How did sub-prime do all this damage?

By
Real Estate Broker/Owner with Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 Tx Broker 0304050

I've been reading and watching the news, as we've all been doing for our industry. 

Doesn't it strike you as peculiar that the problem with subprime loans should have such a tsunami effect on the entire financial system?  Seems this has uncovered a major systemic problem with how the world does business with all the derivatives.

I think this points to the fact that we're actually only trading electronic bits, not hard assets.  And the value behind the bits is the mind-set, belief and good-will of those doing the buying and selling. AKA market psychology.

If we think it has value, then it does.  And right now, not much has value.

 

 

Posted by

Mick Michaud,

Managing broker,

United Country Distinctly Texas Lifestyle Properties, LLC
Texas license # 0304050

The Lifestyle you want, the place to live it.

Comments (2)

Not a real person
San Diego, CA

Wow. That's one of the most powerful, thought-provoking posts I think I've ever seen. And, unfortunately, with a lot of truth in it.

There are still a lot of home owners who think their homes have value, especially those who own their properties free and clear. They think theirs is worth far more than the home next door that was foreclosed, or the home across the street that is in a short sale. Nope. Doesn't work that way.

Nov 27, 2008 01:56 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Wow.  I didn't think anyone read posts past a day or so.  I appreciate your comment on this being thought provoking.  Most of my posts are head scratchers, either for me or my audience.  At least I hope so.  Gets the juices going and maybe a better way to transact business.

Everyone knows that MY home is more valuable than yours, anyday!  :-)

 

Nov 27, 2008 02:16 PM

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