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Originally Posted by sebastian_dangerfield
And what causes them to be unable to borrow?
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Because banks are being especially tight on credit. Even my parents, who have two homes and significantly more assets than they are seeking to borrow, have had a little trouble adding a mortgage for the one property they currently own outright.
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Oh, that's right: Nobody can come up with 20% down. Why is that?
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To the extent that is the problem and folks don't have any cash saved despite having not purchased, falling prices aren't going to help them that much, especially as it's going to impose as much or more pain on the seller.
ETA: You realize that housing prices have substantial down-side stickiness due to the leverage involved, right?
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I've gotten that from friends who work in finance, many of whom are pulled out, and investing elsewhere.
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You know who are often the dumbest about finance? People who work in finance.
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Your view that individual investors are all in doubled-fisted is cute though.
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Who said that?
But speaking of gullible, you're arguing at the same time that market prices are too high and that there is money sitting on the sidelines waiting to take them higher if only they would fall a bit. That's nonsense.
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Re the tautology, can you read? My whole point was we need a real rally people won't see through as artificially propped.
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"Artificially propped" is nonsense too.
