Gray Flannel Dwarf


Jim Cramer blows a gasket.

There have been a lot of warnings over the past, oh, three years about the real estate market and how it could end up dragging down the entire economy.

However, when the biggest, most hyper (and hyping) bull market cheerleader of them all, Jim Cramer, completely loses it on CNBC… we may be in for a helluva ride.

If his numbers are anywhere close to accurate — 14 million loans in the past three years, half of which were with teaser rates — things could get ugly, fast.

Tags: , , , — cswiii @ 5:36 pm


Northern Virginia Housing

Old news to me, but it’s in today’s WaPo… “The Housing Crisis Goes Suburban“.

From the article:

In the past five years, housing prices in Fairfax County have grown 12 times as fast as household incomes. Today, the county’s median family would have to spend 54 percent of its income to afford the county’s median home; in 2000, the figure was 26 percent. The situation is so dire that Fairfax recently began offering housing subsidies to families earning $90,000 a year; soon, that figure may go as high as $110,000 a year.

I had a condo in 2000, not far out of college, felt I was doing alright. When I moved to my townhouse in 2003, I was still somewhat incredulous that I had to spend this much — as in, “man, half of my monthly salary goes to my mortgage and utilities” — and knew right then that something wasn’t right , that, at this pace, there was no way I’d ever be able to afford a single family home in the DC area. Things were increasing way too fast.

In any case — much happier in NC now. Sucks to see that there are families in DC with close to six figure incomes who can’t afford housing, though.

Tags: , , , — cswiii @ 9:39 am