Thursday, August 18, 2005

Short Term Consequences of the Housing Bubble

The housing bubble has many effects. What are the pluses and minuses of this housing bubble? Tthe below lists are just some of the effects of the housing bubble.

Short Term Pluses ( while the housing bubble has not popped)
  • 'Helping' the economy
  • Jobs being created
  • Strong consumer spending
  • Rising amount of assets
Short Term Minuses ( while the housing bubble has not popped )

  • Significantly reduced amount of affordable housing
  • People stretching and overextending themselves to buy houses ( 'house poor')
  • Lack of investment in export orientated industries.
  • Contributes to the trade deficit by encouraging more spending by people using home equity loans

7 comments:

  1. "affects" is a verb. You mean "effects".

    ReplyDelete
  2. thanks. It has been changed.

    ReplyDelete
  3. Negatatory: People are much less likely now to actually own their houses. This may change in the future if wages and salaries increase significantly. But as it stands now...

    Negatory: Younger folks cannot afford to live close to where most of the work is. So they have to drive insane commutes which costs them in gas purchases and puts more crap into our air.

    Negatory: Grown children cannot live close to where their parents live. This has societal implications.

    ReplyDelete
  4. Many people buying in high price areas are nothing but renters. Few will have be able to say the own the home they live in. They will be paying on their mortage into retirement.

    ReplyDelete
  5. They will be paying on their mortage into retirement.

    Just gave me a new idea for a financial product it is called something like the "Golden Years Retirement Mortage." It would be something like reverse mortgage that pays off a mortgage.

    ReplyDelete
  6. ='Brand New News Fr0m The Timber Industry!!'=

    ========Latest Profile==========
    Energy & Asset Technology, Inc. (EGTY)
    Current Price $0.15
    ================================

    Recognize this undiscovered gem which is poised to jump!!

    Please read the following Announcement in its Entierty and
    Consider the Possibilities�
    Watch this One to Trad,e!

    Because, EGTY has secured the global rights to market
    genetically enhanced fast growing, hard-wood trees!

    EGTY trading volume is beginning to surge with landslide Announcement.
    The value of this Stoc,k appears poised for growth! This one will not
    remain on the ground floor for long.

    KEEP READING!!!!!!!!!!!!!!!

    ===============
    "BREAKING NEWS"
    ===============

    -Energy and Asset Technology, Inc. (EGTY) owns a global license to market
    the genetically enhanced Global Cedar growth trees, with plans to
    REVOLUTIONIZE the forest-timber industry.

    These newly enhanced Globa| Cedar trees require only 9-12 years of growth
    before they can be harvested for lumber, whereas worldwide growth time for
    lumber is 30-50 years.

    Other than growing at an astonishing rate, the Global Cedar has a number
    of other benefits. Its natural elements make it resistant to termites, and
    the lack of oils and sap found in the wood make it resistant to forest fire,
    ensuring higher returns on investments.
    T
    he wood is very lightweight and strong, lighter than Poplar and over twice
    as strong as Balsa, which makes it great for construction. It also has
    the unique ability to regrow itself from the stump, minimizing the land and
    time to replant and develop new root systems.

    Based on current resources and agreements, EGTY projects revenues of $140
    Million with an approximate profit margin of 40% for each 9-year cycle. With
    anticipated growth, EGTY is expected to challenge Deltic Timber Corp. during
    its initial 9-year cycle.

    Deltic Timber Corp. currently trades at over $38.00 a share with about $153
    Million in revenues. As the reputation and demand for the Global Cedar tree
    continues to grow around the world EGTY believes additional multi-million
    dollar agreements will be forthcoming. The Global Cedar nursery has produced
    about 100,000 infant plants and is developing a production growth target of
    250,000 infant plants per month.

    Energy and Asset Technology is currently in negotiations with land and business
    owners in New Zealand, Greece and Malaysia regarding the purchase of their popular
    and profitable fast growing infant tree plants. Inquiries from the governments of
    Brazil and Ecuador are also being evaluated.

    Conclusion:

    The examples above show the Awesome, Earning Potential of little
    known Companies That Explode onto Investor�s Radar Screens.
    This s-t0ck will not be a Secret for long. Then You May Feel the Desire to Act Right
    Now! And Please Watch This One Trade!!


    GO EGTY!


    All statements made are our express opinion only and should be treated as such.
    We may own, take position and sell any securities mentioned at any time. Any
    statements that express or involve discussions with respect to predictions,
    goals, expectations, beliefs, plans, projections, object'ives, assumptions or
    future events or perfo'rmance are not
    statements of historical fact and may be
    "forward,|ooking statements." forward,|ooking statements are based on expectations,
    estimates and projections at the time the statements are made that involve a number
    of risks and uncertainties which could cause actual results or events to differ
    materially from those presently anticipated. This newsletter was paid $3,000 from
    third party (IR Marketing). Forward,|ooking statements in this action may be identified
    through the use of words such as: "pr0jects", "f0resee", "expects". in compliance with
    Se'ction 17. {b), we disclose the holding of EGTY shares prior to the publication of
    this report. Be aware of an inherent conflict of interest resulting from such holdings
    due to our intent to profit from the liquidation of these shares. Shar,es may be sold
    at any time, even after positive statements have been made regarding the above company.
    Since we own shares, there is an inherent conflict of interest in our statements and
    opinions. Readers of this publication are cautioned not
    to place undue reliance on
    forward,|ooking statements, which are based on certain assumptions and expectations
    involving various risks and uncertainties that could cause results to differ materially
    from those set forth in the forward- looking statements. This is not solicitation to
    buy or sell st-0cks, this text is or informational purpose only and you should seek
    professional advice from registered financial advisor before you do anything related
    with buying or selling st0ck-s, penny st'0cks are very high risk and you can lose your
    entire inves,tment.

    ReplyDelete
  7. You can't make that affordable housing statement strongly enough. It used to be that affordable housing was considered "low-income housing," but not anymore. Now the term "affordable housing" is being applied to the middle class. But still there are those who would have you believe that there's nothing wrong with this market. Cole @ BigHousingBubble.

    ReplyDelete