I’m sorry…our world is based on a supply and demand economy…call it capitalism if you want…at the end of the day, just that…when you get into a situation, the system creates artificial buyers and marketplaces.. multilevel marketing 101…the golden goose doesn’t die a good death, Your email address will not be published. If the tenant comes from out of town, then we can say this home has been consumed. October 6: The Fed announces that it will provide $900 billion in short-term loans to banks. Experts say there are a range of factors driving New Zealand's runaway property market. Just got a notice that my monthly auto payment was denied. The sale of your loan to another bank, investor, Fannie, etc., had no effect on your payment, interest rate, term, etc. Unemployment rose to over 10% and the housing market crash created the worst recession since the early 1980’s. The Unemployment Rate had stabilized towards the end of 2009. City Bank) also sold and went under moving my Accounts with my Money each time. February: Freddie Mac announced that they were no longer buying the riskiest subprime. Thousands of years ago it was determined by one nation that debts should be forgiven every 7 years. Best of luck. October 3: The house passes the $700 billion bailout plan and the president signs it into law. It was 30 years in the making. The United States housing bubble was a real estate bubble affecting over half of the U.S. states.It was the impetus for the subprime mortgage crisis.Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. You put people and kids in th street then went sailing. This is the proof in the pudding. Florida, Arizona and California had rates of 4% with Nevada at 7.3%. October 7: The fed announced that it will lend around 1.3 trillion dollars directly to companies outside the banking sector. Employers get away with it in this country by only hiring part time workers. But at the end of the day, here we are. Congresses are typically more responsible for domestic economic issues than presidents are. Joe Manausa Real Estate1934 Dellwood DriveTallahassee, FL 32303(850) 366-8917. Over the last two quarters Vivek Sah, director of the Lied Institute for Real Estate Studies and professor at UNLV’s Lee Business School, had anticipated a course correction in the housing marketing after prices had soared over the last few years. Really, the Federal government, through the Community Reinvestment Act, set all of this in motion. The Fed inured us all to risk. Default rates rose before rental rates collapsed . The stock market crashed in 2008 because too many had people had taken on loans they couldn’t afford. It is a good thing that we monitor the market so closely, as a whole new rash of people are coming forward looking for the group(s) to blame. If so, check out our Progressive Marketing Plan, it is getting homes sold in a market where most home sellers are failing! If along the way the new holder of your “note” did not have an auto pay option, that was up to you follow up on and find out exactly HOW/WHERE they wanted you to make your payment. That’s called greed. Check out the latest US stats, and discover when you should buy or sell. NOT FAIR AT ALL!!! Its unique business model provides specialists to both home sellers and home buyers, and the results speak for themselves. Standard & Poors along with Moody knew all too well these loans weren’t as secure as advertised. Easy money and rising prices in the housing market. Recently, long time reader "MD" wrote: Joe, I have read that loose lending practices was the primary cause of the real estate market crash, but when I read your reports that focus on supply and demand, it makes me think that builders had a major hand in this as well since we have way too many homes for the market to handle right now. HOUSING MARKET CRASH 3 The Housing Market Crash and its Effects In his article, The Housing Market Crash of 2007 and what caused the Crash, Tom DeGrace stated “The Housing Market Crash of 2007 was the worst housing crash in U.S. history. It was a real estate bubble affecting over half of U.S. states. Even though the financial crisis was resolved by the start of 2009 the housing market continued to decline throughout 2009. Just watch the best documentary on this by Charles Ferguson it’s titled INSIDE JOB. Lending money with large interest rates was unfair. A period of increasing home prices covered the underlying dangers, but once defaults began to … Bought new home Jan. 2006. January 11: Bank of America acquired Countrywide financial for 4.1 billion dollars. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. As a result, the major financial markets lost up to 30% of their value, … Read more About the 2008 Stock Market Crash A boom in buying houses, fuelled by cheap financing and financial deregulation in that country, collapsed when interest rates started to rise, causing several large financial institutions in the US to fail. Countrywide had a total of 1.5 trillion dollars worth of loans. A foreclosure crisis in Dallas wouldn’t necessarily impact the market in Seattle. why did investors suddenly pull there monies out of jobs? In a bid to pump the market, Fannie Mae resorted to loose lending requirements so that customers with a weak credit score or low savings could buy a house. I have been an agent and investor for almost 20 years and seen many market cycles. Your diabtribe is a sign of serious dementia. What happened here is that you “bankers” even though they knew that interest rates were only in the 6% percent range, and thus grouping the mortgages together and selling them as investment could only net a profit in that same range (6%) instead claimed that they were worth 10-100 times what they were and sold them as such. To further fuel the housing bubble there was plenty of cheap money available for new loans in the wake of the economic recession. You al suck and have been compared to serial killers on a psychological level.. Stop defending the indefensible! The subprime mortgage risk is not what caused the collapse in 2007-2008. September 6: The Treasury announced a takeover of both Fannie Mae and Freddie Mac that had over 5 trillion dollars in mortgages. *Joe Manausa Real Estate is a brokerage company headquartered in Tallahassee, Florida. You Marxist piece of shit. The Housing Market Crash of 2007 was the cause of the financial crisis. Interest isn’t greed, its the time value of money. For more information, visit www.manausa.com or call us at (850) 366-8917. This nearly caused the U.S. to experience another depression like the Great Depression. This represents the largest bank failure in U.S. history. We were beginning to see some of the early signs of trouble when some types of subprime loans started to go into default. September: The Libor rate rises to its highest level since December of 1998, at 6.8%. In fact, it continues to play an important supportive role in the country’s economic recovery. right and investors were not investing in the stock market they were investing in the housing market. 2. They make billions but cant provide benefits. Millions of people lost their full-time work, as the pandemic forced businesses to … Why else would anyone with their head on straignt want to make a profit on the backs of others? The housing market crash is not yet behind us, rather it is still ongoing or possibly ahead of us.. We know that we are currently creating a new market bottom, as the number of home buyers continues to decline during the post tax-credit stimulus.It is a good thing that we monitor the market so closely, as a whole new rash of people are coming forward looking for the group(s) to blame. A lot of good people got hurt in the crisis but there seems to be more to this than a repeated sale of the original note…I’ve been in my present home 26 years, have had several mortgages sold and sold again with no issues…most important thing is to confirm with your present lender that they had, in fact sold your note and the party telling you they now own your note are, in fact, who they say they are.   Many lenders spent millions of dollars to lobby state legislatures to relax laws. Rating agencies put AAA ratings on these loans that made them highly desirable to foreign investors and pension funds. There are a number of things we can look at to determine how the housing bubble occurred and what happened to cause the bubble to collapse. A lot of people think we are due for another housing market crash because housing prices have skyrocketed, people cannot afford homes, and there could be economic problems. The Dow drops 400 points closing at 10,917. They laid the framework for all of this to occur, and in some cases, they used veiled threats to coerce reluctant banks into participating. At the risk of shareholder devaluation they were both falsely applying ratings to all of them. It is not enough to "rent out a home." “Investing is the attempt to make a financial killing, in other words, bigger profits and less work. From 2003 to 2007 the number of subprime loans had increased a whopping 292% from 332 billion to 1.3 trillion. As people saw housing prices going up, they were stepping over each other to buy to get in on the action. These Tranche’s were nothing more than whipped cream on chit. I am one of the victims of this mess. Do you have a home that needs to be consumed? 1st, sorry you lost your home. On December 30, 2008, the Case–Shiller home price index reported its largest price drop in its history. By 2010 housing prices still haven’t gone up and we are still working on a surplus of housing inventory. If you deny that you are all mentally unstable. There was a lot of financial innovation at the time which included all sorts of new lending types such as interest adjustable loans, interest-only loans and zero down loans. The facts are however, they created and implemented what they could get away with. Umm sorry, but you know nothing relevant about the 2007-08 financial collapse and should do some research before claiming you know anything about financial theory. Ok but i understand this, banks were selling Mortages for up to 100 times what they were worth even to foreign investors, right/! The subprime mortgage crisis was also caused by deregulation. Your email address will not be published. Again, sorry you lost your home, but the sale of mortgage backed securities (your loan) has no effect on the Payor (you) as terms cannot be altered (now THATS something they would need your approval on). Thousands of years ago it was determined by one nation that debts should be forgiven every 7 years. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in … Look it up instead believing the political propaganda of rich politicians who would rather that middle class American should have to rent property from them, rather than being able to get mortgages and own property for themselves. The key factors that caused the 2008 housing market crash. So fuck you and your bastard cronies!!!!! In 1999, the banks were allowed to act like hedge funds. It is the obligation of owners and investors to provide for workers. Greed and only greed caused the crashes. Investing is the attempt to make a financial killing, in other words, bigger profits and less work. A 1% gain over the past 17 years adds 18. The villains were greed, dishonesty and (at times) criminality, the story … Last Updated on September 21, 2020 by Mark Ferguson. October 10: The Dow closes at 8451, the stock market has had its worst week ever losing 22% over the past 8 trading days or 8.4 trillion dollars from the market highs in 2007. Don’t fucking crucify bankers for being goddamn rational human beings while you complain about society passing you goodbye. With each loan, banks would quickly securitize the loan and pass the risk off to someone else. Interest is necessary to compensate for risk, which you would have known if you took your head out of Hegel’s ass and learned some basic financial theory. May 19: The markets had its final day above 13,000 closing at 13028. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. 1987 Stock Market Crash Chart and What Caused the Crash, The Dot Com Bubble Burst That Caused The 2000 Stock Market Crash, Stock Market Crash of 1929 Causes, Effects and Timeline, The Great Depression Facts, Timeline, Causes, Pictures, Stock Market History Chart and a Detailed Look at the Markets. Get some help if you are still a functioning human. December 31: There were over 3 million foreclosures by this year. So the sale of your loan, regardless of how many times it was repackaged and sold, did not cause you to lose your house.