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Dark hour is comming

Discussion in 'Political Discussion' started by NEPatriot, Jan 6, 2010.

  1. NEPatriot

    NEPatriot Banned

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    AP: 2009 Bankruptcies Total 1.4 Million, up 32 Pct - ABC News

    Please don't tell me that 'healthcare' is the reason because it's BS.
     
  2. JackBauer

    JackBauer Pro Bowl Player

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    Please. Tell us why it's BS.
     
  3. alvinnf

    alvinnf In the Starting Line-Up

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    Well 2 reasons are; high unemployment and inability for individuals to afford their mortgage. So many people where offered faux lines of credit based on their homes over inflated values. Now we are in bad employment environment and many individuals whom could have weathered the storm with odd jobs or lesser employment. Find themselves up against it because their mortgage is outrageous because they used their house like an ATM.
     
  4. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    Nice summary alvin! You're right...AND add to that another dip in home values on top of what we've experienced the last 2 years.

    I listened to a financial guy on NECN business news saying that he expects real estate to do a "double-dip" this year. That has also been predicted by many economists nationwide. This is even more likely in markets that didn't decline much over the past 2 years....like Massachusetts!! The general rule of thumb in real estate is, "the bigger the bubble, the bigger the decline" and we have yet to see that in MA.

    If that happens....look out and be prepared.
     
    Last edited: Jan 6, 2010
  5. alvinnf

    alvinnf In the Starting Line-Up

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    I think to a certain sense that's true. But, if your speaking about NE I think the conservative ideals and a heavy influx of money from Europe will insulate the region to a certain degree. There are people who will feel the effects of a second bubble. The people i think whom will feel it the most are those whom can afford their home but can't move or change the terms of their mortgage due to a meltdown of values. Sure, people having their houses foreclosed on is terrible, I feel for those people. Secondarily the shock waves of those events affect the community as a whole by driving down prices. Pity.
     
  6. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    In what way do you believe conservative ideals will insulate the region?

    What are you referring to when you write "heavy influx of money from Europe"?

    Because Massachusetts home values experienced some of the greatest increases in values in the nation. All areas that have that kind of increase always have the largest decreases in values.

    A general rule of thumb that MUST occur is that home values in any given market have to reflect the average household income base of that market. In other words, if you live in a town with an average income of $60K, then the average price of a home will prolly be somewhere below $300k when all is said and done and the dust settles. You can't have an average price of $350 - $400k even with conservative values.

    http://multimedia.boston.com/m/2822...im-lowell.htm#q="housing market"&seek=116.039
     
    Last edited: Jan 7, 2010

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