Housing bubble: It’s was pure & simple greed.

My father’s 2nd wife, after her divorce from my father. Bought with her settlement money 3 condos & a duplex/2 family house in the greater Ft Lauderdale area @2004. I reminded her a few years ago about the bubble, how it had happened to them in the late 80’s (the had a small apt complex bldg) & how they barely made it out.

I reminded her how people don’t go bankrupt overnight, but bleed to death. If you start to feel woozy from the blood loss. Hit the button & let everything go. Well, she waited too long. By the time she hired a lawyer, she had used all of her credit lines/cards. Could not find a reliable tenant. Monthly cost average well over 1500 per apt & rents she could get was $700-$900. Lawyer is letting go of each property one at time, slowing the process down, so by the time before she hits 65, she’ll file bankruptcy.

It’s was pure & simple greed. Thinking that they were smarter then anyone. Rigging the system, but the system also use them to make money. all of their loans&mortgages were incredibly usurious& bordered on legalize racketeers. Both her & my father did the same thing back in the late 80’s, and both did the same thing after their divorce. My father is in a similar situation, he lost everything already. It could not happened to nicer people. They were able to buy stuff like that, because they did not pay any child support, this was before the days the Sherriff would kick your door down, of course, me & my siblings suffered.

Me, an MBA. Did nite school in june of ‘86 on my last month of graduation form high school to get a Real Estate License. Worked for Weichert Real Estate. As an 18 year old did not get much business, but saw the late 80’s & early ‘90 debacle first hand. Only the people that had wide vision & saw how the powers that be manipulated asset prices using credit inflation & had guts to go in & get out in time made it. If I have one regret, is not bulking up in massive amount of debt & gorging myself in real estate properties back in 2001 & out by 2005. By coincidence -I happened to have a great view & predicted to myself what was happening in real time. But, I admit it. I did not have the guts. I’m very conservative financially. You tend to be, when you have gone thru hell growing up.

The powers that be are trying to restart this “thing” again. But, this time is different - people are really burnt. It’s more fear & anxiety right now, than greed.

- Somewhere in Jerzy

Related Posts:

• Allow me to remind us all of Wisdom from a Patriot……
• 1929 and 2008 Credit Crisis - The Great Depression I and II.
• If you haven’t noticed, it is WALL STREET who are the ones with their hands out to the government.
• Housing prices are still inflated.
• What recovery? The FED is nothing more than doublespeak.

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