Quote:
Originally Posted by kane
Damn, that is a rough drop.
I wonder how long it will take for property values to return, if they ever do. A person could make the argument that most homes were overpriced. Million dollar plus homes are in a different league, bu the average home for the average person was even over priced. I had seen where some economist were saying that right now is the first time in the history of this country that the average wage earner can't afford to buy the average home. However, they still do, they just go further into debt to do it and use credit for everything else that people used to use cash for.
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My "average" house in Phoenix doubled in value over a three - four year period. That's fucking stupid already.
Some friends of mine - I call them "Bonnie And Clyde" - bought a house here in town in 2004 or so. They couldn't afford it then, and they couldn't afford it now. She's a fucking cashier for costco and he works construction. Yet somehow at the height of everything they took money out against their house, put a down payment on a huge pick up truck, bought a bought, a jeep, a motorcycle, iphones and ipods for everyone in their family, and exotic Mexican vacations. Then they started renting two rooms in their house out to help make ends meet. No dice. The bills were too much - insurance on the truck, the jeep, the bike, the boat, etc. Then he lost his job, and it all crashed. So, instead of doing the proper thing they just stopped paying their mortgage. In fact, they attempted to sue their mortgage company (and failed). Now they are waiting to the bank to foreclose on their house.
In the mean time, Clyde is not working, but has cashed out his 401k and bought brand new trikes. Great. Oh, on top of that, they went on a two week vacation - and used their daughter's credit card to pay for it.
These are the exact people that fueled the economy and then caused it to crash.