Quote:
Originally Posted by Tim C.
I think the tipping point is coming where housing prices are going to cool off significantly. Likely due to the inflation being caused by reckless deficit spending - the Fed will raise interest rates and POOF, prices on houses are going to settle in a big way. Plus the stock market - overvalued. steep sell-off will likely occur today. I believe a big correction ala 2008 is coming.
And the housing bubble? Reminds me of how things were in 2005 going into 2006. Took more than a decade for my house to be worth what I paid for it. Glad I'm not in that position any longer. Bought into TV before things got really nuts and no intentions of selling.
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Most of that previous bubble was caused by the relaxing of lending standards, to make home loans "more fair", even to those with lousy credit. I know first hand, as a friend of mine was in the "B-Mortgage" business... He nearly lost everything when the crash came, as his company started backing the risky loans themselves...
Fannie and Freddie knew this was coming, but Barney Frank blocked and attempt to reign in the risky loans...
People re-financed, and re-financed, taking "cash" out of the new found equity, and when the bill came due, they walked away...