Home prices may drop 8% PIMCO ays

And PIMCO goes on to say if you can borrow money is incredibly cheap. So if you are in a position to buy now is a great time.

Yippe! finally, I can buy a nice Condo in the west village for pennies on the dollar.

6-8% is pennies on the dollar?

yea.. if you can borrow money, then its always cheap!!! ... hah!

why not 7 or 9 % ?

Because PIMCO'S model based on it's inputs is spitting out 6-8. It's all guess work, but because it has Bill Gross's name attached to it people think it's as good as Ben Bernanke's prediction in 2008 that housing is contained to subprime.

And Greenspan saying that the housing market is ok. That it has never gone down in price nationally.. oh never gone down nationally since the great depression.

“If you can borrow, housing is so cheap, but if you can’t borrow it’s infinitely expensive,” said Simon, the mortgage head at the firm (PIMCO), which runs the world’s largest bond fund.

So the dude is arguing for looser lending standards -- bring back the free money orgy!

Brooks I think Greenspan knew he was lying and/or Bernanke and/or Geithner or anytime one of these officials says anything. They believe it extremely important that for the finacial markets to work we
need confidence. This trumps honesty. Maybe they believed it, maybe they didn't but regardless they'll
never say anything negative until the event has passed and we're recovering from it or way passed the point where its obvious. ...And at this time they'll say we had a housing blow up but we think it's getting better.

agreed

"And PIMCO goes on to say if you can borrow money is incredibly cheap. So if you are in a position to buy now is a great time."

He did say the first, he did NOT say the second part. He did NOT say that people should go out and buy!

"So the dude is arguing for looser lending standards -- bring back the free money orgy! "

How the fuck did you get that from his quote? He did NOT say we should have loser lending standards. Where the fuck do you guys come up with these ideas besides your own asses?

He does not even imply the things you two say. This was geared towards what INVESTORS should do. Like REIT and MBS investors. The only concrete thing he says about housing for the SE board is that "its cheaper to rent than own in Newport Beach" and that in other areas of the nation, it might be better to buy and rent out property for investment purposes. That's it on his home buying advice. Nada on what lending standards should be.

And BTW, I know he did not say these things because I listened to the 14 minute interview in its entirety on my Bloomberg Terminal.

"Brooks I think Greenspan knew he was lying and/or Bernanke and/or Geithner or anytime one of these officials says anything. They believe it extremely important that for the finacial markets to work we
need confidence. This trumps honesty."

so when people say the market "reacts" to these statements, is it reacting to the content of the statement or reflecting the anticipation of what people who participate in the "market" believe will be everyone else's reaction?

Re: How the fuck did you get that from his quote?

Uh, maybe it was this quote:

Potential home buyers are being kept on the sidelines by policy makers tightening rules for government-backed loans and banks being more restrictive than required by Fannie Mae, Freddie Mac and the Federal Housing Administration, Simon said in a radio interview

If you can borrow, housing is so cheap, but if you can’t borrow it’s infinitely expensive,” said Simon, the mortgage head at the firm, which runs the world’s largest bond fund.

Cheap money is only part of the equation. The other part is declining values.

If an apartment goes down in value after I buy it, the bank is not going to take the loss. Me, I will take that loss in the equity investment I put into my downpayment.

So goody goody, mortgage debt continues to be cheap. But I'm still not buying, because I don't believe we are anywhere near the bottom yet and I don't want to lose any part of the value of my down payment.

It is NOT a good time to buy. Wait awhile longer.

Hey jason - did it ever occur to you that PIMCO has its own agenda and nothing they say is worth shit?

Bill Gross Pushing for MORE Bailouts for PIMCO Bond Fund
http://www.marketoracle.co.uk/Article22155.html

Bill Gross made a bad call earlier this year when he predicted the bond market would sell off. It didn't and he finally admitted he was wrong.

He's made other incorrect calls.

West34: "Re: How the fuck did you get that from his quote?

Uh, maybe it was this quote:

Potential home buyers are being kept on the sidelines by policy makers tightening rules for government-backed loans and banks being more restrictive than required by Fannie Mae, Freddie Mac and the Federal Housing Administration, Simon said in a radio interview""

Yeah, I saw that quote, and he repeated that multiple times in the interview. He was NOT advocating in the quote or anywhere else what the government or banks SHOULD do. He was telling investors how they should INVEST. Nothing in that interview was about what he thinks SHOULD be happening. Everything was about how people should INVEST.

Just like if he was talking about crop failures affecting agricultural prices while not advocating that the government bail out farmers or subsidize food. Just like if he was talking about the fall out from the Greek crises and NOT saying the US or IMF should bail out Greece. Just like if he was talking about investors might look at investing in emerging Asian economies without discussing how Obama or Congress should deal with China.

This was NOT a policy discussion!!!!

humm-- without the easy home financing--We can afford to eat again..

Five years into a brutal national housing downturn, raw land destined for residential development has fallen so far in value that thousands of acres across the country are being used again for agriculture.

http://online.wsj.com/article/SB10001424052970204621904577018201607304964.html?mod=WSJ_RealEstate_LeftTopNews

and why must we curse?

Cheap money is only part of the equation. The other part is declining values.

The o.p. posted 6-8%

"and why must we curse?"

Sho shorry.