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Let's create the CR Foreclosure Fund ( CRFF) prounounced CRFFFFFFFFFFFFFFFFFFFFFFFFFFFF..which is the sound of all those past homeowners passing out from too much cheap wine down at the Quick Mart!
"The first step is selling the most value-conscious units and those are the foreclosures. We're not going to see any real sustainable price appreciation until we move the foreclosures off the inventory list."
That may take a while. With the lapse of several industrywide foreclosure moratoriums, lenders nationwide again are initiating foreclosure proceedings. Government-led efforts to refinance or modify troubled loans can't help the rising number of people unable to pay their mortgages because they've lost their jobs.
In Illinois, more than 7,300 homes became bank-owned during the year's first quarter, according to RealtyTrac. It's impossible to determine how many of them are listed for sale, or sold, at any one time because the area's real estate listing service doesn't require a property to be listed as a foreclosure.
May 18 (Bloomberg) -- China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth amid concern that the value of its dollar assets may decline, according to the Royal Bank of Canada.
“It’s part of an overall desire to decrease its exposure to dollar assets,” said Brian Jackson, senior strategist at Royal Bank of Canada in Hong Kong, in an interview today. China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause “higher inflation and a weaker dollar,” he said.
Anecdotal: Highland Park, IL 60035 has a foreclosure that finally went "contingent" at 795k: 260 Beech (1 block from Lake Michigan). Last selling price $2.8 million in April 2007. Smell something?
So if the next wave of foreclosures is going to be due to Alt-A and other loans (according to previous charts posted on CR) is the third wave going to be when many of the 45% of homedebtors realize that they are so under water on equity that they could never dig out in the next 10 years so they just quit paying their mortgage?
I see tomorrow's election in a similar light to the Rodney King trial, which set off the L.A. riots way back when.
Everybody had watched the video of cops beating the crap out of him, and then the coppers beat the rap, which nobody expected.
Everybody knows California is not just broke, but also an indentured servant to debt. Serious job cuts will happen almost overnight if the hoi ploy says no thanks to taxing themselves vis a vis a plebiscite...
in the last hour the byline on the false PE article changed from By Daniela Silberstein to By Rita Nazareth, same article. are they making these names up?
"The number of foreclosures has soared to historic levels in the last two years, especially in Sunbelt states where lenders made hundreds of shaky subprime loans. In this Stateline.org map, scroll over any state to find the most recent monthly figures showing the number of foreclosures for every 5,000 housing units, or compare the ratio over time."
swamp otis (homepage, profile) wrote on Mon, 5/18/2009 - 2:58 pm
in the last hour the byline on the false PE article changed from By Daniela Silberstein to By Rita Nazareth, same article. are they making these names up?
Let us know when Bloomberg starts using "I. P. Freeley."
And even before the economy got nasty, seniors were found to be generally happier than Baby Boomers. Some of that owes to the American Dream being lived by past generations, while Boomers work two jobs and watch the dream wither
Why? Many people 65 and older retired and downsized their lifestyles before the economy imploded, according to Pew analysts. Most aren't raising kids and many are not so worried about being laid off. Loss of income can be, of course, a source of stress and displeasure. (While money doesn't buy happiness, a study in February showed cash can help, especially when people use it to do stuff instead of buy things.)
If you're thinking that Republicans are happy just because they perhaps make more money, that does not seem to be the case. The study that found Republicans to be happier than Democrats also showed that it held true even after adjusting for income.
Has anyone postulated that we may see some major multinational corporations relocate to China?
-All the MNCs see China as their largest growth market for the next decade or so.
-Obama's plans to change the tax law could make this very profitable for the companies.
-Goods would have overall lower cost due to labor efficiencies in China.
-There is no longer greater certainty about the US regulatory framework than about Chinas (or at least the delta has decreased with Calvinball policies here)
-China has the reserves to offer attractive incentives to MNCs that relocate there
Just wondering if others see this as a possibility. Is there historical precedent (exodus from Britain in the early 1900s perhaps)?
haha! Absolutely not. I'm designed for survival in this pretend world we have created, not in a world of famine, pestilence, and plague. I just came around to understanding the pending doom descending on the US about a week ago. Before then, I was still a skeptic.
Perhaps I feel that backyard gardening thing doesn't work here where I have a city home with a small backyard with little arable space. I fear I'll be part of the starving horde when the Armageddon comes. I definitely respect you guys who are ready for it.
"And these foreclosures will be much harder to sell."
No, it will be harder for the bag holders to accept the market price. They won't be any harder to sell than anything else at the market clearing price.
FD, is it really surprising that old white guys would be happier? Didn't that particular demographic live the majority of their lives being advantaged in every way possible by the system?
ac (profile) wrote on Mon, 5/18/2009 - 2:52 pm
reply Ignore user
This makes a lot of sense, but it could mean a lot more pain for US consumers:
China’s Stockpiles Are New Sovereign Wealth Strategy, RBC Says
May 18 (Bloomberg) -- China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth amid concern that the value of its dollar assets may decline, according to the Royal Bank of Canada.
“It’s part of an overall desire to decrease its exposure to dollar assets,” said Brian Jackson, senior strategist at Royal Bank of Canada in Hong Kong, in an interview today. China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause “higher inflation and a weaker dollar,” he said.
"Hey, where's my free lunch?"
But Hillary just finished telling the Chinese that it is in their interest to keep buying US debt.
We would buy more of our own debt but we are too darn altruistic to hoard it all to ourselves.
Does Hillary have to go back and tell those silly Asians how great our debt is again?
In general, high end properties are not rentals. That eliminates cash flow investors from the supply of buyers. The move up crowd isn't buying either - they already over-reached.
High end prices will have to get "unsticky" before sales pick up.
Pimco’s Simon Says Mortgage Bonds Are Still Good Buys
May 18 (Bloomberg) -- U.S. home-loan securities without government backing are worth buying even after a two-month rally has lifted prices to the highest since October for some types, Pacific Investment Management Co.’s mortgage-bond chief said.
“The sector had just gotten stupidly cheap,” said Scott Simon of Pimco, the largest bond manager. “And on any kind of loss-adjusted basis, stuff is still really cheap. If you didn’t know about the last few months, you’d never know how it’s gotten here. You can run some pretty draconian scenarios and get awfully high yields still.”
Typical prices for the most-senior prime-jumbo securities jumped to about 83 cents on the dollar on May 14, from about 63 cents March 19, according to Barclays Capital. Similar bonds backed by Alt-A loans with a few years of fixed rates climbed to 45 cents, from 35 cents, according to the bank’s reports
@Byz, BSR, BH - btw, my point from earlier was more that the average joe at HD is not setting up a sustainable, survivalist haven in their backyard. If gardening is driving sales there, it's for hobby and hobby only - even if the people shopping don't understand that (bumper tomato crops, aside).
But maybe they are happy because they didnt waste their days complaining about not having or worse waiting on the empty promises of their government????
Maybe they are really happy because they worked in a different time, when wives could stay home, 30 years at one company, maybe they are happy because they thought they had it rough and see the bed we have made for ourselves, maybe it's not happiness, but a sense of morbid humor....
I know there's quite a few of you into graphic naked charts, but psychology is tons more important than a bunch of dubious numbers cobbled together, @ this point of the game.
Well it's so good to see that moving the goal posts when the game goes against you is not just for financial institutions...
Nations urge WHO to change swine flu assessment
By FRANK JORDANS – 1 hour ago
GENEVA (AP) — Britain, Japan, China and other nations urged the World Health Organization on Monday to change the way it decides to declare a pandemic __ saying the agency must consider how deadly the virus is, not just how fast it is spreading.
The debate arose as WHO began its annual meeting, a five-day event attended by hundreds of health experts from the agency's 193 member nations. Swine flu is expected to dominate this year's conference — and WHO must consider whether it should raise its alert level or tell manufacturers to begin making a specific swine flu vaccine.
WHO's current system focuses on how widespread the disease has become without regard to its severity. Some member nations are anxious to avoid having the agency declare a swine flu pandemic, because the ramifications of that scientific decision could be very costly and politically charged. The article requested is no longer available.
NJ is property tax hell. More than ever, people are looking at the property tax rather than just the price of the home.
Homes near me with bigger lots (1/2 acre vs 1/4 acre) are just sitting. Nobody wants to assume the current and future property taxes which increase at ~ 5-6%/year.
and of course the government wants to lengthen that...
We have seniors who were put into these adjustable-rate loans when they needed to pay their hospital bills,” said Jane Junkin, lead organizer for Houston Acorn, a community group that advises homeowners. “To save their houses, we need more tools.” ("put into the ARMS"...twisted, with gun to head.... totally not responsible lol)
Carlos Perez and Belinda Castillo of El Paso, Texas, were two months behind on their mortgage in January when the lender demanded that they catch up or face foreclosure. Two months later, their three-bedroom, Southwestern- style house was auctioned on the courthouse steps.
Forty-one days is all it takes for some Texans to lose a home to foreclosure. That fast track from default notice to forced sale is the quickest of any U.S. state, according to a report from the Texas Housing and Community Affairs Department.
They just had to be born... and eductaed, and compete, (unless they went into a union), then perform at warp speed once minorities and women enetered the work force....
I had a friend in business that said if he were head of the Klan and a black sales guru applied and a white guy applied he would take the black guy over the white cause its business...its about the money and performance...
i would suppose that all old white males experiences differ in the work place over the last 70 years, i imagine, much like they cant experience what it is like to be a minority or woman, neither can the minority or the woman.... hell...me ..i say work is highly overated and would prefer to stay home in a dress like Elizabeth Montgomery in bewitched...
Nations urge WHO to change swine flu assessment...change the way it decides to declare a pandemic __saying the agency must consider how deadly the virus is, not just how fast it is spreading.
We would not want the definition of the word "pandemic" to have anything to do with the definition of the word "pandemic":
Perez’s income from selling commercial signs slumped with the state’s economy late last year. He said he was surprised to hear from the lender’s attorneys after missing November and December mortgage payments.
A few days later, Perez said, a letter from the mortgage- servicing company invited him to apply for a loan modification.
“I could have saved my house if I had a little more time,” Perez said, because his income picked up in February. He continued to live in the foreclosed home with his family while awaiting eviction
May 14, 2009- “There has never been a better time to buy,” said National Association of Realtors® Chief Economist Lawrence Yun. Realtors® See Buyers Returning to Market
Let's compare women in the workplace in 1931, vs. today.
The only jobs a woman could really have back then, was atypical women's work (nursing,teaching,secretaries, etc) and were they to take a "man's job" quite often they would be ostracized, because they were taking away another family's income. Thus, very few women worked.
A 25% unemployment rate today, when you figure in the unlimited fields a woman can be employed in, means that it's really exacerbated because most every family unit out there has both mom & dad bringing home the bacon, this time around...
Those coastal cities are going to get slaughtered in the same way the subprime neighborhoods have been slaughtered over the past two years. Price discovery is not going to be kind to them. As someone mentioned up thread, a lot of what is driving sales in the "affordable" end of the market is cash-flow investors. Move-up buyers are hampered by a lack of liar loans and job instability. Sellers in the high priced coastal communities better start stocking up on kleenex for the tears will be many.
“I could have saved my house if I had a little more time,” Perez said, because his income picked up in February. He continued to live in the foreclosed home with his family while awaiting eviction
That is basically what Obama and Hillary are trying to tell China.
Newport Beach, 92663, has a forclosure for 599K that sold for 1.5M in 2007. 431 Lugonia.
My sister used to live on Lugonia-- It is somewhat of a moot point, as the whole area around Lugonia will be under water as the oceans continue to rise.
Move-up buyers are hampered by a lack of liar loans and job instability.
Move-up buyers are pretty much a thing of the past due to no or negative equity. The only ones moving up now will be those with stable jobs and rising incomes, and there can't be too many of those these days.
Arbitrage_Macht_Frei (profile) wrote on Mon, 5/18/2009 - 11:28 am
25% unemployment rate today, when you figure in the unlimited fields a woman can be employed in, means that it's really exacerbated because most every family unit out there has both mom & dad bringing home the bacon, this time around...
Most instances "mom" is bringing home the bacon to make up for the taxes taken out on Dad.
When we were younger and did the simple math, we found it was only 85 per month diffence in the end if my wife stayed home with our newborn vs working...
the quality of life factor went far beyond the 85 bucks...
"Damn it, Dagny! I need the government to get out of the way and let me do my job!"
She sat across the desk from him. She appeared casual but confident, a slim body with rounded shoulders like an exquisitely engineered truss. How he hated his debased need for her, he who loathed self-sacrifice but would give up everything he valued to get in her pants ... Did she know?
"I heard the thugs in Washington were trying to take your Rearden metal at the point of a gun," she said. "Don't let them, Hank. With your advanced alloy and my high-tech railroad, we'll revitalize our country's failing infrastructure and make big, virtuous profits."
"Oh, no, I got out of that suckers' game. I now run my own hedge-fund firm, Rearden Capital Management."
"What?"
He stood and adjusted his suit jacket so that his body didn't betray his shameful weakness. He walked toward her and sat informally on the edge of her desk. "Why make a product when you can make dollars? Right this second, I'm earning millions in interest off money I don't even have."
He gestured to his floor-to-ceiling windows, a symbol of his productive ability and goodness.
"There's a whole world out there of byzantine financial products just waiting to be invented, Dagny. Let the leeches run my factories into the ground! I hope they do! I've taken out more insurance on a single Rearden Steel bond than the entire company is even worth! When my old company finally tanks, I'll make a cool $877 million."
Their eyes locked with an intensity she was only beginning to understand. Yes, Hank ... claim me ... If we're to win the battle against the leeches, we must get it on ... right now ... Don't let them torture us for our happiness ... or our billions.
He tore his eyes away.
"I can't. Sex is base and vile!"
"No, it's an expression of our highest values and our admiration for each other's minds."
"Your mind gives me the biggest boner, Dagny Taggart."
He fell upon her like a savage, wielding his mouth like a machete, and in the pleasure she took from him her body became an extension of her quarterly earnings report—proof of her worthiness as a lover. His hard-on was sanction enough.
Newport Beach, 92663, has a forclosure for 599K that sold for 1.5M in 2007. 431 Lugonia.
My sister used to live on Lugonia-- It is somewhat of a moot point, as the whole area around Lugonia will be under water as the oceans continue to rise.
Last night's earthquake along the Newport-Inglewood fault reminded me what my elementary school teacher used to say - that all of Newport Beach and Balboa island would be underwater due to a tsunami. Of course he also said the big would hit by the time we graduated high school.
Mia Washington decided to get some expert advice when she and her partner noticed that twins Justin and Jordan had different facial features.
Paternity tests then revealed what had happened — two eggs had been fertilized by two different sperm and there was a 99.99% chance the twins had different dads.
Doctors at the DNA lab in Dallas, Texas had never seen such a result.
Washington later admitted she had had an affair and got pregnant by two different men at the same time.
"Out of all people in America and of all people in the world, it had to happen to me, she told myfoxdfw.com. “I'm very shocked."
"Out of all people in America and of all people in the world, it had to happen to me, she told myfoxdfw.com. “I'm very shocked."
She is obviously a "victim". Isn't there anyone she can sue? Thank G_d she didn't have quintuplets.
We live in an expensive coastal zone; local paper just carried this article about an REO property with debt of $846K selling for ~$380K at foreclosure. The bank was willing to take that much of a haircut. They almost didn't get a taker at that price, either.
My sister used to live on Lugonia-- It is somewhat of a moot point, as the whole area around Lugonia will be under water as the oceans continue to rise.
When is this scheduled to start again? I need to set my Tivo.
(Actually, I think I'll finally be able to find a great place to rent for cheap...once this second wave hits, tons of accidental landlords will be struggling for cashflow.)
PE
[Here comes the second wave of foreclosures - mostly in mid-to-high priced areas. And these foreclosures will be much harder to sell]
And the loss per unit is going to be shocking.
Crime de la creme
Newport Beach, 92663, has a forclosure for 599K that sold for 1.5M in 2007. 431 Lugonia.
Location, Location, Location
Move up buyers are so last year.
The new hot trend: move down buyers.
That means that entry-level homeowners now have the hot properties everyone envies.
Let's create the CR Foreclosure Fund ( CRFF) prounounced CRFFFFFFFFFFFFFFFFFFFFFFFFFFFF..which is the sound of all those past homeowners passing out from too much cheap wine down at the Quick Mart!
Besides from boiler rooms up the wazoo, what lurks behind the curtain business-wise in Orange County?
bearly (profile) wrote on Mon, 5/18/2009 - 10:35 am reply
And the loss per unit is going to be shocking.
Agreed. A million dollars per ten units is extremely generous.
"The first step is selling the most value-conscious units and those are the foreclosures. We're not going to see any real sustainable price appreciation until we move the foreclosures off the inventory list."
That may take a while. With the lapse of several industrywide foreclosure moratoriums, lenders nationwide again are initiating foreclosure proceedings. Government-led efforts to refinance or modify troubled loans can't help the rising number of people unable to pay their mortgages because they've lost their jobs.
In Illinois, more than 7,300 homes became bank-owned during the year's first quarter, according to RealtyTrac. It's impossible to determine how many of them are listed for sale, or sold, at any one time because the area's real estate listing service doesn't require a property to be listed as a foreclosure.
"Foreclosures fuel sales to first-time home buyers, may lead to real estate recovery"
Foreclosures fuel sales to first-time home buyers, may lead to real estate recovery - Chicago Tribune
This makes a lot of sense, but it could mean a lot more pain for US consumers:
China’s Stockpiles Are New Sovereign Wealth Strategy, RBC Says
May 18 (Bloomberg) -- China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth amid concern that the value of its dollar assets may decline, according to the Royal Bank of Canada.
“It’s part of an overall desire to decrease its exposure to dollar assets,” said Brian Jackson, senior strategist at Royal Bank of Canada in Hong Kong, in an interview today. China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause “higher inflation and a weaker dollar,” he said.
"Hey, where's my free lunch?"
Anecdotal: Highland Park, IL 60035 has a foreclosure that finally went "contingent" at 795k: 260 Beech (1 block from Lake Michigan). Last selling price $2.8 million in April 2007. Smell something?
So if the next wave of foreclosures is going to be due to Alt-A and other loans (according to previous charts posted on CR) is the third wave going to be when many of the 45% of homedebtors realize that they are so under water on equity that they could never dig out in the next 10 years so they just quit paying their mortgage?
From last thread:
Utah spends relatively lttle per student but see its performance ranking.
I see tomorrow's election in a similar light to the Rodney King trial, which set off the L.A. riots way back when.
Everybody had watched the video of cops beating the crap out of him, and then the coppers beat the rap, which nobody expected.
Everybody knows California is not just broke, but also an indentured servant to debt. Serious job cuts will happen almost overnight if the hoi ploy says no thanks to taxing themselves vis a vis a plebiscite...
Expect more proposals to inflate the conforming limit to add to the Fannie/Fed portfolio.
bloomturd update:
in the last hour the byline on the false PE article changed from By Daniela Silberstein to By Rita Nazareth, same article. are they making these names up?
U.S. Stocks Gain as Bank of America, Lowe’s Shares Advance - Bloomberg.com
in the last hour the horrifying graph from Jessie's cafe showing S&P earnings at about $7 was taken down.
Blogger: Page not found
Foreclosure sales appear to be lagging on the coast.
Except in Huntington 92646 and 92648 - aka where we want to buy. grrrrr
"The number of foreclosures has soared to historic levels in the last two years, especially in Sunbelt states where lenders made hundreds of shaky subprime loans. In this Stateline.org map, scroll over any state to find the most recent monthly figures showing the number of foreclosures for every 5,000 housing units, or compare the ratio over time."
Economy & Business news
swamp otis (homepage, profile) wrote on Mon, 5/18/2009 - 2:58 pm
in the last hour the byline on the false PE article changed from By Daniela Silberstein to By Rita Nazareth, same article. are they making these names up?
Let us know when Bloomberg starts using "I. P. Freeley."
in the bloomturd article update they removed all reference to S&P 500 PE.
first there is denial, then you admit you have a problem...
Yahoo! 404 - Page Not Found
Happiness Is ... Being Old, Male and Republican
And even before the economy got nasty, seniors were found to be generally happier than Baby Boomers. Some of that owes to the American Dream being lived by past generations, while Boomers work two jobs and watch the dream wither
Why? Many people 65 and older retired and downsized their lifestyles before the economy imploded, according to Pew analysts. Most aren't raising kids and many are not so worried about being laid off. Loss of income can be, of course, a source of stress and displeasure. (While money doesn't buy happiness, a study in February showed cash can help, especially when people use it to do stuff instead of buy things.)
If you're thinking that Republicans are happy just because they perhaps make more money, that does not seem to be the case. The study that found Republicans to be happier than Democrats also showed that it held true even after adjusting for income.
@ac,
Has anyone postulated that we may see some major multinational corporations relocate to China?
-All the MNCs see China as their largest growth market for the next decade or so.
-Obama's plans to change the tax law could make this very profitable for the companies.
-Goods would have overall lower cost due to labor efficiencies in China.
-There is no longer greater certainty about the US regulatory framework than about Chinas (or at least the delta has decreased with Calvinball policies here)
-China has the reserves to offer attractive incentives to MNCs that relocate there
Just wondering if others see this as a possibility. Is there historical precedent (exodus from Britain in the early 1900s perhaps)?
@Byz, BSR, BH -
haha! Absolutely not. I'm designed for survival in this pretend world we have created, not in a world of famine, pestilence, and plague. I just came around to understanding the pending doom descending on the US about a week ago. Before then, I was still a skeptic.
Perhaps I feel that backyard gardening thing doesn't work here where I have a city home with a small backyard with little arable space. I fear I'll be part of the starving horde when the Armageddon comes. I definitely respect you guys who are ready for it.
Rates are higher because government-backed mortgages are limited to about $730,000. Anything over that limit is also harder to get.
$912k is the magic number. Given 20% down ($182.5k), $730k is your 80% loan. Anything over $912k is going to be a tougher sell.
I saw a Unabanker dressed in a hoodie on Wall*Street, or was it just a hood?
"And these foreclosures will be much harder to sell."
No, it will be harder for the bag holders to accept the market price. They won't be any harder to sell than anything else at the market clearing price.
Steve Thomas - Are you reading this?
Well guys, I'm heading off to lunch now.
If I have to pay for it the guys at Princeton are going to be getting a very nasty call from me.
Not One Cent (homepage, profile) wrote on Mon, 5/18/2009 - 10:53 am reply Ignore user From last thread:
UTexas or Utenn?
Both are non income states...
Both perform well, of course Tenn performed poorley last year which is why Fulmer is out..
NOC, i am assuming you are talking football performance since that's all that matters....
The study that found Republicans to be happier than Democrats....
Personally, I've never met a Republican who was well grounded and happy. Maybe it turns on who is asking what questions.
Just Buy Stocks !!
ac,
"If I have to pay for it the guys at Princeton are going to be getting a very nasty call from me. "
As we all know, free lunches come from windmills.
FD, is it really surprising that old white guys would be happier? Didn't that particular demographic live the majority of their lives being advantaged in every way possible by the system?
ac (profile) wrote on Mon, 5/18/2009 - 2:52 pm
reply Ignore user
This makes a lot of sense, but it could mean a lot more pain for US consumers:
China’s Stockpiles Are New Sovereign Wealth Strategy, RBC Says
May 18 (Bloomberg) -- China is stockpiling commodities such as copper and iron ore as part of a reallocation of its sovereign wealth amid concern that the value of its dollar assets may decline, according to the Royal Bank of Canada.
“It’s part of an overall desire to decrease its exposure to dollar assets,” said Brian Jackson, senior strategist at Royal Bank of Canada in Hong Kong, in an interview today. China fears the hundreds of billions of dollars the U.S. is spending on bank bailouts and stimulus will cause “higher inflation and a weaker dollar,” he said.
"Hey, where's my free lunch?"
But Hillary just finished telling the Chinese that it is in their interest to keep buying US debt.
We would buy more of our own debt but we are too darn altruistic to hoard it all to ourselves.
Does Hillary have to go back and tell those silly Asians how great our debt is again?
In Contemptkin Village, Unabankers issue manifesto debtstiny.
In general, high end properties are not rentals. That eliminates cash flow investors from the supply of buyers. The move up crowd isn't buying either - they already over-reached.
High end prices will have to get "unsticky" before sales pick up.
Big prices = big losses.
Pimco’s Simon Says Mortgage Bonds Are Still Good Buys
May 18 (Bloomberg) -- U.S. home-loan securities without government backing are worth buying even after a two-month rally has lifted prices to the highest since October for some types, Pacific Investment Management Co.’s mortgage-bond chief said.
“The sector had just gotten stupidly cheap,” said Scott Simon of Pimco, the largest bond manager. “And on any kind of loss-adjusted basis, stuff is still really cheap. If you didn’t know about the last few months, you’d never know how it’s gotten here. You can run some pretty draconian scenarios and get awfully high yields still.”
Typical prices for the most-senior prime-jumbo securities jumped to about 83 cents on the dollar on May 14, from about 63 cents March 19, according to Barclays Capital. Similar bonds backed by Alt-A loans with a few years of fixed rates climbed to 45 cents, from 35 cents, according to the bank’s reports
UT is Utah the state (public shools). Sorry, I will disabbreviate that post.
@Byz, BSR, BH - btw, my point from earlier was more that the average joe at HD is not setting up a sustainable, survivalist haven in their backyard. If gardening is driving sales there, it's for hobby and hobby only - even if the people shopping don't understand that (bumper tomato crops, aside).
Simon says lose money...
“The sector had just gotten stupidly cheap,” said Scott Simon of Pimco"
BWAHAHAHA AMF, comment of the day.
Ck,
Doubt all of them...
But maybe they are happy because they didnt waste their days complaining about not having or worse waiting on the empty promises of their government????
Maybe they are really happy because they worked in a different time, when wives could stay home, 30 years at one company, maybe they are happy because they thought they had it rough and see the bed we have made for ourselves, maybe it's not happiness, but a sense of morbid humor....
[The new hot trend: move down buyers]
Exactly. Voluntarily or involuntarily.
FD, yes, they worked in a different time, when there was no competition for their jobs by minorities or women. They just had to be born...
"You can run some pretty draconian scenarios and get awfully high yields still.” any questions?
"Is that because unky sugar is backstopping losses, or is at least implying a backstop?"
"Shut up, you!"
"But Pimple has been arguing for massive bond subsidies, for its holdings, hasn't it Scott?"
"Let me reiterate, for those hard of hearing. Sut UP!"
....
I know there's quite a few of you into graphic naked charts, but psychology is tons more important than a bunch of dubious numbers cobbled together, @ this point of the game.
Well it's so good to see that moving the goal posts when the game goes against you is not just for financial institutions...
Nations urge WHO to change swine flu assessment
By FRANK JORDANS – 1 hour ago
GENEVA (AP) — Britain, Japan, China and other nations urged the World Health Organization on Monday to change the way it decides to declare a pandemic __ saying the agency must consider how deadly the virus is, not just how fast it is spreading.
The debate arose as WHO began its annual meeting, a five-day event attended by hundreds of health experts from the agency's 193 member nations. Swine flu is expected to dominate this year's conference — and WHO must consider whether it should raise its alert level or tell manufacturers to begin making a specific swine flu vaccine.
WHO's current system focuses on how widespread the disease has become without regard to its severity. Some member nations are anxious to avoid having the agency declare a swine flu pandemic, because the ramifications of that scientific decision could be very costly and politically charged.
The article requested is no longer available.
NJ is property tax hell. More than ever, people are looking at the property tax rather than just the price of the home.
Homes near me with bigger lots (1/2 acre vs 1/4 acre) are just sitting. Nobody wants to assume the current and future property taxes which increase at ~ 5-6%/year.
Fast-Track Foreclosures in Texas Face Slowdown by Legislators
Fast-Track Foreclosures in Texas Face Slowdown by Legislators - Bloomberg.com
41 days and your out....
and of course the government wants to lengthen that...
We have seniors who were put into these adjustable-rate loans when they needed to pay their hospital bills,” said Jane Junkin, lead organizer for Houston Acorn, a community group that advises homeowners. “To save their houses, we need more tools.” ("put into the ARMS"...twisted, with gun to head.... totally not responsible lol)
Carlos Perez and Belinda Castillo of El Paso, Texas, were two months behind on their mortgage in January when the lender demanded that they catch up or face foreclosure. Two months later, their three-bedroom, Southwestern- style house was auctioned on the courthouse steps.
Forty-one days is all it takes for some Texans to lose a home to foreclosure. That fast track from default notice to forced sale is the quickest of any U.S. state, according to a report from the Texas Housing and Community Affairs Department.
Dafox: I'm also keeping an eye open in 92646. It's still early, though, methinks.
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those dubious numbers, fractions and equations.
"math is hard"
- Barbie
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BARBIE WAS RIGHT all hail the prophet bARBIE, queen of the market!
Self-fulfilling understatement of the year: China expects inflation.
Simon says there's still time to lose money
"Pimco’s Simon Says Mortgage Bonds Are Still Good Buys"
They just had to be born... and eductaed, and compete, (unless they went into a union), then perform at warp speed once minorities and women enetered the work force....
I had a friend in business that said if he were head of the Klan and a black sales guru applied and a white guy applied he would take the black guy over the white cause its business...its about the money and performance...
i would suppose that all old white males experiences differ in the work place over the last 70 years, i imagine, much like they cant experience what it is like to be a minority or woman, neither can the minority or the woman.... hell...me ..i say work is highly overated and would prefer to stay home in a dress like Elizabeth Montgomery in bewitched...
LOL see its all about sterotyping....
Nations urge WHO to change swine flu assessment...change the way it decides to declare a pandemic __saying the agency must consider how deadly the virus is, not just how fast it is spreading.
We would not want the definition of the word "pandemic" to have anything to do with the definition of the word "pandemic":
Online Etymology Dictionary
Perez’s income from selling commercial signs slumped with the state’s economy late last year. He said he was surprised to hear from the lender’s attorneys after missing November and December mortgage payments.
A few days later, Perez said, a letter from the mortgage- servicing company invited him to apply for a loan modification.
“I could have saved my house if I had a little more time,” Perez said, because his income picked up in February. He continued to live in the foreclosed home with his family while awaiting eviction
i'm becoming cynical now......
FD, I would guess he wasn't underwater. I have a sneaking suspicion that those that are still above water get FC faster...
May 14, 2009- “There has never been a better time to buy,” said National Association of Realtors® Chief Economist Lawrence Yun.
Realtors® See Buyers Returning to Market
Let's compare women in the workplace in 1931, vs. today.
The only jobs a woman could really have back then, was atypical women's work (nursing,teaching,secretaries, etc) and were they to take a "man's job" quite often they would be ostracized, because they were taking away another family's income. Thus, very few women worked.
A 25% unemployment rate today, when you figure in the unlimited fields a woman can be employed in, means that it's really exacerbated because most every family unit out there has both mom & dad bringing home the bacon, this time around...
Those coastal cities are going to get slaughtered in the same way the subprime neighborhoods have been slaughtered over the past two years. Price discovery is not going to be kind to them. As someone mentioned up thread, a lot of what is driving sales in the "affordable" end of the market is cash-flow investors. Move-up buyers are hampered by a lack of liar loans and job instability. Sellers in the high priced coastal communities better start stocking up on kleenex for the tears will be many.
“I could have saved my house if I had a little more time,” Perez said, because his income picked up in February. He continued to live in the foreclosed home with his family while awaiting eviction
That is basically what Obama and Hillary are trying to tell China.
Reuters: "...and a gain of 2.6% in oil prices also underpinned the market". So rising oil prices are a good thing now.
An illiquid item combined with lowered expectations of valuation kills comps.
Newport Beach, 92663, has a forclosure for 599K that sold for 1.5M in 2007. 431 Lugonia.
My sister used to live on Lugonia-- It is somewhat of a moot point, as the whole area around Lugonia will be under water as the oceans continue to rise.
Move-up buyers are hampered by a lack of liar loans and job instability.
Move-up buyers are pretty much a thing of the past due to no or negative equity. The only ones moving up now will be those with stable jobs and rising incomes, and there can't be too many of those these days.
Arbitrage_Macht_Frei (profile) wrote on Mon, 5/18/2009 - 11:28 am
25% unemployment rate today, when you figure in the unlimited fields a woman can be employed in, means that it's really exacerbated because most every family unit out there has both mom & dad bringing home the bacon, this time around...
Most instances "mom" is bringing home the bacon to make up for the taxes taken out on Dad.
When we were younger and did the simple math, we found it was only 85 per month diffence in the end if my wife stayed home with our newborn vs working...
the quality of life factor went far beyond the 85 bucks...
now is different. Such is the price of success...
ATLAS SHRUGGED
UPDATED FOR THE CURRENT FINANCIAL CRISIS.
BY JEREMIAH TUCKER
McSweeney's Internet Tendency: Atlas Shrugged Updated for the Current Financial Crisis.
1.
"Damn it, Dagny! I need the government to get out of the way and let me do my job!"
She sat across the desk from him. She appeared casual but confident, a slim body with rounded shoulders like an exquisitely engineered truss. How he hated his debased need for her, he who loathed self-sacrifice but would give up everything he valued to get in her pants ... Did she know?
"I heard the thugs in Washington were trying to take your Rearden metal at the point of a gun," she said. "Don't let them, Hank. With your advanced alloy and my high-tech railroad, we'll revitalize our country's failing infrastructure and make big, virtuous profits."
"Oh, no, I got out of that suckers' game. I now run my own hedge-fund firm, Rearden Capital Management."
"What?"
He stood and adjusted his suit jacket so that his body didn't betray his shameful weakness. He walked toward her and sat informally on the edge of her desk. "Why make a product when you can make dollars? Right this second, I'm earning millions in interest off money I don't even have."
He gestured to his floor-to-ceiling windows, a symbol of his productive ability and goodness.
"There's a whole world out there of byzantine financial products just waiting to be invented, Dagny. Let the leeches run my factories into the ground! I hope they do! I've taken out more insurance on a single Rearden Steel bond than the entire company is even worth! When my old company finally tanks, I'll make a cool $877 million."
Their eyes locked with an intensity she was only beginning to understand. Yes, Hank ... claim me ... If we're to win the battle against the leeches, we must get it on ... right now ... Don't let them torture us for our happiness ... or our billions.
He tore his eyes away.
"I can't. Sex is base and vile!"
"No, it's an expression of our highest values and our admiration for each other's minds."
"Your mind gives me the biggest boner, Dagny Taggart."
He fell upon her like a savage, wielding his mouth like a machete, and in the pleasure she took from him her body became an extension of her quarterly earnings report—proof of her worthiness as a lover. His hard-on was sanction enough.
"Scream your secret passions, Hank Rearden!"
"Derivatives!"
"Yes!"
"Credit-default swaps!"
"Oh, yes! Yes!"
"Collateralized debt obligation."
"YES! YES! YES!"
Who are you going to believe...Obama or Yahoo! Forget, don't answer that.
Newport Beach, 92663, has a forclosure for 599K that sold for 1.5M in 2007. 431 Lugonia.
My sister used to live on Lugonia-- It is somewhat of a moot point, as the whole area around Lugonia will be under water as the oceans continue to rise.
Last night's earthquake along the Newport-Inglewood fault reminded me what my elementary school teacher used to say - that all of Newport Beach and Balboa island would be underwater due to a tsunami. Of course he also said the big would hit by the time we graduated high school.
km4, I feel dirty after having read that...
Doctors Discover Dallas Twins Have Two Different Dads - Incredible Health - FOXNews.com
whose baby's daddy?
Mia Washington decided to get some expert advice when she and her partner noticed that twins Justin and Jordan had different facial features.
Paternity tests then revealed what had happened — two eggs had been fertilized by two different sperm and there was a 99.99% chance the twins had different dads.
Doctors at the DNA lab in Dallas, Texas had never seen such a result.
Washington later admitted she had had an affair and got pregnant by two different men at the same time.
"Out of all people in America and of all people in the world, it had to happen to me, she told myfoxdfw.com. “I'm very shocked."
The sector has gotten "stupid" along with the sectors shills.
In conclusion, no rental of high-end, nor movement:
Doc:
Where we're going, we won't need a middle-class.
--bh
Lucky double bastards...
"Washington later admitted she had had an affair and got pregnant by two different men at the same time."
10 yr bond price just lurched down. rising interest rates are good for stocks and real estate, right?
@ Comrade Kristina
let me add one more....
Obama giving the 19 too big to fail banks $12 Trillion and can't come up with $24B for smaller banks
multiple O's ....."YES! YES! YES YES YES! YES YES.....!"
Stock market is in full rally mode! Lowe's earning decreased less than expected. Second derivative madness or green shoot?
"Out of all people in America and of all people in the world, it had to happen to me, she told myfoxdfw.com. “I'm very shocked."
She is obviously a "victim". Isn't there anyone she can sue? Thank G_d she didn't have quintuplets.
fiscal heteropaternal superfecundation -- that is two economic policies sharing the same womb, but sired from two different fathers;
meet the twins deflation and inflation
--bh
Just give me the Lowe'sdown doc, how long do they have to live?
We live in an expensive coastal zone; local paper just carried this article about an REO property with debt of $846K selling for ~$380K at foreclosure. The bank was willing to take that much of a haircut. They almost didn't get a taker at that price, either.
Facing uncertain future, young renters get happy outcome at foreclosure auction - May 16th,2009
Prices in the expensive zones will crumble when we see more of this; and we'll see more if this if the inventory of REO homes just grows too great.
My sister used to live on Lugonia-- It is somewhat of a moot point, as the whole area around Lugonia will be under water as the oceans continue to rise.
When is this scheduled to start again? I need to set my Tivo.
The maim stream media's lifeblood-advertising, is going away, a precursor to them going away.
AMF
how can the mass media expect to survive selling false and damaging information?
blackhat (profile) wrote on Mon, 5/18/2009 - 11:50 am
+4.7
I heard they are offering 4.7% on the richter scale in LA/OC, just for movers and shakers though.
Lucky double bastards...
"Washington later admitted she had had an affair and got pregnant by two different men at the same time."
Is that the infamous 'double dip'?
Economy + Duct Tape = Crisis Averted
whew that was close...
(Actually, I think I'll finally be able to find a great place to rent for cheap...once this second wave hits, tons of accidental landlords will be struggling for cashflow.)
two 4.7 references back to back...pretty good AMF
When will we have a color code for the housing delimma ?
mortgapig say I CAN AFFORD TO PAY THE MORTGAGE
By Eugene Tang
April 18 (Bloomberg) -- China’s 4 trillion yuan ($585 billion) stimulus plan has shown
“better-than-expected” results in reviving growth in the world’s third-largest economy and
helped restore market confidence, Premier Wen Jiabao said.
“China’s rapid
The stock market keeps going higher
dow 14000 soon according to experts
http://www.wallstreetjournal.com/story/market_implode_or_rally?
The mortgage pig says : You suck
FINANCIAL CRISIS FIXED ACCORDING To EXPERTS???
http://www.bloomberg.com/apps/news?pid=20601087&sid=ajgUp7xQIn6c&refer=home
http://iamned.com/blog/