OT

``The poodle, if it's pedigreed, can be turned over to the Fed,'' said Mitchell Stapley, who oversees $22 billion as chief fixed-income officer for Grand Rapids, Michigan-based Fifth Third Asset Management.

Gee, Mitchell, that's VERY reassuring.

"Bond Dealers Pare Treasuries, Signaling Fed Turning Point Near"

Dealers Pare Treasuries, Signaling Fed Turning Point (Update3) - Bloomberg.com

Until I'd corresponded with a reporter at the LA Times about a year ago, I'd assumed that they were all essentially shills for the RE industry. From the response, I realized that reporters bought into the BS just like everyone else.While cleaning out some old emails, I found the reporter's reply to my angry email --

Thank you for your letter. I appreciate hearing from readers, even when they don't
agree with my stories.

The '90s recession you mention does not resemble this downturn, in which, by
the way, prices still are higher in most SoCal counties than they were a year ago.
During that dark period, the aerospace industry left town, leaving thousands of
workers w/out incomes, and they lost their homes. Builders had overbuilt and were
stuck with tons of unsold inventory. THat is not the scenario this time, not even
close, thank goodness. Every economist I talk to (nationwide and widely acknowledged
as the best in their fields--not just Ms. Appleton-YOung) believes this down-cycle
is normal---corrections always follow huge run-ups---and that so far it nowhere
resembles the '90s crash. But everyone is closely watching what impact the subprime-lending
debacle will have on the area's inventory and prices this spring.

Regards,

In a fit of nit picking: That sign in the house's back yard is over the ramp going from 405 N to 55 S. So the sign is not exactly on the 405.

Man, that is one nasty location for a house.

So what if the house is near a freeway. There's a cool trampoline in the backyard.

In fact, a trampoline IS the back yard.

could be somebody's tragedy. Maybe we should leave them alone.

IS someone's tragedy. But after the front page treatment, they're not going to get any slack. Your sentiments do you credit, but it's not going to change a thing for them.

"LV Renter writes:
Does anyone want to comment on the expert who predicted a 1.4MM median by 2015 on this front page?"

Was it Bernanke?

Does anyone want to comment on the expert who predicted a 1.4MM median by 2015 on this front page?

Didn't seem that improbable, given that prices were $50K in the 1965, $100K in the 1975, $200K in the 1985, $300K in the 1995, and $600K in 2005.

this assumes that these cost stay at present levels

no, my custom spreadsheet says a $150K mortgage in california has a monthly carrying cost of ~$750.

This calculation is interest payments less tax writeoffs plus basic maintenance and the opportunity cost of a 5% deposit.

^ Sorry $750 is for $125K. $150K spits out $900/mo in carrying costs.

Zarkov, the Bay Area is in fact a locus of relatively high-paying jobs. My LL is jacking up the renewal $100/mo again this year; vacancies are under 5% so he's got the whip hand. Rents are starting to get VERY close to condo carrying costs here in the N. San Jose / Sunnyvale area.

Just to repeat, as people may find the count useful:

Doing a quick count, the area on the interior of Mainstee-Ludington-San Diego Fwy, including the cul-de-sacs of what appear to be higher-value structures, but excluding the apartments / condos, contains about 237 structures. At 200k of polish off the apple per, that's 47.4mn in "lost" phantom value in that little area alone.

Following up on mp's comment above --

The poodle, if it's pedigreed, can be turned over to the Fed

What, moral hazard from the Bear-Stearns buyout? Never!

Something interesting; even with the TAF, non-borrowed reserves are cliff-diving.

St. Louis Fed: Series: NONBORTAF, Non-Borrowed Reserves of Depository Institutions Plus Term Auction Credit

OT

An update on the Ridge Hill multi-purpose development in Yonkers.

"Now, as bulldozers zip around the 81-acre parcel known as Ridge Hill, intended as an upscale oasis within a city looking to shed its past as a faded factory town, federal prosecutors are investigating the development deal and leaning toward indicting Ms. Annabi, a 37-year-old Democrat, on corruption charges or other misconduct, according to a person involved in the investigation."

U.S. Investigates Yonkers Development After Official's Surprising 'Yes' Vote - NY Times

She had been the development's biggest critic, lead plaintiff in a lawsuit against it. All of a sudden, she switched her vote and started driving a Mercedes.

When will politicians learn?

Leave the Mercedes in the garage until the heat is off.

May 5 (Reuters) - Bank of America is likely to renegotiate its deal to buy Countrywide Financial down to the $0 to $2 level or completely walk away from it, said Friedman, Billings, Ramsey, which downgraded Countrywide to ‘‘underperform’’ from ‘‘market perform.’’
Countrywide’s loan portfolio has deteriorated so rapidly that it currently has negative equity and the proposed takeover of the company will be a drag on Bank of America’s earnings due to the elevated credit expenses at Countrywide, analyst Paul Miller wrote in a note to clients.
He cut his target on Countrywide’s stock to $2 from $7.
Bank of America, which said in January it would buy Countrywide for $4 billion, said in a filing last week there was no assurance that any of the mortgage lender’s outstanding debt would be redeemed, assumed or guaranteed.

‘‘We estimate that if fair-value adjustments to the loan portfolio could exceed approximately $22 billion, this would increase the odds of Bank of America renegotiating the transaction or walking away,’’ Miller said.

On the issue of corrections, I think the price transparency of the Internet will pop the bubble faster than in 1991.

OT -- our Angry Renter petition just hit 40,000 signers!

Google Maps gives an incorrect location for this property. Eric is right, the sign is over an offramp, not over the 405. Scroll to the bottom of the Redfin listing and they give a good series of maps/

In any case the house is still located in one of the worst locations imaginable; at the intersection of two major freeways.