CNBC and the tempo of doom

Jim Cramer is usually right. Larry Kudlow is a political hack and just regurgitates right-wing GOP talking points. I wouldn't take Kudlow's advice about which brand of dish detergent to buy.

Cramer is not usually right. Most intelligent investors use him as contrarian indicator. Whatever he says, do the opposite. Kudlow has no credibility. CNBC is entertainment, not sound business journalism.

Patrick is right. Kudlow is a shill for the GOP administration, if they don't tell him what to say, he doesn't have an opinion. I would stay away from buying a home until the prices start to rise, that may take a while. Why buy a home now and figure out later, that you owe more than you can sell it for? If mortgage rates are this low and no one is buying, what will the real estate market do to increase demand? Lower prices! It's not rocket science. Do your homework people!

Only buy what you can afford! Houses still trump renting. Only greed will bring you down. I only expect to make 2000 a year in appreciation. Aim low, you'll win every time!

bill p wrote:

Only buy what you can afford! Houses still trump renting. Only greed will bring you down. I only expect to make 2000 a year in appreciation. Aim low, you'll win every time!

The real estate industry and mortgage industry has imploded because of the rampant greed. Fueled by irresponsible media propaganda, home buying has been turned into another get rich quick scheme.

I just sold a home in Chicago and bought another in Chicago. I am happy with both transactions. These are places where I live and raise my family first, and view as an investment second.

My advice to anyone thinking of buying a home is to do your homework, and do not depend on or trust anything a real estate agent tells you.

"The real estate industry and mortgage industry has imploded because of the rampant greed".

This is only partially true.

The implosion is also due to a gross lack of government regulation of the mortgage industries and the relaxation of mortgage qualification requirements.

Since when is anyone allowed to take out a mortgage with no proof of employment/income??

There are crucial factors involved here which historically don't bode well for the U.S.. an excellent book on this subject is Kevin Phillips'

"American Theocracy: The Peril and Politics of Radical Religion, Oil, and Borrowed Money in the 21stCentury".

He goes into detail regarding the typical path taken by other great empires (Dutch, Spanish) i.e. capital moves too far into the "financialization" arena-- countries stopped producing goods to sell, the result is these empires are no longer around. same applies to the British "empire".

Thus far, Americans have been stupid enough to fall twice for the conservative mantra "stop government regulation/oversight and everything will be great"--

the first time was the Savings and Loan scandal, which we the taxpayers are still paying for, and the second time is the sub prime mortgage fiasco.

Can we survive a third time?