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Thread: House flippers triggered the US housing market crash

  1. #11
    the "good" prag pragmatic's Avatar
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    Can we still blame it on George Bush??
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  2. #12
    the "good" prag pragmatic's Avatar
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    Am thinking the whole crash disaster was a lot more complex than stating "oh these guys were the cause".


    Mortgage backed securities (MBSs), such as collateralized debt obligations (CDOs) were pretty big players in the mess. For that there should have been some prison terms for the management in the Rating Agencies.
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  3. #13
    Established Member NeoVsMatrix's Avatar
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    A house flipper can only make money if s/he sells the flipped property with a profit. Market sets the price.. and the fact that mortgage brokers convinced EVERYONE that hey could afford to buy a home, no matter what their financials.. was the trigger to blow up the market prices, and lead to the CDO', MBS's, etc.

    The real estate market collapsed because of mortgages that were much, much higher than the value represented in the houses.
    ANY buyer, being overconfident and buying more than they could handle, is to blame.

    But the jacking up of house prices was driven by the large institutions, who made financing available, beyond any reason or common sense. The flippers simply enjoyed the ride.

    There have been enough studies over the past decades, books written, movies made, to convince me that the big players knew about it, bet heir money ON the collapse of the market, instead of steering it off the collision course.

    my 2 cents.

  4. #14
    the "good" prag pragmatic's Avatar
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    Quote Originally Posted by NeoVsMatrix View Post
    A house flipper can only make money if s/he sells the flipped property with a profit. Market sets the price.. and the fact that mortgage brokers convinced EVERYONE that hey could afford to buy a home, no matter what their financials.. was the trigger to blow up the market prices, and lead to the CDO', MBS's, etc.

    The real estate market collapsed because of mortgages that were much, much higher than the value represented in the houses.
    ANY buyer, being overconfident and buying more than they could handle, is to blame.

    But the jacking up of house prices was driven by the large institutions, who made financing available, beyond any reason or common sense. The flippers simply enjoyed the ride.

    There have been enough studies over the past decades, books written, movies made, to convince me that the big players knew about it, bet heir money ON the collapse of the market, instead of steering it off the collision course.

    my 2 cents.

    The Big Short. Great movie!!

  5. #15
    Established Member NeoVsMatrix's Avatar
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    Quote Originally Posted by pragmatic View Post
    The Big Short. Great movie!!
    absolutely... scary as shit to see how it went down, and how it will go down, AGAIN.

    Another great movie, to look into it from the flippers / home owners side: 99 Homes (2014) - IMDb

  6. #16
    Flibbertigibbet Wonderer's Avatar
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    I always thought those Property Brothers were shady....
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  7. #17
    New Member SunsetRose's Avatar
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    Quote Originally Posted by Babba View Post
    Well, since Congress hasn't really addressed the causes of the housing crash it's bound to bite us in the ass again.
    I agree with you, Babba. And it will probably be worse next time.
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    Quote Originally Posted by Babba View Post
    It was NOT subprime borrowers. Blaming the poor was always stupid and tinged with racism.





    House flippers triggered the US housing market crash, not poor subprime borrowers
    What triggered the housing crash was rate hikes by the Fed. The rate hikes popped the bubble, house flippers, lenders, subprime lenders, the federal government, deregulation, Fannie, Freddie, FHA, and an insatiable appetite for MBSs created by Wall Street investment banks all created the bubble.

  9. #19
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    Quote Originally Posted by NeoVsMatrix View Post
    A house flipper can only make money if s/he sells the flipped property with a profit. Market sets the price.. and the fact that mortgage brokers convinced EVERYONE that hey could afford to buy a home, no matter what their financials.. was the trigger to blow up the market prices, and lead to the CDO', MBS's, etc.

    The real estate market collapsed because of mortgages that were much, much higher than the value represented in the houses.
    ANY buyer, being overconfident and buying more than they could handle, is to blame.

    But the jacking up of house prices was driven by the large institutions, who made financing available, beyond any reason or common sense. The flippers simply enjoyed the ride.

    There have been enough studies over the past decades, books written, movies made, to convince me that the big players knew about it, bet heir money ON the collapse of the market, instead of steering it off the collision course.

    my 2 cents.
    Either they knew about it, or aren't as smart as they claim.

  10. #20
    Veteran Member Panzareta's Avatar
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    Quote Originally Posted by Libertine View Post
    What triggered the housing crash was rate hikes by the Fed. The rate hikes popped the bubble, house flippers, lenders, subprime lenders, the federal government, deregulation, Fannie, Freddie, FHA, and an insatiable appetite for MBSs created by Wall Street investment banks all created the bubble.
    Then why did you vote for Trump who profited directly from the bubble popping?
    Last edited by Panzareta; 6th September 2017 at 10:05 AM.

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