TheRealDeal - Suze Orman offers advice to homeowners

With foreclosed homes in some areas of the country going for the same prices as cars, should people be looking seriously at foreclosed home purchases? Good Morning America's Diane Sawyer speaks to personal finance guru Suze Orman about the pros and cons of purchasing foreclosed homes and when the housing market might bottom out. Orman advises homeowners to foreclose rather than risk ruining the rest of their finances by trying to hang onto a home they can't afford. For more information please click on the link provided: http://www.abcnews.go.com/video/playerIndex?id=6801655

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[mlinkenauger]

Wow! I thought Suze Orman looked like an idiot on some newer housing market commentary she made... She has taken stupidity to a whole new level with these comments.

[thincow12]

@imhotep1 yes, you are correct. My children became great hand to hand combatants in public school.

[imhotep1]

@mpl112486 There is nothing wrong with going to a public school. There are good ones.

[mpl112486]

Suze Orman is not an economist. She is a "Financial Advisor" but in reality, a social worker. Definitely NOT an economist. And as one I am offended that you would refer to her as one.

[mpl112486]

It was a poorly organized, regulated system. We will slowly see a different approach to what is going on in the system itself. Now, In terms of economists:

[mpl112486]

In the 1970s banks created these things called SIVS (structured investment vehicles). These securities are loans backed by future mortgage payments. One of many reasons for depreciation. I don't believe you could comprehend it.

Also there was a creation of variable rate mortgages and the push from a Fed chairman who did not comprehend the effects of their use.

[mpl112486]

AKA for your little mind, I'll break it down. HOMES AREN'T Supposed to depreciate. If they do it is only meant to be temporary or due to lack of maintenance or some other silly thing like that. That is what our system was based on.

[mpl112486]

An idiotic idea at best. In terms of the current economic situation. Depreciation or what I think you mean is deflation? It's quite evident that your misunderstanding goes beyond common sense. But in terms of that, the economy has little to no deflation. Depreciation occurs with the onslaught of supply and demand. Homes were thought to be assets that were never intended to be used as securities, so as it is set up in our current system. There was little to no regulation regarding that issue.

[mpl112486]

Who ever this person is above (not Suze, I'm speaking of the idiot that made the above comment).

You obviously have no idea what you are talking about. As an accountant and economist, I can tell you that; you truly are the crock, one that is completely uneducated. Let me guess, you went to public schools...right?

It is well known that Sylvia Porter was an insane woman who believed that savings bonds are the only 'good' means of obtaining a proper retirement account.

[psikeyhackr]

What a crock!

In 1975 Sylvia Porter mentioned DEPRECIATION 5 times in the index of her MONEY BOOK and 4 of them were about depreciation of automobiles.

Two years ago I checked FIVE of Suze Orman's books and not one of them mentioned depreciation. There have been 200,000,000+ cars in the US since 1995. At $1,500 lost in depreciation per car per year that is $300,000,000,000 every year. That is FOUR TRILLION DOLLARS since 1995! What has Suze Orman or the economics profession said about that?