Arizona ground zero - Mercedes-Benz Forum

Reply
 
LinkBack Thread Tools Display Modes
post #1 of 17 (permalink) Old 02-16-2009, 12:20 PM Thread Starter
BenzWorld Elite
 
Date registered: Mar 2006
Vehicle: 1999 ML320
Location: Ratville
Posts: 24,029
Mentioned: 1 Post(s)
Quoted: 310 Post(s)
(Thread Starter)
Arizona ground zero

Given that the boom was totally dependent on the real estate industry, any attempts at bailing out anyone is just pouring money down the drain. The industry is DEAD and until the state finds another source of growth, these bailed out homeowners will likely default again.


Quote:
ABC News: How Stimulus Package Would Help Homeowners
Arizona and Around the Nation: From Boom to Bust
Before the bottom fell out for Arizona's capital city, the area's population nearly doubled, filling municipal coffers for projects such as a light rail system.
The economy skyrocketed, based almost solely on the real estate market, which drew tourists, retirees and businesses seeking inexpensive spaces.
...
The tough market has made it difficult for homeowners like Leroy Ford to sell their homes. Ford, who recently lost his job, is trying to offload his four-bedroom home for $80,000.

"I would love to be bailed out," said Ford, who bought his home two years ago for $220,000.

And the 15,000 people who attended last week's job fair in Phoenix offered painful proof of the city's decreasing tax base, which has resulted in a $200 million deficit.
mlfun is offline  
Sponsored Links
Advertisement
 
post #2 of 17 (permalink) Old 02-16-2009, 12:33 PM
BenzWorld Elite
 
mcbear's Avatar
 
Date registered: Apr 2004
Vehicle: E500Es
Location: The BlueGrass State
Posts: 29,579
Mentioned: 0 Post(s)
Quoted: 3 Post(s)
Quote:
Originally Posted by mlfun View Post
Given that the boom was totally dependent on the real estate industry, any attempts at bailing out anyone is just pouring money down the drain. The industry is DEAD and until the state finds another source of growth, these bailed out homeowners will likely default again.
Your premise doesn't mesh with reality. The "boom" was dependent on multiple elements of which the real estate industry was only one element, with multiple sub-elements.

And it it incorrect to assume that homeowners would "likely default again" as the dynamics of the defaults was based on a very unique set of collapsing conditions.

The boom and subsequent bust was much more influenced by the hedge fund and derivatives markets and the house of cards that they were built on, rather that the homeowner or even the construction biz.

McBear,
Kentucky

Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.
mcbear is offline  
post #3 of 17 (permalink) Old 02-16-2009, 12:40 PM Thread Starter
BenzWorld Elite
 
Date registered: Mar 2006
Vehicle: 1999 ML320
Location: Ratville
Posts: 24,029
Mentioned: 1 Post(s)
Quoted: 310 Post(s)
(Thread Starter)
Quote:
Originally Posted by mcbear View Post
Your premise doesn't mesh with reality. The "boom" was dependent on multiple elements of which the real estate industry was only one element, with multiple sub-elements.

And it it incorrect to assume that homeowners would "likely default again" as the dynamics of the defaults was based on a very unique set of collapsing conditions.

The boom and subsequent bust was much more influenced by the hedge fund and derivatives markets and the house of cards that they were built on, rather that the homeowner or even the construction biz.
The financial boom occurred mainly in NY whereas other parts of the country such as Phoenix experienced a boost in real estate prices.

The construction biz will shrink as a result of the crash. The 800B stimulus is just going to prolong this readjustment process by handing out pork to this industry. The country does not need more bridges, highways, government buildings and housing units as the 800B stimulus package indicates.

The next cycle of default will be income related and any region which depends on the construction biz as a key economic driver is SCREWED.

Last edited by mlfun; 02-16-2009 at 12:42 PM.
mlfun is offline  
post #4 of 17 (permalink) Old 02-16-2009, 12:46 PM
Brentwood MB
Guest
 
Posts: n/a
Mentioned: Post(s)
Quoted: Post(s)
Post

ML, the Bill Passed. Lets give those now in charge at least the common courtesy to allow them the opportunity to Fail. God knows,we afforded the last bunch 8 years to do so. Which they did quite well.
post #5 of 17 (permalink) Old 02-16-2009, 12:51 PM Thread Starter
BenzWorld Elite
 
Date registered: Mar 2006
Vehicle: 1999 ML320
Location: Ratville
Posts: 24,029
Mentioned: 1 Post(s)
Quoted: 310 Post(s)
(Thread Starter)
Quote:
Originally Posted by Brentwood MB View Post
ML, the Bill Passed. Lets give those now in charge at least the common courtesy to allow them the opportunity to Fail. God knows,we afforded the last bunch 8 years to do so. Which they did quite well.
Let me repeat for you ... the construction and related industries are WALKING DEAD and would have perished sooner without this plan.
mlfun is offline  
post #6 of 17 (permalink) Old 02-16-2009, 12:56 PM
Brentwood MB
Guest
 
Posts: n/a
Mentioned: Post(s)
Quoted: Post(s)
Post

ML, so you say we just allow all to fail. What would you spend $$ on to get things going?
post #7 of 17 (permalink) Old 02-16-2009, 12:59 PM
BenzWorld Elite
 
FeelTheLove's Avatar
 
Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Posts: 28,829
Mentioned: 0 Post(s)
Quoted: 8 Post(s)
That's nice. You should actually read the crap you post. The housing bill is a different bill from the stimulus bill, and it hasn't even passed yet. Here is the proposal: No one is going to give any cash or any sort of a free ride to the homeowner, a "Toxic Bank" is going to buy the paper and then structure the loan as best it can to try to get the payments down to what the person can afford. They will still be expected to pay what they paid for the house, the purpose of the program is to keep them in their homes. Ultimately, due to our current political impasse, this will be decided by three Republican Senators, just like the stimulus bill was. Bitch at them.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

-President Barack Obama, 1st Inaugural address
FeelTheLove is offline  
post #8 of 17 (permalink) Old 02-16-2009, 01:05 PM Thread Starter
BenzWorld Elite
 
Date registered: Mar 2006
Vehicle: 1999 ML320
Location: Ratville
Posts: 24,029
Mentioned: 1 Post(s)
Quoted: 310 Post(s)
(Thread Starter)
Quote:
Originally Posted by Brentwood MB View Post
ML, so you say we just allow all to fail. What would you spend $$ on to get things going?
The painful readjustment of that industry cannot be avoided unless one hallucinates that the next housing construction boom is just around the corner.
mlfun is offline  
post #9 of 17 (permalink) Old 02-16-2009, 01:07 PM
BenzWorld Elite
 
Date registered: Feb 2007
Vehicle: 300SD
Location: Florida, USA
Posts: 11,191
Mentioned: 0 Post(s)
Quoted: 62 Post(s)
This is rather interesting. Apparently some folks, who are fiscally prudent and are paying their mortgages as they should, are afraid that "good for nothing scumbags", who bought huge houses they could not afford are now going to have their mortgages paid off by the government for free (well, at least big part of their mortgages), while decent folks who were financially responsible will get nothing.

I believe that this is not going to happen. At best, their mortgages will be refinanced to a fixed rate so they can make payments. But I can see how this creates problems. Those who are making payments on time will want a piece of the pie too.
p100 is offline  
post #10 of 17 (permalink) Old 02-16-2009, 01:11 PM
Brentwood MB
Guest
 
Posts: n/a
Mentioned: Post(s)
Quoted: Post(s)
Post

That piece of the Pie may be only that the Markets stabilize and values begin to hold and potentially rise.
Sponsored Links
Advertisement
 
Reply

  Mercedes-Benz Forum > General Mercedes-Benz Forums > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Mercedes-Benz Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











  • Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
     
    Thread Tools
    Show Printable Version Show Printable Version
    Email this Page Email this Page
    Display Modes
    Linear Mode Linear Mode



    Similar Threads
    Topic Author Forum Replies Last Post
    Arizona? ml32001 Off-Topic 75 03-18-2009 10:04 AM
    Looks like she picked Arizona after all... Digmenow Off-Topic 1 09-22-2007 05:45 AM
    anyone in arizona? thetachi@asu R230 SL-Class 1 05-13-2005 08:05 AM
    arizona based owners group (california, arizona, nevada, new mexico) rock lobster G-Class 0 02-13-2002 11:26 AM
    arizona based owners group (california, arizona, nevada, new mexico) Guest (MBNZ) Unimog 0 02-13-2002 11:04 AM

    Posting Rules  
    You may post new threads
    You may post replies
    You may not post attachments
    You may not edit your posts

    BB code is On
    Smilies are On
    [IMG] code is On
    HTML code is Off
    Trackbacks are On
    Pingbacks are On
    Refbacks are On

     

    Title goes here

    close
    video goes here
    description goes here. Read Full Story
    For the best viewing experience please update your browser to Google Chrome