A Growing Number Of Realtors May Signal A Real Estate Bubble

[Anonymous 14]

narwhal wrote:

I think I would prefer to buy when rates are falling. When rates are falling, the value of the home should go up faster. When rates are going down, fewer people are going to be buying, there will be more homes on the market, and therefore the value of the home will not rise.

I prefer to not give them a dime, so I am f~~~ed either way if I buy on the up or downswing of rates, either way they are making money off of lending me something they did not have to work for. I assume you meant up instead of down there in your third sentence, that all makes sense.

[PRichardParticipant 206]

This is huge. Seriously, if any of you have investment advise, please PM me! It will not be wasted. I crave knowledge like a sponge.

To be fair, give me a little background on why you think this and where you gained your experience. I do not want to invest foolishly, and maybe I am being too trusting.

My specific question: I too saw the education bubble coming late last year, before most of the articles surfaced. Basic common sense. How would one make money off of this? You cannot exactly short a stock here.

If what you are doing is working, do not change a thing.

[ghostParticipant]

PRichard wrote:

How would one make money off of this?

You keep cash sidelined and not invest in any bubbly real estate market for starters. You could also find public REITs which are over-exposed to certain markets and have considerable leverage. They could really get hit hard if credit markets freeze and real estate prices take a dive.

[SkelatorParticipant 1261]

On a side note there is a gigantic credit bubble right now waiting to burst. Credit lenders are handing out cards like candy. This will not end well.

[ghostParticipant]

Skelator wrote:

On a side note there is a gigantic credit bubble right now waiting to burst. Credit lenders are handing out cards like candy. This will not end well.

Yes. See my other thread from today.

[bstoffParticipant 4863]

I haven’t heard too much recently about the student loans bubble, and it’s kind of surprising to me.

Maybe it will happen all at once, but I would think there needs to be a big media buildup, to raise attention to it, and then a sudden gush of defaults before the banking industry reacts and the floor drops out.
Is there an estimated timeline for when the majority of the unpaid loans are going to be dumped onto the economy?

[ghostParticipant]

bstoff wrote:

I haven’t heard too much recently about the student loans bubble, and it’s kind of surprising to me.

This is also a major bubble in my opinion.

bstoff wrote:

Maybe it will happen all at once, but I would think there needs to be a big buildup and a sudden gush of defaults before the banking industry reacts and the floor drops out.

Yup.

[hollowtipsParticipant 681]

Interesting how the increase was due in part to the fact of having dual income households yet marriage rates have been plummeting a single motherhood has been skyrocketing so by now the housing prices should be tipping downwards but they stay inflated.

[ghostParticipant]

hollowtips wrote:

Interesting how the increase was due in part to the fact of having dual income households yet marriage rates have been plummeting a single motherhood has been skyrocketing so by now the housing prices should be tipping downwards but they stay inflated.

Excellent point, hollowtips.

[BeerParticipant 11832]

bstoff wrote:

I haven’t heard too much recently about the student loans bubble, and it’s kind of surprising to me.

I think this is an interesting one…because most people don’t actually have a crushing amount of student loan debt. If you got someone with a 30k debt making 50k+ a year…there is no reason they can’t pay it off in a few years if they prioritize it…a lot of them are paying it down and not whining, and others just like to cry because that is money they can’t spend on vacations, a house, or a new car right away. Same for a lot of people with larger debts…if your 200k in debt from med school or law school and are a doctor or lawyer making six figures now…yeah it sucks paying it back but its not like its crushing your life.

I think its really a small minority of people who are truly in a s~~~ty spot and have stupid amounts of debt with s~~~ degrees, and I’ve no doubt that most of those people would have gotten themselves buried in other kinds of debt and financial problems had it not been student debt because some people are just financial idiots with no sense of planning for tomorrow and you can’t fix that.

I don’t think we’ll ever see this bubble burst like we saw housing bubble or tech bubble burst largely because most people are capable of paying their debts back and as of right now its pretty damn hard to legally walk away from student loans. I think we’ll ultimately just see a decline in the % of people attending college as the return on investment for a lot of degrees continues to become worse and worse.

[PrincekieParticipant 1042]

Anonymous wrote:

DON’T INVEST A DIME IN AMERICA! F~~~ING RUN!

Just as well you’re not in the UK. Economy over here is dicey to say the least. Currently we’ve got:

* House price bubble (people are gonna lose a s~~~ ton of money in this)
* Car loans bubble (apparently loaning billions of ££££s to people who don’t work is a GREAT idea!!)
* P2P Housing investment bubble
* Inflation (every week prices go up up up)

And probably many many more bubbles I’ve ignored to add to this. Crazy over here! Can’t wait for Budget day tomorrow….

[Author]

Posts