Many People Are Not Even Aware Of The Us Situation

[Impartial]

Was speaking to my sis about what she was going to do with her pokey 1 Bedroom flat in North London as she is leaving the country for six - 8 months.

She didn't know what was happening in the US housing Market or Australia or how it may affect here.

She kept referring to her equity as profit and ramped on about how her flat would become a pension.

Didn't consider the fact that she would have to buy another property to live in or take into account what would happen if prices fell. Had absolutely no idea of what was happening in global economics but went on like she was businesswoman of the year because she bought a flat in 1999 and it has HPI'd a further 60k.

Warned her of the dangers but she decided not to listen, couldn't be a55ed to continue talking to her about it just nodded and said well done, give yourself a pat on the back.

Point is most people I have spoken to are clueless about the US Housing crisis, what the fcuck are these people doing all day it's clearly everywhere and you don't have to look hard to find out about it.

[mattpascoe]

Most people do not know or care about the worlds economy let alone the UK economy. Most people I speak to about it believe prices won't fall, some people believe properties are the only way to go and that they only go up in value. It is clear to see unaffordabiltiy is real and is happening, new flats sit empty, high street electronic shops are empty, second hand car garages are full of cheap car that won't sell. People are too relient of what the next person is doing. Mr Smith down the road has got a new car, I should get one on a loan or on HP. There are millions of people who are in the danger zone and risk debts running out of control this includes housing debts. An example is this lad at work who was just about to offer on a 140k house, his morgage interest only would be as he told me over £800 a month. Interest rate rise is normally about £100 per 1% IR rise. He will be fooked in a years time, and so will others.

[OverInflated]

In short, the chicken littles have been clucking about the 'housing bubble'

for at least a year. I don't think you can compare housing to dot.coms.

There wasn't anything of value to most of the dot.coms and it was kinda fun

to watch the testosterone bloated traders take it on the chin. Now if one

is doing the same sort thing with real estate, I just have to think that

you're really stupid. It'll hurt, but I don't think it's the same kinda

killer.

A crash in the housing market could be far worse than the Dot.com bubble.

The average joe that invested on the Dot.Com bubble at its high, lost their money. But the average person who buys a house at its high has the potential to lose a lot more, especially if they are expecting a short term investment.

With any risk there are winners and losers, mostly losers.

[Guest X-QUORK]

Even the Yanks are in denial, just check out this American BTL website:

BiggerPockets.com