Quote:
Originally Posted by WCan_Kid
I totally agree with you, but isn't this just basically like asking for a do-over on the last 25-30 years of economic experimentation?
I keep struggling with the desire to see a correction and feeling some sympathy for people who ended up buying during this time period at the inflated prices that easy credit led to. Sure, there are some that used it as an opportunity to go bigger than they should have, but the whole market was affected so even if someone tried to stay within their means they paid more than they should have.
As I see it, this whole credit/financing mess has been slowly building for decades and now we want to try to correct it almost overnight. So much of the "wealth" that allows people to spend so much at the mall is directly tied to those easy financing terms and low interest rates, when was the last time you had someone talk about their new car in terms of $x total vs $y/month and how much of that is related to artificial equity in their homes. A forced correction in the housing market has to have an impact on all aspects of our economy due to the type of world we've created, doesn't it?
I'm a pretty simple dude, though, so I'm likely missing something.
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I've been waiting to upgrade for 5 years now. Refused to do it under these crazy conditions and I could easily afford it. But it's just plain stupid to overpay like that. And no, houses in Calgary are not good value. They are a terrible value.
Cash sitting. Saving, saving and saving more. But not getting ahead of this RE mess.
The markets pay nothing. The banks pay nothing. Savers get hurt. Irresponsible people get cheap credit. Soound fair?
With these low interest payments I have been losing out on growth of my money. I shoudl be making 10% returns. Like we used to back in the "normal" days.
Does a flipper or a not so bright 22 year old that bought in 09 feel sorry for me or people like me?
I won't feel sorry for them.