tag:blogger.com,1999:blog-5140004705538204727.post6977691414936844536..comments2023-12-16T04:08:06.419-08:00Comments on Real Estate in the LBC: Is the Cure Worse Than the Disease?el beehttp://www.blogger.com/profile/14187665973956068496noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5140004705538204727.post-44493451308751204722008-10-24T11:57:00.000-07:002008-10-24T11:57:00.000-07:00Anonymous,I think that's their aim too, and it's i...Anonymous,<BR/><BR/>I think that's their aim too, and it's important to recognize they're not (intentionally) trying to ruin this country with deficit spending--they are trying to ensure we come out in one piece the best way they know how. <BR/><BR/>And I would certainly not claim to know more than Hank and Ben in this arena (the jury is still out on Chris Cox). Although it IS strange that Bernanke, as a student of The Great Depression, does not seem to recognize the historical parallels of his rope-pushing actions.<BR/><BR/>I also have noticed that the realtors are popping up again, spouting their "once in a lifetime opportunity" horsecrap now that they see an uptick in sales. And there is some truth to their pitch: interest rates are still very low, prices have come down substantially, and sales are picking up. <BR/><BR/>However, those observations are then manipulated to create that same, tired "buy now or be priced out forever" panic. But the idea that prices are going anywhere but down--let alone suddenly shooting up again--is utterly preposterous. <BR/><BR/>Plus, it's odd how current bagholders fail to notice these so-called "once in a lifetime deals" are still around every month and the deals are only getting sweeter. Think about the bag-holding fools that bought in 2007!<BR/><BR/>I don't have the answers, but I love discussing the issues. Thanks for providing some perspective on the reasons behind the gov's actions.el beehttps://www.blogger.com/profile/14187665973956068496noreply@blogger.comtag:blogger.com,1999:blog-5140004705538204727.post-36778965859152763342008-10-24T11:27:00.000-07:002008-10-24T11:27:00.000-07:00It seems like they (Hank Paulson, Bernanke, et al)...It seems like they (Hank Paulson, Bernanke, et al) are steering from a short sharp decline to a prolonged but less intense deflating. By doing that, they can allow companies to delever over time, without getting into panics that create greater damage than necessary. These companies levered in order to continue to compete with their peers, as much as 40 to 1. It will just be a period of massive deflation, in my anonymous opinion.<BR/><BR/>Of course this extends the duration of the pain, but mitigates the intensity.<BR/><BR/>I'm not saying this is right to do, just that this seems to be what they are aiming for.<BR/><BR/>As for those buying residential now, there's a name for them: <A HREF="http://www.irvinehousingblog.com/blog/comments/i-wanna-be-a-bagholder/" REL="nofollow">bagholders</A>. This way the banks aren't taking the hit for the second leg down, it gets put to those with equity.Anonymousnoreply@blogger.com