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Twelve Facts That May Surprise You About the Housing Bust

By Patrick (408/408 = 100% civil)   2012 May 8, 12:39pm   ↑ like   ↓ dislike   1,447 views   5 comments   watch (0)   share   quote  

http://blogs.wsj.com/developments/2012/05/04/twelve-facts-that-may-surprise-you-about-the-housing-bust/

#housing

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1   Sullyball   2012 May 10, 9:34am  ↑ like (1)   ↓ dislike (1)   quote   top   bottom   home   share  

This article is an important read. It's the exact type of rhetoric that will eventually create a new groundswell of hope for achieving personal riches through the ownership of residential real estate. If you wish not to read the article, I'll sum it up for you: "The real estate industry and banks ALMOST had it right with what they were offering; and NOW, with a couple minor TWEAKS to the system, we're certain that the dream of home ownership will be an immensely profitable one for the average consumer going forward."

2   deepcgi (4/4 = 100% civil)   2012 May 11, 12:57am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

Pure propaganda. In fact, bald face lying. You could say that internetworking "had been around for four decades" if you wished, but making the leap to today's internet from that fact would hardly hold water. The total amount of money ever invested in CDO's 30 years ago wouldn't equal a single afternoon's transactions in today's world of derivatives gone insane. Even the amount of leveraging common in paper commodities these days (let alone real estate) would seem insane and absurd to investors in the 80's. You could say "banks had lowered interest rates before...that's hardly new fangled!" but it would be ridiculous. HOW low and for HOW LONG? Perspective is everything. The blood is all over their hands.

3   zzyzzx (94/94 = 100% civil)   2012 May 11, 11:22am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

I also don't think any of those "facts" were actual facts.

4   New Renter   2012 May 11, 12:28pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

Sullyball says

This article is an important read. It's the exact type of rhetoric that will eventually create a new groundswell of hope for achieving personal riches through the ownership of residential real estate. If you wish not to read the article, I'll sum it up for you: "The real estate industry and banks ALMOST had it right with what they were offering; and NOW, with a couple minor TWEAKS to the system, we're certain that the dream of home ownership will be an immensely profitable one for the average consumer going forward."

No really - its different this time!

5   bob2356 (59/60 = 98% civil)   2012 May 13, 4:39am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

Patrick, for shame posting an article from the WSJ. The WSJ has only existed to be an apologist for the very wealthy for a long time and probably has less creditablity than fox news. The article is so bad it I have to believe it's a satire piece. At least 3 of the "facts" are simply wrong and many of the rest are technically true but a gross distortion.

No new bank innovation? Liar loans (aka stated income loans) were originated by Ameriquest, in 2001. Ameriquest was a sleazebag boiler room operation that was in legal trouble constantly for things like bait and switch loans or predatory leanding. Ameriquest became Washington Mutual, a really big player in the financial collapse.

No loan designed to fail? I would say any loan that depended on negative amortization and appreciation of assets would be by definition designed to fail.

Etc., etc., etc.. Just more WSJ pap propaganda for the masses.

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