January 2009 Foreclosures

[ira s]

The point is that foreclosures won't lower the price of properties.

This is like being told that everything I know is wrong. I always assumed that on a block with a number of boarded up foreclosures, it might actually make the surrounding homes seem less desirable...

[tomtom]

[Lake Hills Renter]

[Scotsman]

David, what the h@ll have you been drinking? I've never seen an analysis that managed to miss all of reality so succinctly.

Saving is the entire basis of a healthy, functioning economy, the buffer between earnings and investment opportunity, the basis for a fractional fiat money based banking system, the foundation of individual responsibility verses government largess. It's the set of rechargeable batteries that power the whole works. Read some basic economic texts instead of just trying to figure it out on your own... in a vacuum.

Take the rest of the day off, and start life over tomorrow. /sarc off

[deejayoh]

[rose-colored-coolaid]

[davidlosh@davidlosh.com]

Geez!

Wake UP!

Waiting and watching for something that will happen tomorrow.

What I object to is the mindless banter of how smart everybody was to not do something. People wait, they save, they play the game, then call that responsible.

People who bought houses also think they were doing the responsible thing. They are paying that price. They took a risk and now they are paying for it.

Even in foreclosure they will be barred from certain types of employment, banks will make it difficult to open those precious savings accounts, and let's not forget that insurance rates are now tied to your credit score.

Wake UP!

There are 16 million vacant houses in America. Foreclosure won't get the job done. Banks will not lower prices because you want them to. As a matter of fact your advocating giving banks more money in the form a savings. How nuts is that?

Honestly keep your savings for yourself, no body cares, no body needs you. Money exsists. Your government collects money, saves, and spends it. I think government is the true source of money so how is your money better than the government's money?

Let me help you out with welfare. A welfare mother spends all her money. It circulates. The WIC program, which I fought for, reduces surpluses. Did you know that your government used to hoard cheese rather than give it away? Shocking? It was to help your supply and demand equation.

Banks are the problem. Let me say that again so it's more clear: Banks are the problem. Credit, consumer credit, is the problem. Homes that were run up in price need to be addressed by the people holding the Notes. There are fewer and fewer buyers out there for the vast number of foreclosures there are and will be in the coming years.

Anyway you slice it banks, the investors, the Note Holders are going to have to take less across the board. They should start with the people who are still making payments, the responsible ones if you will.

Wake UP!

[cheapseats]

I second the nom for worst post ever. Honestly it wouldn't have bothered me if it was someone else, I would have figured they were just instigating. But I am certain DL actually believes it...

[EconE]

Dave...I think I understand where you're coming from.

Wait...no...I don't.

Especially the part where you say that a person who went through foreclosure will have a tough time opening a savings account.

When has a bank ever not taken your money?

But what you're really saying is that...in the end...we're all just a bunch of useless eaters anyways. You and I included.

[davidlosh@davidlosh.com]

There are so many foreclosures that that portal has been closed for about a year now. Banks are hoarding, the same as global corporations are. Savers are talking the same way.

If money moves through the system the system is expanding, once it stops it collapses. Foreclosures have stopped being viable barometer of future pricing declines because there is no money. Every one is saving, hoarding, waiting, and watching, some in glee.

Welfare that so many people vilify is a constant steam of money in money out. Money flows through that system. Working a job is kind of the same. Some jobs are better than others, but a lot of jobs are just useless expenditures of energy with a pay check attached.

If properties just stay vacant, and the banks are waiting and watching for something to happen, nothing will change.

The foreclosure mechanism is as broken as the banking system, and the banks aren't "fixing" anything. I think their waiting for the government to give them more welfare.

[rose-colored-coolaid]

[deejayoh]

[ira s]

Aw. It's like a car crash. You know you should look away, but....

[davidlosh@davidlosh.com]

Thank you for combining my comments about gentrification with my comparison of wage earners to welfare recipients.

Depending on how you read the context, you might also be insulted if you are any other minority or just plain poor.

Can you define poor for me?

I'm unfamiliar with the term.

[davidlosh@davidlosh.com]

You thought you got away with that didn't you?

What do you mean minorities? Asians are the largest population on earth, they are the driving economic force, and they do gamble.

Heck, China even hepled out the United States by investing a few billion dollars. Boy, did they take a risk.