Will there be another depression because of the real estate 'bubble'?
View your credit file based on any of the UK credit reference agencies, or all three at once
LifeLock is the only Identity Theft Prevention Solution backed by a one-million dollar guarantee!Click here to get a 10% discount.
The basic concept of the real estate fad is to take out a bank loan, buy a house-fix up the house then sell it for more than you paid for it. BUT, most end up taking out ANOTHER loan and buying a bigger house-fixing it up....
But, now that interest rates have gone up will these this fad of taking out multiple loans cause another depression?
Should the government try to stop a possible depression?
Will there be another depression because of the real estate 'bubble'?After the Bird Flu mutates and runs it's course, banks will be giving houses away just to unload them, just stay alive and wait.
Will there be another depression because of the real estate 'bubble'?No we won't have another depression. We will and we are having a real estate slump. I've seen people get in trouble by borrowing up the limits of their homes over and over. The problem comes when they go to sell in a down market and the house is now not worth what they took the loan out for. We've gone through this before (80's) and we'll go through it again. Its a cyclic thing. By the way, the interest rates are still 10-15 points lower than they were in the late 70's early 80's.
Will there be another depression because of the real estate 'bubble'?There is no bubble!!! Yes some people have over extended themselves and may have problems, especially those with ARM (adjustable rate mortgages), since they will adjust and payments will be missed, etc. There may even be some areas where property values will drop, but there is no reason to believe that this could cause a depression. Our economy is not based on one or two industries. Nor is real estate and real estate banking big enough of an industry to affect the economy in such a way by themselves.
More Related Questions and Answers ...
The loan information post by website user , we not guarantee correctness.