Guess What: The Next Housing Bubble Is Already Underway

[AllentownJake]

It's back!

You see, we've always just assumed that after experiencing an epic hangover following the housing party, there'd be no way we'd rush headlong into the same bubble right away.

But we were wrong -- the housing bubble is back. Sure, prices aren't at their old levels, but everything else is in place.

Generous government involvement is back. Fear of missing out on good deals is back, and yes, even no-money-down is back.
http://www.businessinsider.com/the-next-housing-bubble-is-here-2009-10

[waiting for hope]

1. Our Financial Sector is like an Addict -

Doing the same shit over and over again and expecting different results .. oh, that's assuming that they want a different result .. :sarcasm:

[Jkid]

18. Doing the same shit over and over again and expecting different results is

Insanity.

[Go2Peace]

37. They lowered capital gains, before that people bought homes to live in. They are commodities now.

This still is not recognized. The housing bubbles are largely the result of the investor class causing artificial demand.

We will continue this process over and over until we de-commoditize homes. It used to be that you only made money on a home if you lived in it or we invested for the long haul. That kept prices stable. That was when capital gains were 30-45%. Now they are 15%, which is low enough for huge investment houses to get in the "game" and turn everything into a stock market.

[dana_b]

2. oh goody

just so we will have another bursting bubble to look forward to.

[Xipe Totec]

3. What we need is more housing bubbles

[dysfunctional press]

5. we already have plenty of subdivisions with ugly houses packed too close together...

we surely don't need any more.

[Xipe Totec]

7. Speak for yourself

Some of us can't afford ranch houses on two acre lots...

[dysfunctional press]

9. our lot is only an acre and a half.

[Xipe Totec]

15. Mine is 4,400 square feet

more or less...

I kid you not, that's what the land deed says.

[Caretha]

13. Could you please

tell me where this Hobbit village is located?

Thanks

[Xipe Totec]

17. Japan's Styrofoam Dome Homes

http://www.impactlab.com/2008/08/10/japans-styrofoam-dome-homes/

[Hannah Bell]

34. very cool. gives me the idea to collect the long packing slabs & build a playhouse.

[geckosfeet]

14. That looks more like bubble housing. Cool.

[Go2Peace]

35. The housing market will continue to be unstable until they restore capital gains taxes. It is the

investor class introduction that destablized it. Homes are too important to turn into commodities.

[Go2Peace]

36. deleted, you already answered the question :)

[upi402]

40. So the Cabbage Patch Kids finally got jobs I see... n/t

[Stinky The Clown]

4. I actually think it is part of a smoke and mirrors thing .......

.... if we think we're rich (again) we'll start spending and incurring debt. And that helps TPEB.

[marmar]

6. They tried to make me go to Rehab, but I said, 'No, No, No'

..... Wall Street's crack-like addiction to insanity.

[AllentownJake]

8. America is Amy Winehouse

:rofl:

[Auggie]

11. That's worth a DUzy, IMO

:applause:

[Ignis]

41. Spot on.

Well played. :thumbsup:

[treestar]

10. Well, I'm sure you're happy about that

Now go looking for other gloomy news.

[AllentownJake]

12. Recognizing the reality of a situation is better than hoping that Rainbow bright will save us

:rofl:

[girl gone mad]

23. Facts have a gloomy bias...

as KKK Karl might say.

[branders seine]

16. buy buy buy!

Interest rates are low low low!

Houses are cheap cheap cheap!

buy buy buy!

[medeak]

19. the prices are way below replacement value

am in NV and homes are listed down to $45 a sq foot. You can't build anything under $100 excluding lot where I'm from and that's minimal. So I say buy buy buy

[AllentownJake]

21. Ghost Towns

Housing is only valuable if you have an economic base to support it.

[medeak]

22. we build gold mines

know all about ghost towns. My economy is reverse from everywhere else and am investing $$ in homes as nothing else gives a return

[girl gone mad]

24. You can buy houses for $1 in Detroit. n/t

[medeak]

32. most likely they don't have marble floors n/t

[OnionPatch]

43. I'm in southern CA and I agree.

There are a lot of good people upside down on their mortgages. If property values go back up some, it will help a lot of people.

[Jkid]

20. They learned absolutely nothing.

They are willing to risk suicide again.

[Nikki Stone1]

25. OMG

:wtf:

(I seem to be capable of three-letter epithets when discussing this topic.)

[AllentownJake]

26. Yep no money down loans on assets got us into the problem

I'm sure doing it again is a solution...except this time let us guarentee the loans with the federal government.

[Nikki Stone1]

27. You know, I'm thinking they really want the property.

If not, they could make exotic instruments on lots of things. Gambling is gambling. They could gamble on dieters at Jenny Craig. Cut up the membership cards, bundle them up, sell them based on the fact that risk is reduced because some slivers of people will actually stay on the diet and lose weight. The ideal, though, would be to buy them only on the short term (1-2 months) then sell them as weight loss numbers go down. The savvy investor could short sell around the same time. And Goldman Sachs could bet both for and against them.

There are certainly lots of other schemes that could work the same way. But I really think it is about property. I think the banks and investment banks want the actual land. That may be the only thing that will be valuable as the Empire falls.

[AllentownJake]

28. Doesn't matter

As empires fall you need something to back up your property rights...and this country has more weapons floating around than Afghanistan.

[Nikki Stone1]

29. But the banks own the government, and the government has nukes

Personal weapons are not going to matter much.

[AllentownJake]

30. What are they going to do?

Nuke Allentown? No sense seizing property if you have to destroy it to protect it.

:rofl:

[imdjh]

31. Oh please, let it be true. I won't be so greedy this time- you can buy my house for a bargain! ....

.... Please. I would really like to sell it. I'm so sick of mowing grass. I don't smoke anymore and my dog died, so I am ripe to rent something F A B U L O U S. Well, something the right size and the right price would do nicely. It wouldn't suck if it were waterfront and/or had a pool.

[DU GrovelBot]

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[Capn Sunshine]

38. Just a guess, but IMO housing sector health is hardly a "bubble"

"bubbles" are unsustainable prices driven exclusively by speculation, with the root drive for purchase being expectation of a price rise over all else.

When you buy a house to live in you negate the first two bubble factors. LIVE IN. If you can make the payments, and stay there for the duration, you live there.You LIVE there. What speculators are doing is immaterial, because you're not moving. You're living your life.

Not every market where houses are in demand is a "bubble". Especially since this sector is a foundation of the economy. Of course government help is there.

Oh, I forgot. Much better to take your money and put it in the stock market. The DOW is up 45% since its recent low. But you can't live in a portfolio, can you?

[AllentownJake]

39. People view homes as investments

The same could be said about a car, expect no one expects to sell their car after their loan for more than what they paid for it.

[steelmania75]

42. The gap for regulation has been closed since March

Since the markets have been on the rise over the past few months, and with unemployment going higher and higher, this is exactly what they wanted.

We need someone who can speak for the people.

Big Business has Obama by the balls.

I see a worse crash in 2012, right before the election. Then we'll have Sarah Palin is president. And that's when China will come in to buy the US and sell some territory to Mexico, Canada, and Russia.