Comments on: Real Homes of Genius Special Edition: Take 6 - 6 Southern California Counties, 6 Real Homes of Genius. Going Back to 1984 Prices?

By: JWC

JWC — Fri, 25 Apr 2008 14:31:18 +0000

Spot on Again Doc. Please find time in your schedule to do the same kind of an analysis in NorCal. I think your readers in NorCal would really receive an eye opener and it would be good for the SoCal folks who read to get a look at the situation up here.

Uh-Oh? I here a flushing vortex in the distance…….prices are headed down the honey bucket.

By: Roger

Roger — Fri, 25 Apr 2008 14:08:13 +0000

Apparently at least some in the business community are seeing the potential depth of the problem.

Credit Suisse Analysts Forecast 6.5 Million Foreclosures.

http://seekingalpha.com/article/73814-6-5-million-foreclosures-is-there-a-behavioral-problem?source=yahoo

I still can’t understand the concept of buying a house that costs 0X or even 15X your annual income as some do in the real estate hot spots. I’ve never been above 1X and I don’t know a single person who bought above 2x their annual income. And we still are seeing soaring foreclosures in Wisconsin.

By: Jes

Jes — Thu, 24 Apr 2008 17:30:27 +0000

Anybody hear anything yet about his little tidbit: “Ambac expects losses of 81.8% of underlying collateral”
All these foreclosures mean that everyone who invested in mortgage-backed securities is hurting. Ambac has MASSIVE losses on its mortgage-backed securites. Ambac guarantees over $1 trillion in securities. The danger is that if they lose their AAA rating (as they obviously should) no one knows what will happen to that market. I don’t give a damn about AMBAC in particular, but I sure wonder what their collapse means.
Dominos falling.

By: gael

gael — Thu, 24 Apr 2008 17:14:41 +0000

What do you guys think of this article blaming our current economic woes on criminals?

http://www.cnn.com/2008/CRIME/04/23/organized.crime.threats/index.html

By: Steve

Steve — Thu, 24 Apr 2008 14:14:14 +0000

@covered..

Agree on all points. Been reading the Dr’s blog fro a few months now and glad we found it. For the last few years I’d been thinking that I am missing something or was plain stupid. How could it be that the people around me, most of whom make far less, were buying large homes, new cars etc? It just did not make sense. Guess I had assumed that they were smarter than they really are. No one would buy an 800k home on a 70k salary unless they could really afford it, right? I had just assumed they were trading up and putting massive downs on the new homes. Whoops!