Real Estate Fence Post

Housing Solution: Crashing Home Prices or Cheaper Mortgages?

In Los Angeles and suburban areas home prices are still 10 - 11 times avg earnings. These prices are still sky-high. Speculators took the market price for homes into the statosphere over the last decade, and now they are touting a 20% reduction in price and lower mortgage rate as affordable. Don't make me laugh!!!

We need another 40-45% drop in these overinflated prices.

So far this economic theatre and it's cast of main actors: Fannie Mae, Freddie Mac, Primary Lenders like Countrywide, FED and Treasury have done everything in their power to PUNISH prudent buyers & savers. Their actions have deliberately pumped up home prices and made home affordability nearly impossible over the last decade. This has been a decade of declining affordability and rampant lending of toxic home loans.

Face it, there are only a handful of new home buyers remaining out there and they are aware of the game plan this cabal has set up.
I'm the fence post waiting for the Depressionary crash in home prices.
I've waited 2 decades to afford my own home, I can wait another 2-3 years before I invest my hard saved cash.

The Current Market Atmosphere: Easy Money Hard to Come by

The coming Deflationary Depression that the FED and the Bush Administration have engineered will most probably last 2 decades. I have no doubts that it will be worldwide, immeasurably deep and long lasting. The largest banks are insolvent and hiding their losses. And during the last 6 months of this administration, we are experiencing rampant commodity bubbles that are further engineered through corrupt government policies that allow Enron Type speculation. Pretty soon we will be paying $20 for a single patty burger at MCD's and rating them with tripple straws.
I blame this fiasco on both parties. Moreso on the republican brand of mis-government. At the end of this administration we will be lucky to have any form of retirement benefits, pensions or a solvent dollar. Have to admit G.W.B. is the worst president in the history of the U.S.