Jump to content
House Price Crash Forum
Sign in to follow this  
FrozenOut

Ask A Super Genius - Housing Bubble

Recommended Posts

He seems a bit mad he didnt jump on the real estate bandwagon earlier.

Also, a rise to 262 from a benchmark of 100 isnt a 262% rise. I started taking everything with a pinch of salt from then.

Share this post


Link to post
Share on other sites

Super geniuses aren't what they were. Proof were it needed that IQ tests demonstrate nothing more conclusive than an aptitude for IQ tests. As a sigma society member (Mensa with bells on) I can report that many people with high IQs understand very little about how the economy really works, or why the HPI/credit bubble/etc cannot continue.

Share this post


Link to post
Share on other sites
The bank DOESNT WIN no matter what. They are not equipped to own property. For each one they lose like that, they have to make dozens more to recoup. What if the property is trashed?

GREEDY ASSED BORROWERS did this to themselves

I think you have to look at all sides of the story. People were borrowing too much because they thought house prices would only go up and they'd get rich.

Mortgage brokers sold mortgages because they wanted their commissions, estate agents sold over-valued houses because they could.

Mortgage companies faciliated the debt because it was easy to securitise and move off their balance sheets and they could get the income without the risk.

Investment banks created CDO's because the margins were great and there was enormous demand for the product.

Ratings companies put AAA stickers on products created by the investment banks. "He who pays the piper..."

And at the end of the chain pension funds and investors were buying AAA rated securities that payed well above prevailing rates because they couldn't lose, and hedge funds leveraged to invest in AAA rated CDO's that payed 9%, until the defaults began.

To me the real problems came about from the buyers of debt not truly understanding the risks they were buying.

Prudent risk management went out the window.

Share this post


Link to post
Share on other sites

Given the lunatic nature of the USA's legal system - how long before people start suing realtors and brokers?

"He told me it was a sure-fire investment"

"He told me to lie about my salary"

"I am seeking punitive damages of $10 million because he took the American dream away from me."

Share this post


Link to post
Share on other sites
He seems a bit mad he didnt jump on the real estate bandwagon earlier.

Also, a rise to 262 from a benchmark of 100 isnt a 262% rise. I started taking everything with a pinch of salt from then.

Is it simply a 162% rise then?

Share this post


Link to post
Share on other sites

That "super-genius" isn't so clever. He seems to think that if the housing index goes from 100 to 262 it's gone up by 262 percent! (Nope, it's gone up by 162 percent.)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 349 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.