{"id":8639,"date":"2015-05-30T15:25:26","date_gmt":"2015-05-30T20:25:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8639"},"modified":"2015-05-30T15:26:11","modified_gmt":"2015-05-30T20:26:11","slug":"something-smells-fishy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8639","title":{"rendered":"Something Smells Fishy"},"content":{"rendered":"

SOMETHING SMELLS FISHY<\/a><\/h3>\n

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It\u2019s always interesting to see a long term chart that reflects your real life experiences. I bought my first home in 1990. It was a small townhouse and I paid $100k, put 10% down, and obtained a 9.875% mortgage. I was thrilled to get under 10%. Those were different times, when you bought a home as a place to live. We had our first kid in 1993 and started looking for a single family home. We stopped because our townhouse had declined in value to $85k, so I couldn\u2019t afford to sell. In 1995 I convinced my employer to rent my townhouse, as they were already renting multiple townhouses for all the foreigners doing short term assignments in the U.S. We bought a single family home in 1995 with the sole purpose of having a decent place to raise a family that was within 20 minutes of my job.<\/p>\n

Considering home prices on an inflation adjusted basis were lower than they were in 1980, I was certainly not looking at it as some sort of investment vehicle. But, as you can see from the chart, nationally prices soared by about 55% between 1995 and 2005. My home supposedly doubled in value over 10 years. I was ecstatic when I was eventually able to sell my townhouse in 2004 for $134k. I felt so smart, until I saw a notice in the paper one year later showing my old townhouse had been sold again for $176k. Who knew there were so many greater fools.<\/p>\n

This was utterly ridiculous, as home prices over the last 100 years have gone up at the rate of inflation. Robert Shiller and a few other rational thinking people called it a bubble. They were scorned and ridiculed by the whores at the NAR and the bimbo cheerleaders on CNBC. Something smelled rotten in the state of housing.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

SOMETHING SMELLS FISHY It\u2019s always interesting to see a long term chart that reflects your real life experiences. I bought my first home in 1990. It was a small townhouse and I paid $100k, put 10% down, and obtained a 9.875% mortgage. I was thrilled to get under 10%. Those were different times, when you […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5857,5858,5859,952,68,1806,1799,1668,4896,4899,303,305,5860,5861,2297,5862,406,426,430,1154,4425,451,5863,538,661,5864,5856,5865,860,5866,1940,1939],"class_list":["post-8639","post","type-post","status-publish","format-standard","hentry","category-economics","tag-5858","tag-aaa","tag-alan-greenspan","tag-ben-bernanke","tag-bubble","tag-bubbles","tag-derivatives","tag-easy-money","tag-economic-bubble","tag-fed","tag-federal-reserve","tag-flippers","tag-foreclosures","tag-hedge-funds","tag-home-prices","tag-housing-bubble","tag-inflation","tag-interest-rate","tag-interest-rate-policy","tag-ivy-league","tag-janet-yellen","tag-luca-brasi","tag-money-printing","tag-qe","tag-smelly-fish","tag-the-burning-platform","tag-toxic-mortgages","tag-wall-street","tag-yachts","tag-zero-interest-rate-policy","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8639"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8639\/revisions"}],"predecessor-version":[{"id":8641,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8639\/revisions\/8641"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}