a process of financial de-evolution. I?m not sure what Darwin would call this but each subsequent day without missing a beat produces another more progressively disastrous ?idea? to save the market.

I am cautious about calling what we are seeing as ideas since it is better to define it as flushing money down the toilet which would be a better characterization of what the Fed and U.S. Treasury are doing to our country.

The genius crony capitalist now think it would be a magnificent idea to get mortgage rates to 4.5%. Now why would the Treasury want to do this? Well according to the Wall Street Journal:

?(WSJ) Treasury views this plan as potentially halting the slide in home prices by enabling borrowers to afford bigger mortgages, thus increasing demand for homes and pushing up home values.?

Bwahahahaha! The solution to the problem according to these bandits is to go back to the genesis of what caused this housing bubble. That is, people taking on bigger mortgages and home prices getting too high was the freaking problem!

These are the people running our country. In fact, dropping home prices are proving in certain areas to actually increase sales. I?m going to show you a chart for Southern California that may boggle your mind. See, as prices dropped sales actually increased:
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(chart here. see link: SIIV – Super Ignorant Investment Vehicle: The Evolution of Progressively Dumber and Dumber Bailouts. 3 Emerging Trends: Bailouts getting costlier and dumber, layoffs accelerating, and embracing frugality. » Dr. Housing Bubble Blog )

I was thinking of buying a house, but maybe it’s not such a good idea. I mean, how do I know the government’s done with it’s social tampering, which will cost me tens of thousands in the future?

The way I see it, it’s a win-win. If the Fed’s stay out of it, we all win. If they intervene and get rates that low the big picture is not very good, but it will open many doors for those willing to play the market.

I know you are intelligent enough to be very opportunistic about it. Bottom line, I think it would be very wise to buy now. Buy a rental or two also if you can afford it.

Many men have become very rich because of bubbles like these. I have to admit, I actually got a little bit giddy when I first read about that.

[quote]tedro wrote:
The way I see it, it’s a win-win. If the Fed’s stay out of it, we all win. If they intervene and get rates that low the big picture is not very good, but it will open many doors for those willing to play the market.

I know you are intelligent enough to be very opportunistic about it. Bottom line, I think it would be very wise to buy now. Buy a rental or two also if you can afford it.

Many men have become very rich because of bubbles like these. I have to admit, I actually got a little bit giddy when I first read about that. [/quote]

With a creative mind in a free enterprise market place there is always money to be made. One persons misfortune is anothers fortune.

[quote]tedro wrote:
I know you are intelligent enough to be very opportunistic about it. Bottom line, I think it would be very wise to buy now. Buy a rental or two also if you can afford it.

[/quote]

My general heuristic is: if I’m not sure what to do, I do nothing. Prices could still stand to come down another 20% in California before houses are considered a good buy. Wages haven’t gone up here in 10 years.

[quote]PRCalDude wrote:
tedro wrote:
I know you are intelligent enough to be very opportunistic about it. Bottom line, I think it would be very wise to buy now. Buy a rental or two also if you can afford it.

My general heuristic is: if I’m not sure what to do, I do nothing. Prices could still stand to come down another 20% in California before houses are considered a good buy. Wages haven’t gone up here in 10 years. [/quote]

You may wanna check out this vid.