Another "New Deal" needed?

Sherm,

If the house was worth $50K 8 years ago, and worth 90K today, you're up $40K.

A home is a long term investment. It isn't a commodity designed to be "flipped". A home isn't a share of an oil company or a publishing company. The question isn't, is my home worth more this month than last month. The question is, has my home appreciated in value since I have purchased it.

In addition, you have to live somewhere. Is your mortgage paid? What do you suppose you'd have spent on rent in the past 12 months for similar space and ammenities? We have a new homeschooling family in our group. They just relocated here from Texas. Rather than rush into buying a new home, they're renting an old home with 3 bedrooms and a cracked foundation with no yard for $900 a month.

If your house is worth 100K and you need to borrow money you can borrow more than u could if it was worth 90.

Or if you sell it for 100K you get more money in your pocket than if you sold it for 90.

So how much was that house worth in 2000? How much did it appreciate in the past 8 years?

That is irrelevant.

If it is worth 100K today and 90K tomorrow I am losing money.

Riddle me this.

Would you rather your home be worth 90K or 100K?

You can use your same argument for the stock mkt. too but look how many have lost their bootie in the stock mkt.

It will be little solace to them to say well the dow has gained a thousand points since 1950.

The relevant question is what is it doing right now.

Just my opinion you guys dont have to agree.

The stock mkt is going down, making IRA's worth less and 401K's worth less, and other stocks you have worth less.

So to my definition that qualifies as "taking a hit".

So you guys can be happy with the bush mkt but not me.

That's just the way I am. I guess.

In 401 K's, yes it is what your stocks do over the long haul. That's the only way you get the money needed to retire.

It's not whether we agree or not or like the Bush stock market or not, it's how things work, who is and isn't taking a hit and I still don't believe you're one of them taking a hit.

You don't have to agree with me, that's what I think because that's the way I am.

Very good.

On the contrary I say you are taking a hit even though you can't bear to admit it.

So if you know more about my business it's only right I know more about yours.

btw did you hear the rumor about Hillary replacing Biden?

http://www.dailymail.co.uk/news/worldnews/article-1061791/Could-Clinton-come-Internet-buzzes-rumours-Biden-replaced-Hillary-Obamas-running-mate.html

It would call Obama's judgment into question. He's been running for President for two-and-a-half years and muffs his first big decision? Of course, selecting Biden in the first place should call his judgment into question...

Technically, I am taking a hit. I purchased my home for 60K 2 years ago and I'm sure I couldn't get 45K out of it right now. So yes, I'm taking a hit.

But as I purchased it as a project to get me through all of my kids high school, (Alex is a sophmore) and I plan to be there for at least 3 more years and still have some pretty extensive plans, I'm quite confident the housing market will rebound and I'll do just fine.

And as I have no plans of selling it right now, I'm certainly not going to set around brooding about what might have been. That's just me.

As to you, were you planning on selling your house this year?

On the Biden thing, I think what Obama should do is have someone write Biden's campaign speeches, let him give them, and then keep him off limits as McCain has done Palin. No questions, no interviews and certainly no rope line conversations.

The only other thing I'll say is that Palin looks really good in red.

And so far as the defaulted mortgages go, how about comparing how many defaulted under the Bush administration vs how many under Clinton?

That should tell us who had the best rules, right?

Course you could argue that during the Clinton administration there was record employment and new jobs created.

But under Bush things are not so good and that could affect the foreclosure rate.

(You could argue that, but I doubt if you want to)

In my view a house, or a car, or anything else has no dollars and cents value unless it is being bought or sold. While we are owning and using it, a house's "value" is almost meaningless in dollars and cents.

My van, for example, is nine years old. It's "blue book" value is almost nothing. But it is in good condition and is still quite serviceable. And so is worth more to me than a new van would be to me if I were to trade for a new one- because it is paid for- but I would owe twenty thou or so on the new one.

Our house here cost X dollars to build 8 years ago. Its dollars and cents market value today is meaningless to me as long as I expect to just stay here and live in it. Now, were I to die tomorrow or next week, my heirs might decide to sell it for whatever cash it would bring then. And so then its market value might be important to them- but even then not to me.

Well zig what if you had a kid in school and wanted a home equity loan?