Comments on: Goodbye, Home Equity

By: somegirl

somegirl — Fri, 30 Nov 2007 15:46:51 +0000

so, it’s my understanding though, when the housing market stalls, rents start to skyrocket. it seems to be happening here in philly already. i’ve been expecting a depression for several years now, and it’s coming slower than i anticipated, but i do think it’s coming, and as KO suggested at the end of the interview with naomi klein last night (find that video susie) that could very well be the next shock that brings down the totalitarian hammer for real in this country.

By: merciless

merciless — Thu, 29 Nov 2007 23:43:05 +0000

The husband has all his money in stocks. I keep telling him, he keeps saying no, baby, stocks always go up and down. In the long run it’ll be great.

He’s planning to retire in a couple of years. I’m thinking, not so much.

The farm idea is a good one.

By: votermom

votermom — Thu, 29 Nov 2007 19:59:08 +0000

I think reading about a depression causes depression.

By: (: Tom :)

(: Tom :) — Thu, 29 Nov 2007 19:02:39 +0000

If you think we might be headed for a depression, you might be interested in this. I know the guy who makes them, too - so I might be able to get him to cut you a deal. Especially if you can convinvce others to get one, too…

By: American Goose

American Goose — Thu, 29 Nov 2007 17:50:07 +0000

Mortgage resets will continue in earnest through JUNE 2012.
Not a typo: JUNE 2012.
Shouldn’t be much wealth left after that, besides, by then we’ll be firmly inside the bumpy plateau: http://www.theoildrum.com/story/2006/3/14/134941/956
After that, it’s all downhill. No more economic expansion, just contraction. Never seen or imagined in any of our lifetimes.
Google mortgage reset schedule and you find this: http://solidquant.com/node/51

We’re only in the bottom of the first inning of a bad, bad game that will last for 65 months. Move to a farm. Now.

By: donviti

donviti — Thu, 29 Nov 2007 15:47:50 +0000

Lionel,

this time of year is the slowest time of year too so the problems are going to be amplified. We really have to wait until March (spring) to see what kind of an effect this has on the tri-state area (Del, Pa, NJ)

By: Lionel

Lionel — Thu, 29 Nov 2007 15:34:21 +0000

I don’t think Philly is going to be hit as bad as some other parts of the country, either. Philly was almost criminally undervalued as recently as 5 years ago. We had a bit of a perfect storm in that the mortgage market loosening happened at the same time that large sections of the city (the former Rappaport properties in Society Hill and Center City and the properties in Old City sold by Special Master in a business dispute between two partners) opened for development at the same time. But even given that, I can’t see more than a 10 or 15% drop in prices. Which is nothing, given that I can point to actual buildings that have increased in value 500% or more over the last 10 years.

By: brendancalling

brendancalling — Thu, 29 Nov 2007 15:13:24 +0000

I am SO glad I bought when I did, and paid as little as i did.
And since I expect to be in Philadelphia for at least 5 more years (as much as seven perhaps), I should be able to weather this fairly well.