That's my man Doug. Delinquencies will be highest among those who have a habit of being delinquent, and foreclosures will be highest among those who have no equity. I feel . . . enlightened.
He had to have been interviewed at the MBA Conference. I wonder if Michael Perry was standing behind him making the "horns" thing on his head.
The intellectual level of this thread may now increase.
I've found that, in general, professionals in any given field show a great deal of resistance to prophesizing their own doom.
Yes but if you aren't looking, they will sometimes jump out of their 14th floor corner office to the street below. That's a hint there might be problems.
"...in those markets where house prices actually decline so that people don't have equity to solve their problems."
Umm, what about those markets that don't decline, but people still don't have equity to solve their problems? Hasn't this been the age of 100% financing, Doug? It's a shame that someone is allowed to call themselves an economist while predicting that what is essentially a commodity has some "always upward" intrinsic value.
I think there are a lot of people who, even if their home's value were growing at the "longer-term trend of modest growth" (i.e. at the rate of inflation) are not going to see that is a great reason to be spending 40% of their gross income on every month. Hence, even some of those that are not in financial distress will have reasons to consider selling their homes -- especially if it looks like property values are declining.
That's my man Doug. Delinquencies will be highest among those who have a habit of being delinquent, and foreclosures will be highest among those who have no equity. I feel . . . enlightened.
He had to have been interviewed at the MBA Conference. I wonder if Michael Perry was standing behind him making the "horns" thing on his head.
The intellectual level of this thread may now increase.
If home prices decline in 2007 it becomes a disaster for lenders who will be staring at steep losses on defaults.
I've found that, in general, professionals in any given field show a great deal of resistance to prophesizing their own doom.
His predictions (Duncan's) are very optimistic- I feel it is more propaganda then A reality for the future.
A highly unlikely scenario.
Lereah has some competition in the housing "homer" department.
short CFC
short CFC
short CFC
AND OTHERS !!!!!
Short CFC? I don't understand. Mr. Mozillo has only extracted a quarter billion dollars in the last 3 years. Surely there is more in there.
I've found that, in general, professionals in any given field show a great deal of resistance to prophesizing their own doom.
Yes but if you aren't looking, they will sometimes jump out of their 14th floor corner office to the street below. That's a hint there might be problems.
"...in those markets where house prices actually decline so that people don't have equity to solve their problems."
Umm, what about those markets that don't decline, but people still don't have equity to solve their problems? Hasn't this been the age of 100% financing, Doug? It's a shame that someone is allowed to call themselves an economist while predicting that what is essentially a commodity has some "always upward" intrinsic value.
I think there are a lot of people who, even if their home's value were growing at the "longer-term trend of modest growth" (i.e. at the rate of inflation) are not going to see that is a great reason to be spending 40% of their gross income on every month. Hence, even some of those that are not in financial distress will have reasons to consider selling their homes -- especially if it looks like property values are declining.