patrick.net

And HARM I only pay 42% of my take home on rent. ahahahahhahahahahha,.

But hey, that still leaves 58% unaccounted for. Shit, see, rents are skyrocketing, I can afford to pay another 58%.

But hey, that still leaves 58% unaccounted for. Shit, see, rents are skyrocketing, I can afford to pay another 58%.

How many FBs spend more than 200% of their take-home pay on PITI?

only pay 42% of my take home on rent

Perhaps you could evict the pets (non-paying tenants) and sublet that "bonus room" in the back to an H1-B worker? That's putting your rental to work for you. :-)

Perhaps you could evict the pets (non-paying tenants) and sublet that “bonus room” in the back to an H1-B worker? That’s putting your rental to work for you.

Dude, I am so ahead of the curve, we have an Indian family living there right now! I charged them $2500/month, and get this, NO BATHROOM! It's ok with the exception of the constant curry smell.

We should not be too hard on the mortgage/real-estate industry. They should not be blamed. They simply supply what is demanded.

The housing bubble should not become a blame game. It is a natural product of human greed and fear. We are merely observers.

"We should not be too hard on the mortgage/real-estate industry. They should not be blamed. They simply supply what is demanded."

Hardly. If mortgage brokers scrutinized borrowers for creditworthiness and fully informed the borrowers of the risks of being upside down or a rising interest environment, then there would be less demand.

If mortgage brokers scrutinized borrowers for creditworthiness and fully informed the borrowers of the risks of being upside down or a rising interest environment, then there would be less demand.

If buyers evaluated the true affordability of housing and did homework about the risks of future price/rate movement, then there would be less supply.

Absolutely… Or write mortgages to people who clearly don’t make enough money to pay them. I am suprised that “No-Doc” mortgages are even marketable to the MBS market. Even realtors refer to them as “Liar Loans” to their clients.

This is just a case of people with more information exploiting those with less information. Is it wrong?

I am not an apologist for anyone.

We should not be too hard on the mortgage/real-estate industry. They should not be blamed. They simply supply what is demanded.

The housing bubble should not become a blame game. It is a natural product of human greed and fear. We are merely observers.

Sorry, Peter P, but I cannot adopt such a fatalistic, laissez-faire attitude to the largest credit/asset bubble of our generation, and probably the largest of multiple generations.

This bubble was no accident. It was ENGINEERED by short-sighted greedy politicians and the special interests who own them lock stock 'n barrel. There was nothing INEVITABLE about it. It could have been prevented --or at least mitigated-- at multiple turning points.

--In 1997, Congress & Pres. Clinton could have said "no" to the 24-month RE capital gains-exemption club.
--They could have kept the exemption restricted only to one's primary/occupied residence and left it as "one-time" in your life only.
--They could have left the 1031 exchange "as is" (difficult to qualify for).
--In 2000, the Fed could have left rates where they were (or at least not slashed them as low as they did for as long as they did).
--The Fed could also have set lender minimum reserve and loan qualifying guidelines to prevent neg-ams and 100% financed I/Os from becoming the new lending paradigm.
--The GSEs could have been fully privatized and de-coupled from taxpayer "implicit bailout guarantee". Or, at the very least, their portfolios could have been greatly reduced/restricted from current mammoth proportions.
--Local government (and idiot voters) could have rejected NIMBY/NURB/SMUG anti-supply measures and tougher immigration policies decades ago. Instead we get rent "control" laws, "just cause we can" developer fees in excess of $100K per housing unit and Prop. 13.

"This is just a case of people with more information exploiting those with less information. Is it wrong?"

Yeah, that's why there are laws requiring informed consent and laws that explicitly forbids too much leveraging.

Arbitraging with previously undiscovered information is one thing, but willful concealment or misrepresentation of information is fraud.

insert: "demanded" before "tougher immigration policies" above

I just love the "rent thru the roof" fear mongering as the FB realize that they can't flip and run with 200K. The beautiful part is when these chumps try to rent their $hitboxes out for their monthly nut.

Here's a tip, when renting a house check the address in Zillow, if bought less than two years ago, pass. The owner of my pathetic rental bought it in '76, don't think he's in any hurry to jack the rent.

This bubble was no accident. It was ENGINEERED by short-sighted greedy politicians and the special interests who own them lock stock ‘n barrel. There was nothing INEVITABLE about it. It could have been prevented –or at least mitigated– at multiple turning points.

It is preventable only if people (buyers, lenders, politicians) can overlook their self-interests at least for a moment.

I am actually very depressed over human greed. :(

@Peter P,

Ok you got me. Maybe it was inevitable after all. ;-)

Peter P, regarding the blog party, we might be having fish, any chance of having you eat with you hands tied behind your back using only a pair of chop sticks in you mouth?

:)

[rant on]

Attention fellow homo sapiens:

Stop being so damned greedy, selfish, ignorant, fearful, lazy, self-indulgent, horny, myopic, arrogant, intolerant, fanatical and tribal/cliquish. Stop accepting what the MSM and so-called industry "experts" tell you at face value and go do some cursory research before you make the largest financial commitment (and possibly mistake) of your entire life. And --most importantly-- stop expecting the government to bail out your stupid ass for your own bad decisions.

Attention Boomers & SilentGens (nice Un-Boomers excluded):

Stop expecting the world to perpetually reward you for having been born during an unprecedented period of technological progress and prosperity. Face it: you were born "lucky". This was not due to your "superior" genes, or divine intervention --it's luck plain and simple. Stop expecting the rest of the world top carry your lazy f@cking ass to your (richly appointed) grave in the style to which you've become accustomed. No, I do NOT care to pay my taxes PLUS yours AND your maid/nanny/gardener's AND finance your early retirement as well, while I eat top ramen and share a room with 9 day-laborers.

[/end rant]

Peter P, regarding the blog party, we might be having fish, any chance of having you eat with you hands tied behind your back using only a pair of chop sticks in you mouth?

Huh?

Wow! This thread really got going today after coming to a stall in the middle yesterday. I thought it was done when we were talking about the yen, $, cents, pounds, etc..

I thought it was done when we were talking about the yen, $, cents, pounds, etc..

Please feel free to start new threads whenever the old one is going nowhere.

This blog has lengthy threads on "huh?" and knives. So just about anything is possible

I do want to bring the recent discussions about Pluto and Xena into the mix. Will Pluto's demotion from planet status rescue (or doom) the housing bubble?

I do want to bring the recent discussions about Pluto and Xena into the mix. Will Pluto’s demotion from planet status rescue (or doom) the housing bubble?

Pluto is very important. It gives a lot of insight regarding generational movements. I do not care what astronomers say about it.

Sun and moon can be considered planets of Earth as well. It is a matter of perspective.

Sun and moon can be considered planets of Earth as well. It is a matter of perspective.

I thought they hung that Italian dude, what's his name, Cornholius for suggest just that.

Minimum wage in California got raised. Brace for inflation!

Any form of rent control or condo conversion regulation will only make future bubbles worse. A renter's union is not the answer.

There needs to be a formidable force against NIMBYists and anti-growth activists though. I think national builders can be that force in the future and they ought to be our friends.

Inflation - "Can you imagine, when a six pack of Budweiser costs 1,200 dollars?" - Vince Ricardo a/k/a Peter Falk in the IN-LAWS 1979. "Jees, that would be terrible" - Sheldon S. Kornpett, D.D.S. a/k/a Alan Arkin.

Sun and moon can be considered planets of Earth as well. It is a matter of perspective.

By what definition is the sun a "planet"? At best one might claim the Sun is a sibling of an incomplete binary system with Jupiter; but even that's a stretch.

By what definition is the sun a “planet”?

Sun revolves around Earth in relative terms. Since we are here on Earth, it is not unreasonable to see this as the center of the universe.

"Sun revolves around Earth in relative terms. Since we are here on Earth, it is not unreasonable to see this as the center of the universe."

But so does every other star. What makes the sun a planet and not a star?

Also, anyone here think the Earth is flat and all this talk of roundness is a conspiracy amongst cartographers and airline pilots?

And then there's all this gravity and electromagnetic fields non-sense. All our "electronic" devices are obvious run by magical invisible elves and powered by tiny hamsters on hamster wheels.

Sun revolves around Earth in relative terms. Since we are here on Earth, it is not unreasonable to see this as the center of the universe.

How does that change the gravitational interaction of the system? The fact still exists that the Earth and the 8-11 others, along with a whole lot of debris, are satellites subject to the sun, not vice versa.

And then there’s all this gravity and electromagnetic fields non-sense. All our “electronic” devices are obvious run by magical invisible elves and powered by tiny hamsters on hamster wheels.

I was arguing with my sister-in-law last week at dinner. She insists that humans "already have all diseases", and it is only a depressed constitution that allows them to get the best of you. I asked her if she had Ebola and Bird Flu, to which she just got annoyed at my lack of ability to "understand the obvious".

How does that change the gravitational interaction of the system? The fact still exists that the Earth and the 8-11 others, along with a whole lot of debris, are satellites subject to the sun, not vice versa.

You are thinking too much. :)

Don't you think it is better to see thing as they are presented to us? If Pluto are demoted, I suggest that we demote Uranus and Neptune as well because they are not visible to the naked eye.

Why don't we just go back to the "classic" system of personal and transpersonal planets: Mercury, Venus, Mars, Jupiter, and Saturn.

And then there’s all this gravity and electromagnetic fields non-sense. All our “electronic” devices are obvious run by magical invisible elves and powered by tiny hamsters on hamster wheels.

There are energy fields out there that Science is not capable of explaining. Science and technology are good, practical branches of knowledge. However, we should not be unnecessarily restricted by so-called scientific methods.

I'm not sure we can see the "classic" system anymore, since there's so much light pollution everywhere.

I’m not sure we can see the “classic” system anymore, since there’s so much light pollution everywhere.

True. :(

However, we should not be unnecessarily restricted by so-called scientific methods.

What other methods do you propose and how may I verify their accuracy or falsify their merit?

Don’t you think it is better to see thing as they are presented to us?

People dying of Bubonic Plague stunk, so I guess that filling their pockets with posies was a better approach than modern antibiotics, eh?

how may I verify their accuracy or falsify their merit?

That would be too scientific. :)