Rich Default on Luxury Homes Like Subprime Victims

mortgagemess at 08:33 2009-05-07 said:

The problem is that many of these so called "business owners" were nothing more than people who jumped on the train for years and never really went through a business cycle.

People who are real "true business people" understand and have been THROUGH the highs and lows of OWNING a business. Many like realtors, brokers and others never had "real life" education and thought they were all going to live the high life forever...now are they not only realizing that they are losing it all, they are having to make serious concessions in the quality of life they thought the had..from millionaires to just every day average stiffs...

Seeing alot of divorces happening in the "having it all" generation of thinking...especially when the wife can't deal with no longer shopping at coach and that the husband now brings home 40K instead of 400K... Permalink

catherine at 10:06 2009-05-07 said:

so jumbo and "A" paper are now failing at triple numbers from last year............

wow, do you think everyone MIGHT HAVE BEEN WRONG ABOUT THOSE LOSERS IN SUBPRIME, OR THE CROOKS THAT RIPPED THEM OFF

how sad that it was ONLY THE VALUE OF THE PROPERTY DROPPING THAT CAUSED ALL THIS MESS

I mean they TANKED OUR INDUSTRY FOR A LIE

now "A" and jumbos are failing at triple digits from 3 years ago, even people who PUT DOWN 30% ARE LOSING THEIR HOUSES

AND THESE LOANS WERE rated "AAA" and ARE stuffed into our insurance and pension companies,

and they were sold around the world to all the nations

I THINK THE LAST 3 YEARS WERE JUST A WARM-UP, THE HARD PART IS COMING Permalink

mahalo guy at 10:49 2009-05-07 said:

Good point,

When I think about it, I have run across the big "D" far more often as of late.

Also, have family murder/suicides increased? That's an everyday news story now.

The problem is that many of these so called "business owners" were nothing more than people who jumped on the train for years and never really went through a business cycle.

People who are real "true business people" understand and have been THROUGH the highs and lows of OWNING a business. Many like realtors, brokers and others never had "real life" education and thought they were all going to live the high life forever...now are they not only realizing that they are losing it all, they are having to make serious concessions in the quality of life they thought the had..from millionaires to just every day average stiffs...

Seeing alot of divorces happening in the "having it all" generation of thinking...especially when the wife can't deal with no longer shopping at coach and that the husband now brings home 40K instead of 400K...

Permalink

mortgagemess at 12:10 2009-05-07 said:

Good point,

When I think about it, I have run across the big "D" far more often as of late.

Also, have family murder/suicides increased? That's an everyday news story now.

The problem is that many of these so called "business owners" were nothing more than people who jumped on the train for years and never really went through a business cycle.

People who are real "true business people" understand and have been THROUGH the highs and lows of OWNING a business. Many like realtors, brokers and others never had "real life" education and thought they were all going to live the high life forever...now are they not only realizing that they are losing it all, they are having to make serious concessions in the quality of life they thought the had..from millionaires to just every day average stiffs...

Seeing alot of divorces happening in the "having it all" generation of thinking...especially when the wife can't deal with no longer shopping at coach and that the husband now brings home 40K instead of 400K...

Yes, I expect murder/suicides to increase dramatically, as to be expected in times of financial turmoil.

Even more so as these "equity lined" millionaires deal with the fact that there is no where to run to for "easy" money. All they got out of it was a tiny snack, and a expensive one, of the good life!

It is very hard for someone to give up the McMansion, the golf club membership, the leased matching BMW to living like everyone else(which is not a bad thing, if you didn't rub it in everyones face!). But now you have a group of people, whose ENTIRE family has to make the adjustment(sorry teenage daughter no SUPER SWEET SIXTEEN party like your friends, sorry honey, have to give up the ballet lesson and private school,son you need to get a part-time job I can't give you money to put high test in that car I got you, no dear sweet wife you can't run out and get the matching LV bag, like all your friends, and sorry hubby, you can't call your brother and tell him about the lastest toy you bought). Too many people put the pressure on themselves so much that they can't handle to rollercoaster ride down..so they selfishly end it for everyone...I always worry though, who they might take with them... Permalink

catherine at 22:07 2009-05-07 said:

Yes, I expect murder/suicides to increase dramatically, as to be expected in times of financial turmoil.

Even more so as these "equity lined" millionaires deal with the fact that there is no where to run to for "easy" money. All they got out of it was a tiny snack, and a expensive one, of the good life!

It is very hard for someone to give up the McMansion, the golf club membership, the leased matching BMW to living like everyone else(which is not a bad thing, if you didn't rub it in everyones face!). But now you have a group of people, whose ENTIRE family has to make the adjustment(sorry teenage daughter no SUPER SWEET SIXTEEN party like your friends, sorry honey, have to give up the ballet lesson and private school,son you need to get a part-time job I can't give you money to put high test in that car I got you, no dear sweet wife you can't run out and get the matching LV bag, like all your friends, and sorry hubby, you can't call your brother and tell him about the lastest toy you bought). Too many people put the pressure on themselves so much that they can't handle to rollercoaster ride down..so they selfishly end it for everyone...I always worry though, who they might take with them...[/quote]

this is why I compare it to the Depression, everyone gets a 50% haircut this time, in our previous downturns since the Depression NEVER DID STOCK AND HOUSING FALL TOGETHER

there were always rich that were unscathed, this time, unless you are making bullets, guns, or other necessities you are 50% down.

Your home, investments, 401s, it has all fallen and is still falling,

sorry think this stock market is STILL DEAD CAT BOUNCE, pensions and insurance companies bankrupt and the big bank boys still at the trough for billions, the market is lying and bringing in the suckers.

Cramer said the problems were all over today

NOW THAT MEANS WE HAVE ABOUT 10 MORE YEARS TO GO..............

you are right,

the kids are going to be the ones traumatized. Their parents have worked long hours and bought them off with "things", NO MORE THINGS

I always had the same friends when I had a lot of money and when I didn't, drove the same car for 10 years and could have afforded any I wanted, yeah the house is smaller now but still in the same beach town, the people WHO BOUGHT THEIR LIFESTYLES WILL HAVE THE PROBLEM.

How are you seeing crime, I live outside Orlando and it is getting brutal. 4 guys just grabbed a lady off the street, drug her for blocks for $14 in her purse, shotguns were stolen out of police cars a few months ago, the smash and grabs are way up.

some people broke look for any kind of work, other people broke look at who they are going to rob

it is no coincidence that there is an ammunition shortage right now.

and the big D, why not, wives were trophys like the big boats, when the money leaves so does the marriage, love wasn't part of the equation. Permalink

mortgagemess at 00:31 2009-05-08 said:

Catherine, I agree with you. This is going to last alot longer than they want us to know. I left many a friend behind in Florida, and 90% are in trouble with jobs, wages, retirement and/or housing. There is no end in sight and are still in the middle of the storm.

Crime, I live in the burbs around ATL and crime is definitely going up. The have nots are going to the "haves(more like wannabees. they don't have anything that isn't equity lines or credit card maxed out) and robbing them. The areas built closest to the ghettos are feeling it the worse. A studen was just robbed, kidnapped and shot outside his girlfriends apt complex and it is only going to get worse.

I am finding alot of the big "D" but just not with spouses but with KIDS!!! Kids raised in the last few years who were SPOILED by their parents, now as young adults are turning their backs on their parents who can no longer supply them with the lastest and greatest or are siding when it comes to the big "D" with the parent who has the most CA$H!!!

Sad to see the society downfall of money...I think that the young ones still being raised by parents will turn out the be a better generation. Having to see their parents forced to live within their means or to see mom and dad lose their home... Permalink