Archive for the ‘housing bubble’ Category

Federal Reserve: Finally, Going Broke Has Become Affordable

Wednesday, February 3, 2016 11:08 1 Comment

I don’t want to believe that I am the only one amused by this article: “The Return of the Affordable Starter Home.” The opening paragraphs from the article are exactly what I would expect from a story in The Onion. But it’s real, and very serious in its tone. Surging prices have almost closed off the [...]

This was posted under category: housing bubble

“the market is starting to stir”

Wednesday, February 4, 2015 19:28 1 Comment

I recoil when I spot these pea-brained-type headlines: “Consumer Confidence Lifting New-Home Sales.” I am perplexed by the fact that pro-central planning, quantitative methodologists can actually convince otherwise intelligent people that there can exist a “consumer confidence index.” To quote: The nation’s biggest public home builders are telling investors that new-home sales picked up during [...]

This was posted under category: housing bubble

There Ain’t No Housing Bubble Yet

Friday, June 7, 2013 23:08 1 Comment

The Street has published an article about the five most undervalued housing markets that are “great bargains” for the person looking for a long-term living plan. Detroit is deemed the “second-most-undervalued market” in the U.S. According to Crain’s Detroit and the Detroit Free Press, the Detroit metro housing market is witnessing a slim inventory and [...]

This was posted under category: housing bubble

Finally, I Can Buy a McMansion

Sunday, January 22, 2012 15:59 2 Comments

Finally, a bottom for home prices. This paragraph made my brain hurt: A key signal that the bottom is near is a change in the ratio of average homes prices to personal income — houses are affordable again. After soaring to 4 to 1 during the housing boom, the ratio is now well below the [...]

This was posted under category: housing bubble

Strategic Defaults No Longer on the “Fringe”

Sunday, April 25, 2010 15:32 7 Comments

Any Austrian economist has got to snigger at Rick Newman’s opening paragraph in his article in US News & World Report: One thing that’s fascinating about an economic crisis is the way ordinary people confound the experts. Consumers are expected to behave according to sophisticated economic models that have been built over decades, but sometimes [...]

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Why a Strategic Mortgage Default May Be Your Best Option

Wednesday, February 24, 2010 19:13 23 Comments

  Here is an interview that I did in early February 2010.   Many entities, from the White House to various mortgage banking leaders to self-professed pundits, are trying to put a shame element to borrowers who find themselves with acute negative equity in their homes. Is it possible to successfully shame these people into [...]

This was posted under category: Economics, housing bubble

It May Be Financially Irresponsible to Pay Your Mortgage

Sunday, January 10, 2010 14:41 18 Comments

This will appear as a published article on tomorrow. Roger Lowenstein has written one of the best articles I have read on the topic: walking away from your house. The prominent author and journalist published a January 7, 2010 article in the New York Times with the headline, “Walk Away From Your Mortgage!” Lowenstein [...]

This was posted under category: Economics, housing bubble