Housing/Mortgage Crisis
Created by:Philip Rosenberg, Licensed Real Estate Broker, AZ
Date: August 28, 2007, Number of Replies: 3

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Once I get beyond Countrywide and whether or not they will declare bankruptcy, I begin thinking about the larger picture. I wonder how many homes STOCKHOLDERS of lenders will allow them to hold before they say, Whoa...10% (or 20% or 30%) of our wealth is in real estate. That's not what we planned when we bought your stock. We thought you were going to have interest bearing instruments (mortgages) to feed the profits we need".
I'm over simplifying but what happens when (soon) lender's portfolios are too laden with real estate that stock holders begin to rebel (sell)?
I personally think from a non-financial background that there must be some point of "critical mass" where the lenders of the world say, "No more real estate in our portfolio"!.
Does the government step in? Do all of our home's values go back to 2001 values and we begin again?
I'm curious what the larger real estate community thinks will end the housing inventory glut. It's far too late to play the blame game. Now is the time to be thinking about the "end game", and how we as persons of the industry can influence it. Ideas as to where you think this will end, and why, and what we may be able to do about it are welcome.
I persoannly think that in 2-3 months, we will hit some critical mass point and something will have to give. I'm hoping that the Fed can help to control this thing simply becasue I have little faith in politicians being very intelligent as a group. Curious what's on YOUR mind...
I'm over simplifying but what happens when (soon) lender's portfolios are too laden with real estate that stock holders begin to rebel (sell)?
I personally think from a non-financial background that there must be some point of "critical mass" where the lenders of the world say, "No more real estate in our portfolio"!.
Does the government step in? Do all of our home's values go back to 2001 values and we begin again?
I'm curious what the larger real estate community thinks will end the housing inventory glut. It's far too late to play the blame game. Now is the time to be thinking about the "end game", and how we as persons of the industry can influence it. Ideas as to where you think this will end, and why, and what we may be able to do about it are welcome.
I persoannly think that in 2-3 months, we will hit some critical mass point and something will have to give. I'm hoping that the Fed can help to control this thing simply becasue I have little faith in politicians being very intelligent as a group. Curious what's on YOUR mind...

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