Housing watch posted an article showing that although the sub prime meltdown had a role in the housing collapse, it was actually downfall of REPO - Renew Sale and Repurchase. This is a $20 trillion unsecured market in charge of collateralizing securities.
Once things started going down hill, REPO who is tasked with keeping money flowing took a dive as well.
Either way, as the author brings out- knowing what may have caused the collapse still doesn't make anyone feel better.
The problem is that all of us have a part to play: from bankers, to buyers, to real estate agents, appraisers, brokers, and real estate investors.
Everyone was just thinking that things would always continue on the way it was going, when in fact it was too good to be true. People were lying about how much money they made, appraisers were puffing up the actual value of the properties and builders were over building and everything was over hyped.
It really is time to live below our means and think before we make large purchases such as these.
For now, homeowners to have options and real estate investors do have an important role in moving all of this housing inventory.
Dennis
For real estate investors, handling your business the right way is essential to prevent your own mini housing collapse.
Once things started going down hill, REPO who is tasked with keeping money flowing took a dive as well.
Either way, as the author brings out- knowing what may have caused the collapse still doesn't make anyone feel better.
The problem is that all of us have a part to play: from bankers, to buyers, to real estate agents, appraisers, brokers, and real estate investors.
Everyone was just thinking that things would always continue on the way it was going, when in fact it was too good to be true. People were lying about how much money they made, appraisers were puffing up the actual value of the properties and builders were over building and everything was over hyped.
It really is time to live below our means and think before we make large purchases such as these.
For now, homeowners to have options and real estate investors do have an important role in moving all of this housing inventory.
Dennis
For real estate investors, handling your business the right way is essential to prevent your own mini housing collapse.
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