Comments on: Housing Corruption and Greed: The Broken Windows Theory and Fundamental Attribution Error. http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/ How I Learned to Love Southern California and Forget the Housing Bubble Sun, 12 Oct 2008 19:49:01 +0000 http://wordpress.org/?v=2.2.2 By: db http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-22085 db Wed, 13 Aug 2008 17:26:31 +0000 http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-22085 Once upon a time wise men made laws to advance the cause of civilized societies and others ethical individuals saw to it that they were enforced because they understood that not doing so would result in chaos. Those times are gone. Once upon a time wise men made laws to advance the cause of civilized societies and others ethical individuals saw to it that they were enforced because they understood that not doing so would result in chaos. Those times are gone.

]]> By: Anonymous http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-983 Anonymous Tue, 05 Jun 2007 22:23:00 +0000 http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-983 I see blame everywhere, but not distributed to all equally as it should be. Even the sassy renting lady with her smartplan is going to be certain to "stick it to the owners" bynot giving notice when she leaves, something I dare say makes her every waking moment very enjoyable.<br/> That's the mindset, everyone is a dirty criminal except me, but deep down I'm going to rip them off with every angle I can comeup with and brag about it as I cackle over my moneypot. LOL<br/> My friend moved to California with a bought out losing company that is still losing money but resting on the shoulders of the new owner's Dad who could be a bigshot on any Soap Opera, with atleast 4 large companies under his belt.<br/> My friend during one of his calls told me, " It's all about image and if you're beating the Joneses out here. Everyone is a snot nosed braggart, the taxes are outrageous, it's 100 bucks for a quarter day fishing at the catch n release hotshot manmade pond, a thousand bucks for a round of golf, and every person you meet has their nose in the air."<br/> Strangely enough over a few years , he began to fit right in, and called me one day to show me the $350.00 old US cent he just exitedly purchased for his personal "coin collection". LOL I laughed my buttinski off with him, as he mentioned what a fine value it was and how it just had to be the most perfect rendition and antiqity of clarity and wholesomeness, otherwise he would dare not even consider it worthy of being in his prescence, let alone his "collection" - something he just took up one day in his waning age. rofl<br/> So, the lesson is, everyone is more than happy to have allof their assets priced sky high, because this gives them " THE CRED " that they are truly a big roller, some hotshot just one fancy skip away from playing tennis with the stars.<br/> Hey, your house was worth one third or one half what it was 5 years ago, that just proves your giganticly massive mental acuity in bright shining star purchasing intelligence, far outshining the not so often spoken of humiliating roots from whence you may or may not have come.( of course you didn't, that's where the true losers still lie)<br/> So, in the final analysis, no matter how much the whiners complain, they all their own little genius bragging points. The ModMaster of the site has his- Mr SMART and INTELLIGENT beyond anyone's years invests in " cash profit turning " "rentals" outside the state, not stupid enough to have doubled his money in 5 years by buying at the beginning and selling now or shortly before.<br/> For all those who have- too bad! Your idiot investment (err former investment) is on the decline, and won't turn that monthly income... hahahaha!!! in 30 years he'll have made what you made in 5 - YOU FOOLS ! <br/> Oh, and let's not forget, that sassy lady and her nice hubby you're renting to * ahemm!*( err whoever you sold to is renting to ) are about be screwed with "no notice"of evacuation....<br/>LOLOLOL<br/> Yes,the CHARLATANS ARE THICK, THEY'RE EVERYWHERE, and they're everyone, and not a single one of them is the innocent master investor they all braggingly claim to be. They are all indeed the shotty banker or the dark 6% real estate broker, or the reaping rewards money manager, or the ready to burst bubble crybaby, but rest assured, they are ALL GUILTY, and wether they know it or not, THEY ALL MAKE IT ABUNDANTLY CLEAR. I see blame everywhere, but not distributed to all equally as it should be. Even the sassy renting lady with her smartplan is going to be certain to “stick it to the owners” bynot giving notice when she leaves, something I dare say makes her every waking moment very enjoyable.
That’s the mindset, everyone is a dirty criminal except me, but deep down I’m going to rip them off with every angle I can comeup with and brag about it as I cackle over my moneypot. LOL
My friend moved to California with a bought out losing company that is still losing money but resting on the shoulders of the new owner’s Dad who could be a bigshot on any Soap Opera, with atleast 4 large companies under his belt.
My friend during one of his calls told me, ” It’s all about image and if you’re beating the Joneses out here. Everyone is a snot nosed braggart, the taxes are outrageous, it’s 100 bucks for a quarter day fishing at the catch n release hotshot manmade pond, a thousand bucks for a round of golf, and every person you meet has their nose in the air.”
Strangely enough over a few years , he began to fit right in, and called me one day to show me the $350.00 old US cent he just exitedly purchased for his personal “coin collection”. LOL I laughed my buttinski off with him, as he mentioned what a fine value it was and how it just had to be the most perfect rendition and antiqity of clarity and wholesomeness, otherwise he would dare not even consider it worthy of being in his prescence, let alone his “collection” - something he just took up one day in his waning age. rofl
So, the lesson is, everyone is more than happy to have allof their assets priced sky high, because this gives them ” THE CRED ” that they are truly a big roller, some hotshot just one fancy skip away from playing tennis with the stars.
Hey, your house was worth one third or one half what it was 5 years ago, that just proves your giganticly massive mental acuity in bright shining star purchasing intelligence, far outshining the not so often spoken of humiliating roots from whence you may or may not have come.( of course you didn’t, that’s where the true losers still lie)
So, in the final analysis, no matter how much the whiners complain, they all their own little genius bragging points. The ModMaster of the site has his- Mr SMART and INTELLIGENT beyond anyone’s years invests in ” cash profit turning ” “rentals” outside the state, not stupid enough to have doubled his money in 5 years by buying at the beginning and selling now or shortly before.
For all those who have- too bad! Your idiot investment (err former investment) is on the decline, and won’t turn that monthly income… hahahaha!!! in 30 years he’ll have made what you made in 5 - YOU FOOLS !
Oh, and let’s not forget, that sassy lady and her nice hubby you’re renting to * ahemm!*( err whoever you sold to is renting to ) are about be screwed with “no notice”of evacuation….
LOLOLOL
Yes,the CHARLATANS ARE THICK, THEY’RE EVERYWHERE, and they’re everyone, and not a single one of them is the innocent master investor they all braggingly claim to be. They are all indeed the shotty banker or the dark 6% real estate broker, or the reaping rewards money manager, or the ready to burst bubble crybaby, but rest assured, they are ALL GUILTY, and wether they know it or not, THEY ALL MAKE IT ABUNDANTLY CLEAR.

]]> By: bear cave http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-927 bear cave Wed, 23 May 2007 18:19:00 +0000 http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-927 I tend to think that the broken window of fiduciary duty isn't so much broken from neglect as from intent. In my mind the banking and securities system generally operates to divert funds from the upper middle class and the newly wealthy and into the hands of the established and the very wealthy. Look, e.g., at how eagerly mutual fund managers push those funds with 2% fees--2% off the 8% post-WWII accumulation of the market puts you at 6%, at which point you may as well be using a no-fee internet savings account or hard-money bonds.<br/><br/>With that type of environment going on at the upper echelons, is it any wonder that the home, which is the only investment for so many people (besides the illiquid wealth of the limited-ass 401k plans most employers offer), has taken on the same atmosphere?<br/><br/>In many ways I see the brokers and RE agents as the gatekeepers to the World of Finance--there's a huge fee to pay to play and like the lottery, "you gotta play to win" but when you get in it turns to be less of a "everybody should be rich" casino and more of a abandoned theme park with roaming gangs of robbers.<br/><br/>That said, i think in the past several years America's expectations have gotten totally unrealistic (the casino "everything on black!" meets the "everybody should be rich" mentality) and it will be very, very interesting to see how, when the credit bubble bursts, society reacts when the values it's held for a decade or more get called into question. In particular I'd like to see how young people react--according to recent studies the current youth are the most narcissistic ever, and when dreams of "success" are running headlong into the trainwreck of debt, well, I won't say I didn't say I told you so. I tend to think that the broken window of fiduciary duty isn’t so much broken from neglect as from intent. In my mind the banking and securities system generally operates to divert funds from the upper middle class and the newly wealthy and into the hands of the established and the very wealthy. Look, e.g., at how eagerly mutual fund managers push those funds with 2% fees–2% off the 8% post-WWII accumulation of the market puts you at 6%, at which point you may as well be using a no-fee internet savings account or hard-money bonds.

With that type of environment going on at the upper echelons, is it any wonder that the home, which is the only investment for so many people (besides the illiquid wealth of the limited-ass 401k plans most employers offer), has taken on the same atmosphere?

In many ways I see the brokers and RE agents as the gatekeepers to the World of Finance–there’s a huge fee to pay to play and like the lottery, “you gotta play to win” but when you get in it turns to be less of a “everybody should be rich” casino and more of a abandoned theme park with roaming gangs of robbers.

That said, i think in the past several years America’s expectations have gotten totally unrealistic (the casino “everything on black!” meets the “everybody should be rich” mentality) and it will be very, very interesting to see how, when the credit bubble bursts, society reacts when the values it’s held for a decade or more get called into question. In particular I’d like to see how young people react–according to recent studies the current youth are the most narcissistic ever, and when dreams of “success” are running headlong into the trainwreck of debt, well, I won’t say I didn’t say I told you so.

]]> By: Make Mine A Bubble http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-926 Make Mine A Bubble Wed, 23 May 2007 17:02:00 +0000 http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-926 <i>On a recent survey, 90% of all drivers felt they drive better than average. This is the crux of the fundamental attribution error.</i><br/><br/>The attribution error principle can be applied to the FBers themselves. Most people believe they deserve a lifestyle that is better than average (because no one likes to think of themselves as settling for average).<br/><br/>I think that's how most people got themselves into this mess. They thought, "If J6P can buy a house...and he's average...I DESERVE a nice house, because my family is a cut above."<br/><br/>Even though our "median income" is too low to really afford housing in SoCal - the problem is, those who earn the median income feel they deserve a better lifestyle than their income and realistically afford.<br/><br/>Throw in shoddy lending standards and low interest rates to help them "afford" the lifestyle they REALLY deserve, and a credit bubble is born.<br/><br/>MMAB On a recent survey, 90% of all drivers felt they drive better than average. This is the crux of the fundamental attribution error.

The attribution error principle can be applied to the FBers themselves. Most people believe they deserve a lifestyle that is better than average (because no one likes to think of themselves as settling for average).

I think that’s how most people got themselves into this mess. They thought, “If J6P can buy a house…and he’s average…I DESERVE a nice house, because my family is a cut above.”

Even though our “median income” is too low to really afford housing in SoCal - the problem is, those who earn the median income feel they deserve a better lifestyle than their income and realistically afford.

Throw in shoddy lending standards and low interest rates to help them “afford” the lifestyle they REALLY deserve, and a credit bubble is born.

MMAB

]]> By: Al Brown http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-924 Al Brown Wed, 23 May 2007 02:00:00 +0000 http://www.doctorhousingbubble.com/housing-corruption-and-greed-the-broken-windows-theory-and-fundamental-attribution-error/#comment-924 The major cause of the housing bubble is the federal government. We have a system that enables monied private interests to sway legislation their way. <br/><br/>So government can subsidize bad economics and doesn't crack down on fraud until after the money stops flowing from that fraud. See Savings and Loan crisis, corporate governance scandals during the boom.<br/><br/>We need to align the interests of our individual elected representatives with the actual interests of those they are supposed to be serving. We'll go from crisis to crisis until we fix that disconnect. The major cause of the housing bubble is the federal government. We have a system that enables monied private interests to sway legislation their way.

So government can subsidize bad economics and doesn’t crack down on fraud until after the money stops flowing from that fraud. See Savings and Loan crisis, corporate governance scandals during the boom.

We need to align the interests of our individual elected representatives with the actual interests of those they are supposed to be serving. We’ll go from crisis to crisis until we fix that disconnect.

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