PDA

View Full Version : Who made the money in the Housing Bubble?



Novaheart
01-06-2012, 02:16 PM
WWII generation (Depression babies) who sold their suburban crackerboxes for more than they ever imagined they would get.

Florida developers, who sold those WWII generation transplants tropical pool homes and little pieces of paradise at a price that northerners thought was a steal and southerns thought was a pay day.

Construction workers.

House flippers and the ramora of handy men, roofers, painters, tilers, rehabbers, and chicken house carpenters that follow them around, not to mention the AC guys, plumbers, and electricians.

Realtors

Mortgage brokers

lawyers

and everyone who accepted business generated by the cash generated by the bubble

NJCardFan
01-06-2012, 02:47 PM
Guys who bought foreclosures, flipped them, and resold them.

txradioguy
01-06-2012, 03:19 PM
Liberal Senators and Congress Critters.

linda22003
01-06-2012, 04:03 PM
House flippers and the ramora of handy men, roofers, painters, tilers, rehabbers, and chicken house carpenters that follow them around, not to mention the AC guys, plumbers, and electricians.



What is a "ramora"?

Starbuck
01-06-2012, 07:31 PM
Better yet, who kept the money they made?

I think the answer is, "almost no one". My experience is that almost all of the listed categories made some money and one time or another. But almost none of them kept it. Today, they are almost all back where they started.

Rockntractor
01-06-2012, 08:32 PM
What is a "ramora"?

He is calling tradesmen parasites.

djones520
01-06-2012, 08:53 PM
And what is your point Nova? I'm just curious.

Zeus
01-06-2012, 09:28 PM
What is a "ramora"?

I think they meant Remora and they are a sharksucker aka suckerfish. Someone has a rather low opinion of tradesmen.

Novaheart
01-07-2012, 12:06 PM
He is calling tradesmen parasites.

Ramora are not parasitic, they are symbiotic.

Novaheart
01-07-2012, 12:22 PM
And what is your point Nova? I'm just curious.

That a great many people, and many different kinds of people made a lot of money in/off the bubble and yet almost none of them get mentioned in the blame for the burst.

Did realtors tell buyers that the market was too hot and would probably pop?
Did tradesmen tell buyers that putting a $20,000 kitchen in a $80,000 house probably wasn't their smartest investment?
Did lawyers say, "I don't know how an appraiser could have said this house is worth $300,000 and no bank in its right mind would lend on it."
Did banks say, "The house isn't worth $300,000, it sold for $70,000 ten years ago."
Did homeowners think it was wrong to charge $450,000 for a WWII tract home?

Each of these people make money, and wanted to get their check and get on their way. We generally consider that their business. But while this was going on, weren't ethics going out the window?

When I was selling houses in the 1980's, when the bubble got close to the peak, my heart left the business. I simply could not figure out how this was good for the country. If things continued the way they were, it would mean that young people as a rule could never afford to buy a house near their parents. That would mean that grandchildren would grow up visiting their grandparents instead of being in their lives. In other words, my world was coming to an end before my eyes. Hometowns were going to simply become places where people live for awhile.

Now I will grant you that the burst wasn't as bad, or at least I don't remember it being as bad. I remember some houses which has just sold for $328,000 (which I thought was ridiculous) being on fire sale for $289,000 and I did not blame the folks who had just bought the same model for more from walking away. Developers had started building ridiculous houses with turrets on treeless lots with the corn roots still in the dirt, and silly people were paying idiotic prices for houses they simply did not need. Barney Frank and black people had nothing to do with that, and they had little to do with what we witnessed here in FLorida.

When the shit first hit the fan here- the culprits were failing investors, not aspiring or over ambitious homeowners who wanted to get in at any price. Investors, those people some Republicans like to bow when saying the word. Well those investors were buying houses they couldn't carry. They were paying too much money for those houses on the Bigger Fool Game. They never planned to pay the mortgage for those houses. And in the end they lost those houses. Twenty, thirty, and fifty houses at a time came on auction from one investor at a time. These were not "unqualified" people in the sense it's used around here; these were people banks consider to be high rollers and low risk.

I just want people to get their heads on straight about what happened, instead of insisting on repeating the talk radio bullshit about the government forcing the banks to lend to "unqualified people" by which they mean black people.

Rockntractor
01-07-2012, 12:32 PM
Ramora are not parasitic, they are symbiotic.

If I was a Hindu I would say you were a Ramora in your last life.:confused:

Novaheart
01-07-2012, 12:51 PM
If I was a Hindu I would say you were a Ramora in your last life.:confused:

In my last life I was a soldier and was killed in combat. I re-experienced it in a waking state dream. I was immediately reborn as myself. I realized this 40 years ago, and no I was not under the influence at the time.

Rockntractor
01-07-2012, 02:11 PM
In my last life I was a soldier and was killed in combat. I re-experienced it in a waking state dream. I was immediately reborn as myself. I realized this 40 years ago, and no I was not under the influence at the time.

http://i686.photobucket.com/albums/vv230/upyourstruly/-douche-1319290490.jpg

Articulate_Ape
01-07-2012, 02:12 PM
Ramora are not parasitic, they are symbiotic.

It's remora, but that was a very eloquent metaphor, Nova.