Techcrunch: The Current Economic Crisis

[sultan_emerr]

TechCrunch: = The Current Economic Crisis =

http://www.techcrunch.com/2008/09/26/the-u...conomic-crisis/

Edited September 30, 2008 by sultan_emerr

[Besttechie]

Read this the other day, definitely interesting.

B

[irregularjoe]

Not only were mortages made at 100% ; No Down Payment, a lot of them especially here in AZ and in Cal were made at 110% and above! So not only did you not have to put a dime down, but you got cash back too. I know many people who did this. Buyers and mortgage brokers. Often times some of the cash back went back to the broker as "fees".

Of course another reason for the mess we are in now is the rediculously unrealistic over inflated value of real estate. How the hell could a house worth $150,000 in 1993 be worth $600,000 in 2006? It wasn't. But a lot of fools bought into the idea and the "flip this house" disease was born. A whole generation of people thought it was a given that they could make a killing on real estate guaranteed. The lucky ones did, but most just bought into more expensive over inflated houses that were way beyond their means, always assuming that if things got tough they could just put it on the market and sell it for a profit within a month. And many people jumped on the 2nd and 3rd mortgage bandwagon. Easy access to put cash in your pocket to pay for those things like over inflated medical costs, over inflated insurance, over inflated food costs, and that over inflated first mortgage.

I bought some prorerty in CT in 1982. 5 acres of beautiful forest land. I cleared a site and built a house. Nothing really fancy, but it was nice. As a down payment for the house I put up the land that I purchased as collateral. Probably about 20% of the total value. My mortgage was around $500 per month including insurance. It was sometimes difficult, but I made it work. I had an average salary for the time and worked a couple of extra jobs if need be.

Todays way of doing things are so far out of whack. Routine mortgages for newer real estate purchases are $2000 and above. And the buyer usually has no equity in the house because of little or zero down payment. Now add a $600 second mortgage. That's $31,200 a year! Salaries have remained stagnant or even lowered over the past 8 years. Everything else has sky-rocketed.

Tough times are a-comin' even if we DO get rid of the current crooks and criminals in the White House and congress. Perhaps though we will see some of them in jail. I won't mind my tax dollars going to that cause too much. Better yet, let's send them to Guantanamo Bay indefinately.

Edited September 30, 2008 by irregularjoe

[sultan_emerr]

Never fear; help is here.

I can get you in on the ground floor of the coming double-wide boom.

Don't spread this around, but I have it on good authority that the price of double-wides will double and even triple in the next few years.

All of these people who are being put out of these foreclosed $700,000.00 houses need somewhere to live, and are looking for something a little more "economical". In a few years the demand for double-wides will far exceed/outstrip the supply. By buying a lot of them now, you will be sitting on a gold mine.

My good personal friend Phineas(Clem) Barnum has cornered the market on a large supply of these, and he got them at a great price. Unfortunatly, he will only sell them to people who are his good friends, and to people he likes. However, since you and I are third cousins(removed), I will put in a good word for you. Just give him my name, and tell him that I sent you, and he will get you in on the ground floor will a really good deal on a park full of them. You can tell that they are the highest quality, top of the line units, because they are from the Factory Engineered & Manufacturing Association (thus the letters FEMA on the side).

As an extra bonus, due to extensive and exhaustive testing procedures, it has been proven that these units will also serve as a flotation device. In case of a flood, you can sit on the roof in a lawn chair holding a six pact, with your dog, and your wife(if there is room).

Edited September 30, 2008 by sultan_emerr

[JDoors]

I'll sit this one out, trailers are tornado magnets.

[irregularjoe]

"My good personal friend Phineas(Clem) Barnum has cornered the market on a large supply of these.........................'

Ah, old Clem Barnum.......no doubt the long lost great great grandson to PT Barnum of circus fame.

Yes indeed he did already call me and I got a great deal on SIX double wides! His sister Bob (don't ask, it's a long story) delvered them the other day. Unfortunately they did not fit on my lot, so we split up the doubles and then set all twelve of the singles end to end on the street. Bob also sold me licence plates to put on each unit, so hopefully the neighbors will just think there are some really long cars on the street. Bob's friend Gwinda is supposed to come by tommorow to air brush fenders onto the sides and chrome out the wheels too.

Edited October 1, 2008 by irregularjoe