Friday, December 18, 2009
Send your rent check to China!
I'm an average guy to the point of being boring. However, I knew 3-4 years ago--and pointed out in this blog-- that 1. housing prices were to damn high, 2. people were borrowing to damn much money 3. they weren't going to be able to pay back the money unless the price kept going up and they sold their house 4. price were NOT going to always go UP.
Double duh...you don't have to be a genius to know people don't need to be borrowing 4-5 times their annual salary for a house. It's INSANE!
So what the hell were all those idiots in Washington thinking? Now..a year later and ...no one lost their job, Congress will make some half ass changes and everyone will blame everyone else. With the confirmation of Bernanke to a new 4 year term we will know it's business as usual, the idiots continue to rule and failure will carry NO penalties. Can you tell I'm pissed yet?
Let me make another prediction. It ain't over folks. People are going to start walking away from those home loans in droves and the siht is going to be right back in the fan.
Think I'm wrong? Then you don't believe in market principles and the number one principle is people do what they perceive is best for themselves. What would you do if all you have is a big mortgage on a house which is worth half of what you owe and you can rent the same house down the street for MUCH less money and save or spend the difference?
What about all this credit card debt? For the last 10 years idiots have been transferring it to their home loan and starting a new cycle of living BEYOND their means. Yeah I know...the government will continue their policy of rewarding bad behavior and do another bail out.
Here is the problem: our government is doing the same thing as all those people who borrowed money they could NOT pay back and one of these day they are going to socialize the whole country and we'll all send our rent checks to China.
