Saturday, August 30, 2008
About this Blog
But people don’t like to admit they’ve made a mistake. So, when markets begin to turn against them, they imagine that the turn is just a fluke. They expect things to return to ‘normal’ quickly, not realizing that it is normal for them to make mistakes and lose their money.
When housing first began to go down, at first people didn’t believe it. They’d learned that “property always goes up,” or that “you can’t go wrong with real estate.” Naturally, they took the first signs of a downturn as a buying opportunity. Later, they realized that it was a selling opportunity – the last chance to get out before the roof collapsed.
Likewise, when banks, hedge funds and mortgage lenders began to send out alarms, the problems were thought to be temporary and modest. “Containable,” is how Hank Paulson described the first little cracks in the sub-prime debt market.
But the cracks widened. And now, some of the biggest financial edifices in the country – Bear Stearns, Lehman Bros., Fannie Mae and Freddie Mac – have either already fallen down or are leaning dangerously.
Posted by anonymous at the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
Property Investment Fallacies: Property price always goes up and you can't go wrong with real estate
Boom follows bust, which follows boom. Over and over again, the same mistakes are made – but by new people.But people don’t like to admit they’ve made a mistake. So, when markets begin to turn against them, they imagine that the turn is just a fluke. They expect things to return to ‘normal’ quickly, not realizing that it is normal for them to make mistakes and lose their money.
When housing first began to go down, at first people didn’t believe it. They’d learned that “property always goes up,” or that “you can’t go wrong with real estate.” Naturally, they took the first signs of a downturn as a buying opportunity. Later, they realized that it was a selling opportunity – the last chance to get out before the roof collapsed.
Likewise, when banks, hedge funds and mortgage lenders began to send out alarms, the problems were thought to be temporary and modest. “Containable,” is how Hank Paulson described the first little cracks in the sub-prime debt market.
But the cracks widened. And now, some of the biggest financial edifices in the country – Bear Stearns, Lehman Bros., Fannie Mae and Freddie Mac – have either already fallen down or are leaning dangerously.
Posted by anonymous at the Singapore Property Forum
May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase
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The blogger here has been affectionately named by close allies as "Smart Buyer" but really, he's not smart. Smart Buyer just believes that being prudent is smart. That's the essence of the message of this blog and Smart Buyer hopes it'll benefit other property buyers.
Smart Buyer :)