Tuesday, November 29, 2011

Unsophisticated Investors Circa 2005

From cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 LA Times back in 2005:
"If you paid your mortgage off, it means you probably did not manage your funds efficiently over cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 years," said David Lereah, chief economist of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 National Association of Realtors and author of "Are You Missing cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Real Estate Boom?" "It's as if you had 500,000 dollar bills stuffed in your mattress."

He called it "very unsophisticated."

Anthony Hsieh, chief executive of LendingTree Loans, an Internet-based mortgage company, used a more disparaging term. "If you own your own home free and clear, people will often refer to you as a fool. All that money sitting cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re, doing nothing."

The financial services industry is doing all it can to avoid letting consumers be foolish. Ditech.com touts home loans as a way to pay off credit cards, and Morgan Stanley says cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y're a good way to fund education expenses. Wells Fargo suggests taking a chunk out of your house to finance "a dream wedding."
Nothing like spending your market value capital gains on fancy weddings. When people say that we should return to common sense, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 problem is, how do we know what that is? (presumably this is code-speak for everyone should now agree with my hindsight diagnosis and cure).

4 comments:

Anonymous #5 said...

I'm confused, what does this have to do with political correctness and liberal guilt about race?

Eric Falkenstein said...

If you want that, you cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re are lots of websites for you (eg, Huffpost)!

Ken said...

I can say I predicted it, but I didn't do anything about it, so that puts me in a boat with a lot of ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r naysayers at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 time.

But cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 most damning statement was in 2004, Alan Greenspan told people to take out adjustable rate mortgages when interest rates were at a historic low. When I heard that, I knew something was wrong with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 world.

Even if you know what common sense should be, who makes money by fighting cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market? As cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y say, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market can remain insolvent a lot longer than you can stay liquid.

David said...

David Lereah made many, many foolish statements during cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 housing bubble. Your only job as cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 NAR chief economist is to come up with new ways to say, "It's never been a better time to buy a house."