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New Low for the NAR (National Association of Rapacity)

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December 22, 2006 – Comments (2)

http://paper...cenario.html

I can't put it any better than that.

To consider that Lereah and the rest of these special-interest stooges get even a modicom of respect from the mainstream press as some sort of disinterested purveyor of information makes my blood thicken.

After their constant drumbeat of "everything is OK" was completely contradicted by their eventual (but undercover) admission that things got terrible, real fast:

If the hiss goes boom and the peasants grab for the torches and pitchforks, I'll know where to send them.

TIMELINE OF THE UNRAVELLING LINE OF BULLSPIT FROM THE NAR:

"OK, maybe things aren't as great as we've been saying, but everything's still hunky dory"

http://www.f...ir-tune.aspx

"The fed needs to back off, othewise it'll be their fault if something bad happens."

http://www.f...06060918.htm

"Nothing to see here!"

http://www.f...st-here.aspx

"Psst. No reporters here? OK, here's the real truth..."

http://www.f...he-wise.aspx

http://www.r...%202006).ppt

2 Comments – Post Your Own

#1) On December 27, 2006 at 12:30 PM, XMFkmoney (99.67) wrote:

Great housing articles. The first thing to ask anyone who says housing prices can't come down is "Have your ever heard of Isaac Newton?" followed by "Did you have money in the stock market in 1999?"

What is it they say about people who fail to remember history?

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#2) On January 02, 2007 at 3:16 PM, spiritof78 (96.49) wrote:

Nice articles. To follow up on TMFKmoney, another question is do they recall the early 80's when prices really were following. The problem here is that in the early 80's you didnt have as many of what they call the "exotic" mortgages in this report. I.E. Arm/Interest Only. The question will be the overall number of defaults that will occur over the next 5-7 years from buyers unable to make exsisting payments. This is clearly going to place increased supply on the market in coming years. Much like leverage trading increased the stock market crash of 29 I feel these special mortgages will increase the valuation crash on these houses. Except in states/cities where rapid immegration has occured to provide an actual rather than manufactored demand.

I believe the rapid decrease in the increasing costs is the first fluctuation really a warning bell of what is to come rather than the actual bubble bursting which will happen later. An interest rate spike to battle inflation will magnify mortgage forclosures for years to come.

I've been telling friends for three years not to buy with interest only mortgages yet they kept doing so. There response always was "yeah but the value is going up you dont know what your talking about" or my favorite "its a new market where the value is always going to go up".

The biggest question as an investor to figure out is what other sectors the housing devaluation and forclosure will be hit by whats going to worse than a slow down? The big focus of the powers that be should be in keeping consumer confidence high in other sectors so as not to let housing's happy days are here forever flow into every other sector.

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