THIS ATM CHARGES A FEE OF $525,000. PUSH "ENTER" TO ACCEPT THIS FEE
In yet another disturbing sign that the housing bubble -- the bubble upon which America's "recovery" has balanced for 5 years -- is popping, AP's "business writer" reports on a glut of over-priced, and un-bought, condos in Philadelphia.
Lest we think this ugly development is isolated in Philly, note that the article also mentions Miami, Boston, San Diego, Las Vegas, Seattle, Chicago, Orlando, Washington, D.C., and Manhattan as other "areas at risk."
Anyhow, not much to say here that you haven't read before (here & elsewhere). But remember this, and remember it especially in November: with the artificially low interest rates we've had until recently, the American people have been using their mortgages (1st, 2nd, 3rd?) to facilitate the concept we know as "The Home As ATM." Borrowing, borrowing, borrowing against one's home, a home often backed with no equity, has been the standard MO. And that very money has formed the backbone of the Consumer Economy that ostensibly makes our nation go.
And if that ATM closes (just as the value of the dollar keeps falling through inflation)? Do the math. But here's a hint: not sure 2007's gonna be a banner year for Home Depot; HGTV; Target; or Bed, Bath & Beyond.
Lest we think this ugly development is isolated in Philly, note that the article also mentions Miami, Boston, San Diego, Las Vegas, Seattle, Chicago, Orlando, Washington, D.C., and Manhattan as other "areas at risk."
Anyhow, not much to say here that you haven't read before (here & elsewhere). But remember this, and remember it especially in November: with the artificially low interest rates we've had until recently, the American people have been using their mortgages (1st, 2nd, 3rd?) to facilitate the concept we know as "The Home As ATM." Borrowing, borrowing, borrowing against one's home, a home often backed with no equity, has been the standard MO. And that very money has formed the backbone of the Consumer Economy that ostensibly makes our nation go.
And if that ATM closes (just as the value of the dollar keeps falling through inflation)? Do the math. But here's a hint: not sure 2007's gonna be a banner year for Home Depot; HGTV; Target; or Bed, Bath & Beyond.
posted by Mike at 8:29 AM
4 Comments:
Yeah, those no-money-down loans are going to become silent killers very soon.
As an owner of a condo in the DC market, let me say this: crap.
I can only hope that this, plus $3+/gallon gas, will force people to become fiscally responsible and then vote for politicians who are fiscally conservative.
Yeah, I know. It's a pipe dream.
That sucks, Dude. I'll admit I'm always juuuust a bit reluctant to post on this topic, cause I don't wanna bum out any "regulars" or my friends.
But what's true is true, ya know?
For anyone (and I hope you fit in this category) who owns their home as a dwelling, and not just for investment/to flip, this isn't that bad. Hang onto it (and rent it if you can if/when you move down the road). You could be ok in the end I suspect.
Ded-
You & I has pretty much agreed on this: November serves as a very important referendum for our country.
As important as these midterms are politically (obviously) they actually transcends politics.
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