What Ends the Housing Bubble?

What ends housing? How? When?

I live and work in Nirvana. I know that because everyone is moving here. I always like it, the weather, tax situation. The liberals ruining our cities was tough, letting illegals wade ashore with out a challenge. Those days seem to be over. However, too much of a good thing is bad. That never fails.

It's good to be 70. I still work. Millennials aren't much of a problem. You see, I answer the phone and show up. In the REO world, that's pretty much it. But a lot of people don't get that. I waited for social security and I had a lot of big years. Between mine and my wife's, expenses are covered easily. Medicare and the VA handle any health issues. So for me, for us, Alle ist Gut!. But what about the other guy? How is he doing? I've been their age. They've never been mine. Just what the hell is going on to spike these home prices this high and keep them there?

Besides some of my more evident talents, like making a 3 minute egg in just two minutes, I engage people, or they engage me. Not sure which, but it doesn't matter. This is what I came away with this week, and I want you to think about it, and what it means.

A fellow called and he is bringing his whole family here from New York. Bet you haven't heard that one before. He was telling me he is paying 18 grand a year in taxes, $500 a month electricity, $500 in water, and so on.

Another call, first time buyer, couple of kids, husband and wife working, 12 grand a year in medical insurance. I asked, "Deductible 7 grand"? "Yes Sir!"

My homeowners is due. I shopped everyone I could. I live near, not on but near, the ocean. I have one choice, and thank God I have one. Citizens! $4653 a year. No one else out of some 15 companies will touch it. My house is a fortress. Horizonal shutters, new roof, whole house generator.... Nope. No one will touch it. That's a double in two years. Can't blame them. They're on the hook for a year, and they know what I know. The replacement cost for this home will rise double digits next year. See, I remember 1979, 80, 81. This is going to keep going, the public be damned.

Now, think! You have a government that totally ignores the populace. Even liberals will tell you this isn't working out. President Poopypants is making the kids pay back their student loans, which is good, but he told them they wouldn't have to. Shame on then for believing a politician who has lied and cheated for 40 years. My tax bill is $2500. Come and buy my home never having lived or owned a home in Florida, you'll pay $8500. And the Citizen's premium comes with that. I'll bet next year, my insurance is 20% higher. A year ago, my payment with escrow was $1600. This year, it will be above $2300. I guess I could sell, and rent, except rents are outrageous, and landlords are all subject to the same vagaries as the average homeowner. So, he's going to lose his property, or jack me up like sportscar in a tough neighborhood. I have nothing to gain unless I move to a log cabin in Montana. And I hear they haven't repealed winter.

So, what ends housing? Governments that continue to waste and defraud the public, Governments who continue to be feckless, to step all over themselves and us at the same time, Governments that continue to saddle the average Joe with more and more regulation, fees and debt that will break the system. The first time we hiccup, which will be after the first when the FED raises rates, when some black swan event crushes the workforce, the system collapses. The guy in New York can't pay his taxes, the kids can't pay those premiums, and that family becomes wards of the State, where a hurricane hits Palm Beach County and destroys Citizens. You know it's coming. I don't know when.

I feel so badly that families that have kids can 't have homes, have to rent, can't enjoy these few years when these kids are little. After WWII, the Truman and Eisenhower Administrations made it possible that Veterans got housing, even if it was track housing. But I had a wonderful childhood in a 950 square foot home. I never knew it was small. Because it was filled with love and loyalty and caring. But I'm scared to death that ones that do squeeze into homes at this time will have all their savings depleted, suffer terrible loss and humiliation (again) because of this synthetic situation fostered by the monied few.

Our job as citizens, as consumers, is to stay solvent, not become a burden on the system, to live to fight another day. There is some sacrifice to that, but not near as dear as the one that comes with foreclosure and bankruptcy.