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Slightly OT(but slightly not)...Why are people so dumb?


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2011 Jun 11, 4:34am   21,445 views  174 comments

by FuckTheMainstreamMedia   ➕follow (3)   💰tip   ignore  

I am not talking about IQ or intelligence level.

I'm talking about uncaring and unthinking. The people who walk or drive around in a daze....they have the intellectual capacity, but choose not to use it.

The people who buy houses in CA at the moment.

This is actually sort of a serious question. And for it I go back to my grandparents. Immigrated here from Germany in the early 1920's. Both their parents had fought in WWI for the Germans, and they came here because Germany was @^%$^ up. Seriously, my grandfather was starving to death in Berlin. Came here, learned english real quick, finished school up through 8th grade and thats it. Went to work. No advanced education. Not even a serious worker. My grandfather played semi pro baseball and was drafted by the Yankees, but broke his leg on the last game before reporting to the Yankees minor league team. My grandmothers life was unremarkable as well. I'm not even sure when they met.

But they did, saved, went to work really hard jobs during the depression, saved more, bought a house. In 1941 at age 37, my grandfather, with baby on the way, was drafted into WWII. He was a medic under Gen. Stillwell in southeast asia, assigned to assist a Chinese Army unit. At some point along the way, things were a real bloodbath there. I only know that from history, he would never talk about it except to complain about marching over the Burma road a couple times, and saying that they had to stand watch at night more due to the tigers than the japanese.

When he got back, they stayed in the same 2 bed/1ba house, even with a kid. He got a job at a nearby tire factory. They were happy and even though they never had a TON of money to spend, they enjoyed life pretty well. honestly, California seems to have been almost a magical place in the 50's. The picture perfect land of milk and honey.

After years at the tire factory, he became very involved with the union, eventually retiring and going to work for the union full time. At some point in the early 70's, he felt the union was pushing pay too much. He warned that the tire company would move if the union kept trying to negotiate higher salaries. He retired in 1975 in part because of the unions insistence on negotiating higher salaries. The tire factory closed in 1979, and I can't remember if they moved to another state, or overseas, but nearly all their production is now overseas. The location is now the Citadel shopping center in Commerce.

So he retired at 65, enjoyed the last 10 years of his life retired. Never spent a lot...def did not buy stuff he did not need. He did collect stamps, coins, and model trains. He started buying me baseball cards in 1979 when he would pick me up from school once a week. We would go and get an ice cream at Thrifty's and a $0.15 pack of Topps baseball cards. He drove the same car for 10 years before replacing it, took a vacation once a year, spent when it was justified, was frugal most of the rest of the time.

My grandmother was a clerk with the county part time for 30 years.

Despite no real education, they managed all this(with six figures in the bank as well). They used what was known as "common sense". Things they could not figure out for themselves...they took the advice of someone who was brighter. They did things the "tried and true" way. And they never needed, wanted, or pursued extravagance, even when they had actually worked hard and earned it. A night out once a week was an ice cream cone and movie in a more upscale area like Whittier or Downey. Vacation was a tent in Yosemite. A car was a means to transport them somewhere. Pleasure was a glass of fresh squeezed orange juice on the backyard patio.

So whats the point of all this? It's to question how people currently live their lives. Still after all the economic problems of the past 6-7 years, people still INSIST entitlement to material goods. People still stretch to buy the most house they can possibly get a loan for. And people still run around without any regard for common sense.

And so onto my question...Where is the disconnect? How did we go from immigrants who could not speak the language comming here and building a hard scrabble life into the quintissential American Dream....to what we have now days. People who are seemingly incapable of exercising common sense. People who spend nonsensical high 6 and low seven figure amounts on homes and land that in no way shape or form will ultimately sustain a value that high. People who make the largest(by far) purchase of their life on whimsy and emotion USING SOMEONE ELSE'S MONEY(EFF U SUZANNE).

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1   Waitingtobuy   2011 Jun 11, 7:18am  

Dodgerfanjohn, your grandparents sound a lot like mine. My grandfather was orphaned fairly early in life (father died in an industrial accident, his mother abandoned him and his brother at an orphanage because she couldnt cope with being a single mother). He was drafted in to the Army during WWI and was heading on a train to the East Coast to go to the war when the Germans surrendered. Both he and my grandmother struggled through the Depression, not knowing where their next meal was coming from, even though he was a door to door salesman.

When my father gave him a tour of his new house in 1977, which he purchased for $64K with an 80% loan, my grandfather took him aside, and grilled him on where he got the cash since he worked for a non-profit. My dad told him he took out a loan and my grandfather nearly lost it. (my grandparents rent in the late 40s was $48/month).

Im about to purchase an $800K house in the next week. We are using the equity from our last place sold in 2008 (which doubled from 1999). Still have a mortgage of more than $600K. Trust me, coming from the Midwest, Im still astounded that Im paying what Im paying. (my parents paid $11,000 for their first house in 1963! They made $500 when they sold four years later and thought they made a killing).

Im pretty conservative fiscally. I save lots of money, have no debt, and contribute almost $50K to my retirement every year. I also am half way to saving for my kids' college fund, even though the first one is 10 years away.

Like you, Im concerned that housing prices will drop more than they have. However, Im paying less than my current rent from the past 4 years, and my interest rate is under 5%, which means I can buy an $800K home for the same monthly payment as someone buying a $600K place in 1999 at 8%. My new home should retain its value as it has an ocean rooftop deck, is in a safe beach community with excellent schools, and it is on a nice street. In the unlikely event it drops a lot in value, I have some comfort knowing I might lose some down payment, but my monthly payment allows me to rent the place out until values catch back up.

My point is I was brought up like you, to respect money. However, I make a lot more money than my parents or grandparents ever did. I keep 4 years of liquid savings in the bank in case my business goes under. Contrast this with my parents and grandparents, who pretty much lived hand to mouth. The opportunities to earn decent money has widened for some, and narrowed for others. My grandparents never attended college, my father got his BA, and I earned an MBA. My grandparents never went on an airplane. I frequently travel internationally and have seen lots of the world. The world has changed.

Everybody's situation is different. There are plenty of people out there with no savings, living hand to mouth, who could lose their job tomorrow and be in serious trouble. Then there are others who have thought all this through and can stomach the large amount of money that it takes to live in So Cal these days.

2   IT Guru   2011 Jun 11, 12:55pm  

Why all this commentary on saving and living a simple life? Money makes all the rules in this life. You better get used to it.

3   IT Guru   2011 Jun 11, 12:58pm  

Yes you have money in the bank and die without spending it. For what?

4   ih8alameda   2011 Jun 11, 2:30pm  

Unfortunately it's the American dream, entitlement. It's not about hard work, it's about being lazy, getting fat, and feeling like you deserve the world because you are American!

The really f'd up part about all that is the rest of us who try to be fiscally responsible just end up getting screwed and responsible for the other people's mistakes. Really makes you want to get a FHA loan and the default and live rent free for a couple years...I actually don't know why the hell I don't.

5   bubblesitter   2011 Jun 11, 2:40pm  

IT Guru says

money in the bank and die

...or spend all your life giving money to bank and die?

6   bubblesitter   2011 Jun 11, 2:44pm  

ih8alameda says

American dream, entitlement

I like that dream, sit on the couch - work your fingertips hard on the calculator and keep counting the equity. LOL.

7   anonymous   2011 Jun 11, 3:54pm  

dodgerfanjohn says

People still stretch to buy the most house they can possibly get a loan for

There isn't much stretching going on. The banks aren't lending to unworthy borrowers. It's very strict now unlike 6 years ago. If the bank only gets a whiff of you stretching then no loan.

dodgerfanjohn says

land that in no way shape or form will ultimately sustain a value that high

How do you know that? Are you a fortune teller? If you are so certain and its just common sense that real estate value's will go down a lot further then you should invest accordingly in the stockmarket. Short Real estate. You should become filthy rich. Talk is cheap.

There are area's in CA where you can buy a newly build 3000sqft home for $175k. That's more than half of what it would actually cost to build (permits+labor+material)...its common sense that those area's won't go much further. They may stay at these levels but sinking significantly lower? How do you reason your claims?

Compare American real estate to real estate in germany for example. Compare apples to apples so a house slightly outside munich with a house in Encino or West Hills.
You'll be shocked! Look at real estate in Australia. You will be shocked.

8   FuckTheMainstreamMedia   2011 Jun 11, 5:43pm  

SubOink says

ompare American real estate to real estate in germany for example. Compare apples to apples so a house slightly outside munich with a house in Encino or West Hills.
You’ll be shocked! Look at real estate in Australia. You will be shocked

I'm pretty sure that you didn't actually answer the question I posed, but at the same time you did.

9   IT Guru   2011 Jun 11, 11:14pm  

What I mean to say is, I want to die with nothing in my pockets after having a great life enjoying the limited time afforded me. So many on these forums write about how much they have in the bank or in investments. They wake up looking at the balances and pinch every penny. I rent a small apartment, drive a beater, and save 1000 bucks for any emergency. I blow all the rest enjoying myself and on others. By the way I make a six figure salary and have zip in 401k or stocks or banks. They are all setup to take from us.

10   NYDreamin   2011 Jun 11, 11:25pm  

I grew up in the Bay Area. The historic answer for why people bought in Cali even at those stupid prices was simple. For many decades Cali real estate offered otherwise ordinary people with few prospects a "solid" chance to get rich easily, without doing the hard work of getting educated in personal finance, being frugal, or having the patience of actually doing intelligent investing over the long term. And, the folks who invested in Cali real estate or the lucky ones who bought way before the bubble, and got out in time, have made quite a killing - I know several. It's the inexperienced young people or the greedy dopes who got caught up in the 00's bubble that got burned.

Having said this, I think that even now, in some parts of Cali, a smart investor with good negotiating skills and patience (10 year horizon) could actually do well. But not yet in the SF Bay area where I grew up. Chances will even get better over the next year or two as prices continue to drop.

Oh, by the way, I did do the "get rich slow" method, and am rich by most measures - but not by buying Cali real estate and it took 25 years to do it.

11   Hysteresis   2011 Jun 12, 12:09am  

IT Guru says

What I mean to say is, I want to die with nothing in my pockets after having a great life enjoying the limited time afforded me. So many on these forums write about how much they have in the bank or in investments. They wake up looking at the balances and pinch every penny. I rent a small apartment, drive a beater, and save 1000 bucks for any emergency. I blow all the rest enjoying myself and on others. By the way I make a six figure salary and have zip in 401k or stocks or banks. They are all setup to take from us.

awesome.

enjoy eating cat food when you retire. and no i won't share any of mine with you.
when you are older and have health bills that you can't pay, i hope you enjoy your substandard health care.

the people i know that spend all their money seem to be the least happy.

they equate spending with happiness and aren't happy unless they are spending. the problem with that is you always want to spend more; so your level of happiness is dictated by how much you make (and it's never enough).

the happiest people i know, are the ones that have figured out how to be happy, they figured out what makes their lives fulfilling - some of these things cost money, but a lot of them don't.

12   Norbecker   2011 Jun 12, 12:14am  

I would have to put some of the blame on lawyers. Yes lawyers. Oh you spilled hot coffee on yourself while driving - not your fault the coffee was too hot. I'll get you millions. Oh you slipped and fell in a store - not your fault. I'll get you big $$$. Got fired from your job....not your fault. Sue and get $$$$$. People have somehow got the belief that they are NOT responsible for their situation and that they are entitled to everything they want. We have become a nation of irresponsible, dumb asses who believe they are owed a certain lifestyle and someone else should provide it for them.....NOW. Not after years of working for anything but right now. Somehow this has become the cultural norm. Makes me sick.

13   Done!   2011 Jun 12, 12:35am  

Translation, I can't afford to buy in California at the Moment, so every one else is either Richer than I, or Dumber than I. I'm going with the later.

Move to where the food is.

14   edvard2   2011 Jun 12, 1:06am  

I wouldn't attach this to California. People being "dumb"-as in stretching- is universal across the country. I know my fair share of people who bought HUGE mcmansions in NC during the bubble.

My take on the "greatest generation" and today's is that we as a generation were raised by the children of that generation. Back then it was more or less expected that if you had a job that paid halfway decently you could also afford a decent house and live a normal-if not somewhat boring , mundane life. In other words stability. This mentality was hammered into their children: Their parents lived the American Dream and so too would they, which many of them did for decades.

Enter modern times and that is no longer the case. There is very little stability in both the economy and the job market. Any and all jobs can be shifted to wherever at the drop of a hat. whatever benevolence companies once had for their employees is long-gone. US corporations are now multi-national conglomerates and their profits are no longer heavily tied to the US consumer. Buying a home today is more a liability than it was 30 years ago.

In other words the average American has an out of date attitude in regards to the "American Dream" basically because it doesn't exist and the idealized, romanticized notion of buying a home and living a mundane-yet comfortable and stable existence for decades is antiquated.

Secondly, while there has always been investing in real estate, I can't help but feel that there is a very strong attachment to the idea of buying houses for mere investment potential. Not sure why because anyone that took econ 101 will show you that stocks beat the crap out of RE all day long. Yet because its a cozy idea to buy a house and squeeze money out of it this has become a prevalent thing. It has tuned houses into this sacred thing versus just a place to live. That sort of mentality needs to go if we're to even come close to returning to a semi-normal RE market.

15   Nobody   2011 Jun 12, 1:12am  

It Guru,

You sound like someone who doesn't have a family.

I guess you will never experience the joy of making and
raising your kids. Sure it is hard work. But the point
is that when you have family, you will want to leave
some and not spend it all in a blaze of glory.

16   Hysteresis   2011 Jun 12, 1:24am  

edvard2 says

Not sure why because anyone that took econ 101 will show you that stocks beat the crap out of RE all day long.

it's hilarious people think a house, that does nothing but provide shelter, could compete with an international conglomerate like General Electric which produces medical equipment, turbine engines, the next generation of power generation equipment as well as light bulbs.

do they own shares of GE?
of course not because the sheeple think their house, which provides shelter; similar to a cardboard box or a van down by the river, is a better investment.
it's mind boggling.

17   Hysteresis   2011 Jun 12, 1:33am  

owning a house in the bay area is similar to buying a mid-level luxury sports car like a porsche 911.

you're paying a heavy premium to upgrade to nicer accommodations when you buy a home. it carries more cachet than renting. but it's ultimately not necessary, an indulgence. they both do the same job, but one with more style. similar to a porsche, the premium paid for a home is for the style (in this case the home owner's lifestyle).

renting is a toyota corolla. it's the financially responsible decision, it gets the job done, but won't impress the neighbors. it has no style and thus the cheaper alternative.

18   anonymous   2011 Jun 12, 2:16am  

dunnross says

Affordability will be high when a median income can buy a median house and pay it off in 5 years or less.

...and when rents are so low that a cashier can rent a 5000sqft home. Wouldn't that be great? We'd all live like Puff Daddy.

Keep dreaming...

19   nepiqen   2011 Jun 12, 2:22am  

Haven't commented in a while, but MPIBTYP prompted me to agree about real investment vs. home buying... markets are markets and all markets (including housing) can make you money if you're smart, but in housing you make money (from capital gain) because other people are stupid. If the housing market were really efficient, then there would be no gain beyond inflation, since the intrinsic value of housing doesn't really increase.

Actual investment generates capital gain through the genuine creation of wealth - information, technology, or whatever, that makes something more efficient.

Blather on all you like about collecting rent - in an efficient market this won't grow much faster than inflation either. It'll go up or down with standard of living of your renters. Generally it seems like the landlord housing bulls here are not exactly slum lords, but they are not Donald Trump, either. Unless your renters are getting good capital gains, your collected rent won't go up much faster than wage inflation.

Unless, of course, you're screwing stupid people...

In the long view, how can collecting rent be as good (per unit capital invested) as stocks? Where do the landlord housing bulls think real wealth comes from???

20   anonymous   2011 Jun 12, 2:41am  

IT Guru says

I rent a small apartment, drive a beater, and save 1000 bucks for any emergency.

Sounds like a fantastic life :)

21   B.A.C.A.H.   2011 Jun 12, 2:43am  

NYDreamin says

The historic answer for why people bought in Cali even at those stupid prices was simple. For many decades Cali real estate offered otherwise ordinary people with few prospects a “solid” chance to get rich

"Historic", but not "current". In these parts, it is a cultural hangover of gao kao or whatever they call it, genuflection the API of the public K-12 schools in those neighborhoods.

22   anonymous   2011 Jun 12, 3:34am  

dodgerfanjohn says

Things like paying $750K for a house that rents for $2600/mo

Except, you get your numbers wrong. I bought a house for $550k that rents for $2850.- in one of the nicest neighborhoods that LA has to offer (agoura hills) with fantastic schools.

I guess I am just a bad and stupid person...

I should have stayed in the small, beat up shitbox we rented for 5 years for $2600.- and make my previous landlord richer. After all, that's what smart people do. It's common sense, right?

23   FuckTheMainstreamMedia   2011 Jun 12, 3:42am  

SubOink says

dodgerfanjohn says

Things like paying $750K for a house that rents for $2600/mo

Except, you get your numbers wrong. I bought a house for $550k that rents for $2850.- in one of the nicest neighborhoods that LA has to offer (agoura hills) with fantastic schools.
I guess I am just a bad and stupid person…
I should have stayed in the small, beat up shitbox we rented for 5 years for $2600.- and make my previous landlord richer. After all, that’s what smart people do. It’s common sense, right?

Your anecdote does not refute the portion of my post that you quoted.

24   anonymous   2011 Jun 12, 4:04am  

dunnross says

people will continue to spend 50% of their take home on housin

nobody spends 50% of their money on housing because the bank WILL NOT give you a loan for that scenario. Period!

You guys have to move past what happened in 2006...things have changed. Prices have come down. Lending standards are strict.

dodgerfanjohn says

Your anecdote does not refute the portion of my post that you quoted.

I am giving you my personal real world example because your numbers are on 2006 levels and not accurate. You call people that buy right now stupid based on false calculations.

When rents are in line (and higher) than purchasing then I consider people that buy - smart.

Those smart people have waited out a massive crash, saved 20% for downpayment, have their taxes well documented, no debt, excellent credit and are now buying.

But I am sure all that sounds stupid to you.

25   dunnross   2011 Jun 12, 5:01am  

SubOink says

Comments: 242
Los Angeles, CA
Sun, 12 Jun 2011 at 11:04 am Link Top Bottom Quote Email Flag

dunnross says

people will continue to spend 50% of their take home on housin

nobody spends 50% of their money on housing because the bank WILL NOT give you a loan for that scenario. Period!

You guys have to move past what happened in 2006…things have changed. Prices have come down. Lending standards are strict.

Are you sure? What about all those people in the Fortress, who bought in 2000-2006. I know how much everyone at my work is making, and about 80% bought in the fortress during this period.

26   anonymous   2011 Jun 12, 5:17am  

dunnross says

Are you sure? What about all those people in the Fortress, who bought in 2000-2006. I know how much everyone at my work is making, and about 80% bought in the fortress during this period.

Am I sure about what? That nobody that buys in 2011 is spending 50% on their income on housing?...Yes, I am sure because you cannot get a loan for that.

If you don't believe me...walk into Wells Fargo on monday. Tell them you make $100k and want to see what you qualify for. You'll be surprised. Because its not a lot. And if you have car payments and other debts its even less.
Which is great in my opinion. How it should be.

No point dragging on a conversation about idiots who lied about their income and got themselves into trouble (and the rest of us too) by buying houses that they should have never bought.

27   B.A.C.A.H.   2011 Jun 12, 5:39am  

dunnross says

about 80% bought in the fortress during this period.

dunross, I think 80% of homeowners in The Fortress have owned their homes for a whole lot longer than you say. It is one reason they can afford to stay there, with Prop-13 and all. It's also a reason that in some Fortress places like Cupertino, based on Prop-13 assessments the schools are not always so flush with operating cash.

28   klarek   2011 Jun 12, 5:59am  

SubOink says

If you don’t believe me…walk into Wells Fargo on monday. Tell them you make $100k and want to see what you qualify for. You’ll be surprised. Because its not a lot.

It's over $450k. That's a lot. Are you saying it's not much because he could have gotten a $1m loan five years ago? Well, so fucking what, those times were plain insanity. To get a loan at even 4x your salary is dangerous.

SubOink says

You guys have to move past what happened in 2006…things have changed. Prices have come down. Lending standards are strict.

In SubOink's universe, reality is pegged at 2006. Have to prove your income? Lending standards are strict. Prices have come down? Then it must be a good purchase.

Would it hurt you to compare things to a more sane time in history, like ten or fifteen years ago? Making a comparison to a time when the lending industry was tripping balls is such a worthless point.

29   klarek   2011 Jun 12, 6:04am  

SubOink says

When rents are in line (and higher) than purchasing then I consider people that buy - smart.

They're not higher where you live.

http://www.deptofnumbers.com/affordability/california/los-angeles/

30   klarek   2011 Jun 12, 6:10am  

SubOink says

Except, you get your numbers wrong. I bought a house for $550k that rents for $2850.- in one of the nicest neighborhoods that LA has to offer (agoura hills) with fantastic schools.

I guess I am just a bad and stupid person…

I should have stayed in the small, beat up shitbox we rented for 5 years for $2600.- and make my previous landlord richer. After all, that’s what smart people do. It’s common sense, right?

1. You're saying that your house can rent for close to what you were paying to live in a shitbox. Beyond my disbelief in what you're saying, why wouldn't you have rented the equivalent of what you currently own all those years rather than the shitbox?

2. You're not breaking even at that price, for that equivalent rental amount.

3. You need help with math.

31   anonymous   2011 Jun 12, 6:17am  

klarek says

3. You need help with math.

Definitely! But not from you :)

32   anonymous   2011 Jun 12, 6:19am  

klarek says

SubOink says

When rents are in line (and higher) than purchasing then I consider people that buy - smart.

They’re not higher where you live.

http://www.deptofnumbers.com/affordability/california/los-angeles/

I know what everyone is paying in rent here around the block and I know what I am paying in mortgage. Very easy but thanks for pointing me to a website with a hundreds graphs and statistics that somehow supposed to prove something.

33   anonymous   2011 Jun 12, 6:25am  

klarek says

SubOink says

You guys have to move past what happened in 2006…things have changed. Prices have come down. Lending standards are strict.

In SubOink’s universe, reality is pegged at 2006.

As a matter of fact, it seems that you and the patrick.net clan are the one that are stuck in 2006. That's why every other post is about how insane it is when you spend 50% of your income on a house...bla bla bla...

I know that lending standards are strict because I just went thru it and experienced it first hand. Did you? What do you know? Other than reading patrick.net and doom and gloom statistics.

34   B.A.C.A.H.   2011 Jun 12, 6:32am  

SubOink says

it seems that you and the patrick.net clan are the one that are stuck in 2006. That’s why every other post is about how insane it is when you spend 50% of your income on a house

That is because they are still bellyaching that they would have to do so in 2011 to buy in "The Fortress": and they are not open to buying outside The Fortress Walls.

My partner and I live outside the walls, it can be quite nice out here. Less pretentious, too. No need to keep up with the Joneses or the Chens or whatever.

And the kids don't have a that impractical peer-pressure-induced Sense of Entitlement.

Tiger Moms don't fret so much about keeping their Face in their social circle pecking order regarding how elite of a college their kids go off to... because already lost their faces a long time ago by not being a HomeOwner inside The Fortress walls. Getting that trauma behind oneself can be Liberating.

35   FuckTheMainstreamMedia   2011 Jun 12, 6:37am  

ROTFLMAO.

Putting bulls on the defensive FTMFW.

36   FortWayne   2011 Jun 12, 7:07am  

ih8alameda says

Unfortunately it’s the American dream, entitlement. It’s not about hard work, it’s about being lazy, getting fat, and feeling like you deserve the world because you are American!
The really f’d up part about all that is the rest of us who try to be fiscally responsible just end up getting screwed and responsible for the other people’s mistakes. Really makes you want to get a FHA loan and the default and live rent free for a couple years…I actually don’t know why the hell I don’t.

Thats how I see our nation turning out to be as well. It was always about hard work and saving. Life was cheap back then too because of that. Today exact opposite, so many just want to sit on handouts crying that government needs to bail out their sorry asses because they are special.

Maybe we have been too comfortable as a nation for too long, without realizing that it was a lot of hard work that brought us to this level of success. Add government corruption, union thugs and fraud thats perpetuated all through every sector that government touches and this is where we are today.

I remember when conservative thinking has saved this nation from collapse, today that hope is bleak. Too many conflate conservatism with right wing extremes.

37   FortWayne   2011 Jun 12, 7:10am  

SubOink says

I know that lending standards are strict because I just went thru it and experienced it first hand. Did you? What do you know? Other than reading patrick.net and doom and gloom statistics.

you can still put down 3% and qualify for the loan having low income and stretching once liabilities. Plenty of brokers in Glendale are doing just that today.

But you can ignore all the fundamentals and reality and tell yourself that you are "winning" because you spent all your money buying. Whatever makes you feel better.

38   anonymous   2011 Jun 12, 7:42am  

ChrisLA says

you can still put down 3% and qualify for the loan having low income and stretching once liabilities. Plenty of brokers in Glendale are doing just that today.

That's what they say but in reality you won't be able to buy a decent house because you will be competing against a 20% straight ahead loan guy OR a cash offer and lose every time.

Nice Try Chris.

39   klarek   2011 Jun 12, 8:22am  

SubOink says

klarek says

3. You need help with math.

Definitely! But not from you )

Just as well. Haven't needed to teach basic arithmetic to anybody since I was a teenager, so you could probably find better tutoring.

SubOink says

I know what everyone is paying in rent here around the block and I know what I am paying in mortgage. Very easy but thanks for pointing me to a website with a hundreds graphs and statistics that somehow supposed to prove something.

That page only had six graphs. What you call "statistics" are really just metrics. Not that I expected you to know the difference.

But sure, I'll take your word for it that rent is cheaper than owning in your area, even though your own math is showing otherwise.

SubOink says

As a matter of fact, it seems that you and the patrick.net clan are the one that are stuck in 2006. That’s why every other post is about how insane it is when you spend 50% of your income on a house…bla bla bla…

Well when the govt tries to implement quasi-bubble measures for "softening" the crash (thereby duping dumb people into believing the crash is over therefore buying), it's important to juxtapose their stupidity to what happened up through the bubble. We're using the bubble as a yardstick of stupidity. You're using it as a yardstick of normality.

SubOink says

I know that lending standards are strict because I just went thru it and experienced it first hand. Did you? What do you know? Other than reading patrick.net and doom and gloom statistics.

I know what it was like to get a loan ten years ago, five years ago, and today (I've been approved twice in the past eight months). So I have three points to compare. What do you have? Tell me.

40   bubblesitter   2011 Jun 12, 8:25am  

Prices will keep going down YOY for few years. Period.

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