San Bernardino is where it's at.
YouTube - Frank Zappa - San Berdino (Baby Snakes)

BFF Poll results:
There were three (3) failures this week.
78 Votes were cast,

Congratulations winners:

FastNeutron
feralpig
Jerry
Mert717
NOTaREALmerican

Just a reminder that the Poll closes at the time of the first announced failure.
So, digalert, you were not counted as a winner.

Thank you all for participating!

Nanoo-2: The signs of the cracks are appearing as gaps in information and information suppression recently demonstrated by the public auction of FDIC held properties. Instructing the auction house to keep the auction results secret is not exactly confidence building."

We see this plain as day. They're acting like the incompetent bureaucrats that we all know.

IMO, the FDIC doesn't really count. We can all agree that it's an failed governmental institution, now being used as the convenient waterboy. The impact is at a more cerebral level, national and international.

For me, it's the store of value that counts. Hence, my boring insistence the only safe position now is to hide out in gold and silver, irrespective of their volatility. (For newbies, the move from 600 to the high 400's, I think, in 2005 was as painful as what's occuring now; so just hang in there.)

Does the dollar blow up or blow apart? Or does nothing happen and we all just wince and pretend?
As Prince, the ex-chief of was it CitiBank said (my paraphrase), "As long as the music's playing, we'll keep dancing".

Sacramento was an early indicator of what eventually happened everywhere. Now we see a possible second leg down with declining sales and near total illiquidity in the conventional resale arena. Unfortuantely Sactos predictive powers are likely to be stripped in the coming year as the State government implodes and takes their local employment market to unimagined depths.

What can I do to get a similar pie chart for Miami-Dade
County. I'm willing to go pretty far to get one!

A dame that knows the ropes isn't likely to get tied up.
--Mae West

It's what's for dinner.
http://www.ifish.net/gallery/data/500/Redneck_Calamari_Dinner.jpg

I propose we rename "conventional sales" something a bit more cheery. If not, that chart looks pretty ugly.

Recovery units?
Happy Homeowner Asset Appreciation Vehicles?
California Dream Homes?

No pie for you!

I'm wondering what this is doing to assessed valuations and property tax revenues. Places like Sacto were used to steady predictable increases for years and mis-budgeted accordingly. I'm wondering if some lawyer is going to successfully argue that you cannot ignore distrees sales since banks are not really unwilling sellers as evidenced by the huge shadow inventory they've grown.

BTW Liz. Did you read Kristina's tales of wor yesterday abd what is your advice?

No, no, we call the other 2 categories something
cheerier. Ummmmmmm.

Ummmmmmm.

Asset sales?

Benefits for Buyers?

CR posted:

About 63 percent of all resales (single family homes and condos) were distressed sales in November.

When "distressed" sales outnumber "conventional" they become the new convention.

"There was only one catch and that was Catch-22, which specified that a concern for one's own safety in the face of dangers that were real and immediate was the process of a rational mind. Orr was crazy and could be grounded. All he had to do was ask; and as soon as he did, he would no longer be crazy and would have to fly more missions. Orr would be crazy to fly more missions and sane if he didn't, but if he was sane he had to fly them. If he flew them he was crazy and didn't have to; but if he didn't want to he was sane and had to. Yossarian was moved very deeply by the absolute simplicity of this clause of Catch-22 and let out a respectful whistle."

Yes. Her rate did go down a point and a half.

She is now paying taxes and insurance which add $300 per month
to the payment approximately. If it's not taken out to 40 years, she
might suggest that. It will reduce the payment some. My suggestion if
they don't go for the 40 year thing is to suck it up and pay and hope the
hub stays employed after may. And turn into super Scrooge til May. Spend
nothing on anything except food and electricity. Try to get the credit
scores up and refi. For FHA, they don't have to be all that high,tho they
were raised. If she can get them to go down another 1%, it will reduce the
payment another 100 a month or so.

Thanks liz I was hoping you were around. They are supposed to contact me within 24 hours of our conversation yesterday so I'm expecting them to call when I get to work. I'll ask about the 40 year idea.

hoi ploy.

Is that Vietnamese?

Distressed morning to all!

The thing that would help this a bit are off in some other
dimension.

One. Extend working lives by 10 or 20 years. Hopefully, by 25 years
of additional longevity. Which pretty much gets us up against the teleomere
wall.

Two. Don't allow young men to make serious financial decisions until they
are not young men any more. And certainly not with Other People's Money.

Figure out some way to distract the alphas to doing something that doesn't
harm other people. Balloon chases. Moon trip contests. Non oil energy
contests.

way.

Isn't the big industry in Sacramento government (along with private sector businesses which need to be close to the government (lawyers, lobbyists...)? They haven't cut very many government employees there have they? If so, why the problems?

Rob Dawg wrote:

Just a guess based on anecdote but I'd say maturing CDs and other fixed investment vehicles.

Even in Sacto, many of the houses are going for over a hundred k, that's a lot of money to risk on a falling asset unless you're quite wealthy. Are there combines, pooling resources, developing in these areas? If so, they won't last--plenty of issues with house maintenance and sales prices--rents--and legal fees. In real estate, most watch a couple of tv shows and think they're experts. They're not.

http://1.bp.blogspot.com/_cudK8MwW64I/SehdvBZS1MI/AAAAAAAAP_A/HilDrU5KuJ8/s400/calamari_wrestler.jpg

My favorite tormentor, would be Dick Tuck, who terrorized Tricky Dick, with stunts like these...

Tuck's most famous prank against Nixon is known as "the Chinatown Caper." During his campaign for Governor of California in 1962, Nixon visited Chinatown in Los Angeles. At the campaign stop, a backdrop of children holding "welcome" signs in English and Chinese was set up. As Nixon spoke, an elder from the community whispered that one of the signs in Chinese said, "What about the Hughes loan?" The sign was a reference to an unsecured $205,000 loan that Howard Hughes had made to Nixon's brother, Donald. Nixon grabbed a sign and, on camera, ripped it up. (Later, Tuck learned, to his chagrin, that the Chinese characters actually spelled out “What about the huge loan?”)

Dick Tuck - Wikipedia, the free encyclopedia

Financial Times turns Onion-esque

FT.com / Comment / Opinion - Outside Edge: Yakuza solutions for errant bankers
What is needed is a more robust approach to inflicting misery on aberrant bankers – in short, a behavioural remedy.
Naming and shaming will not do. If the people at Goldman Sachs have a shame gene, it is capable only of inducing a sense of pain when their bonuses are less than those of their peers. As for bringing back the medieval stocks, this would be satisfyingly populist, but no great deterrent if multi-million bonuses are not clawed back. Tempting though it might be to require bankers to carry placards on their backs saying “I am a contingent liability on the public sector”, that somehow lacks the resonance of the leper’s cry of “unclean”.
The time has come instead to learn from the Japanese experience with yakuza gangsters, those charming folk with head-to-toe tattoos who run the country’s pachinko gaming parlours, brothels and debt collection businesses. As long as they kept their violent ways in the family, the yakuza were tolerated in postwar Japan. But they became unpleasantly uppity during the 1980s bubble. The policy response was the 1991 Law To Prevent Unjust Action By Violent Organisations.
This required gangs to register members annually with the police. What really upset the Yakuza, though, was that the police were legally empowered to deny gangsters access to golf clubs. No more extreme form of ostracism could have been invented in golf-crazy Japan.
The logic would work impeccably in finance: the US and UK could have a Law To Prevent Unjust Action By Financially Violent Organisations. As well as excluding these dangerous people from golf clubs, they could be denied access to Royal Ascot, the Four Seasons in New York, the City’s annual Mansion House bash, all grouse moors, the Metropolitan Opera, the Chelsea Flower Show and goodness knows what else. British bankers could even be denied peerages, knighthoods and other gongs.

From the last thread: Really doubt Volcker's medicine of driving interest rates to 20% would work this time. Chopper Ben can't even raise them to 0.25%.

If I recall, it took Fed rates in the mid-teens to castrate the last Gold Bull. And right now high-end estimates for fed rates in 2011 are around 2 percent. Just something to think about.

Before Yakuza me, take a look at yourself?

I will repeat from last night re. odd behavior in the FC arena:

I am quite certain the Treasury & Fed are putting the screws to the banks & servicers, hard. I also think the lenders are now jacking up the min bid at trustee sales because they simply can't take the hit to capital if they actually priced to sell. For example, in my village, Recon (CFC's/BAC's RE disposal arm) has been asking way above the existing note amount, 20%+ above market and that's for a clean property that sells retail. Not sure but expect that the property goes back on books at sale price (not really a sale) so assets shown above par. Every single one of these properties goes back to the beneficiary (BAC, GSEs & other clients). Howver, the private MBS properties are still selling, and at a substantial discount. I have to imagine this can only go for so long before the logjam bursts and then the bank balance sheets take another massive hit.

More Dick Tuck:

After the first Kennedy-Nixon debate in 1960, Tuck hired an elderly woman who put on a Nixon button and embraced the candidate in front of TV cameras. She said, "Don't worry, son! He beat you last night, but you'll get him next time."

In 1968, Tuck utilized Republican nominee Nixon's own campaign slogan against him; he hired a very pregnant African-American woman to wander around a Nixon rally in a predominantly white area, wearing a T-shirt that said, "Nixon's the One!"

Watch the Video - by Tablet Magazine > Tablet Magazine - A New Read on Jewish Life

Featuring Orrin Hatch!

Hatch caused an overnight controversy on June 17, 2003 by proposing that copyright owners should be able to destroy the computer equipment and information of those suspected of copyright infringement, including file sharing. In the face of criticism, especially from technology and privacy advocates, Hatch withdrew his suggestion days later, after it was discovered that Sen. Hatch's official website was using an unlicensed JavaScript menu from United Kingdom based software developer Milonic Solutions. Milonic founder Andy Woolley stated that "We've had no contact with them. They are in breach of our licensing terms." Shortly after the publication of that story in Wired magazine, the company who runs Hatch's website contacted Milonic to start registration.[3]

One year later, he proposed the controversial INDUCE Act that attempted to make illegal all tools that could be used for copyright infringement. According to many critics, this act would effectively outlaw the Internet and personal computers, giving unprecedented legal leverage to media companies.

Dick Tuck designed his campaign billboards to read, in small print, "Dick," and in much larger lettering, "Tuck". The names were printed twice, piggy-backed one above the other. On the eve of the election he drove around the area and painted an extra line on the upper "Tuck" on the billboards. This converted the T in his name to an F so that passersby would see a profane phrase. Tuck said he thought voters would think his opponent had done this and he'd "get the sympathy vote" with this tactic. In a field of eight candidates for the Democratic nomination, Tuck finished 3rd with 5211 votes (almost 10% of votes), losing to future Congressman George Danielson.

When Gov. Arnold Schwarzenegger heads to Copenhagen next week for the United Nations Climate Change Conference, his office will defend the trip in a deficit-plagued year by saying his foundation-backed travel won't cost taxpayers a dime.

But that overlooks one fact: Wherever the governor goes, a crew of California Highway Patrol officers travels as well, paid for by the state.
snip//
CHP declined a Public Records Act request by The Bee to disclose specific taxpayer costs for protecting the governor and his family, citing "legitimate safety concerns." Other states provide such information, and CHP gave The Bee the data for other state elected leaders it protects.

"Different people out there can take that number and extrapolate out certain information that could potentially put someone we're protecting at risk," said CHP spokeswoman Fran Clader. "We can't take that risk. We have to protect against every eventuality."

---CHP might be just a tad paranoid or corrupt or both!

JD<
With all this Dick Tuck talk I though you were going to mention DruPaul!

Kristina's loan is an example of the real purpose of subprime loans: to steal people's houses by tricking or extorting them into a loan with an usurious interest rate they can't pay. The industry was really surprised when, over the past few years, the stolen houses came in worth less than the loans. Since Kristina had a lot of equity when she took out the loan, she's a currently rare example of the traditional *****-the-homeowner subprime loan.

At 8.75%, I'd advise walking. Sentimental attachment is all well and good, but that's almost twice the "fair" rate for a mortgage. An 80% premium for housing costs when your finances are tight is far too much to pay. A good idea, since officially the house has equity, is a firesale offering the house at the loan amount plus commission. If there's a bidding war, then Kristina will get some money from the deal.

I shudder to think what might happen if a Danish cartoonist were to shed unfavorable light on this century's arty ex-pat Austrian strongman leader, and his cadre of law enforcement officers, that will protect him hopefully on the crime-ridden streets of Copenhagen.

I shudder to think what might happen if a Danish cartoonist were to shed unfavorable light on this century's arty ex-pat Austrian strongman leader, and his cadre of law enforcement officers, that will protect him hopefully on the crime-ridden streets of Copenhagen.

Many years ago, when I was in Copenhagen, it impressed me as the most lightly policed city I'd ever seen. Police were as rare as Whooping Cranes, and most of those you did see were stationed outside the railroad station, where they could direct tourists - and offer a formal salute afterwards.

IIRC, you can pull money out of an IRA for up to 60 days without any penalty or interest, so many of the people paying "cash" for foreclosures may be going this route, and then flipping before the money is due back in the 401k, or refinancing with a conventional loan.

noob goldberg wrote:

I agree that a lost decade would be a best case scenario. I'm just not quite convinced yet that it would be possible with the world's largest economy.

(from a few threads back)

noob,
I have kind of wondered this myself, and also something related. Every instance of hyperinflation that I know about havs occurred in smaller countries and not a reserve currency country, so I've wondered if that makes hyperinflation a low probability event no matter how bad we screw up, i.e., everyone else follows us down the path. "all currencies float"

The worlds largest economy could be replaced by somebody else, or several somebodies, but sure as heck don't see how or who at this point.

,rad Gnome,

I'm a late Boomer, and sometimes I like to X-dress. I apply some temporary tattoos in very visible locations about my body, and blame all my inadequacies on the man, Baby Boomers.

I think I pass well.

lawyerliz wrote:

She still has equity. She has hopes of eventually refinancing.

It isn't too many payments at 8.75% before you've paid away all that equity compared to OER. And that's my suggestion. Find out exactly the OER and what cash flow positive sales price that represents. It is "The Cold Equations" and I don't want to appear cold but this looks like a very expensive way to "protect" some unknown amount of equity. I'm guessing but at $1400/mo PITI that OER would run $850 and that means CK would be paying $500/mo to "protect" the equity.

Add: The bank currently charging 10.2% tells me she won't be allowed to refinance even if she technically qualifies eventually. There's a strong motivation to keep people paying the highest possible rates.

See my post above.

1980: Volker stopped hyperinflation last time by cranking Fed rates into the mid-teens, almost to 20%.

2009: Chopper Ben can't raise rates to 0.25% now. Even out to 2011 Ben can't raise past 2%, despite the money supply expanding parabolicly.

And yet everyone here is worried about deflation. Guess I am the contrarian. Oh wait, thay may be a good thing

I'm a camp follower, but not that kind of camp follower.

JD<
Join the Tribe.

What is 'OER"?

HomeGnome wrote:

Sheriff's deputies say 44-year-old Carolyn Brown caused second-degree burns on the man's face and arms.

Mass. Woman, 98, Accused of Killing Roommate, 100 - ABC News

The human race ...

lawyerliz wrote:

She loves the house. It's her mom's house.
Not just money, but people's feelings go into
those equations.

She loves the home. It was her mom's home. It is the bank's house. I wouldn't keep a pet on life support and that a living thing. It would break my heart to have CK stuck and growing to hate the house as that would eventual ruin the things that made it a home.

JD<
Double Plus good.

I rather think that Volker poking up his head now is
right on schedule. But maybe not.

GrandOldTurkey wrote:

What is 'OER"?

Owners equivalent rent.

And forget the pony tails, street fighters!

HomeGnome wrote:

And forget the pony tails, street fighters!

Never pony tails.

That reminds me that I need to prep the bear spray in case things get out of hand at my tonight....

Jesus Christ once said "Neither borrower nor lender be". And he was a carpenter, so he knew a thing or two about the housing market.

Just saying

,rad Gnome,

Enjoy yourself...

We had an anchor party last week~

There seems to be a LOT of carpenters named Jesus.

Badger boy wrote:

Jesus Christ once said "Neither borrower nor lender be".
Didn't realize Ben Franklin was the second coming--although he did cum a lot.

If push>meets<shove and possession becomes 9/10's of the law (a de facto jubilee) i'd sure want to be in a house when the music stopped playing...

I think it was Polonius. Who was supposed to be a pedantic
fool.

"Throw the money changers from the temple"

---I wonder if the Carpenter was talking about bankers and planet Earth.

"O ," said the Carpenter,
"You've had a pleasant run!
Shall we be trotting home again?'
But answer came there none--
And this was scarcely odd, because
They'd eaten every one.

Actually, I always thought that the money changers got a bad
rap on this one. At the time ritual sacrifice of doves and such
were customary and the religious tourists had to get them from
somewhere, and nobody was giving them away for free, and
they didn't have credit cards, and foreign money had to be changed
to purchase same, which couldn't be too far away because it had
to be in a short walking distance.

The temple priests could have regulated the exchanges so they
were fair. . . . where have I heard this before? Liz scratches head.

Jesus Christ once said "Neither borrower nor lender be". And he was a carpenter, so he knew a thing or two about the housing market.

Just saying

I believe that was Shakespeare.

Polonius. See comment above.

My grandmother used to say that too.

YouTube - ZZ Top - Jesus Just Left Chicago (From "Double Down Live - 1980")

Outsider wrote:

I believe that was Shakespeare. /

My bad--Polonius in Hamlet.

Thanks ll,

"At the time ritual sacrifice of doves and such
were customary and the religious tourists had to get them from
somewhere, and nobody was giving them away for free"

Rent seekers.

"foreign money had to be changed...The temple priests could have regulated the exchanges so they
were fair"

Rules and rule writers....

borrowing isn't bad all the time.

Absolutely. Only when you have to pay it back.

bearly wrote:

How's your rockstar chosen-one doing after a year ? The looting/heist Halliburton no-bid awards don't even budge the needle in comparison. This guy has done more damage to the treasury than ANY President, EVER.

No, virtually all of the increase in the deficit is due to decisions from the Bush era. Obama's changes are only 18% of the deficit (the stimulus), and most of that is worthwhile spending (infrastructure and benefits extensions).

I am very disappointed he hasn't reversed any of the big disastrous Bush-era policies (tax cuts, foreign wars, captive financial regulation, and the TARP).

Ability to handle money isn't everything.

Jefferson died deep in debt.

Daniel Boone owed an enormous amount and got
the congress to bail him out.

But Truman and Lincoln lost money in their youth, and
struggled to pay it back. Truman did, sans interest, after
he stopped being prez. Don't remember about Lincoln.

I think the stuggles sez something about their characters.

Fair Economist wrote:

I am very disappointed he hasn't reversed any of the big disastrous Bush-era policies (tax cuts, foreign wars, captive financial regulation, and the TARP).

Change you can believe in

What kind of cheesy excuse are they gonna give for a 47 year old guy exiting stage left?

Can one actually use a credit card to buy a house?

YouTube - jimi hendrix- Hear my train coming 12 string acoustic

Pure Sativa Love.

YouTube - Jimi Hendrix - Purple Haze at Woodstock 1969

So far they have mostly cut hours. It's not so bad if one spouse works in gov and the other in the private sector but when both spouses work for the state, that's a 30% pay decrease. Not many households can take that kind of hit.

I know a few households that have been hit by the 30% deduction. One bought a house in 1999 and had another 250k in savings and they never hit the heloc gravy train. The others bought in 00 to 04 and hit the heloc option often. Don't tell anyone but we have a betting pool going on how much longer the marriages last. Who needs fantasy football when you have drama like this?

cash lines on a Chase card. Interest on the cash advance goes from 0 to 29.99% if they don't pay it back in 6 months.

Video on Glod, God, and Goldline

Stewart on Glenn Beck gold scam: As paid spokesman, Beck fuels price of gold - Daily Kos TV (beta)

I know, I know, it's funny, but I feel sorry for him.

The pictures I've seen are women by no means as pretty
as his wife.

A black client of mine expressed the opinion that maybe
the wife wouldn't hang by the chandelliers or something.

See Jane, in Florida if you charged your house (got cash advance),
no mortgage, unless the lender could prove fraud, your housestead
is exempt from forced sale. So you walk away from the debt, if
you wanna. Fraud is rather hard to prove.

Oh, glod.

That was funny...

Like i've been telling you, Beck & the other neo-Goebbels have been pushing the barbarous to the evangelicals for a long time now, like about 20 years.

I disagree with 99% of the evangs lifestyle choice, but very seldom is somebody wrong about everything, and that 1% we agree on, has done admirably as an investment, since the turn of the century, no?

"I've never found a rental with a decent kitchen"

The kitchen in my 3700 sqft rental is far far better then anything I've been looking at purchasing. And the view of the Sac river is freaking gorgeous. The master has views of 3 acres open land. Best 1875 a month I've ever spent. I'm seriously considering buying the place with cash when the owners go tits up.

hint, hint The advance doesn't have to come from the owners. The parents do it as a one time gift which is allowable on FHA.

very seldom is somebody wrong about everything

---The Wright Model B is all fueled up and waiting, sir.

Actually the rumor I heard was the person charged the house for
him/herself, but the gift thingie is quite plausible.

cash lines on a Chase card.
Why do people still use Chase cards? People should move to using smaller banks. We got to boycott these big banks. That is the only way to get them to do the right thing.

Rob Dawg wrote:

Just a guess based on anecdote but I'd say maturing
CDs and other fixed investment vehicles.

Then Mel wrote:

Even in Sacto, many of the houses are going for over a hundred k,
that's a lot of money to risk on a falling asset unless you're quite
wealthy. Are there combines, pooling resources, developing in
these areas? If so, they won't last--plenty of issues with house
maintenance and sales prices--rents--and legal fees.

Many of the people buying homes in Sacramento are long term rental owners who are just looking for a decent return on their cash. I own two apartment buildings in Sacramento and last year I bought a vacant REO home that was next to one of my apartments for $190K (the home last sold to local 1st time “investors” for over $400K in 2006) and I am getting some cash flow after a $12K “remodel” ($5K to a window firm for all new double pane windows, $1K to carpet form for carpet and a lot of hard work with my “amigos” putting in all new doors, a new kitchen, full paint and a new lawn. My Dad has not bought a home or apartment building since 1985 and he just paid over $400K for a little San Mateo rental home. He was board and wanted something to work on and he has been bummed that he is getting such low return from CDs and money markets on the ~$75K in positive cash flow he has every month…

Black Star Ranch wrote:

CaptainMorgan wrote:
If you walk away today, you can't walk back tomorrow. If you stay today, you can walk tomorrow.
........+10...........

No. That's a hollow threat. There's no way to keep that many millions out of the housing market without causing a third dip. These are going to be the only people available to buy in 2014 so whatever stains are on their record will be ignored.

in 2008, you could go to some of the worst parts of the city and buy a place for 20k cash. Those types of properties are now asking between 45 to 80k. The bubble has reflated big time here and yet stupid BA investor kids with Mom and Dad's credit lines still come to buy using FTHB. The fraud in that program is rampant.

I have seen things you people wouldn't believe.

I wish this President were a decider, not a complainer

WASHINGTON — President Barack Obama singled out financial institutions for causing much of the economic tailspin and criticized their opposition to tighter federal oversight of their industry.
While applauding House passage Friday of overhaul legislation and urging quick Senate action, Obama expressed frustration with banks that were helped by a taxpayer bailout and now are "fighting tooth and nail with their lobbyists" against new government controls.

"The joys of fiat regime,"

Indeed, there seems to be no limit to the money we can print.

Funny, though, every other article I read had the spending bill at 1.1T. Guess the MSM can't coordinate on the misinformation they spew.

Senate Republicans fail to block spending bill - USATODAY.com

I'd like to hear from our far-flung blogonosci overseas, about what sort of damage the foreclosed upon do to their homes?

Are we a wee bit more destructive, when we leave our dear departed domiciles?

Location-Location-Location

ghostfaceinvestah wrote:

Funny, though, every other article I read had the spending bill at 1.1T. Guess the MSM can't coordinate on the misinformation they spew.

It is a two part bill: $447 Bil for government agencies + $650 Bil for Pentagon and federal benefits (Medicare, Medicaid)

Actually I've never known an active meth head. Tho I heard a
former friend's daughter got into it and lost her teeth.

Deflationary wrote:

So far they have (Sacramento Government Workers) mostly cut hours.
It's not so bad if one spouse works in gov and the other in the private
sector but when both spouses work for the state, that's a 30% pay
decrease. Not many households can take that kind of hit.

Not to give you a hard time, but if two people in the same home have a 15% pay cut they just have a 15% cut in pay (not 30%). I heard a state worker on the radio last week complaining that since her, her husband and two kids have all had 15% pay cuts (due to furlough Fridays) that they family has had to endure a “60% pay cut”. One of my undergrad statistics professors used to say “the California lottery is just a tax on people that don’t understand math and statistics”…

The mobile home, was, ummm, mobile.

And it moved! If planted on a deep forested lot
how would you ever find it?

Fair Economist wrote:

I am very disappointed

That's Nice. But hardly represents reality, on the ground. I would rather hear, "It's disgusting how he snowed us dupes. He's the enemy of the people"

You know, a certain Fla state benefitted entity wants
me to do some work, but hasn't paid me for quite a while
(I haven't done the work and won't til paid.)

Makes you wonder, don't it?

The New Bubble in the Barbarous Relic that Is Gold

Roubini may now be out of touch. Classical economics tells us not to use gold, but the clowns in DC are all but demanding it by their incompetence.

LOL true.... but that's what my friend calls it while she is wailing about their mortgage (which they heloced 3 times from 85k to 462k) .

and love the lottery quote- so freaking true

"Quik Crete down the sewer drains.
A little ground up herring stuffed behind each and every outlet/ lightswitch cover.
Half a dozen goats let loose inside."

Yeah, of all the vacant houses out there, can you imagine how many are in unlivable condition? Gotta be a high percentage.

This housing bubble was better than a war as a way to use up the productive capacity of our country, then destroy the results. We just need to find something else to take up our energy now.

Maybe we can just randomly relocate entire cities, then move them back. It'd be just as productive as the past 8 years.

lawyerliz wrote:

actually, I don't think the short sale thing does anything for the borrower,
except provide closure.

That is worth something. Sometimes a quick 'move on' is the best move.

Lived there for 5 awful years. My tip is go with the duplexes. The apts have too many issues but the duplexes stay full, often turning over from friend to friend. I know of 2 about to go REO so the window to purchase is opening up.

lawyerliz wrote:

Ability to handle money isn't everything.
Jefferson died deep in debt......

Wisdom. Thanks, LL.

Parents used to heloc and buy a house for the kid in Davis and sell in 4 or 5 years. Not happening so much anymore, ya think?

ps. my hatred of Davis is legendary. I'm almost tempted to see if you need a cash infusion to make pirating Davis possible >; )

"actually, I don't think the short sale thing does anything for the borrower,
except provide closure."

Oh, I agree, but that is a HUGE thing for a lot of people.

Not saying it is rational, but I have talked to a lot of people who would do a short sale in a flash but are very hesitant to follow through on a foreclosure. They know their credit will be ruined, but they want to peace of mind of knowing it is done with.

Plus, we all know the stories of banks walking away from foreclosures and borrowers being hit with tax bills years later.

Thanks patient.

Ok, why do you hate Davis? Never bin to Cali.

dryfly wrote:

the banks are absolutely 'metering' them out..

everybody hoping and waiting for trend reversal but marching forward just in case.

Deflationary Jane wrote:

Best 1875 a month I've ever spent

Not bad, Jane. What price do you hope to get it for?

"It appears that an "invisible hand" is metering out these foreclosures at a fixed rate."

I got a great graph in a piece of research the other day, too bad I can't post it, showing the trend in pre-foreclosue and in-foreclosure timelines since 2007. Straight ramp up. It is crazy.

I honestly don't know what the solution is, except as I say ramping up short sales. I don't think banks can process all the REOs - it requires a lot of work. the banks outsource most of it, but someone needs to cooridinate it, check in on the broker periodically, etc. And it is all expense.

Much, much better for the bank when the borrower does all the legwork.

I don't think they are taking ruination into account.

I think they would lose less money slower if they had
enough staff.

Why don't they just underbid at the foreclosure sales? No fix up
no overhead, no commissions. I think if one of the biggies did
this a few times, vultures would be attracted, and start bidding against
each other and actually make more money for the bank. But this
would take thought and admitting you were taking a risk. Banks can't
do that; they can only conceive of handing a risk over to somebody else.

broward wrote:

everybody hoping and waiting for trend reversal but marching forward just in case.

That's what I'd be doing - no reason to rush it just because somebody wants a great deal on an REO or wants the market to clear. if I were in the banks shoes I'd figure out what was a reasonable 'rate' and staff up to the capacity needed to achieve that rate and thne let it work its way out. If some externality forced me to reassess - I'd do exactly that but only when forced.

There's nothing magical about any of this... we'll git'er done, in time.

dryfly<
Hopefully no meth cookers or party kids or homeless break into your REO's and destroy them.
But other than that; great idea.

FormerAptBroker wrote:

$75K in positive cash flow he has every month…
is that $75K free and clear money?.....I thought the Vanderbilts et al were dead.....

dryfly wrote:
Probably applies to 'every small college [only] town'... more than a few out here on the plains too.
LOL, northern MN is stuffed full of good, small private liberal arts schools (Gustavus, Carleton and St. Olaf come to mind). It will be interesting to see how fate deals with them and the surrounding communities.

"I don't think they are taking ruination into account."

I think you are absolutely right. Well, it is taken into account, but underestimated.

Which is why the "meter them out" strategy doesn't work, as the collateral deteriorates, it is not a static value.

that, plus the trend that I have pointed out before- long term delinquencies feed on themselves as people see their neighbors living rent free for years, they decide to do the same. It is a vicious cycle.

The trickle effect is due entirely to capacity and the government. HAMP is just a pure disaster, a year and billions of dollars wasted. Just like FHA Secure and dozens of other ideas thrown at this problem.

Take your time...

http://northphoenixagent.files.wordpress.com/2008/12/foreclosure-bathroom-mess-taken-by-realtor-amy-jones.jpg
http://www.expressnightout.com/content/photos/20081015-foreclosures-450.jpg
http://4.bp.blogspot.com/_RnRejIPRpAY/Sm22yV8LyoI/AAAAAAAAG-I/FYlfRfc0MPw/s400/Graffiti.jpg

I love Carleton! What is the name of the little town it's in? I have friends who went there.

Deflationary Jane wrote:
I love Carleton! What is the name of the little town it's in? I have friends who went there.
Northfield MN, beautiful place... I'd probably have gone there if I'd have had the means or willingness to take on huge debts for a liberal arts degree.

ghostfaceinvestah wrote:

Senate Republicans fail to block spending bill - USATODAY.com

There is always a rogue republican who votes with the democrats. Maybe they are learning from the 'dissent' drama at the Federal Reserve.

lawyerliz wrote:

5 years ok with you, dry? It's not with me.

Yeah, but what are we going to do about. All the historical data say 5 years is just a start.......

Where are these pics from?

There's no rush to sell; what could go wrong?
http://www.denverdemolitioninc.com/gallery/images/p11.jpg
http://therealnews.com/media/trn_2008-11-15/anpforeclosurenov24.jpg

Deflationary Jane wrote:

The homeless are multiplying faster

Sigh, I can still remember back when they were invisible...

Sigh, they are still invisible, mostly.

Ahhhh Northfield... great place. Dated someone who went there, national merit scholar. He majored in economics, specialized in 2nd world economies and went on to work for Clinton (very minor staff office). But I couldn't handle the winter and he didn't want to move... not my brightest moment. But he was brilliant.

I was talking to a woman who said this was her retirement plan after her savings runs out.

Liz, are bathtubs OK?

Jacuzzi Bathtub 36 x 60

see above:
"Davis is really just Orange county covered in tie-dye camouflage."

Only thing I hate worst them Davis is Orange County >; )

This is in America folks.
The corporations did this.
The Bankers are waging war on us.
http://frecklescassie.files.wordpress.com/2007/01/tent-city.JPG

Not that one!! I'm not sure how all Jacuzzis are installed. But if it's like a big
bucket that you could unscrew from the wall hoses, and just haul out using a dolly
or something and now damage anything, why yeah. There are lots of debates
about what is and is not a fixture.

Hahahahahahahaha.

He bought it 2 years ago to fix up the house. So he thinks he can
take it away. If you had one of those window acs that you put in the
window and just plug in, I suppose you could take it.

Isn't this fun!

ResistanceIsFeudal wrote:

LOL, northern MN is stuffed full of good, small private liberal arts schools (Gustavus, Carleton and St. Olaf come to mind). It will be interesting to see how fate deals with them and the surrounding communities.

Worcester, Massachusetts.

http://spankingbeaarthur.files.wordpress.com/2009/03/sba193.jpg
http://godw1nz.files.wordpress.com/2009/05/tent-city-nevada1.jpg
http://www.worldproutassembly.org/tent-city.jpg
http://www.tinyhousedesign.com/wp-content/uploads/2009/02/oprah-tent-city-sacramento-450x248.png

---I'm pretty sure those bankers deserve their bonus.
After all, how do you retain such talent?

Business: In home foreclosure, if it's not nailed down ...

My fav quote:

"I'm going to strip this mother," the 70-ish property owner raved to Burgur, as she ripped apart the 950-square-foot unit on Island Way.

what about Worcester, MA., Dawg?

Deflationary Jane wrote:

Only thing I hate worst them Davis is Orange County

Is that because the politics is too conservative? Or because the amenities are poor? I am just trying to figure out what's missing in Davis. I have thought about moving there after my sister spent a few days at UC Davis and enjoyed it.

Can you take a chandelier, ceiling fans?

Can you take some fancy cabinet knobs you bought in Mexico? Screens?

Nah, you just pull off the screens and tear them.

Installed bookshelves? All the lightbulbs? Fixture coverings?

How about the wires? The cabinets? The toilet seat?

I've seen all that in regular sales and evictions, never mind foreclosures.

And, not even counting when teenagers and druggies get in there
and deliberate destruction.

I don't see how you can compare Davis and Orange county.

Davis never had a teevee show about it, no beach, and lacks a vast number of subprime associated companies.

Had an interesting meeting yesterday.

Met with the president of a trust department of a $3 billion bank concerning my mom's trust. The trust has several hundred million under management. He could have stepped out of the tv from the CNBC set. Some of his thoughts:

-------- Very bullish. Expects S & P earnings to grow 35% next year.

-------- The banks are hiding NO losses.

-------- The stock market run-up this year was 'normal' for coming out of a recession.

-------- They rely totally on the rating agencies to determine bond quality.

-------- The taxpayer hasn't lost a cent on TARP

--------- Wanted to put my mom (in her 70's) 50-60% equities

that last link was from my area, you know the city the thread is about?

That was a huge camp that was forced to split up. They now camp up and down the railroad greenways which just happen to run next to one of the posh zipcodes 95819. The homes that border the 95819 core are now facing distress.

The other problem is zip 95811, alkali flats. Don't buy here unless you have an armed guard.

black dog wrote:

Some of his thoughts

I think he had one thought, black dog, "How can I maximize my bank's revenue in 2010 and my pay?". The rest was just the water rolling down the hill.

Did you wax wrathfully on him dog?

I would have.

AND, there are a bunch of Massholes!

Darfuristan : Rolling Stone

lawyerliz wrote:

39

We're back to Tiger again?

You are both about right for annual tuition. Ouch.

broward wrote:

We're back to Tiger again?

may as well, nothing good on

Deflationary Jane wrote:

it's only liberal on issues that prop up their property values

I couldn't understand the specific implications of the Monet comment, Jane. But I take it that Davis is too politically conservative for your tastes. Is that the main problem?

black dog wrote:

The trust has several hundred million under management. He could have stepped out of the tv from the CNBC set. Some of his thoughts:

How nice for her, and you, and all your siblings if any.....
Anyone at that age, with that much dough, missed something, somewhere.....then again, maybe she's saving it for some pets

Sorry to sound harsh, but that's how I feel, and I have a roof over my head. I wonder what the tent folks would say.....

In comparison, the banker's just a salesman doing what all salesmen do......