Economist Who Foretold First Housing Bubble Says, 'Beware'

Junk Bonds, Commercial real estate bubble, both can lead to double dip recession if not adressed. Banking and financial reform are imperitive to hold off that from happening.

The problem with this scenario is that all these loans are with banks that are considered "too big to fail" and will not be allowed to collapse. So who will lose other than the home owner?

Well I am willing to live with that. If the banks fail then no one will be able to borrow money and borrowing money is basically something all of the companies that hire people and pay people need to do. So it is a necessary evil that these banks be bailed out. These individuals who bought houses at insane prices will have to pay the price for their stupidity, they simply are not able to afford to own and should in fact be renters. Let their homes be sold on the open market allowing home prices across the country to fall to levels supported by the market. By bailing these people out young people like me will never be able to afford to buy a home because the home market is being kept artificially high.

I hear Detroit is a great place to buy a cheap house.(inexpensive) I would let the banks fail for risky gambling. Not all banks were involved and the empty value, that is being traded on the market, needs to die. Some rich Fuckers need to take the loss for the mess they created, trying to become super wealthy, at any cost. Value of a days work needs to be proportionate to Real living. 30 year mortgage is another word for indentured servant. Gaming the system is not creating value. It is stealing from those who bust their asses 40 hours a week. How about million dollar bonuses? Do these people create anything?

halirous

Heh. +^d

I think your Dagum, while driving around making delivery's all day I have noticed a lot of commercial real-estate sitting vacant. That can't be good for whoever owns them.

If I was smart, I would have saved money ten years ago. Then with the housing bubble collapse and the oncoming commercial collapse, I could have bought up properties at rock bottom prices, sat on them for about ten years to weather out the storm, then sell the properties in 2018 and make bank.

Unfortunately I bought into no savings, all spending craze like most Americans. I can't afford the 10% down to get loan to buy a property. (that and I don't have a credit rating because I don't use credit cards.)

I guarantee you though, the mega rich are taking advantage of these cheap prices and buying up foreclosed properties left and right, turning them into rental properties and just sitting on them. When this real estate crisis is over, a good portion of land ownership is going to be concerted in the hands of a few mega-rich people. Almost like feudalism, but with renters instead of serfs.

Yep that's about it, the top 1% owns 90% of the wealth. It was by design, dangle the carrot so people could get in over their heads and boom the crunch hits and we are left with nothing.

I am not trying to bite the carrot again. Hopefully something good will come out of this recession in that everyone will realize if you save money, and not spend it on frivolous shit, you can erode their powerbase and you better off the next time something like this happens.

Make an effort to save, and when you have to purchases essentials avoid corporate America and try to find a mom and pop shop, (if any still exist .)

I am trying to do my part, but at the time money is hard to come by. Also buying local a lot lately.

Never Feudalism as long as we have the estate tax. The great thing about this country is a person can create great wealth in their own life time. But it is very difficult to pass the CONTROL of that great wealth on and on for generations. Not like Feudalism. Regulated Capitalism.

They have been saying that for 2 years now. It's getting pretty bad already but it doesn't seem to be bursting in quite the same way the housing bubble did. Hopefully we will dodge that bullet.

Sounds like we need to redistribute some of that wealth down to us mere mortals. Oh wait that's a bad thing.

Right now Employment would be the best form of wealth redistribution.

"no racismo," but all we in CA see are Asians. My father married one and left her in control of $2M worth of property.

Irrelevant.

Being Struck by Lightening: 1 in 750,000/ Winning the Lottery: 1 in 1,533,939/ Becoming Wealthy 1 in 1,000,000. Looks like you stand about as good a chance of being struck by lightening or winning the Lottery as you do becoming wealthy. I guess the Myth that everyone can get Wealthy in the US is not supported statistically.

+^d .

I concur artemis6.

I hear you . Doing the same . I really am that spiteful , to pay 15 bucks for an organic chicken from the neighborhood .... If that's one of the few ways I can fight , I will .

Good for you +^d

You just touched on something that goes unnoticed. The worth of what we do. Real food production (Organic) should pay better. In Cuba, after they experienced peak oil with the fall of the Soviet Union, they started to take food production seriously. They now produce over 80% organic food and export food to central and south america. Farmers are paid professionals and respected as such.
There is a lovely video of this. I will try to find it to share.

Thank you ! We are all craftsman in our way , all but the few who lord over us and steal the fruits of out labor . I am full willing to share with others , for the common well being , but the obscenely wealthy should give as generously as they got , and stop war mongering .

Cuba imports over 80% of its food. Organic farming has been unable to meet the demands of the country...

Can you link me to that information?