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Originally Posted by brewer12345
Wow, the blind squirrel finally stumbled across an acorn.
I totally agree with your assessment. The rate reset will be a non-event since the Fed has whacked rates. The more troubling problem is that the drop in house prices makes it more challenging for leveraged Merkins to refinance, but creative legislators, reglators, etc. seem to be working out solutions to the problem.
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home prices are still way to expensive
i remember in 2003 when i got married along with a friend of my wife i was talking to her husband who works in finance. back then an OK home in the NYC area outside manhattan and a few other trendy neighborhoods cost around $380,000. we both agreed it was way too much. it's still too much today i think.
michael milken of 1980's fame has found God and charity after jail and cancer. runs a non-profit think tank now.
few years back he did a study on home prices vs income. found that it fluctuated between 20% and around 40% to 45%. hit the peak twice in the last 60 years. 1981 and 2004, the last year of the study. i think no matter what the government is going to try to do we'll get a reversion to the mean which has been around 30%
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