Comments on: Is the Mortgage Crisis Over? http://personalfinanceandinvesting.com/archives/is-the-mortgage-crisis-over/ Personal Finance, Investing and Economics Fri, 05 Nov 2010 17:56:04 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Danielle Green http://personalfinanceandinvesting.com/archives/is-the-mortgage-crisis-over/comment-page-1/#comment-4701 Danielle Green Sun, 25 Oct 2009 05:00:31 +0000 http://personalfinanceandinvesting.com/?p=503#comment-4701 There seems to be a mortgage crisis of some kind every decade. There seems to be a mortgage crisis of some kind every decade.

]]> By: BMB http://personalfinanceandinvesting.com/archives/is-the-mortgage-crisis-over/comment-page-1/#comment-2067 BMB Mon, 15 Jun 2009 13:56:35 +0000 http://personalfinanceandinvesting.com/?p=503#comment-2067 I agree with you Brad -- I think the next 'wave' down is going to take a lot of people by surprise. To me, the idea is simple -- decades of debt and credit expansion are not going to be unwound in just a couple of years. Not to mention that the contraction is bound to take us back to some sort of 'new normal'. The housing market will never be what it was again, at least probably not during our lifetimes. Just as the dot-com bubble did not return, nor will the housing bubble. I agree with you Brad — I think the next ‘wave’ down is going to take a lot of people by surprise. To me, the idea is simple — decades of debt and credit expansion are not going to be unwound in just a couple of years. Not to mention that the contraction is bound to take us back to some sort of ‘new normal’. The housing market will never be what it was again, at least probably not during our lifetimes.

Just as the dot-com bubble did not return, nor will the housing bubble.

]]> By: Brad http://personalfinanceandinvesting.com/archives/is-the-mortgage-crisis-over/comment-page-1/#comment-2066 Brad Mon, 15 Jun 2009 13:46:48 +0000 http://personalfinanceandinvesting.com/?p=503#comment-2066 Thanks for the comment. Even if we stipulate that there are no more forces artificially affecting future defaults, which I'm not sure i agree with, I'd suggest you haven't seen all the effects of the previous artificial influence. You've seen how bad lending standards and the bubble bursting have affected subprimes, I don't think you've seen how they're going to affect other types of mortgages. Option-ARMS seems just as destructive, albeit a smaller, market as subprime. Then you have all the "qualified" lenders who are no longer qualified and underwater on their house. I'd say these factors could very well indicate that you're about to see defaults in those markets that are just on the upswings and Alt-A and Prime mortgages dwarf subprime. Thanks for the comment. Even if we stipulate that there are no more forces artificially affecting future defaults, which I’m not sure i agree with, I’d suggest you haven’t seen all the effects of the previous artificial influence. You’ve seen how bad lending standards and the bubble bursting have affected subprimes, I don’t think you’ve seen how they’re going to affect other types of mortgages. Option-ARMS seems just as destructive, albeit a smaller, market as subprime. Then you have all the “qualified” lenders who are no longer qualified and underwater on their house. I’d say these factors could very well indicate that you’re about to see defaults in those markets that are just on the upswings and Alt-A and Prime mortgages dwarf subprime.

]]> By: Nashville Real Estate http://personalfinanceandinvesting.com/archives/is-the-mortgage-crisis-over/comment-page-1/#comment-2065 Nashville Real Estate Mon, 15 Jun 2009 13:41:20 +0000 http://personalfinanceandinvesting.com/?p=503#comment-2065 I think that the restructuring of the mortgage industry is over, which was a big part of what began this crisis. There won't be any AIGs selling securitized debt anytime soon or any Countrywides loaning 107% to mildly qualified buyers. The last part of this downturn are going to be the foreclosures and short sales that are caused by pure market forces, no more artificially influenced defaults. As the economy recovers so will the housing market. Look for the point at which job creation is greater than job loss as a true turning point (we're close). I think that the restructuring of the mortgage industry is over, which was a big part of what began this crisis. There won’t be any AIGs selling securitized debt anytime soon or any Countrywides loaning 107% to mildly qualified buyers. The last part of this downturn are going to be the foreclosures and short sales that are caused by pure market forces, no more artificially influenced defaults. As the economy recovers so will the housing market. Look for the point at which job creation is greater than job loss as a true turning point (we’re close).

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