DataQuick: California Mortgage Defaults Edge Down in Q2
Submitted by
CalculatedRisk on Wed, 07/22/2009 - 10:24am (118 comments)
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More homes for the homeless
MS the solution is capitulation and reversion to a healthy mean. The FED and Treasury are powerless to prevent the inevitable IMO
People think policy wonks are just holding out when in fact they have exhausted all their options
"The fault lies not in our stars but in ourselves"
Just wondering if in all the budget cuts if the Courts will be able to handle the glut of these foreclosures? Or will the Sheriff deputy's not getting O/T to serve the eviction notices even bother now? Or the reduction in County Clerks even get the paperwork filed in the first place? Live in your house for free!
I guess this will help the pesky state budget shortfall...
But, but...
-the NAR says the median price is up
-and builders say they are happier
-and permits are increasing again
-and there are reports of bidding wars in CA
This foreclosure stuff must be a trailing indicator.
Dickey
Well all of these loans are non-performing so eventually they will overwhelm balance sheets.
so let's put that number in the context - for June - the peak of the selling season, 44K homes got sold in CA - half of these homes were already result of foreclosures! so organic sales are just 20k per month now - versus 45K in Notices of Default (not counting delinquent, trustee sales, actual foreclosures...) Talk about imbalance. Home prices have bottomed!! Yeah, right....
At least the banks will be hiring! (to process more foreclosures).
I know people who have been in bidding wars in CA (bay area, east of oakland), for midrange properties. Lots of folks who were stuck in the "affordable regions" (even farther east) are now moving closer to work.
and how will the loans that recast and/or reset affect this trend?
"I know people who have been in bidding wars in CA "
Same here...anything below $450k or so is receiving multiple offers. This has been going on for 6-9 months....Anything above that amount is dying on the vine
Well, that's good news. Not so much that the number faded a bit, but that there will be a more concerted effort to clear the market.
Has to happen eventually. Love to see them get on with it.
In the 500k range homes are still selling well.
A home we were interested in, in the Oakland Hills. 8000k flat lot, views of the bay, 1500 sq foot house had 14 offers and sold for 580k. But most of the homes over there are just sitting and sitting and not moving.
But in our neighborhood in Fremont, CA every home on the market has sold. Sales prices between 650k to 850k. Not sure why as the school district isn't that great. But the eyes don't deceive though. Last year nothing in our neighborhood sold during this season.
NOD is Notice of Default or.........Notice of Disclosure...
Don't answer I already know but if you really want to see a disconnect see the latter of the two.
Ciao
MS
This may be old news, but energy use in the U.S. was down 2.25% in 2008 from 2007. Table 1.1 Primary Energy Overview, 1949-2008 (Quadrillion Btu)
Last times there were annual-use reductions:
down 0.6% (2006 from 2005; post-Katrina)
down 0.7%, in 2001.
down 0.3% from 1989-1991
down 4% in 1982 from 1981
I'm gonna see if I can get monthly YoY numbers for 2009 vs 2008...
P.S. Nice graph of flows here: http://www.eia.doe.gov/emeu/aer/pdf/pages/sec1_3.pdf
I work for a Zombie bank. We're doing quite well actually. The bank is so huge nobody is actually working that hard (obviously), and we're still hiring a bit too. Like working for the government, but without the great pension.
They don't hate us. They really, really like us!
July 22 (Bloomberg) -- Goldman Sachs Group Inc. agreed to the U.S. Treasury’s request for $1.1 billion to redeem warrants the government received when it invested in the firm, which reported record second-quarter profit last week.
The payment is in addition to $318 million in preferred dividends that Goldman Sachs paid on the $10 billion U.S. investment. On an annualized basis, the total return to taxpayers was 23 percent, the New York-based bank said today in a statement.
Oh yes, housing sure has bottomed!
Hell, in my LA hood, most folks still think it's 2006/7 Here's may 2 favorite listings:
Unfinished remodel, sitting in the open for over a year at least... 1.4 mil...
TheMLS.com: Guest Search
Burned out hulk, just over a million...
TheMLS.com: Guest Search
Los Angeles is different! Like, brain-dead different....
On an annualized basis, how much did we lose by backstopping AIG so Goldman could get paid twice, again?
"They" really need to auction these outstanding warrants.
Why are "they" afraid to do so?
So let's see, hmmm, we made $318M on this GS investment, and we only had to invest $23T to get it. Wow, this is easy, let's do some more.
Yup. Assuming the typical peasant can only remember about 6 weeks in the past, it won't be long before this entire "bailout" will be shown as a FANTASTIC benefit to the US. Further proof that corporate American has America's interest at heart.
(queue patriotic music).
We're going to need more flag lapel pins (the sign of a true patriot).
//snark//
Local school grapevine, California budget:
"State income in May and June was below projections; this has not been factored in to the current budget proposal."
Yep, So this way when we spend 126T on CRE we can point to the bright shining example of GS.
in other words - if the prime rate has not increased (in fact only decreased since 2008) and recasts are generally 5-10 years out from origination and we are knee-deep processing 2006 origination NOD's from issues mostly related to unemployment, walka-aways, non-owner occupied issues, how much worse can it get when recasts (due to neg am caps & interest only terminations) and/or resets (due to inevitable prime rate bumps) occur? My head hurts.
HomeGnome (homepage, profile) wrote (in reply to...) on Wed, 7/22/2009 - 1:46 pm
We're going to need more flag lapel pins (the sign of a true patriot).
//snark//
Financial freedom fries.
Still some big money out there as well. Somebody built a big, fancy spec house out in the horse-owner's neighborhood last year, asked over $2 mill for it.... and it just sat. Finally saw a "sale pending" sign on it; at what price, I don't know. Somebody with horses and money.
Out here in Santa Cruz houses in the $500-$600K range are still moving along pretty quickly, though you get a lot less for your money here than in say Fremont (because you're in SANTA CRUZ, dewd!). Get up above $700K and it tends to sit around -- except for the few big-money sales on high-end homes. Still getting some anecdotals about long-time homeowners who HELOCed their homes straight underwater and are Not Long For This Address. We'll see.
But, ALL that matters is the spin given to the peasants. If the peasants BELIEVE then the mythology is true. The USSR lastest 75 years on total mythology. But, it still lastest. Surely the USSA can do twice as well. After all, we've got "Madison Avenue" (is that term still used anymore).
Can't imagine anyone wanting to live anywhere in the East Bay or Bay Area for that matter. One giant shiite hole.
Meanwhile, down payment assistance alive and well in Illinois.
http://www.chicagotribune.com/business/chi-home-loans-090722-,0,2823666.story
Everyone who has bought in our neighborhood this year has been Chinese or Indian. They REALLY know how to drink the koolaid. I was thinking about taking them a container of koolaid powder as a house-warming gift but didn't have the heart to be so heartless.
It's never too late to be heartless, poic!
poic (profile) wrote on Wed, 7/22/2009 - 1:54 pm
Everyone who has bought in our neighborhood this year has been Chinese or Indian. They REALLY know how to drink the koolaid. I was thinking about taking them a container of koolaid powder as a house-warming gift but didn't have the heart to be so heartless.
I think crack-cocaine is a more apt metaphor. Or methamphetamine.
There's LOTS of big money "out there". Don't forget, even in the "GREAT" Depression people still travel, bought stuff. 25% unemployment meant 75% EMployment. One of my grandfathers did quite well during TGD, he was a barrel-cooper working for a beer company. Gotta have booze. The problem with the perpetually pessimistic is they forget that most people aren't and that the scummy people will never be punish and replaced by the virtuous. The scum win, regardless.
Even IF Mich's most wild fantasy came true and the Fed was replaced, it would be replaced by an even BIGGER group of scum. People are scum, the smartest scum run things. Period end-of-story.
Meth is Death!
or
Speed Kills!
Monthly Energy consumption, year-on-year percent changes:
1.48% Jan 2008 vs. Jan 2007
-1.82% Feb 08
0.17% Mar 08
-1.30% Apr 08
-1.39% May 08
-0.66% June 08
-0.97% July 08
-6.47% Aug 08 *ruh roh!!!**
-7.47% Sep 08
-2.29% Oct 08
-3.37% Nov 08
-3.19% Dec 08 * this is not getting better! remember also 2008 as a whole was down 2.2% from 2007... *
-2.28% Jan 09
-8.37% Feb 09
-5.73% Mar 09
Links: Monthly Energy Review , U.S. Energy Information Administration (EIA) - Annual Energy Review
These guys look to be a bit slow in promulgating data. This report was released on June 24; next should be out next week, but it only brings one up to April. Not the best place to go looking for green shoots.
On my parents block there was a house that in September 2007 sold for over 100k over any other comparable houses. 929k or so.
I thought "surely they know that the market is toppy"? Are they from another planet have they been living under a rock? No they were from Taiwan. The house has probably lost at least 200-250kk since then
"Can't imagine anyone wanting to live anywhere in the East Bay or Bay Area for that matter. One giant shiite hole. "
Spoken like a true cretin with no understanding of the Bay Area it appears.
Poic There are lots of crappy areas in the Bay Area... esp in the East Bay .
Tim, my wife finally cleared it up for me. On multiple occasions I told her how I thought Chinese were supposed to be so much better at investing. She explained they are much better at saving, but they suck in general at investing. Recent house purchases around here appear to support her logic.
Tim, I agree. But the above poster had the word anywhere in there, not some parts.
it will end the same way it did for the Japanese-buyer-driven real-estate boom of a few decades ago. They'll lose their a$$.
HomeGnome (homepage, profile) wrote (in reply to...) on Wed, 7/22/2009 - 1:56 pm
Meth is Death!
or
Speed Kills!
Meth preys upon the poor and desperate but affects everyone powerfully regardless of socioeconomic position with well-known side effects. The poor who get addicted to the substance will do almost literally anything to get their next hit, from robbing family members to prostitution to selling their own children, and as a result it is almost impossible to have a non-abusive relationship with the supplier due to the leverage inherent in the transaction.
Hey Nova,
Check this out. Mad Max in Miami.
"Nearly 80 sex offenders scratch out a life under Miami's Julia Tuttle Causeway"
Local News: West Palm Beach, Palm Beach County, Martin & St. Lucie Counties | The Palm Beach Post
"Water laps at that narrow apron of sand beneath the causeway. Mosquitoes are everywhere, and at all hours cars thrum on the road above. The "residents" bathe in the bay and relieve themselves in compost toilets or in the underbrush.
The sleeping spots most protected from the elements are tucked about 20 feet up the concrete wall, under the bridge arches.
Those spaces are just tall enough for tents. Longtime residents have rights to those spots and live like cave dwellers.
On ground level, the inhabitants are crammed together in tents, plywood shacks, a camper. A noisy generator powers light bulbs, fans, microwaves, phone chargers, and the Global Positioning System receivers that many offenders must carry everywhere so they can be tracked by probation officers. Cooking is done on grills.
The crowded, jury-rigged conditions resemble the third world."
The government must be totally out of money in Miami.
in my middle class zip code in san diego, there 45 homes and condos listed for sale in the MLS. Just the largest foreclosure auction company (fidelity) has 33 foreclosures auctions scheduled in the next three months.
In one of the more distressed zip codes in Chula Vista, there are 248 listings in the MLS and 166 scheduled auctions just by fidelity.
I don't have the time to check how many of the scheduled foreclosures are also MLS listed, but a quick glance says very few- the scheduled foreclosures seem to just be preparing to go down with the ship.
I don't see a market like this getting healthy any time soon.
Thread Music: "I came to this world with nothing, and I'll leave with nothing but love...everything else is just borrowed"
RE sales here in NH are puzzling. Although prices have declined from the peak, many are still way overpriced but yet they still sell. Others sit for months.
According to the county deeds a crap load of refi's going on and you see plenty of homeowners that owe more now then they did 15 to 20 years ago.
Sad to see 45 year olds taking out a 30 year on a house they have owned since 1994.
I've been tracking Alameda County (CA) foreclosures for a while and in terms of loan origination date, the peak is quite broad and essentially flat over the period 2005-Q3 to 2007-Q1, (seven quarters)
Outside that period (either side) the number of loans that were foreclosed drops off dramatically.
Everyone who has bought in our neighborhood this year has been Chinese or Indian. They REALLY know how to drink the koolaid. I was thinking about taking them a container of koolaid powder as a house-warming gift but didn't have the heart to be so heartless.
I read somewhere, there are real estate agency offices in Taiwan and Hong Kong that conduct tours of Houses in the Fremont area for their citizens. As for the Indians, the Fremont/Newark area can account for ~50% of the bay area population.
2009, the year of the second derivative
"There's LOTS of big money "out there". Don't forget, even in the "GREAT" Depression people still travel, bought stuff. 25% unemployment meant 75% EMployment. One of my grandfathers did quite well during TGD, he was a barrel-cooper working for a beer company. Gotta have booze. The problem with the perpetually pessimistic is they forget that most people aren't and that the scummy people will never be punish and replaced by the virtuous. The scum win, regardless."
With a world-view that bleak, you have got to be working for Bofa
. No, don't answer, don't really want to know. Maybe all the big boys are that bad.
The scum also rises, but they did beat them into compliance for a bit back in the '30s, 40s, and 50s -- enough to share the wealth, anyway. We could get there again when things get bad enough -- if Americans haven't completely turned into sheep.
Bob Dobbs-
Hopefully things will get tougher so we see some real change, instead of Goldman still running the country.
hangtown-
And you live where?
Ciao
MS
Updated:
Avon -1,200
Siemens (EU) -1,400
U.K. recovery to take five years
Mexican illegal immigration to U.S. plunges 60% due to poor labor market
State of New Hampshire potential layoffs -750
Kennametal -153
Potential Pratt & Whitney job cuts -1,000
Untitled Document
It looks like
had an accident on his way back from lunch. 
is pushing all the buttons.
"Taxpayes made 23% on the GS bailout."
Why not deduct the 2B in losses on the CIT taxpayer loans. Oh yeah, it would be a negative return to taxpayers. Maybe add in JPM?
Fremont...ah yes ..where you need a cloud of lysol over you in order to even think abut taking a breath. You also need about 30 pairs of eye's if you think about driving anywhere.
A friend of mine used to live in Fremont...it became and still is the largest concentration of smelly food (outside of Mumbai) in the world. Heck I like the food but not every single day.
sm-landlord
They have to raise cash for Timmay's auctions next week. 15 minutes ago I got rid of all august SPY calls for nice profit...only held them for one day.
Ciao
MS
Elmo! is pushing all the buttons.
Do not taunt HappyFunBall.
Still plenty of time for a stick save.
Re: "that bleak"
Not bleak, realistic. Being a scum-bag isn't BAD, it's just being normal.
Re: "if Americans haven't completely turned into sheep. "
Most humans are sheep. Unless they get hungry enough. RIght now, there's not enough hunger in the US. It'll take along time before the nobility loot the system enough to get that far, I'll be dead first for sure. But, it IS the job of the nobility to loot the peasants - at least that's the ONLY job the nobility have ever had thoughout the history of the world, so no reason to expect it would be differnt now. Ya just gotta make sure the nobility doesn't get a chance to loot you (or your kids).
"The total population of Mexican-born immigrants in the U.S. also edged lower in the past year, from 11.6 million to 11.5 million, according to the study by Pew, an independent research group. Up to 85 percent of immigrants are believed to be in the country illegally."
If true there must be a massive number of fake SS cards floating around. The Bush admin was conducting raids where they identified a whole bunch of people with fake SSN's at a particular work location; sent in the INS and other law enf and when all the people who had fake SSN's were taken away the employers had to shut down because most of their workforce was gone.
My question is, are employers/chambers of commerce paying under the table to forgers? When 85% of the Mexican born population is illegal, any random sample of the total Mexican born population is going to turn up a sizeable number of illegals.
The solution: amnesty. And you may drop the "illegals commit more crimes" shtick in the garbage. The people buying the bulk of illegal drugs in the USA are Anglos.
The
icon does look a bit like a Happy Fun Ball with eyes, doesn't it?
"A friend of mine used to live in Fremont...it became and still is the largest concentration of smelly food (outside of Mumbai) in the world. Heck I like the food but not every single day."
An Indian friend told me once that driving past a Hamburger joint, reminds him of the burning bodies being cremated on the banks of the big Indian rivers. Smelly is in the nose of the beholder, I suppose.
RE tax defaults in DC:
We just received our copy of a northwest DC newspaper, the Northwest Current. In it is an insert containing a list of properties seized and subject to auction unless the owners come up with their tax payments. The list runs to 12 broadsheet pages.
To confirm earlier posts, the (FHA - 20%) housing market is red hot in SoCal.
My friend listed his house 2 weeks ago and received 9 offers, 3 above list price.
Above the FHA limit, things seem to be glacial.
"To confirm earlier posts, the (FHA - 20%) housing market is red hot in SoCal."
So the FHA is funding the Return of Flipper?
Oh, great.
Just a "good Banker" then, NOT?
I really hope you don't get caught in the backlash and lose a hand or something...
So the FHA is funding the Return of Flipper?
Get on that Property Ladder, boys & girls.
Buy now, or be priced out forever (again!)
Update: I should have written the formula as (FHA * 1.20).
So this scam that was mentioned, where relatives keep selling homes to each other at higher price, sounds like a good racket. My nephews (huey, duey and louie) and I will take out a bunch of FHA loans one after the other, and then just walk away. That sound about right? it's only 3% down anyways, and I have a large extended duck family.
Effective Demand had a chart on that recently:
Effective Demand: Ventura County Demand versus Inventory - June 2009
There are jumps around 450k and 850k.
Wouldn't that be FHA*1.25 (20% down, 80% FHA)?
debtfree-
Could not agree more..... I certainly see you appreciate that it was an opinion...unlike many others who seize a comment and go the other way with it.
Ciao
MS
450k Formerly known as 700k
850k formerly known as 1.4 million
I bet look it up
Bernanke: “I Don’t Know” Which Foreign Banks Were Given Half a Trillion
Bernanke: “I Don’t Know” Which Foreign Banks Were Given Half a Trillion
debt free
Maybe he a more acute sense of smell than you. Where were you?
Doomy,
I was picturing that in my head. Wow, that has to be a slice of third world heaven.
FHA / (1 - %down)
Can't imagine anyone wanting to live anywhere in the East Bay or Bay Area for that matter. One giant shiite hole.
After being in SF for the past 8 years, I'm starting to agree... This area is vastly overhyped.
"So this scam that was mentioned, where relatives keep selling homes to each other at higher price, sounds like a good racket. My nephews (huey, duey and louie) and I will take out a bunch of FHA loans one after the other, and then just walk away. That sound about right? it's only 3% down anyways, and I have a large extended duck family."
In the DC list of tax-defaulted properties there may be many speculators.
shill-
He knows....how could he not? He's just not going to tell us. The only thing keeping the shit-pile known as FIAT currency together is that process alone. When you have a on-going swap you create a demand for whatever it is you want to support.
Works on many other things too...not just "money"
Ciao
MS
True...in Japan on occasion Americans are referred to as "bata-kusai" or "stinks of butter". Not to our faces though
Due to our diet rich in milk products....
"Countdown to a Meltdown"
January 20, 2016, Master Strategy Memo
Subject: The Coming Year—and Beyond
Countdown to a Meltdown - The Atlantic
(July/August 2005)
This was written in summer 2005. Amazingly accurate considering the unknowns at the time.
OT - this morning listening to NPR about the CA budget - one of the provisions was to borrow up to $3 billion from local governments. The rationale was the local gov'ts could borrow the amount taken from them by the state at no cost.
Questions
Burn-
It may have been your comment a few day's ago "trustafarians"......before they took it over, SF was a great place to live. It got so bad that shortly after most people's dinner time the stench from everyone collectively flushing the toilet at the same time overwhelmed even the most potent aroma the tenderloin could ever produce.
It's all relative...I do realize this. We all want different things but I would go back in a heartbeat if I could.... To SF that is....the rest is well.....
Ciao
MS
NateG and Terry,
Yes, both of your formulas are more accurate and Terry's more generalized. Mistakes in my haste.
MS
Today's SF'er would get to you. I am pretty sure.
BURN-
NFW is the Cali budget deal going to happen. Loads of the provisions will end up in court past October, when the money runs out. Plus May and June revenues are below the estimates already. The state will run out of money while the whole thing is tied up in court.
A new profit center - Real estate for sex offenders.
High demand, low supply.
Make your bundle now.
"So this scam that was mentioned, where relatives keep selling homes to each other at higher price, sounds like a good racket. My nephews (huey, duey and louie) and I will take out a bunch of FHA loans one after the other, and then just walk away. That sound about right? it's only 3% down anyways, and I have a large extended duck family."
Yee-aah!! Just make sure to use all your in-laws, so the last names don't match, and note that you only need one "designated defaulter" per home, who does the walkaway at the end.
If you can string together 14 transactions, each at a price 10% greater than the previous, you can make a profit of 3 times the initial home purchase price, and at 3% down on the initial purchase, you're talking about making 100 times the investment, less expenses!
At the end of it all, you could be wealthy enough not to even need the credit rating that you give up in the final foreclosure...
Sigh...
@ pavel: from your post this AM. Don't know if anyone answered, but Lexington Market is indeed still open and thriving.
Faidleys crab cakes ...
@BURN,
I can tell you first hand that money taken from many municipalities will result in immediate cuts in services and/or personnel.
I don't know the result of any legal challenges to the state action, but there is precedent for the "borrowing".
tim-
Yes I know..I still spend alot of time there. It's changed quite a bit in 10 year's. I bailed when I knew that no matter how much money I could ever make I would never be able to rationally own property. Doesn't mean I couldn't....was just unwilling to spend what it took even then.
I still ride the Muni. I see the changes...but I can't not call it home..it is and always will be for me.
Ciao
MS
A new profit center - Real estate for sex offenders...
Yep, America churns them out so your market will never go away.
There was another Atlantic article, written around the same time, that accurately predicted the mortgage meltdown. The Atlantic is a great magazine. Harpers is good to, but it's even more cynical than I can stand. Before I started reading Harpers I didn't even know that liberals could be so cynical.
Ah, now it is starting to make sense. A friend of mine, now in Taiwan, was telling me the other day, that her Mom wanted to buy a home in Fremont, and Im thinking..wtf would she want to do that for?
I told her Id look into the market, but that I figured given what the prices were there, and that they likely hadnt come down that much yet, compared to some of the lower priced markets, and that given the underlying loan structure (probably a fair amount of AltA Option ARM junk) it was probably a pretty unwise idea, unless you wanted to be a major knifecathcher. So I guess she's been thinking of doing one of these tours from Taiwan, trying to buy up properties now that the market has "bottomed."
It's really nutty out there it seems, but one thing is for sure..the housing bug hit globally, it hit hard, and it's still got its teeth firmly implanted in people's backsides. There is just no shortage of people trying to strike it rich in housing.
They really are trying to reflate this bubble it seems.
Timmie ' Goldman Sacks weasel boy' getting pounded...about time !
UPDATE:TARP Watchdogs Unified In Criticizing Treasury Over Transparency
WASHINGTON -(Dow Jones)- The U.S. Treasury Department continues to fall flat on providing transparency of its financial rescue efforts, the three program watchdogs offered in unified criticism on Wednesday, leaving taxpayers with too little information on billions in investments.
"Treasury's default position should always be to require more disclosure rather than less and to provide [the American taxpayers] as much information about what is being done with their money," Neil Barofsky, special inspector general for the Troubled Asset Relief Program, said in remarks before a U.S. House panel.
Barofsky was echoed by the Government Accountability Office and Prof. Elizabeth Warren, chairman of the Congressional Oversight Panel. The three are tasked with overseeing the $700 billion rescue effort and uniformly raised concerns Wednesday about the Treasury's reluctance to open up program decisions to the light of day.
CNNMoney.com: 404 Page Not Found
NotrealAmerican
Of course the Atlantic had a Dow 40,000 call in 1999 I think. Harper's has some good articles when you get past a lot of the artsy BS (IMO) not a regular reader of either.
Harpers has a good article on Barack Hoover Obama.
Re: The rationale was the local gov'ts could borrow the amount taken from them by the state at no cost.
If you can't think like an optimist, you have NO business being a government LEADER.
Like, dude, it'll work out dude.... It's all good...
km4 that is a stern finger pointing nothing else.
Come on,
..... can't have a down day now!
"State income in May and June was below projections; this has not been factored in to the current budget proposal."
The second half recovery needs to show up really soon. From what i've been tracking, FY 2009 budget estimates are DOA. Just don't think that these people understand that 2006-level capital gains are not going to be around for decades. No more 22 year old deadbeats flipping 100K in 6 months... Also, 10% sales tax has a psychological effect analogous to $4 gasoline.
"If you can't think like an optimist, you have NO business being a government LEADER.
Like, dude, it'll work out dude.... It's all good... "
too bad there are no ultra-short ETFs on CA government...
@ Tim waiting for 2012 (homepage, profile) wrote on Wed, 7/22/2009 - 12:54 pm
km4 that is a stern finger pointing nothing else.
Yes agree ( I say getting pounded ) but did not say there would be any tangible action to rectify being that Goldman Sacks calls the shots
I just filed a complaint on the SigTarp site against my lender. Their new trick is to "lose" the paperwork sent in for loan mods. Here is a WSJ article on what they've been up to. Mortgage Firms Struggle to Redo Hard-Hit Loans - WSJ.com
Apparently I'm far from alone, hearing countless horror stories about this.
'Ruthless Extensions,' nothing more.
GDD-
I don't see it as reflating the housing bubble (the actual home prices) per se....I see it as solely propping up the securities that are associated with them. If home prices go up then that is a bonus I guess. What you really need to look at is the amount of money thrown at this entire fiasco would be more then 2X the total amount of mortgages outstanding. If they were really interested in reflating home prices they could have purchased everyone's mortgage from them and problem solved right? No...they know that the underlying products that were priced on the backs of those loans are far more important to them. They know home prices will fall so if they own them they now have to support two distinctly different asset classes-by there own definition. They are only interested in the class of assets they can control....i.e basic supply and demand. They can control the market for all the securities rather easily...not the actual stand alone asset they were built upon.
Ciao
MS
Totally OT but we could use a break from trying apply the paddles of life to
Sacto 9-1-1: Photos of Broadway beating, robbery suspects released
from the comments:
$7.95 for the watch cap.
$14.00 for a black t-shirt.
$27.95 for a pair of black pants.
Lifting your mask to see better on camera.....Priceless!
Comrade Kristina,
YouTube - It's Hard out here for a Pimp
It's hard out here for a banksta'
MS - Well Said.
Neil Barofsky should avoid light aircraft and automobiles for a while.
They patched the good ship USS America, We are only settling in the water a foot or so every day v. the Titanic sized hole that had been ripped earlier. The pumps are working...sort of. Only one problem. The forward look out is reporting that the shoreline is receding - not getting closer.
Kristina,
If you can swing it, get your name and situation on the news. From what little I've heard, the only way to really get help is to embarass them publically. Then they start to trip over themselves make it happen.
@Basel Too: Also, 10% sales tax has a psychological effect analogous to $4 gasoline.
+3 for that; the current 9.75% in my area is close enough that I notice it whenever I go shopping now.
But it might not be as strong an effect as $4 gas.
And if it were, the solution could be for the retailers to go to a European model where the sticker price is tax-inclusive. Then the taxers can VAT away as much as they want and it'll look like "inflation".
A new twist on "biflation": When the wholesale price goes down and the tax rate goes up, so the retail price is the same...
MS - i do not disagree with you at all. You are just looking at what they are ultimately trying to do, which is inflate the toxic crap that is, for now, sitting in level 3, SIVS, etc, and basically keeping the banking sector effectively insolvent. Funny, they wont address any of this directly, because they cant, and their indirect efforts are about to run smack into 2 more waves of the same stuff (option arm and commercial.)
CR:
Don't post here much but I was wondering..do you have a way of keeping up with the cumulative defaults of CRE and home loans? Might prove to be an interesting number over the next 12 months or so...it might even get to be a number of significant size.
B in T