patrick.net

Are you a moron?

We have a huge back log of homes to be foreclosed from the last down turn. We have spend billions of tax dollars to keep them off the market to buoy the housing price. But those properties have to be foreclosed eventually. Remember that the bank was able to hold them off the foreclosed market, because of our tax dollars and 0% FED's overnight interest rate.

Isn't it then natural for the bank to damp those properties now the market has recovered some what? It is a delicate balance. The bank doesn't want to dump all the properties into the market. But by the spring of 2015, you will see the foreclosure market beginning to wane.

At the end of 2015, you will see the real estate market coming back. That is as long as economy in Russia does not implode. Our economy is better, since all the cash we have printed is coming back to US. Korea, China and Japan are dumping more cash into out market. We are in the beginning stage of boom. If you are into the real estate market, you still have a month at the most to make it.

Trust me on this one.

Even if you are not in the real estate market, use this economic boom to earn more, save more and invest more. Cause after the economic boom, there will always be an implosion. That could be as early as 2018 depending on how stupid people would get. Don't quote me on the date. You must carefully look at the market and how crazy people are going to get. Try to time yourself just before the peak to cash everything out. You will be sitting pretty with the cash, while everyone else would be lining up at the food stamps.

Sorry, I do not buy your premise that we are on the verge of an economic boom. If wages were increasing I might tend to believe your thoughts.

inflection point says

Sorry, I do not buy your premise that we are on the verge of an economic boom. If wages were increasing I might tend to believe your thoughts.

Well, unfortunately, the verge means we are about to. I have never said we are in the midst. Not everyone is going to catch this economic boom. You have to be in the right place. But most people will enjoy higher wage and better investment returns. If you don't invest or look for a better paying job, then it will completely miss you.

It is not a premise that our country and the market will be flooded with cash. It is a fact. knowing this, you should figure out what to do yourself. Regardless whether you catch this economic boom or not, one thing is for sure. The down turn which follows will not miss everyone. Prepare. We are too greedy and too stupid to keep good thing going forever.

Bubbabear says

I’m told by my government keepers the economy is booming, jobs are being added by the millions, home prices are rising, and consumers are spending. Then why did foreclosures in the country jump by 6% over the prior year, marking the first increase in 26 months?

They are just playing catch up. Look at new mortgage defaults for a more accurate indicator.