tag:blogger.com,1999:blog-2807403883562053852.post9032016053754372000..comments2024-03-27T08:40:31.785-06:00Comments on Clayton Cramer.: The Role of Speculators in the Housing BubbleClayton Cramerhttp://www.blogger.com/profile/03258083387204776812noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2807403883562053852.post-13511379262862983572011-12-15T13:35:21.788-07:002011-12-15T13:35:21.788-07:00No question there is plenty of blame to go around ...No question there is plenty of blame to go around including those foolish enough to buy a house to live in during 2006 which is when I did so I have a share in the blame....whttps://www.blogger.com/profile/10067896665279403979noreply@blogger.comtag:blogger.com,1999:blog-2807403883562053852.post-62655957677264911832011-12-14T20:27:15.497-07:002011-12-14T20:27:15.497-07:00Of course without the Fed money expansion, reduced...Of course without the Fed money expansion, reduced underwriting standards at FNMA, and artificially low interest rates, the speculators wouldn't have gotten very far. It's easy to blame speculators because they are the most visible symptom.patrokovhttps://www.blogger.com/profile/11342697173847508018noreply@blogger.comtag:blogger.com,1999:blog-2807403883562053852.post-78785129635420006822011-12-13T13:44:40.690-07:002011-12-13T13:44:40.690-07:00I flew to HP Roseville (SAC) often during the 2005...I flew to HP Roseville (SAC) often during the 2005-2007 period and there were often one or more folks from CA (usually cocky young guys in their later twenties/early thirties) boasting to anyone who would listen, and especially if it was an attractive young female they were talking to, that they were on their way to/or from buying up houses in the Treasure Valley to make a killing in the property market and would be filthy rich in no time....<br /><br />There were also some of our fellow Boise HP engineers spending their free time getting their realtor licenses during that time trying to get in on the action as it were...<br /><br />Even some doctors and dentists, etc got into the game locally to build up their net worth...<br /><br />Get rich quick schemes are just too tempting for many (I confess I was thinking about doing it as well in '06 & '07 but fortunately never had the time with my deliverable schedule in the MFP lab).<br /><br />During that time I remember also often hearing on the radio investment programs guys calling in that were under 40 boasting that they were millionaires and already retired because of cashing in on the speculation bubble. Of course that makes everyone want to get in, but by that time the bubble was deflating or ready to pop....<br /><br />Finally the shows like "Flip This House" were even trying to get Boise Realtors to work on TV episodes to promote how hot the Valley was (one Eagle realtor that runs a blog mentions it). Not sure if any episodes were ever made but the word was definitely out about the Valley as the next big thing for a time....<br /><br />I guess if you could only get one ~1K sq. ft. ranch made in the 1950's on a postage stamp for $400K-$500K in CA (on average) or you could get 3 or more houses in Ada/Canyon for that much (though by the time I bought in '06 finding a sub $200K house in Ada was very hard (unless it was tiny and run-down) it was easy to see why many of the speculators came up here....<br /><br />Of course once there were no more out of staters to buy up the houses and you had to actually sell the house to someone living here that is making at best a mid 30K range salary and since they can't afford to pay $300K for a house the bottom had to fall out as it did....<br /><br />Will the values ever come back without CA people retiring and coming up here to live????whttps://www.blogger.com/profile/10067896665279403979noreply@blogger.com