Tuesday, May 16, 2006

The Roller Coaster

It was so easy to ride the roller coaster. The housing industrial complex was cheerleading people to get on board. Realtors, lenders, appraisers, home builders, were involved in it's promotion.

Cheap and easy credit was extended allowing anyyone to ride. You could even ride the roller coaster with your ARMs flopping everywhere. Al Greenspan designed the interest rate portion of the roller coaster. The housing industrial complex made huge sums of money from the roller coaster.

Now the ride is almost over, and the damage is apparent. Many people are already vomiting from this crazy roller coaster. More people will vomit as they go into foreclosure. It is time to clean up this sad mess.


  1. good stuff at the morgan stanley digest on inflation, credit, and bubbles. The big question is will there be a credit crunch to prevent more inflation?


  2. thanks for the link. Solid stuff.

    Do you think the average speculator understands the issues discussed in the article?

  3. Flip that graph over, and you'll be looking at prices almost perfectly correlated . . . now we just need to wait to see the slide in prices . . .

  4. David - Lets get our wallets out cause its time to buy. Announcing Beazer Homes "72 Hour Annual Inventory Sale".


    "The countdown to closeout begins Friday at 9 a.m. This weekend only, you can take advantage of ultra savings on hundreds of inventory homes"

    "Appointments highly recommended to be one of the lucky 72 homebuyers!"

    My favorite parts:

    -this weekend only (i guess prices will go back up next week, huh?)
    -be one of the lucky buyers (speaks for itself, doesn't it)
    -annual inventory sale (gee, I don't remember this sale last year??)

  5. Anon 12:03

    "Flip that graph over, and you'll be looking at prices almost perfectly correlated . . . now we just need to wait to see the slide in prices . . ."

    It would be nice if the prices were back to pre-bubble levels, but that does not seem possible. For this to happen there would have to be a hugh amount of sellers willing to take a tremendous loss (50%?). A more likely outcome would be a homeowner will foreclose or keep the house for sale until his losses are minimized.

    This is a vomitcoaster!

  6. "Housing slowdown to be widely felt
    Slowdown in residential building and home sales will be felt throughout the economy
    By Chris Isidore, CNNMoney.com senior writer
    May 16, 2006: 3:25 PM EDT"

    That's gotta hurt.

  7. If people really understood what Greenspans, and basically all politicians (except Ron Paul) did, they string them up from the telephone poles in Washington. I'm surprised Sir? (what's with that shit, City of London, banking centre, perhaps) Allen Greenspan hasn't left the country permanently.

  8. Regarding Beazer Homes 72 Hour Sale you were having a laugh at. Well.. this past weekend, they sold 113 homes vs. 24 the previous weekend (a 370% increase in 72 hours). Traffic counts were 909 vs. 414 the previous weekend (a 122% increase); 230 appointments were made vs. 0 the previous weekend; 78,500 click-through to website and a mere 18.3 million impressions recorded online. Did I just say a 370% increase in sales in one weekend?!?!?!? Yup. Who's LOL now?