US house prices in freefall -- redux

[Apocalypse]

Originally posted by Kidicious


No. The faster the prices fall the more they will fall, and the longer they will be down.

Who cares if they fall more? Baby boomers and people with bad credit who complain enough already?

So younger people can just continue to be priced out of a home so that the people who speculate and those who are haphazard about ARMs can live in their overpriced homes?

[Kidlicious]

Originally posted by Apocalypse

Who cares if they fall more? Baby boomers and people with bad credit who complain enough already?

So younger people can just continue to be priced out of a home so that the people who speculate and those who are haphazard about ARMs can live in their overpriced homes?

It's the economy....

[Apocalypse]

And we can fix it by not bailing out these people who shouldn't own homes.

And by also raising interest rates.

[Dinner]

They won't raise interest rates because the economy is already contracting and the banks are reeling from the crisis/liquidity crunch. Raising rates would cause many banks to lose all liquidity and thus become bankrupt just like the nonbank lender Bear Stearns.

What we really have to look forward to is a half decade of slow deflation and economic trouble just like the Japanese in the early 1990's. The only way to speed things up without making things worse is to have a government bail out a la the 1987's N&L crisis. The "let everyone go bankrupt" crowd are idiots. What do you think will happen if we take out half the banking sector?

[OneFootInTheGrave]

hello UK - 2.5% down in May...

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/29/bcnhouse229.xml

According to the Nationwide, house prices fell by 2.5pc in May. This was the seventh consecutive monthly fall, on par with the longest run of house price falls recorded during the early 1990s, and the largest single monthly decline in the index's history - greater than any drop recorded during the early 1990s housing market crash.

[Kidlicious]

Originally posted by Apocalypse
And we can fix it by not bailing out these people who shouldn't own homes.

And by also raising interest rates.

That's not how you fix an economy. That's how you wreck one.

[Apocalypse]

No, what we are currently doing is wrecking the economy, not just of the US but of the world. GG US.

[Krill]

Woot, I might be able to buy a house son

[Apocalypse]

Not if we listen to Kidicious and Oerdin and continue to bail out the rtards.

[asleepathewheel]

Bailouts (of all types) make me physically ill.

Maybe my wife and I should get in over our heads rather than prudently living within our means in an apartment while we build a downpayment.

The government should not be in the business of rewarding personal irresponsibility.

[Dinner]

Originally posted by Apocalypse
Not if we listen to Kidicious and Oerdin and continue to bail out the rtards.

It's a case of really bad and worse. I'll take really bad, thank you.

[Dinner]

Originally posted by asleepathewheel
Bailouts (of all types) make me physically ill.

Maybe my wife and I should get in over our heads rather than prudently living within our means in an apartment while we build a downpayment.

The government should not be in the business of rewarding personal irresponsibility.

I think everyone agrees but there becomes a point when the entire national economy is at risk so as much as you have to hold your nose you do it because the alternative is still worse.

[Krill]

Originally posted by Oerdin


It's a case of really bad and worse. I'll take really bad, thank you.

For the majority, not for you IIUC.

[Agathon]

Originally posted by Oerdin

I think the capitalist elite agrees but there becomes a point when the entire national economy is at risk so as much as they have to hold their noses they do it because the alternative is communism.

FTFY

[Kidlicious]

Originally posted by Apocalypse
No, what we are currently doing is wrecking the economy, not just of the US but of the world. GG US.

Take some econ classes and then come back when you know what higher interest rates do.