Pliny Posted April 1, 2011 Report Posted April 1, 2011 Guess I thoroughly "debunked" the investors caused the housing bubble theory. Quote I want to be in the class that ensures the classless society remains classless.
dre Posted April 1, 2011 Report Posted April 1, 2011 Guess I thoroughly "debunked" the investors caused the housing bubble theory. No you didnt. I considered responding to your last post but its so chalked full of innacuracy, and silliness that I decided to not waste my time. Even your own links backed up virtually everything I told you. Even links to stories about many of those same investors are now SUING big sub prime players apparently wasnt enough to convince you that they exist. Those companies were funded by direct investors, mutual funds, hedge funds etc. Some of the companies are realestate trusts, which is nothing more than a shared pool of capital. Your latest post has another great pliny gem in it... your claim that "the bubble started with high interest rates". This again just shows your inability to even the most rudamentary research into the topic. Look at a graph that shows interest rates next to a graph that shows housing prices. Interest rates were just fuel dumped on the fire, they didnt start it. Quote I question things because I am human. And call no one my father who's no closer than a stranger
Pliny Posted April 3, 2011 Report Posted April 3, 2011 No you didnt. I considered responding to your last post but its so chalked full of innacuracy, and silliness that I decided to not waste my time. Even your own links backed up virtually everything I told you. Even links to stories about many of those same investors are now SUING big sub prime players apparently wasnt enough to convince you that they exist. Those companies were funded by direct investors, mutual funds, hedge funds etc. Some of the companies are realestate trusts, which is nothing more than a shared pool of capital. Your latest post has another great pliny gem in it... your claim that "the bubble started with high interest rates". This again just shows your inability to even the most rudamentary research into the topic. Look at a graph that shows interest rates next to a graph that shows housing prices. Interest rates were just fuel dumped on the fire, they didnt start it. I guess you changed your mind and can now waste your time. I outlined the process of mortgage lending. I don't see where I claimed that the bubble started with high interest rates. I did say it started with low interest rates. Since you believe it couldn't start with high interest rates you must realize interests rates have an influence. Low interest rates must occur first. I believe you like to see what you want. Quote I want to be in the class that ensures the classless society remains classless.
maple_leafs182 Posted April 4, 2011 Author Report Posted April 4, 2011 Dre, I am sure countrywide gave out its loans at a competitive rates to the banks. Also, Oil rising to $140 a barrel was largely responsible for the slowdown in the American economy prior to the collapse. Expensive oil was largely responsible for the eventual bursting of the bubble. Quote │ _______ [███STOP███]▄▄▄▄▄▄▄▄▄▄ :::::::--------------Conservatives beleive ▄▅█FUNDING THIS█▅▄▃▂- - - - - --- -- -- -- -------- Liberals lie I██████████████████] ...◥⊙▲⊙▲⊙▲⊙▲⊙'(='.'=)' ⊙
Pliny Posted April 4, 2011 Report Posted April 4, 2011 Dre, I am sure countrywide gave out its loans at a competitive rates to the banks. Also, Oil rising to $140 a barrel was largely responsible for the slowdown in the American economy prior to the collapse. Expensive oil was largely responsible for the eventual bursting of the bubble. I think that people not wanting to borrow a million dollars to live in a hovel was responsible for the collapse. For a few years too many people were making a living buying and selling houses. Quote I want to be in the class that ensures the classless society remains classless.
dre Posted April 4, 2011 Report Posted April 4, 2011 I think that people not wanting to borrow a million dollars to live in a hovel was responsible for the collapse. For a few years too many people were making a living buying and selling houses. For a few years too many people were making a living buying and selling houses. Yes they call those people investors/speculators. An entire industry was formed around the realestate bubble, complete with a host of brand new "flip this house" reality TV shows. I bought/sold more than 1/2 a dozen properties, and changed my principle residence twice. About 40% of the homes traded in the period prior to 2007 were either investment properties, vacation homes, or vacation rentals. Quote I question things because I am human. And call no one my father who's no closer than a stranger
dre Posted April 4, 2011 Report Posted April 4, 2011 Dre, I am sure countrywide gave out its loans at a competitive rates to the banks. Not really. Generally the reason that people go to private lenders is because they dont qualify for financing at a regular bank. When I built the house that Im in right now, my bank turned me down because they will only allow you allocate 33% of your income to debt maintenance. I got my mortgage through a realestate trust (pooled capital fund) quite easily but the interest rate was about 2.5% higher. Also, Oil rising to $140 a barrel was largely responsible for the slowdown in the American economy prior to the collapse. Expensive oil was largely responsible for the eventual bursting of the bubble. Yeah that certainly didnt help... its a good point that hasnt been mentioned yet. Oil prices caused a spike in the prices of just about EVERYTHING... and when you take a person who can barely afford the mortgage payments they have, and suddently the cost of getting to work, heating your home, and buying groceries goes up then youre going to have a cluster of forclosures. Quote I question things because I am human. And call no one my father who's no closer than a stranger
dre Posted April 4, 2011 Report Posted April 4, 2011 I guess you changed your mind and can now waste your time. I outlined the process of mortgage lending. I don't see where I claimed that the bubble started with high interest rates. I did say it started with low interest rates. Since you believe it couldn't start with high interest rates you must realize interests rates have an influence. Low interest rates must occur first. I believe you like to see what you want. I outlined the process of mortgage lending. No, you absolutely did not. You dont even seem to have an elementary understand of the different ways mortgages are funded. I don't see where I claimed that the bubble started with high interest rates. Sorry I meant low interest rates... Thats what you said. But again thats wrong. Housing prices started spiking in 1997 when interest rates were relatively high. Since you believe it couldn't start with high interest rates you must realize interests rates have an influence. How can you even say that with a straight face? Iv said that interest rates played a part in this, a dozen times in this thread alone. Quote I question things because I am human. And call no one my father who's no closer than a stranger
Pliny Posted April 5, 2011 Report Posted April 5, 2011 No, you absolutely did not. You dont even seem to have an elementary understand of the different ways mortgages are funded. Sorry I meant low interest rates... Thats what you said. But again thats wrong. Housing prices started spiking in 1997 when interest rates were relatively high. How can you even say that with a straight face? Iv said that interest rates played a part in this, a dozen times in this thread alone. You're funny! Quote I want to be in the class that ensures the classless society remains classless.
dre Posted April 5, 2011 Report Posted April 5, 2011 You're funny! Not funny at all... three completely true statements. 1. Youre knowledge of the different kinds of lenders and how their mortgages are funded is rather lacking, as evidences by a whole host of eronious statements that you made in this thread. 2. The housing bubble did NOT start with low interest rates as you claimed. 3. Im well aware that the failure of the Fed to raise interest rates until 2006 poured extra fuel on the fire and was a big mistake. There you have it! Glad I could help. Quote I question things because I am human. And call no one my father who's no closer than a stranger
Pliny Posted April 6, 2011 Report Posted April 6, 2011 (edited) Not funny at all... three completely true statements. 1. Youre knowledge of the different kinds of lenders and how their mortgages are funded is rather lacking, as evidences by a whole host of eronious statements that you made in this thread. 2. The housing bubble did NOT start with low interest rates as you claimed. 3. Im well aware that the failure of the Fed to raise interest rates until 2006 poured extra fuel on the fire and was a big mistake. There you have it! Glad I could help. Sorry, I'm looking for answers not bullshit. Thanks anyway. Edited April 6, 2011 by Pliny Quote I want to be in the class that ensures the classless society remains classless.
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