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i wonder how long before CCB starts blocking public access to their rate sheets? that would be pretty awesome if they had to do it because a blog kept making fun of them.
As Tanta has mentioned there is NO legitimate reason for stated income loans.period.If there are exceptional circumstances,you make an "exception".If they "need" stated income they are lying to the IRS,and thus untrustworthy and high risk,or they are lying to you.Shades of HL Mencken...is there anyone dumb enough to buy this stuff,or whacked out enough to WANT it in their portfolio? even at 75% cltv and 20% interest?
It looks like Fannie Mae stated income not new investor product. Yes?
I also enjoyed the little finger pointing to this item everytime it cropped up: "IRS Form 4506 must be signed by the borrowers at application and closing"
Basically this isnt anything showing that the secondary market is coming back for the radical products.
In my local currency, the US stock market has barely moved. After adjusting for US$ depreciation, I figure that US stocks are worth about the same as before the rate cut.
I am gunning for the reverse at some point in the near future. I think we are probably starting Hamlet Act V right now.
I am positioning my portfolio for a sudden weakening of my local currency due to the unwinding of the Yen Carry Trade which is rampant now, contributing to the last 30% appreciation in my local stock market.
when Hamlet dies, he would probably do so like a "bolt of thunder". A band rather than whimper.
At that point, my prediction is that the US$ would surge with a 20% drop in the US stock index. But to a foreign investor like myself, the US$ strength would probably offest 10% of the drop.
This would a global buy signal for me, as gloabl stock markets would plunge at the go signal.
The cockroaches trained during the evening and at night, when they tend to be more active, remembered what they had learned for several days. But the bugs trained in the morning were incapable of learning something new and remembering it.
Successive G7 finance ministers meetings have repeated well-worn statements describing "excessive volatility" on foreign exchange markets as "undesirable" despite steady decline in the dollar's strength in recent years.
Juncker said that the United States, China and Japan "should match their words and their deeds" when Washington repeats its well-worn strong dollar policy and Beijing and Tokyo say that exchange rates should reflect their economies' health.
"We will see at the next G7 meeting at the end of October in Washington if our partners agree to follow their words up with consequential acts," he told AFP by telephone from Luxembourg.
"The strong euro, as long as it stays on its path, tends to worry us a lot," said Juncker, who chairs regular meetings of eurozone finance ministers and speaks on their behalf as a group. "We are following developments closely."
This is awesome! Maybe there's life in the old bubble yet. The longer Helicopter Ben and President Dumbshit can hold off the implosion the better. Gives me more time to bail USD into foreign currency. Sweet!
Tanta and Cal - I am trying to look at this a little more seriously - I don't normally look at rate sheets so don't know the particulars. But stated income sounds completely desperate/irresponsible now, and I gather from your Q and A that you both think so too. Can you provide any benchmarks for comparing this stated income product to previous stated income products - in other words, are they really going back to the same product that started this mess???? Thanks.
I should correct my previous post. I reread your Q and A and it seems like you think this is more conservative than previous stated income products - is that correct?
I sent my investment broker a post-dated check on Thursday to cover all my margin calls (thanks for the short-selling tips guys).
Hopefully that works.
I told them I've filed all the appropriate paperwork and am now officially classified as a "distressed borrower" by the Federal Reserve - this gives me unlimited access to the discount window, and I can provide post-dated checks and old dot.com business plans as collateral. This ensures that any other post-dated checks I issue are implicitly backed by the US government.
When I last checked yesterday afternoon, my margin calls were still "seriously delinquent", but my account classification was upgraded from "Pending Cancellation" to "VIP".
Then, I received a complementary ticket to New York this morning via Fed Ex (ostensibly for an informal chat with one of the directors), and a fruit basket only an hour later.
You should have seen the girl who delivered the fruit basket.
I dunno. Stated Income is Back! and in that font size...
More than informative, I thought.
Can we do a caricature of this people? (Some efforts I did note...I did.)
Histrionic?
I dunno.
Hmmm. Access to credit will be impaired. So get a HELOC?
Um, with falling appraisals that does make sense. But as somebody who actually read the darn thing, I am beginning to think they have a flaw.
The flaw is that the bank can reduce the amount available to you at just about no notice. In other words, we zillowed your house and noticed that the value fell below the amount available on the second. Bang, you now have zero credit available. Please keep making your payments, and we will keep dropping your available credit.
I am beginning to wonder if we are starting a descent into some kind of parallel universe where cash would be king for five minutes until inflation kicks back in again. Raise cash and wait, or raise cash and stick it into an everbank gold account. Today's forex and commodity prices were grim.
The contrarian folks will of course predict a massive dollar rally, but I can't see much in the way of news that would make that happen.
Now even the Dems are for the purposes of the election backing away from an immediate withdrawal from Iraq. So the tagline returns as my pessimism deepens. Unfortunately, I can see no way out of a very hard stagflationary landing.
So house prices will fall in nominal terms and eventually stabilize and start back up, but the question becomes how far will we slip in terms of real prices for everything we need imported. Chevy Chase makes sense in a perverted way, if you think the dollar is going to fall apart, today's liar loan is tomorrows cheap credit compared to what may follow.
I've update the power cells to the Ultimate tin foil hat to 4 6v lantern batteries (two sets in parallel to bring voltage to 12volts and then the 2 sets in series to increase amperage.) A bit heavy, but the protection...priceless.
In all seriousness, there's only one real solution to this whole mess.
I've thought long and hard on this matter, and so I'll attempt to express my conclusion in the best words I can muster that are uniquely my own:
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.... That will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people."
AllenM: The contrarian folks will of course predict a massive dollar rally, but I can't see much in the way of news that would make that happen.
What news are you watching? The housing crash and credit crunch are deflationary events. Think debt destruction. Imagine a quarter of M3 vaporizing into thin air.
That's not my official forecast, but I'm leaning that way.
Can someone explain this passage from the rate sheet to me?
Employment and income are stated on the 1003 but income is not verified. The
applicants income must not be documented anywhere in the loan file; otherwise,
full/alt documentation is required.
Why is no documentation better than some documentation? Is this an attempt to maintain plausible deniability?
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.... That will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people."
Oh yeah totally dug the Elton thought...very nice. Just wanted to throw my own twist on the thing. And I thought Back in Black was excellent as well...
Was thinking of adding this..but the reference was just too obscure:
I guess I'm in an Ozzy mood tonight. Maybe because one of my good friends is dealing with a toxic neg am reset...trying to get her out....bastards at countryfried et. al....in the bunker polishing the shot gun.
I guess I'm in an Ozzy mood tonight. Maybe because one of my good friends is dealing with a toxic neg am reset...trying to get her out....bastards at countryfried et. al....in the bunker polishing the shot gun.
Misean,
Is this the next Waco? If so, let me know. I want to get a ticket.
AllenM,
I've never had a mortgage or HELOC, but wouldn't taking out a HELOC give you more monthly payment (sure it would only be marginal). So is this article suggesting you use the HELOC to pay off your mortgage?
It seems like this article suggests everything... 1) take out a HELOC, 2) buy a second or bigger home, 3) start saving money 4) forsake your retirement and college... yup, I'm pretty sure they covered everything... except the smart thing would be to already have money saved up... whoops! We've been telling you to put your savings in a home for years!
I'm going to be debt free for the first time in 3-4 years... and I'm going to start stockpiling savings... sure I'm a renter... at least I'm not completely in debt. I figure in 2 years all that money I have in oil (that I've 'taken profits' on to pay off my (and my wife) debt) could be used to pay for a decent townhome on the California coast... or maybe 3 or 4...
Kevin,
while you may think that you have enough forex to offset what is happening, consider that everything is going to be more expensive as the dollar falls, because anything that we make here of value will tend to be exported. How did you like wheat prices today? Just imagine your bread at $4 a loaf shortly, or the cost of your flour tortillas doubling- have you checked out your breakfast cereal costs lately? Why should the Japanese continue to sell cars here when there is no demand. I can easily see a day that the first ship of cars heading to China is loaded in Long Beach with Toyota's made in Ohio.
Az Cowboy, yes debt destruction on a regional level is going to be devastating to a certain investor class and joe sixpack won't be able to sell his house. On the other hand when prices at WalMart stop going up, we can start talking about general price deflation.
Houses can't be exported easily, but wheat, corn, oil, copper, gold, silver, soybeans, cement, talent, and anything else you can sell elsewhere will go up, as the dollar falls.
Remember, Greenspan only said we had a quasi peg to gold, and now that is gone with the wind. Your house may eventually be worth a lot more in nomimal dollars, but less in real dollar (just convert your current house price into gold at $750 an ounce, and then run the conversion again in five years).
Grim. Nothing else comes to mind as this stuff starts. I only hope that we reach equilibrium and stabilize before the international crisis of confidence in the dollar and by extension the United States deepens.
No, the idea in the article was to get a Heloc and use it as backup credit, not to borrow against it and engender a payment. My point is that it might not be available when you need it.
I am considering drawing down my Heloc to raise cash, and put that money into a short term cd at another bank. Should we have a massive credit contraction my Heloc could be reset to remove any available credit at the blip of a computer. That would engender a payment differential between the earnings and the interest paid- which would probably break even. That said, don't take anything I say as investment advice, as I am a known pessimist and your mileage will vary with changing economic circumstances.
At least being liquid you could move to follow employment if necessary. Some of us are rather path dependent on our current locale.
Just remember, nominal dollars are only worth what they will buy today;-}
Someday this war's gonna end...
whoosh, the helicopter blades rush by...
Ken the reason they do not want ANY mention of income is to avoid legal liability for the fraud being committed in 8 out of 10 loans.(See the MBARL.org study)however the t-4506 gives the lender access to the borrowers Tax records.Turnaround is now supposed to be 48 hours,and the cost is somewhere around $12.one effect of these loans is that if you attempt to go BK...you are SOL if you committed any kind of fraud,and it becomes a recourse loan even if it is a purchase money mortgage.
Stated Investor Properties
HLS is pleased to announce the return of stated income investor commercial loans. No personal or business tax returns.
· $500,000 to $3MM
· Up to 30 year fixed terms
· Up to 90% LTVs
A great Stated Owner occupied program too!
· $500,000 to $3MM
· Up to 30 year fixed terms
· Up to 90% LTVs
Call HLS at 713.623.1904 or email rick@HLSTX.com
The Office of the Comptroller of Currency (OCC) noted that stated-income loans could be "inconsistent with sound residential mortgage lending." The OCC specifically recommended that careful consideration should be given to the "absence of an appropriate assessment and documentation of a consumer's ability to repay the loan." While the OCC's report likely drew howls of derision from the lending and real estate industry, some of its detractors are probably already out of work.
At least being liquid you could move to follow employment if necessary. Some of us are rather path dependent on our current locale.
Exactly.
But don't get a ll down about the dollar dropping... nor blame BB. The problem was a half decade of annual trillion dollar deficits... you can't run that kind of red ink without it having an effect EVENTUALLY. The fed just 'monetized' those loses for us.
We've been over-consuming and under-producing for a long time and now the bill is coming due... its coming in the form of reduced PPP via a declining dollar.
Making more shit to export and buying less from offshore is kin to paying down your CC balance on a national level - won't be fun but has to be done. And it will be done - over time - via a weaker dollar. Get used to it.
You forgot the national experience to come of higher energy/food expenses. Less credit. Lower paying jobs.
Watching other countries do things like space exploration and medical advances.
Much less consumption forced by either higher prices or taxes or both. Credit will be rationed somehow. Most likely the title and payday high % type loan will simply be outlawed along with most subprime. Credit cards will be controlled.
The cute credit card commericials will disappear from TV replaced by savings encouragements. Flip this house programs by how to conserve programs.
Much smaller and cheaper cars. Maybe scrap drives of SUVs, where the former beloved vehicle is driven between rows of sledge hammer and pickaxe wielding folks.
Much fewer wars, wars not subsidized by looting are very expensive and we will not have the money to do it. In any case, our friends and foes will have funds for the next generation of war toys. Now us.
I don't see any problem with stated income as long as the down-payment is big enough. There just isn't much risk in lending to someone who puts down 20% of the money. He has a huge incentive not to default, and even if he does you can probably get pretty much all your money back. People might have all sorts of reasons for not wanting to document their income. Am I wrong about this?
The basis for some sort of a corrective rally in the US$ is these
1) The recent strength in the Euro and Asian currency units is due mainly to the Yen carry trade rather than the fundamental weakness in the US economy. I know beacuse I live in one.
2) Lowering interest rate does not equal weakening excahnge. Look at Japan and Singapore as good examples.
3) WEaker US consumption = lower defict = stronger currency
"You forgot the national experience to come of higher energy/food expenses. Less credit. Lower paying jobs.
Watching other countries do things like space exploration and medical advances."
But maybe also massive public works projects. Can't afford three cars anymore? Let's build a public transit system that actually works, so that you only need one, or none; and soak the rich as need be. Create societal wealth.
Can't afford imported fuel? Pour money into solar, batteries, renewables. Reduce outflow of $$$ for oil. Create societal wealth.
Reform health care in a serious way. One way or another, remove the waste that we know is in the system. Create societal wealth.
In hard times, it's not just about paying down debt and taking your medicine. It's also about rooting out the inefficiencies that provide outsized benefits to a few -- the gatekeepers of plenty -- at the expense of the rest of society. Remove those engineered inefficiencies, and societal overhead decreases; we become wealthier.
There was some of that in the Depression-era New Deal programs; could be more, this time around.
Am I just paranoid or does anyone else feel that there is a good chance that Fannie and/or Freddie have a likely chance of imploding as this bubble continues to deflate?
With:
1) Continuous wave of loan resets coming in the next year or more,
2) No more home equity bailouts to help drowning homeowners pay off their overpriced mortgages,
3) When the recession deepens (it's not even worth debating whether recession will or won't happen IMHO - there are too many indicators that show we're headed into recession) and employment drops leaving more people without the ability to pay their mortgage.
Isn't it obvious that we're going to see foreclosures in record numbers?
Doesn't it seem like a foregone conclusion that Countrywide, Fannie and Freddie will all be taken out by this tsunami?
During the liquidity crunch, both the USD and Yen strengthened against the Euro, Kiwi, etc. This is counter-intuitive for most people, but during a debt crisis the only money that flows is debt payments. The USD and Yen will rise relative to other currencies if we go into a full blown worldwide recession.
For the dollar to continue to drop, the US economy has to go into a recession while the rest of the world continues to hum along. This is the "decoupling" theory. Personally, I don't believe there is another group of consumers in the world with debt free incomes that are willing and/or able to offset a large drop in American consumption.
One thing to note, the US trade deficit narrows the most when we are in a recession.
I'm first, I just have no documentation to prove it.
And Francisco Franco is still dead!
Yeah!!! Income is over rated when houses only go up!!!
No way that is a real bank? Chevy Chase ?
ROFLCOPTERS!
Hey, I bank with them. Maybe I shouldn't?
Hey, I bank with them. Maybe I shouldn't?
You should go and see if you can make a stated balance withdrawal.
Any details? There is stated income and then there is stated income.
If its 80% CLTV SIVA for SE borrowers only that is widely different than 95% SISA for W2 employees.
Is this a niche product? Or intended to be mass-marketed? These products make some sense as a niche market.
What's the price of this loan?
We can thank Ben Bernanke & Co for this! Well the scotch is still flowing, and will NEVER RUN OUT!
Oh, and no hangover either! Thats great stuff!
well, you can't deny their enthusiasm!
Cal, try this:
http://www.chevychasewholesale.com/pdf/wgl130_stated_conform_fix.pdf
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does anyone else think that could just as easily be a poster for a horror movie sequel?
Just when you thought you were safe...
Stated Income is Back!
And this time, he's coming for your children...
Doesn't it have a certain sense of "great desperation" about it?
Meanwhile, here's a chart showing total consumer credit adjusted for inflation over the years.
Total Consumer Credit Outstanding
I believe I found the reason for the return of stated income.
CATS vs Sinistar
I hunger. Run Coward!
does anyone else think that could just as easily be a poster for a horror movie sequel?
I was having more of an Elton John moment when I saw that . . . the Bitch is Back.
wah wah
stated income has a place in this market.
now if they take 25,000 a month for someone listed as a janitor, then its a travesty.
so i'm guessing they wont be doing that.
lol
Elton John, Kiev The Bitch is Back
YouTube
- Elton John, Kiev, 16.06.07 - The Bitch Is Back
i wonder how long before CCB starts blocking public access to their rate sheets? that would be pretty awesome if they had to do it because a blog kept making fun of them.
As Tanta has mentioned there is NO legitimate reason for stated income loans.period.If there are exceptional circumstances,you make an "exception".If they "need" stated income they are lying to the IRS,and thus untrustworthy and high risk,or they are lying to you.Shades of HL Mencken...is there anyone dumb enough to buy this stuff,or whacked out enough to WANT it in their portfolio? even at 75% cltv and 20% interest?
Tanta,
Thank you very much you are the best.
It looks like Fannie Mae stated income not new investor product. Yes?
I also enjoyed the little finger pointing to this item everytime it cropped up: "IRS Form 4506 must be signed by the borrowers at application and closing"
Basically this isnt anything showing that the secondary market is coming back for the radical products.
Tanta,
I went for Back in Black.
I'm probably biased being an AC/DC fan, but I do think the words work well!
"As Tanta has mentioned there is NO legitimate reason for stated income loans.period."
Answered my question ...
Pass the cheeze whiz - yay.
I work at Wendy's
Intro rate on ARM is up
Thank you, Chevy Chase
In my local currency, the US stock market has barely moved. After adjusting for US$ depreciation, I figure that US stocks are worth about the same as before the rate cut.
I am gunning for the reverse at some point in the near future. I think we are probably starting Hamlet Act V right now.
I am positioning my portfolio for a sudden weakening of my local currency due to the unwinding of the Yen Carry Trade which is rampant now, contributing to the last 30% appreciation in my local stock market.
when Hamlet dies, he would probably do so like a "bolt of thunder". A band rather than whimper.
At that point, my prediction is that the US$ would surge with a 20% drop in the US stock index. But to a foreign investor like myself, the US$ strength would probably offest 10% of the drop.
This would a global buy signal for me, as gloabl stock markets would plunge at the go signal.
The cockroaches trained during the evening and at night, when they tend to be more active, remembered what they had learned for several days. But the bugs trained in the morning were incapable of learning something new and remembering it.
Don't bug them! Cockroaches don't like mornings
| Reuters
Must be the morning meetings
Woohoo! Benny must be taking Beanie Babies as collateral at the discount window!
I'm rich, bitch!
Chevy Chase would rather renew loans with stated income then suffer the foreclosures if they dont. Dammed if they do, dammed if they dont.
Please explain the following for the non mortgage brokers in the crowd. (What's the rate to the borrower?)
INDEXED RATE PAYS YOU 1.50% YSP
LIBOR Drops to 5.129%
2 Year Prepay Now Available on the 1-Year Cashflow Option ARM
Choose between a 0, 1, 2 or 3 year prepay...
-- Hiding out
This really belongs in the comments a couple of posts earlier, but I'm afraid nobody will see it there.
This is a link to Brian Petti's latest monthly ContraryInvestor.com writeup (apparently released early on FinancialSense.com):
Market Observation - Tim W. Wood 12.04.2009
It's all about the effect of the housing bust on the economy. I've only skimmed it, but it looks like his typical great stuff.
Citi mails unrequested credit cards
Macy's customers get new cards, like it or not. Consumer groups say unwanted credit cards put customers at risk.
Citi is issuing approximatley 3.5 million credit cards to department store customers who did not request them...
Citi mails unrequested credit cards - Sep. 28, 2007
Successive G7 finance ministers meetings have repeated well-worn statements describing "excessive volatility" on foreign exchange markets as "undesirable" despite steady decline in the dollar's strength in recent years.
Juncker said that the United States, China and Japan "should match their words and their deeds" when Washington repeats its well-worn strong dollar policy and Beijing and Tokyo say that exchange rates should reflect their economies' health.
"We will see at the next G7 meeting at the end of October in Washington if our partners agree to follow their words up with consequential acts," he told AFP by telephone from Luxembourg.
"The strong euro, as long as it stays on its path, tends to worry us a lot," said Juncker, who chairs regular meetings of eurozone finance ministers and speaks on their behalf as a group. "We are following developments closely."
Yahoo! 404 - Page Not Found
This is awesome! Maybe there's life in the old bubble yet. The longer Helicopter Ben and President Dumbshit can hold off the implosion the better. Gives me more time to bail USD into foreign currency. Sweet!
It seems like we're not going to see an end to this bubble business until Fannie and Freddie are dragged down the credit sinkhole as well.
I don't really need any money, but this sounds like fun. Do I have to buy a house to qualify? I am willing to state my income early and often.
Tanta and Cal - I am trying to look at this a little more seriously - I don't normally look at rate sheets so don't know the particulars. But stated income sounds completely desperate/irresponsible now, and I gather from your Q and A that you both think so too. Can you provide any benchmarks for comparing this stated income product to previous stated income products - in other words, are they really going back to the same product that started this mess???? Thanks.
Tanta and Cal,
I should correct my previous post. I reread your Q and A and it seems like you think this is more conservative than previous stated income products - is that correct?
Thanks.
i mentioned earlier about my Buffett short signal indicator. now this:
Buffett Sell Signal, Trading-Only ETF, Starbucks Call: Timshel - Bloomberg.com
I sent my investment broker a post-dated check on Thursday to cover all my margin calls (thanks for the short-selling tips guys).
Hopefully that works.
I told them I've filed all the appropriate paperwork and am now officially classified as a "distressed borrower" by the Federal Reserve - this gives me unlimited access to the discount window, and I can provide post-dated checks and old dot.com business plans as collateral. This ensures that any other post-dated checks I issue are implicitly backed by the US government.
When I last checked yesterday afternoon, my margin calls were still "seriously delinquent", but my account classification was upgraded from "Pending Cancellation" to "VIP".
Then, I received a complementary ticket to New York this morning via Fed Ex (ostensibly for an informal chat with one of the directors), and a fruit basket only an hour later.
You should have seen the girl who delivered the fruit basket.
Hell, I'm not even sure the were fruits.
Go figure.
Still waiting for the stated FICO loans....
I dunno. Stated Income is Back! and in that font size...
More than informative, I thought.
Can we do a caricature of this people? (Some efforts I did note...I did.)
Histrionic?
I dunno.
Nice pulls Tanta and Stag...but thinking in a rock blogging sort of way I came up with these.
You gotta listen to the words and think about it a bit.
SHARON!!!!!
YouTube - Ozzy Osbourne - Mr. Crowley
YouTube -
I think you're all being callous.
Drug dealers and prostitutes need a home too!
So is everything ok now in SubPrime land. The markets (EM) certainly seem to be taking everything very well.
WSJ
Cash is King!
When-a-Recession-Threatens-Cash-Suddenly-Has-Cachet: Personal Finance News from Yahoo! Finance
Hmmm. Access to credit will be impaired. So get a HELOC?
Um, with falling appraisals that does make sense. But as somebody who actually read the darn thing, I am beginning to think they have a flaw.
The flaw is that the bank can reduce the amount available to you at just about no notice. In other words, we zillowed your house and noticed that the value fell below the amount available on the second. Bang, you now have zero credit available. Please keep making your payments, and we will keep dropping your available credit.
I am beginning to wonder if we are starting a descent into some kind of parallel universe where cash would be king for five minutes until inflation kicks back in again. Raise cash and wait, or raise cash and stick it into an everbank gold account. Today's forex and commodity prices were grim.
The contrarian folks will of course predict a massive dollar rally, but I can't see much in the way of news that would make that happen.
Now even the Dems are for the purposes of the election backing away from an immediate withdrawal from Iraq. So the tagline returns as my pessimism deepens. Unfortunately, I can see no way out of a very hard stagflationary landing.
So house prices will fall in nominal terms and eventually stabilize and start back up, but the question becomes how far will we slip in terms of real prices for everything we need imported. Chevy Chase makes sense in a perverted way, if you think the dollar is going to fall apart, today's liar loan is tomorrows cheap credit compared to what may follow.
Someday this war's gonna end...
Everything is peachy Banker. CP is collapsing:
Mish's Global etc.
Dollar is at historic lows:
INO Equities Stocks Indexes - US DOLLAR INDEX (NYBOT:DX) Price Chart and Quote
Gold's approaching all time highs:
24-hour Spot Chart - Gold
I've update the power cells to the Ultimate tin foil hat to 4 6v lantern batteries (two sets in parallel to bring voltage to 12volts and then the 2 sets in series to increase amperage.) A bit heavy, but the protection...priceless.
Other then that, nothin' to see here. Move along.
Cheers,
Just when I thought I get 1 of them McMansions. Oh well back to dreams of riches.
jo6pac
In all seriousness, there's only one real solution to this whole mess.
I've thought long and hard on this matter, and so I'll attempt to express my conclusion in the best words I can muster that are uniquely my own:
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.... That will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people."
-AC
Feel free to quote me on that.
two sets in parallel to bring voltage to 12volts and then the 2 sets in series to increase amperage.
Other way around. Better edit that instruction manual before you put the hat into production.
Misean!
Ozzy and Black Sabbath? That is SO dire, lol. Too bad H.P. Lovecraft isn't still alive to write the screenplay.
I should have mentioned that just because AC/DC is a favorite, it doesn't mean I don't like Elton John.
Your Song
I don't have much money but boy if I did, I'd buy a big house where we both could live.
Just clip and paste the following into the "stated income" section.
I hope you don't mind that I put down in words how wonderful life is while you're in the world.
It brings a tear to my eye.
Drug dealers and prostitutes need a home too!
Er... they have one.
It's called "CNBC"
"Today's forex and commodity prices were grim."
Maybe for you.
(the opposite of this promo is, of course)
UNSTATED DEBT
IS FRONT !
AllenM: The contrarian folks will of course predict a massive dollar rally, but I can't see much in the way of news that would make that happen.
What news are you watching? The housing crash and credit crunch are deflationary events. Think debt destruction. Imagine a quarter of M3 vaporizing into thin air.
That's not my official forecast, but I'm leaning that way.
Can someone explain this passage from the rate sheet to me?
Employment and income are stated on the 1003 but income is not verified. The
applicants income must not be documented anywhere in the loan file; otherwise,
full/alt documentation is required.
Why is no documentation better than some documentation? Is this an attempt to maintain plausible deniability?
"Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.... That will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people."
-AC
Wow AC...you sound like...a Misean..
The Shaking Tower of Debt - Thorsten Polleit - Mises Institute
Twilight of the Gods - Sean Corrigan - Mises Institute
They're long but enjoy.
Cheers,
Stagflationary Mark
Oh yeah totally dug the Elton thought...very nice. Just wanted to throw my own twist on the thing. And I thought Back in Black was excellent as well...
Was thinking of adding this..but the reference was just too obscure:
YouTube -
And of course this..but only the chorus applies:
YouTube - Randy Rhoads - Crazy Train Video (From Tribute Album)
I guess I'm in an Ozzy mood tonight. Maybe because one of my good friends is dealing with a toxic neg am reset...trying to get her out....bastards at countryfried et. al....in the bunker polishing the shot gun.
Cheers,
Sorry wtf..you're right...I always got that confused in engineering school...prolly why i blow lots of stuff up...like the Fed.
I re-soldered the wires. It's working better and the batteries are lasting longer. LOL
Cheers,
Wow AC...you sound like...a Misean..
That's a joke actually - infamous quote from the Depression Era.
Ac
Did the realy way Wow ac...that would be cool...
Cheers, where's my shot of stoli???
that should be: say Wow ac
Sorry...please continue viewing,
Cheers,
i thought it was a joke, nice find!
Misean,
Is this the next Waco? If so, let me know. I want to get a ticket.
AllenM,
I've never had a mortgage or HELOC, but wouldn't taking out a HELOC give you more monthly payment (sure it would only be marginal). So is this article suggesting you use the HELOC to pay off your mortgage?
It seems like this article suggests everything... 1) take out a HELOC, 2) buy a second or bigger home, 3) start saving money 4) forsake your retirement and college... yup, I'm pretty sure they covered everything... except the smart thing would be to already have money saved up... whoops! We've been telling you to put your savings in a home for years!
I'm going to be debt free for the first time in 3-4 years... and I'm going to start stockpiling savings... sure I'm a renter... at least I'm not completely in debt. I figure in 2 years all that money I have in oil (that I've 'taken profits' on to pay off my (and my wife) debt) could be used to pay for a decent townhome on the California coast... or maybe 3 or 4...
Kevin,
while you may think that you have enough forex to offset what is happening, consider that everything is going to be more expensive as the dollar falls, because anything that we make here of value will tend to be exported. How did you like wheat prices today? Just imagine your bread at $4 a loaf shortly, or the cost of your flour tortillas doubling- have you checked out your breakfast cereal costs lately? Why should the Japanese continue to sell cars here when there is no demand. I can easily see a day that the first ship of cars heading to China is loaded in Long Beach with Toyota's made in Ohio.
Az Cowboy, yes debt destruction on a regional level is going to be devastating to a certain investor class and joe sixpack won't be able to sell his house. On the other hand when prices at WalMart stop going up, we can start talking about general price deflation.
Houses can't be exported easily, but wheat, corn, oil, copper, gold, silver, soybeans, cement, talent, and anything else you can sell elsewhere will go up, as the dollar falls.
Remember, Greenspan only said we had a quasi peg to gold, and now that is gone with the wind. Your house may eventually be worth a lot more in nomimal dollars, but less in real dollar (just convert your current house price into gold at $750 an ounce, and then run the conversion again in five years).
Grim. Nothing else comes to mind as this stuff starts. I only hope that we reach equilibrium and stabilize before the international crisis of confidence in the dollar and by extension the United States deepens.
Someday this war's gonna end...
No, the idea in the article was to get a Heloc and use it as backup credit, not to borrow against it and engender a payment. My point is that it might not be available when you need it.
I am considering drawing down my Heloc to raise cash, and put that money into a short term cd at another bank. Should we have a massive credit contraction my Heloc could be reset to remove any available credit at the blip of a computer. That would engender a payment differential between the earnings and the interest paid- which would probably break even. That said, don't take anything I say as investment advice, as I am a known pessimist and your mileage will vary with changing economic circumstances.
At least being liquid you could move to follow employment if necessary. Some of us are rather path dependent on our current locale.
Just remember, nominal dollars are only worth what they will buy today;-}
Someday this war's gonna end...
whoosh, the helicopter blades rush by...
Ken the reason they do not want ANY mention of income is to avoid legal liability for the fraud being committed in 8 out of 10 loans.(See the MBARL.org study)however the t-4506 gives the lender access to the borrowers Tax records.Turnaround is now supposed to be 48 hours,and the cost is somewhere around $12.one effect of these loans is that if you attempt to go BK...you are SOL if you committed any kind of fraud,and it becomes a recourse loan even if it is a purchase money mortgage.
Reply to: leannaloveland@cox.net
Date: 2007-09-24, 3:13PM MST
TODAY IS THE DAY TO PURCHASE A HOME STATED INCOME..
ALL YOU NEED IS 10% DOWN PAYMENT AND THE PROPER CREDIT RATING........
STATE YOUR INCOME AND YOUR ASSETS.
TODAY IS THE DAY TO CLAIM YOUR HOME...
LEANNA LOVELAND
602 290-4287
GMC,INC.
EQUAL HOUSING LENDER
Reply to: serv-430963901@craigslist.org
Date: 2007-09-24, 2:43PM CDT
Stated Investor Properties
HLS is pleased to announce the return of stated income investor commercial loans. No personal or business tax returns.
· $500,000 to $3MM
· Up to 30 year fixed terms
· Up to 90% LTVs
A great Stated Owner occupied program too!
· $500,000 to $3MM
· Up to 30 year fixed terms
· Up to 90% LTVs
Call HLS at 713.623.1904 or email rick@HLSTX.com
Is this the next Waco? If so, let me know. I want to get a ticket.
rich
No rich, it's purely defensive.
YouTube -
Enjoy,
Cheers,
The Office of the Comptroller of Currency (OCC) noted that stated-income loans could be "inconsistent with sound residential mortgage lending." The OCC specifically recommended that careful consideration should be given to the "absence of an appropriate assessment and documentation of a consumer's ability to repay the loan." While the OCC's report likely drew howls of derision from the lending and real estate industry, some of its detractors are probably already out of work.
Remember those ghosts in the house?
YouTube
- POLTERGEIST II: THE OTHER SIDE-Trailer
The're Back!
I prolly should have added:
Hasta la vista...baby.
In there somewhere...the govenator willtake of that I'm sure.
Cheers,
From brokers outpost:
"only for owner occ and second homes. Max LTV for now is 75%"
Kind of the same and somewhat different.
At least being liquid you could move to follow employment if necessary. Some of us are rather path dependent on our current locale.
Exactly.
But don't get a ll down about the dollar dropping... nor blame BB. The problem was a half decade of annual trillion dollar deficits... you can't run that kind of red ink without it having an effect EVENTUALLY. The fed just 'monetized' those loses for us.
We've been over-consuming and under-producing for a long time and now the bill is coming due... its coming in the form of reduced PPP via a declining dollar.
Making more shit to export and buying less from offshore is kin to paying down your CC balance on a national level - won't be fun but has to be done. And it will be done - over time - via a weaker dollar. Get used to it.
yep dryfly it's all about this:
YouTube -
Cheers,
dry
You forgot the national experience to come of higher energy/food expenses. Less credit. Lower paying jobs.
Watching other countries do things like space exploration and medical advances.
Much less consumption forced by either higher prices or taxes or both. Credit will be rationed somehow. Most likely the title and payday high % type loan will simply be outlawed along with most subprime. Credit cards will be controlled.
The cute credit card commericials will disappear from TV replaced by savings encouragements. Flip this house programs by how to conserve programs.
Much smaller and cheaper cars. Maybe scrap drives of SUVs, where the former beloved vehicle is driven between rows of sledge hammer and pickaxe wielding folks.
Much fewer wars, wars not subsidized by looting are very expensive and we will not have the money to do it. In any case, our friends and foes will have funds for the next generation of war toys. Now us.
Gonna be interesting.
Just gotta throw this in for vader:
YouTube - Star Wars-Imperial March
enjoy;
Cheers,
Misean,
That particular money doesn't seem to help me keep burning that gasoline. Yeah. Burning that gasoline.
Misean
I should have gone to the john before I saw it.
Thanks
wars not subsidized by looting are very expensive and we will not have the money to do it
True, but that leaves us with the looting option doesn't it. In my more sane moments I know that's not likely, but you really gave me a chill.
I don't see any problem with stated income as long as the down-payment is big enough. There just isn't much risk in lending to someone who puts down 20% of the money. He has a huge incentive not to default, and even if he does you can probably get pretty much all your money back. People might have all sorts of reasons for not wanting to document their income. Am I wrong about this?
"That's a joke actually - infamous quote from the Depression Era."
Damn you -- I was going to say that it sounded like Mellon back in '32.
The basis for some sort of a corrective rally in the US$ is these
1) The recent strength in the Euro and Asian currency units is due mainly to the Yen carry trade rather than the fundamental weakness in the US economy. I know beacuse I live in one.
2) Lowering interest rate does not equal weakening excahnge. Look at Japan and Singapore as good examples.
3) WEaker US consumption = lower defict = stronger currency
Contrarian thinker maybe??
"You forgot the national experience to come of higher energy/food expenses. Less credit. Lower paying jobs.
Watching other countries do things like space exploration and medical advances."
But maybe also massive public works projects. Can't afford three cars anymore? Let's build a public transit system that actually works, so that you only need one, or none; and soak the rich as need be. Create societal wealth.
Can't afford imported fuel? Pour money into solar, batteries, renewables. Reduce outflow of $$$ for oil. Create societal wealth.
Reform health care in a serious way. One way or another, remove the waste that we know is in the system. Create societal wealth.
In hard times, it's not just about paying down debt and taking your medicine. It's also about rooting out the inefficiencies that provide outsized benefits to a few -- the gatekeepers of plenty -- at the expense of the rest of society. Remove those engineered inefficiencies, and societal overhead decreases; we become wealthier.
There was some of that in the Depression-era New Deal programs; could be more, this time around.
Bob Dobbs
Lotsa good can come of it, if the leadership changes.
Am I just paranoid or does anyone else feel that there is a good chance that Fannie and/or Freddie have a likely chance of imploding as this bubble continues to deflate?
With:
1) Continuous wave of loan resets coming in the next year or more,
2) No more home equity bailouts to help drowning homeowners pay off their overpriced mortgages,
3) When the recession deepens (it's not even worth debating whether recession will or won't happen IMHO - there are too many indicators that show we're headed into recession) and employment drops leaving more people without the ability to pay their mortgage.
Isn't it obvious that we're going to see foreclosures in record numbers?
Doesn't it seem like a foregone conclusion that Countrywide, Fannie and Freddie will all be taken out by this tsunami?
Sure looks like Fannie is buying this if you read the property matrix...
I would like to say only one thing , that we can not deny their enthusiasm.
The dollar weakness is both secular and artificial. The only way the USD strengthens is if china pulls the peg, not the Yen carry.
The other problem is that a lot of unpricable dogshit game in a greenback bag, that's why people are running from.
Huh? The only thing keeping the dollar afloat are the pegs.
If the pegs drop, US interest rates will have to shoot the moon before the dollar recovers any strength.
I think Candyman_Asia is right....
During the liquidity crunch, both the USD and Yen strengthened against the Euro, Kiwi, etc. This is counter-intuitive for most people, but during a debt crisis the only money that flows is debt payments. The USD and Yen will rise relative to other currencies if we go into a full blown worldwide recession.
For the dollar to continue to drop, the US economy has to go into a recession while the rest of the world continues to hum along. This is the "decoupling" theory. Personally, I don't believe there is another group of consumers in the world with debt free incomes that are willing and/or able to offset a large drop in American consumption.
One thing to note, the US trade deficit narrows the most when we are in a recession.