permaculture

[lbsaltzman@aol.com]

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@gmail.com>
To: permaculture <permaculture@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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