C
compton75@hotmail.com
Guest
On Aug 28, 2:50 pm, Jeff <dont_bug...@all.uk> wrote:
> Bill Bonde ( 'Hi ho' ) wrote:
>
>
>
>
>
>
>
> > Harry Hope wrote:
>
> >>From The Associated Press, 8/28/07:
> >>http://biz.yahoo.com/ap/070828/home_price_index.html?.v=5
>
> >>Home Prices: Steepest Drop in 20 Years
>
> >>By Vinnee Tong, AP Business Writer
>
> >>S&P Says Housing Prices Fell in 2Q by Steepest Rate Since Its Index
> >>Was Started in 1987
>
> >>Harry
>
> > You complain that houses are too expensive, about inflation, and now you
> > complain when they get cheaper, deflation. Is there anything that could
> > happen in the economy that you wouldn't take some dark foreboding from?
>
> And you see no problem with the housing bubble? What the hell do you
> think this economy has been running on for the last 6 years? A decline
> in housing prices is the inevitable result of a bursting housing bubble.
>
> Now, cheaper home prices does not mean that more people can now
> afford housing. It's quite the opposite as the cost of buying a home
> with the higher cost of financing has risen substantially. A year ago
> 46% of people could afford the median price home in their neighborhood.
> Now it is 42%.
>
> So what we have is a whole group of people that have been financing
> the 2/3 of our economy that is driven by consumer spending having less
> equity than they thought. In many cases those homes are now worth less
> than when they bought them for. Don't you think those people will be
> spending a lot less? Particularly since Bush has been in office that
> individual incomes (adjusted for inflation) have fallen and have even
> falling disregarding inflation over the last year or so. That certainly
> wasn't expected.
>
> All of this is driven by bad econonomic policy. Too much easy money,
> too little oversight and not a concern in the world about the future.
> It was al rive by the greed of the moment.
>
> Jeff- Hide quoted text -
>
> - Show quoted text -
> Now, cheaper home prices does not mean that more people can now
> afford housing. It's quite the opposite as the cost of buying a home
> with the higher cost of financing has risen substantially. A year ago
> 46% of people could afford the median price home in their neighborhood.
> Now it is 42%.
It does mean I can afford a reasonably priced house. This, because
I have saved and waited for this opportunity for the past decade.
The feds are still cutting interest rates and my bank is reducing
lending rates
on mortgages, thus dropping my cost of financing.
My hope is for a sharp increase in unemployment.
> Bill Bonde ( 'Hi ho' ) wrote:
>
>
>
>
>
>
>
> > Harry Hope wrote:
>
> >>From The Associated Press, 8/28/07:
> >>http://biz.yahoo.com/ap/070828/home_price_index.html?.v=5
>
> >>Home Prices: Steepest Drop in 20 Years
>
> >>By Vinnee Tong, AP Business Writer
>
> >>S&P Says Housing Prices Fell in 2Q by Steepest Rate Since Its Index
> >>Was Started in 1987
>
> >>Harry
>
> > You complain that houses are too expensive, about inflation, and now you
> > complain when they get cheaper, deflation. Is there anything that could
> > happen in the economy that you wouldn't take some dark foreboding from?
>
> And you see no problem with the housing bubble? What the hell do you
> think this economy has been running on for the last 6 years? A decline
> in housing prices is the inevitable result of a bursting housing bubble.
>
> Now, cheaper home prices does not mean that more people can now
> afford housing. It's quite the opposite as the cost of buying a home
> with the higher cost of financing has risen substantially. A year ago
> 46% of people could afford the median price home in their neighborhood.
> Now it is 42%.
>
> So what we have is a whole group of people that have been financing
> the 2/3 of our economy that is driven by consumer spending having less
> equity than they thought. In many cases those homes are now worth less
> than when they bought them for. Don't you think those people will be
> spending a lot less? Particularly since Bush has been in office that
> individual incomes (adjusted for inflation) have fallen and have even
> falling disregarding inflation over the last year or so. That certainly
> wasn't expected.
>
> All of this is driven by bad econonomic policy. Too much easy money,
> too little oversight and not a concern in the world about the future.
> It was al rive by the greed of the moment.
>
> Jeff- Hide quoted text -
>
> - Show quoted text -
> Now, cheaper home prices does not mean that more people can now
> afford housing. It's quite the opposite as the cost of buying a home
> with the higher cost of financing has risen substantially. A year ago
> 46% of people could afford the median price home in their neighborhood.
> Now it is 42%.
It does mean I can afford a reasonably priced house. This, because
I have saved and waited for this opportunity for the past decade.
The feds are still cutting interest rates and my bank is reducing
lending rates
on mortgages, thus dropping my cost of financing.
My hope is for a sharp increase in unemployment.
