Housing – Madness, Denial and Regrets

Madness – US Confidence Plunges to a Record Low. Consumers aren’t confident about the future. What, they are surprised that real estate prices can’t rise forever? They’re surprised that interest rates on their adjustable-rate mortgage went up? Where have they been? What were they thinking? Madness of the crowd convinced them that there is no history worth reading.

Denial – No matter how bad things look, there’s always a bright spot. As in the article linked above…

S&P noted one bright spot as the acceleration in decline was only moderate in August from July.

Amazing.

Regrets – I regret that I bought the home in which I currently reside, purchased before things got ridiculous, instead of one way over what I could afford, because it looks like people who signed up for liar’s loans may well get bailed out and be allowed to stay in the homes they couldn’t afford. If that happens, how will you feel about paying part of that mortgage payment? That’s what you’ll be doing.

Posted in Economy, Housing Bubble
Tags: Depression, Economy, housing, Housing Bubble, real estate