[permaculture] PCer rush to buy land?

lbsaltzman at aol.com lbsaltzman at aol.com
Mon Jul 23 16:55:20 EDT 2007


Yes the lending strategies you mention are a big part of the problem. The subprime housing market is collapsing and will take many banks and speculative mutual funds with it.? The loans were repackaged and sold to hedge funds and other speculators.

There has also been a lot of the greater fool syndrome going on.? House "flippers" have been buying homes borrowing to the maximum and using the borrowed money to buy more property. It is all?done on the theory that there is a "greater fool" to buy whatever you have to sell at?any price. Unfortunately sooner or latter assets are priced out of the reach of the bulk of the?populace and there is no "greater fool"?left to buy.??If you want to really understand bubbles there is a great book called "Devil take The Hindmost" by? Edward Chancellor.? It explores the history of speculative bubbles starting with the Romans and going forward through most of the well known insanities of history.

We are also, to quote?James Kunstler, at the end of the suburban build out.? As oil prices relentlessly rise, the market of people willing?to move farther and farther from home?is beginning to dry up and the houses at the farther fringes of the suburbs are accordingly losing value.?


-----Original Message-----
From: oliver smith callis <oliversmithcallis at gmail.com>
To: permaculture <permaculture at lists.ibiblio.org>
Sent: Mon, 23 Jul 2007 1:30 pm
Subject: Re: [permaculture] PCer rush to buy land?



Could you talk about some of the factors that will contribute to the housing
bust? Is it just the lending strategies of late which allow people to get
into mortgages that they can't afford for a short period of time - which
they may end up having to abandon, flooding the market with large,
expensive, but unaffordable homes?

thaks,

Oliver
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