How Dumb Is Donald Trump?

[billt]

I think the only "crash" you may see in the not too distant future, is going to be in the residential real estate market. The reason is because the banks and lending institutions are all going right back to what they were doing, that caused the nationwide 2008 crash.

They're right back at loaning money to people who have little to nothing invested in their homes. No, "skin in the game", so to speak. Within 2 blocks of me 3 homes have sold above $200K in the last year. The first sold with no money down. The second sold with just $2,500.00 down. The last one sold just a couple months ago for $220,000.00 with only $3,800.00 down.

So once again this is becoming the rule, rather than the exception. None of these idiots have learned their lesson. If the real estate market drops just 2%, all of these people will have had their down payments wiped out. And will all owe more than their property is worth. That is exactly what triggered the last crash, sending prices plummeting, and throwing much of the market into foreclosure. As people abandoned their homes, because they could not make the payments when their adjustable rate mortgages they had ballooned. And no bank would refinance them by writing a note on a property that was underwater for over double what it was actually worth on the open market.

California is the absolute worst, or best example of this. You've got 60+ year old, frame and stucco 1,200 sq. ft. 1 bath houses selling for close to, if not over $500,000.00 in some areas of Los Angeles. And the good paying jobs are all drying up left and right. As companies are fleeing southern California, because of run away operating and labor cost, taxes, and regulation. There is nothing to support that high of an inflated real estate market. Look for an economic disaster to happen in California real soon. Prices are going through the roof. Jobs are drying up. And the state is awash with government dependent illegals and crime. All coupled with an out of control, liberal socialist government that supports all of it. Or is going broke trying to. If that isn't a recipe for an economic crash, I don't know what is. 

[alfsauve]

California is the absolute worst, or best example of this. You've got 60+ year old, frame and stucco 1,200 sq. ft. 1 bath houses selling for close to, if not over $500,000.00 in some areas of Los Angeles.

Yes California, especial SF valley area are absolutely horrendous.  But not just the cities.  I was watching the news about the new pot laws and someplace in the the desert they were bemoaning the outrageous increase in land costs.  The mayor of the small town  was saying prices have sky rocketed from a mere $600,000/acre to over a $1,000,000.   For flat, sandy desert land!!!  A mere $600k?     

[Big Frank]

Yes California, especial SF valley area are absolutely horrendous.  But not just the cities.  I was watching the news about the new pot laws and someplace in the the desert they were bemoaning the outrageous increase in land costs.  The mayor of the small town  was saying prices have sky rocketed from a mere $600,000/acre to over a $1,000,000.   For flat, sandy desert land!!!  A mere $600k?   

I may very well be mistaken but I think my friend said wooded property in the middle of Michigan where his cabin is was $20,000 an acre. Or perhaps a fraction of one. Whatever it was, I'd rather have a huge amount of property in the middle of nowhere than a single acre in the middle of nowhere.

[DaverZ]

How about an all of the above?

that was my vote

[DaverZ]

OK.  Updated. 

You guys get 3 votes each on this one~~!!~~!!~~!!

only needed 1

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