3 replies to this topic

[securelstmile]

was only one or two banks financing condos in Manhattan. They wouldn't even touch co ops as there were too many people just walking away and quite a few buildings were defaulting not just the individual apartments. Now that really was the time to buy real estate. Funny, growth stocks like MSFT were still doing well. I think it will be similar. That was 1990.

[ed rader]

was only one or two banks financing condos in Manhattan. They wouldn't even touch co ops as there were too many people just walking away and quite a few buildings were defaulting not just the individual apartments.

Now that really was the time to buy real estate.

Funny, growth stocks like MSFT were still doing well. I think it will be similar.

That was 1990.

was there a multi-year re-fi boom back then where americans were extracting equity and running negative savings rate?

were the chinese holding a trillion dollars of our paper (or is that $2T ?)?

hell even we re-financed 3 times and while we didn't extract equity -- we substantially lowered or payments -- which i guess you can say paid for the to new vehicles we bought outright.

seriously, i was pretty oblivious at the time...what else was going on? i know we weren't involved in a $10b a month "war".

ed rader

Edited by ed rader, 09 August 2007 - 07:38 PM.

[securelstmile]

was only one or two banks financing condos in Manhattan. They wouldn't even touch co ops as there were too many people just walking away and quite a few buildings were defaulting not just the individual apartments.

Now that really was the time to buy real estate.

Funny, growth stocks like MSFT were still doing well. I think it will be similar.

That was 1990.

was there a multi-year re-fi boom back then where americans were extracting equity and running negative savings rate?

were the chinese holding a trillion dollars of our paper (or is that $2T ?)?

hell even we re-financed 3 times and while we didn't extract equity -- we substantially lowered or payments -- which i guess you can say paid for the to new vehicles we bought outright.

seriously, i was pretty oblivious at the time...what else was going on? i know we weren't involved in a $10b a month "war".

ed rader

We had Michael Milken being arrested. Drexel Burnham lambert filing for bk. Iraq invading Kuwait. I don't know what else....., then real estate in N.Y. was way more negative than it is now. I knew quite a few people who were upside down on their mortgages owing more than their condos were worth. I do remember that preceding this real estate debacle there was a very big condo boom in the N.Y. area. Everyone just had to own a condo in the tri state area in the late 80s.

A few years ago I was on this board telling everyone real estate would be a nightmare but not many bought it. The events preceding this downturn in real estate were just like before. It was the yoga instructor who informed me that stocks like apple and rimm were dangerous and that I should just buy real estate that convinced me. I will say real estate will continue to get worse this isn't the bottom in that market but real estate and stocks are not historically tied at the hip like the majority believe.

It is never all roses and butterflies, if it was I would be really bearish.

[ed rader]

was only one or two banks financing condos in Manhattan. They wouldn't even touch co ops as there were too many people just walking away and quite a few buildings were defaulting not just the individual apartments.

Now that really was the time to buy real estate.

Funny, growth stocks like MSFT were still doing well. I think it will be similar.

That was 1990.

was there a multi-year re-fi boom back then where americans were extracting equity and running negative savings rate?

were the chinese holding a trillion dollars of our paper (or is that $2T ?)?

hell even we re-financed 3 times and while we didn't extract equity -- we substantially lowered or payments -- which i guess you can say paid for the to new vehicles we bought outright.

seriously, i was pretty oblivious at the time...what else was going on? i know we weren't involved in a $10b a month "war".

ed rader

We had Michael Milken being arrested. Drexel Burnham lambert filing for bk. Iraq invading Kuwait. I don't know what else....., then real estate in N.Y. was way more negative than it is now. I knew quite a few people who were upside down on their mortgages owing more than their condos were worth. I do remember that preceding this real estate debacle there was a very big condo boom in the N.Y. area. Everyone just had to own a condo in the tri state area in the late 80s.

A few years ago I was on this board telling everyone real estate would be a nightmare but not many bought it. The events preceding this downturn in real estate were just like before. It was the yoga instructor who informed me that stocks like apple and rimm were dangerous and that I should just buy real estate that convinced me. I will say real estate will continue to get worse this isn't the bottom in that market but real estate and stocks are not historically tied at the hip like the majority believe.

It is never all roses and butterflies, if it was I would be really bearish.

i've been bearish on real estate for the past several years tho now i understand the error of my ways. i could have bought the house nest door and flipped it for $250k profit in less than 3 years but noooooo.

i still don't think the effects of the RE market cratering will be casual...more like a systemic nightmare.

i talked to a buddy yesterday and he just bought a new condo in the trendy section of town on an interest only loan. his pad is about 1000 sq and he says part of it is zoned for business which he has turned into an art gallery (this i gotta see).

this guy owned a commercial property management company for years but sold it after his divorce and disappeared for awhile. he was a very responsible person. very thorough and meticulous.

i asked him if he was worried about the condo market as thousands of units are still under construction in the area and he said:

"i have nothing to lose"...... .

ed rader

Edited by ed rader, 10 August 2007 - 12:31 AM.