Housing Doom Housing Bubble Blog

A nation that forgets its past is doomed to repeat it. - Churchill

December 6th, 2007

Housing Doom Almost Became A Board Game?

Darn- the article was actually satire, but I liked the idea, anyway:

Just in time for the holiday season, the Parker Brothers company is announcing a major revamping of its flagship board game in a new release it is calling, “Subprime Monopoly”.

Whereas players in the original Monopoly earned money to buy and develop properties at fixed prices, in “Subprime Monopoly” players borrow obscene amounts of money to purchase overvalued properties with skyrocketing prices and borrowing costs.

“With the advent of the ongoing housing bubble and mortgage loan crisis, we thought the time was right to make some major changes to the rules of the game”, says Parker Bros. creative director Mitt Mason. Originally invented by Charles Darrow in 1935, Monopoly first became a huge hit in the middle of the great depression, and has since been played by over 750 million people. “It seemed somehow fitting that we change the rules now that property prices are falling nationwide, given that the game was first popularized the last time this happened in the 1930’s. And the way Americans buy and sell property has changed a lot since then. Who in America buys anything these days with money they have actually saved up, and who today buys property at a stable and reasonable price?”

"Subprime Monopoly" wasn’t the first name the creator had in mind:

“There’s nothing that says 21st century America quite like a night of living beyond one’s means, destroying your credit, and happily following an investment ponzi scheme that is doomed to failure”. Indeed, Mason planned to call the game, “Housing Doom Monopoly”, but changed the name at the last minute in order to not be confused with a popular U.S. housing bubble commentary website.

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December 6th, 2007

Phoenix Realtors: Don’t Worry, Be Happy

This video is billed as an interview with "Top Phoenix Valley Agents."  These agents talk a lot about bringing a "positive energy" to the market:

 

My favorite solution for "turning the market" [7:58]

How many realtors are there out there in Metro Phoenix that are actually practicing and working hard in real estate?  Maybe 25,000, 30,000 Realtors.  You’ve got roughly 30,000 that all you’ve basically got to do is, you’ve got the entire month, all you have to do in an entire month is go out and find one buyer, and put them into one transaction.  If everybody did that, working in real estate went out and found one buyer, the inventory’s cleaned up.

Scariest comment: [9:17]

The answer to your question I think is about our professionalism in our industry, and are we able to guide people through, because, they have a goal, and their goal is either to sell a house or to buy a house.  And so the more effective we are in helping them get what they want, and not be afraid of all the extraneous stuff that is going on out there. Yeah, we’ll have an impact on the industry.

People focusing solely on what they wanted and not considering "extraneous stuff" like price trends, affordability, rising foreclosures etc. helped cause a lot of the problems we’ve seen in the first place.  How many foreclosures happened by people focusing on what they wanted and not considering the extraneous stuff.

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