Zeev's Turnips Patch-No Politics (ZEEV)

[westpacific]

DO not forget in the Great Depression you could not GIVE a house away.........

With all the creative games in financing and the GSOs, it may not be so far fetched! A house is only worth what the next guy can pay for it and if this whole can of worms falls apart the banks will be stuck with a whole load of real estate. Banks will have enough trouble without that, let alone all the other assorted clowns in the game being trapped.

In the last big real estate downturn a billionaire friend of the family, self made in commercial real estate, watched many friends lose everything they owned.........he laughs at it all and says his timing saved him.

DO not forget it is the Asians that are carrying the real estate market, they hold all the cards right now.

Most people make the mistake of seeing their home as savings, it is not, in the classic model. It is mirly a place to sleep and live. However that models has been thrown out the window, people now feel rich to see their home go up in value, even most likely the bank owns it. It is an ATM machine that can never decline in value and if it does they will just walk away - this all factors into what I am sure Sir John sees, I see it. Instead people should work hard to own their home debt free, then it really does not matter what the real estate market does. Simple really.

And you do not think it cannot happen again! This time the leverage is much, much worse due to Fannie and Freddie!