Americas rotten capitalism

Discussion in 'Political Action Forum' started by Bclick, Jun 10, 2021.

  1. waterswatter

    waterswatter Elite Refuge Member

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    I thought there would be an upcoming flush until a couple of real estate/lender guys told me borrowers are actually qualified now vs 2008 when no qualifications were needed.
     
  2. WidgeonmanGH

    WidgeonmanGH Elite Refuge Member

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    I don't know about their tax situation but they are savvy folks so I don't think they would have missed that. They are only going to rent until Jan. when they plan on relocating. They both have very marketable skills. She is an RN and he is a airplane mechanic who works for a commercial airline. They are thinking about moving to Hawaii for a couple of years as an adventure and then coming back to settle. They are however, probably not coming back to W.WA. but rather a 2A friendly state like ID. Great kids with two young sons. Hate to see them go but it is tough to raise a family here for a lot of reasons.
     
  3. WidgeonmanGH

    WidgeonmanGH Elite Refuge Member

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    The flush will be the collapse of the economic system. The Fed has basically taken over mortgages and they will loan to anyone because there is no real risk to the institutions being too big to fail and all. Just wait until the Fed starts issuing the FedNow bucks directly into accounts bypassing congress (they are so political after all) directly "stimulating" the "economy." This just doesn't end well, but it does end.
     
  4. waterswatter

    waterswatter Elite Refuge Member

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    They may not be getting cheaper and they certainly are not getting better. The quality of dimensional lumber is atrocious. Appliances inside are junk as a rule. Engineered beams and trusses are good IMHO but your house is only as good as the worst guy on the crew and the crews
    speak for themselves.

    I told my son all of the above. We will see if he listens to his old man....
     
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  5. waterswatter

    waterswatter Elite Refuge Member

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    S
    Sounds like a smart couple.

    I have a son and DiL over there. I would like them to move to Idaho but her family and extended family is over there.
     
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  6. BigSkyDuk

    BigSkyDuk Elite Refuge Member

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    That was true, until a couple years ago. Now, granted, nobody is doing the liar loans and negative amortization features that were all the rage back in the early 2000’s... what’s getting short shrift now is collateral valuation. Many appraisals are being waived for refinance transactions because the computer agrees with whatever value the homeowners put down and it’s a rising market. Also, I see a lot of “asset dissipation” loans—essentially supposed to be for retirees, but if you’re a small businessman with difficult to prove income but a large investment account the lender will fit you into it. Problem is, they see if you have enough liquid assets to pay for 2-5 years... on a 30 year loan!
     
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  7. BigSkyDuk

    BigSkyDuk Elite Refuge Member

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    Yes, 100% Pin. Those bailouts created a sever moral hazard that will come back to bite us, it’s just a matter of when. In typical government style, they kicked the cab down the road to “have peace in our time” so to speak. Every one of those institutions and businesses should have been allowed to fail—yes the next few years would have sucked, but then they did anyway. The reason capitalism historically works so well is the DESTRUCTION part of the creative destruction theory. When firms take too much risk and fail, the mistake won’t be repeated and meanwhile the capital they were tying up is reallocated to better and more productive uses. When you bail out the “too big to fail” no lessons are learned and capital stays tied up in inefficient and less productive firms.
     
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  8. BigSkyDuk

    BigSkyDuk Elite Refuge Member

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    I’m with you, I could afford to take a little less on principle. Not everyone can though, and the free market works best with the least interference.
     
  9. IV Hunt

    IV Hunt Elite Refuge Member

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    Today is our open house, and the wife and dog and I came to my office to kill 5 hours.

    We had two pre-arraigned appointments this morning prior to the open house.
    Then another realtor shows up saying she has an appointment. Wife starts a melt down because we need to finish up last prep and she needs to dress.
    I intervened and this gal was pushy. I finally told her that with all due consideration to her clients, she could come back at 12 or go buy another house.

    When my realtor showed up, I said if she was the only offer we got I wouldn't sell it to her.

    Got another set of appointments tomorrow. Betting we have a stack of qualified offers come Monday.
     
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