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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  And it was "legal", and people (22+ / 0-)

    agreed to pay higher prices hoping to cash in in a few years. It's all a crap shoot, isn't it? There's the common wisdom that housing is your safest investment and always pays off, and then there's the shadow banking industry, unregulated and invisible, creating an unsustainable bubble.

    Let's hope we're sadder but wiser in the future.

    I'm not looking for a love that will lift me up and carry me away. A love that will stroll alongside and make a few amusing comments will suffice.

    by I love OCD on Thu Feb 09, 2012 at 08:07:35 PM PST

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    •  I think we have returned to the old common wisdom (15+ / 0-)

      A home isn't an investment. It's where you live.

      Others have simply gotten old. I prefer to think I've been tempered by time.

      by Just Bob on Fri Feb 10, 2012 at 01:06:02 AM PST

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      •  And that's really the bottom line. (8+ / 0-)

        A home is not something you put money into expecting a good return.  They tend to hold their value and gain a little over the long run, but you'd be better off putting your money in big, dividend-paying stocks.

        It's not an investment.  It's a big, organized pile of rock, metal and wood that sits in the rain and rots so that you don't have to.

        It can be a rational choice to buy instead of rent -- and the math isn't terribly difficult if you do a little research -- but, alas, most people get that equation wrong, and most got it wrong spectacularly so over the last decade.

        Be nice to America. Or we'll bring democracy to your country.

        by Drew J Jones on Fri Feb 10, 2012 at 03:34:21 AM PST

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        •  I think the volatility of the (1+ / 0-)
          Recommended by:
          Just Bob

          housing market fooled a lot of people.  My first husband and I bought a house in 1973 for $30,000.  I stripped and refinished all the woodwork, pulled out all the carpet and shined up those hardwood floors and painted or wallpapered every inch of that place.  We sold it in 1978 for $140,000.  I'd love to take credit for that radical leap in value, but I could read and I knew the housing market was insane.  We kept benefiting, too.  We were lucky.  He bought down in 2003 in order to make retirement less of a financial crapshoot, so he was lucky again.

          We could easily have been on the foreclosure end of the market if we'd been playing real estate in the last few years.  Again, lucky.

          I'm not looking for a love that will lift me up and carry me away. A love that will stroll alongside and make a few amusing comments will suffice.

          by I love OCD on Fri Feb 10, 2012 at 05:32:25 PM PST

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    •  Every major (2+ / 0-)

      financial pundit told us to do two things: put everything we had into our 401ks, and use refinancing to consolidate high interest debt. This was the wise and sensible course of action. I don't remember a single dissenter pointing out that both of these strategies made the assumption that both the stock market and the housing market would continue to "grow."

      Now we know we were played.

      "YOPP!" --Horton Hears a Who

      by Reepicheep on Fri Feb 10, 2012 at 10:00:28 AM PST

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      •  And they all benefitted hugely from those (0+ / 0-)

        who followed their advice I'm betting.

        If you remember that Wall Street is Las Vegas in elegant shades of grey you're going to be okay.  Unless you think Las Vegas plays fair, then you're in shit to your armpits.

        I'm not looking for a love that will lift me up and carry me away. A love that will stroll alongside and make a few amusing comments will suffice.

        by I love OCD on Fri Feb 10, 2012 at 05:24:55 PM PST

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