And the pressure builds...
Post random thoughts, articles that I missed (use tinyurl.com and hit the highlights only), and tell us what's on your mind
December 08, 2007
BUBBLETALK - Open thread to talk about the housing, credit, dollar and mortgage meltdowns
Subscribe to:
Post Comments (Atom)
315 comments:
«Oldest ‹Older 201 – 315 of 315Want a solution, ask Wesley A. Snyder to trade time for some names to get some of the money back from "cash back program".
For example, get the names of straw buyers, fake real estate agents, appraisers, sellers who intentionally played along on "cash back program" and get those money back to the big brokerage firms so that the big brokerage firms could paid back the MBS investors.
If a house goes on foreclosure and the straw buyers, seller, real estate agents, appraisers, and etc participated in a cash back program, then make the straw buyers, seller, real estate agents, appraisers, and etc paid for some of those "cash back" value.
http://www.readingeagle.com/
article.aspx?id=70137
Wesley A. Snyder, who left hundreds of customers with larger loans and higher payments than they planned for, expects to get seven to 13 years in prison.
The scheme has cost more than 800 victims more than $29 million. They also have larger mortgages at higher interest rates than they thought they had agreed to.
As about 50 victims sat grim-faced in the audience, U.S. District Judge Yvette Kane told Snyder that he faces a maximum of 30 years in prison and a maximum fine of $1 million.
Why are analysts blaming the credit crunch that hit in August, why don't the analysts point their fingers at one of the problem "Cash Back at Closing Program"
http://www.journalstandard.com/
articles/2007/11/29/news/news01.txt
Median home prices declined by a record amount, with analysts blaming the worsening slump on a credit crunch that hit in August. The national median price of a home sold last month dipped to $207,800, a drop of 5.1 percent from a year ago, the biggest annual decline on record.
So what report will the Federal Reserve use to determine if they should raise or lower interest rate.
If house price increase shouldn't Federal Reserve raise rate.
http://money.cnn.com//news/
newsfeeds/articles/djf500/
200711290055DOWJONESDJ
ONLINE000012_FORTUNE5.htm
On Thursday the Office of Federal Housing Enterprise Oversight probably will show an increase in U.S. home prices for the third quarter compared with last year.
A separate report Wednesday from the National Association of Realtors said the median price of a home sold in October declined to $207,800, a drop of 5.1% from a year ago, the biggest year-over-year price decline on record.
But many economists consider the OFHEO and Case-Shiller indexes to be better measurements of the housing market than the Realtors' report.
The widely tracked Standard & Poor's/Case-Shiller nationwide housing index focuses on major metropolitan areas and includes expensive properties as well as cheaper ones.
The federal government index, while more national in its scope, excludes higher- priced homes and ones financed by riskier mortgages.
Don't lowing interest rate adds to "Dollar Carry Trade" which are used in derivative which adds to the "shadow banking system"
http://money.cnn.com/2007/11/27/
news/newsmakers/gross_banking.
fortune/index.htm?section=
magazines_fortune
We have a secret banking system built on derivatives and untouched by regulation, says Pimco's Bill Gross.
It the "shadow banking system" because it has lain hidden for years, untouched by regulation, yet free to magically and mystically create and then package subprime loans into a host of three-letter conduits that only Wall Street wizards could explain.
It is certainly true that this shadow system, with its derivatives circling the globe, has democratized credit. And as the benefits of cheaper financing became available to the many as opposed to the few, placating and calming waves of higher productivity and widespread diversification led to accelerating economic growth, incomes, and corporate profits.
"Skim milk masquerades as cream," warned Gilbert and Sullivan over a century ago, and sure enough, today's subprimes, packaged into financial conduits with monikers such as SIVs and CDOs, pretended to be AAA-rated cubes of butter.
Yet, as is humanity's wont, we overdid a good thing, and the subprime skim milk has soured.
The US Federal Reserve aggressively ramped up its efforts yesterday to head off a funding crisis in the new year by giving an unlimited promise to inject whatever cash was necessary to stop the overnight money markets freezing up.
It said it would inject enough cash to stop the overnight bank borrowing rate rising above its target rate of 4.5 per cent at year end. The first of a series of long-term operations to span the new year will start with a buying back of $8bn of Treasuries and other securities in a repo deal that matures on January 10.
This means that banks can lock in funds to carry over past December 31 and alleviate balance sheet constraints associated with the present credit squeeze.
http://www.ft.com/cms/s/0/
39065214-9c8a-11dc-bcd8-
0000779fd2ac.html
lost cause said...
Montgomery Bracing for A Record Shortfall.
In sobering terms, (INSERT ANY COUNTY NAME HERE) County's elected leaders began to confront the (INSERT ANY COUNTY NAME HERE) government's deepest-ever projected budget shortfall yesterday, warning (INSERT ANY COUNTY NAME HERE) residents of possible tax increases and tempering expectations for what the (INSERT ANY COUNTY NAME HERE) county can afford as they try to close a $401 million gap.
"Our worst fears, as it relates to the housing market and the national economy, are being realized," Leggett said yesterday. "There may be delays and outright cuts; it means we will not be hiring as readily as we may have anticipated, and it could mean some local revenue enhancements."
I don't know about you, but I'm looking forward to my local revenue enhancement!
Tyrone said...
>>2007 California Housing Crash
set to the Red Hot Chili Peppers.
Enjoy.
November 29, 2007 4:53 AM
Thanks Tyrone!!! That video was surreal... I posted it on my blog!
**BREAKING NEWS**
9% of all US oil cut off after explosion!
Quote:
A fire and explosion in Minnesota on Wednesday forced Enbridge to shut most of the main pipeline that supplies Canadian crude to Midwest refineries, halting nearly a fifth of U.S. imports and sending prices up $1.
Calgary, Alberta-based Enbridge Inc (ENB.TO) said all its lines in the vicinity of its Clearbrook, Minnesota, terminal -- Lines 1, 2, 3, and 4 -- were immediately shut down and isolated.
Those are the main trunk lines that carry an estimated 1.9 million barrels per day (bpd) of Canadian crude to the United States.
Bwhahahahahahahahhahahahahahahahah!!!
BREAKING NEWS!!!!!! MIAMI HERALD REPORTS!!!
In Miami-Dade County, for instance, the median condo price rose 6.5 percent to $266,300 in October over last year, while sales declined. The increase in prices likely reflects that condos that are selling are more likely to be newer, pricier units being resold by investors, said Miami real estate analyst Jack Winston.
Keith,
Are you going to write about the disgrace that was the CNN debates last night?
They asked Ron Paul 2 questions all night, both of which were meant to discredit him.
Would love to hear your take.
>Gee kids, blowhard's got a H3!
Um, is that the one that comes after H2, or before H4? Oh, and by the way, I just got me an H6 (with pool option) cause H5 just looked too much like a fridge. Heck, everybody just got themselves a new (INSERT NAME HERE), cause it's internet, anything is possible...
I smell a bailout!
http://biz.yahoo.com/ap/071129/risky_mortgages_modifications.html?.v=2
I think you can call this one -panic ...
http://tinyurl.com/2m6g9e
Do you feel safe with your bank? If yes, which one is it?
anon asks:
Do you feel safe with your bank? If yes, which one is it?
Yes, but I'm not going to tell you which one it is. Yields have been dropping lately. We don't need you.
Hi,
Right now Ron Paul's chances of winning the presidential nomination are excellent. Thank God, as this country needs a man with integrity that speaks the truth and loves America. We need a man that is not about a power grab but more humble and concerned about you and I. If you want to vote in an online poll go to http://news.aol.com/elections almost a quarter of million people have voted look at the results below. There are about 6 polls, including last nights debate. Vote in all of them if you like. Ron Paul wins virtually every straw vote (see below), online poll, text message instant poll and is now raising as much money as the others and by December 16, 2007 http://www.teaparty07.com/ (register) we'll blow them away with another money bomb. He is one of the top candidates even though the main stream media has been suppressing this truth intentially from 100's of millions of Americans. It doesn't matter they are blocking the truth because we have the internet to inform people of the real truth. People are tired of Politricksters and their empty lies, aren't you?...the results below prove this. People want Freedom, Prosperity and Peace. Be part of the truth movement and educate other Americans that we have a real choice this time and get registered and switched to the republican party (even temporarily) if you are in a closed state otherwise you cannot vote in the primaries. Forward this email on to others on your personal email list. Spread TRUTH!
Kindest Regards,
Mark
Who would you like to see win the Republican presidential nomination? (AOL POLL)
Ron Paul 25%
Rudy Giuliani 20%
Mike Huckabee 18%
Fred Thompson 13%
John McCain 9%
Mitt Romney 8%
Other 5%
Tom Tancredo 1%
Duncan Hunter 1%
Total Votes: 242,116
Ron Paul's Straw Poll Results
Updated on November 20, 2007
Straw Poll Date Rank Votes
Republican Abroad Korea Straw Poll (Seoul, Korea) 11/17/2007 1 50.0%
Fresno County GOP Straw Poll, Fresno, CA 11/15/2007 1 35.0%
Evanston (IL) Republican Club Straw Poll 11/11/2007 4 10.9%
New York State Republican Straw Poll, New York City, NY 11/6/2007 1 43.3%
South Sound Ronald Reagan Republican Club, Tacoma, WA 11/01/2007 1 37.7%
Springfield Metropolitan Republican Club, Springfield, MO 11/01/2007 1 77.3%
Laramie County GOP Straw Poll, Cheyenne, WY 10/28/2007 1 48.0%
Milton Township Republican Central Committee (MTRCC) Oktoberfest, Lombard,IL 10/26/2007 6 5.4%
Values Voter Straw Poll, Washington, DC 10/20/2007 3 15.0%
Conservative Leadership Conference, Reno, Nevada 10/13/2007 1 33.0%
Jefferson County, Alabama Straw Poll 10/13/2007 1 57.8%
Washington State Republican Party Fall Dinner Straw Poll 10/11/2007 4 12.2%
Tulsa State Fair, Oklahoma 10/07/2007 1 41.5%
Oregon Straw Poll- Portland, Oregon 10/06/2007 1 67.0%
Gwinnett County GOP, Atlanta, Georgia 9/30/2007 1 36.2%
CWA New Jersey GOP Straw Poll 9/29/2007 1 77.0%
South Sound Ronald Reagan Republican Club, Tacoma, WA 9/26/2007 1 35.0%
Mackinac Island - Michigan Republican Leadership Conference 9/23/2007 3 10.8%
Oklahoma County GOP Straw Poll 9/23/2007 3 11.0%
Palmetto Family Council Straw Poll 9/20/2007 2 33.0%
Values Voters Presidential Debate Poll 9/17/2007 2 13.0%
Manchester, NH Straw Poll 9/16/2007 1 65.0%
South Dakota Straw Poll 9/03/2007 6 8.0%
Maryland Straw Poll 9/03/2007 1 27.3%
Texas Straw Poll 9/01/2007 3 16.7%
Allegheny County, Pennsylvania 8/26/2007 1 45.2%
DeKalb County, Georgia Straw Poll 8/25/2007 1 24.0%
HRCC (Minnesota) 8/22/2007 3 16.0%
Ronald Reagan Club (Washington) 8/21/2007 1 28.0%
West Alabama 8/18/2007 1 81.2%
Strafford County, NH 8/18/2007 1 72.2%
West Lafayette, Indiana 8/18/2007 4 11.7%
Illinois Republican Party @ Illinois State Fair 8/17/2007 3 18.9%
Students for Life of America 8/16/2007 4 9.0%
Western Montana Fair 8/15/2007 6 4.0%
Gaston County, NC 8/14/2007 1 36.6%
Ames, Iowa 8/11/2007 5 9.1%
National Federation of Republican Assemblies (NFRA), St. Louis, MO 8/06/2007 3 14.0%
FreedomWorks Straw Poll 8/03/2007 1 56.0%
Georgetown County, SC 7/28/2007 2 17.9%
New Hampshire Taxpayers 7/07/2007 1 65.3%
Cobb County, GA 7/04/2007 2 17.0%
California Republican Assembly 7/01/2007 4 12.0%
National Taxpayers Union 6/16/2007 2 16.7%
Utah GOP convention 6/08/2007 2 5.4%
View a Google Map of Ron Paul's Results in Each Straw Poll
Ron Paul's Head-to-Head Records (Win-Lose-Tie):
Ron Paul v. Rudy Giuliani 36-7-0
Ron Paul v. Mitt Romney 28-15-0
Ron Paul v. Fred Thompson 27-15-0
Ron Paul v. John McCain 37-5-0
Ron Paul v. Mike Huckabee 35-6-1
Ron Paul v. Tom Tancredo 40-1-0
Ron Paul v. Duncan Hunter 39-2-0
Keep the Momentum Going.
Join the Campaign and Donate Today!
A RUN ON THE FUNDS! WILL THEY MAKE TEACHERS PAY ROLL IN FLORIDA!!!!!!
HOLY TSHHTF BATMAN!!!!
Florida suspends withdrawals from state investment fund
Dan Tracy and Aaron Deslatte | Sentinel Staff Writers
1:06 PM EST, November 29, 2007
Florida today suspended withdrawals from a state investment fund after cities, counties and school boards -- fearful of the fund's financial stability -- withdrew $3.5 billion in just one day.
The State Board of Administration -- the governor, attorney general and chief financial officers -- voted unanimously to at least temporarily halt a run on the fund, which has reported withdrawls totalling $10 billion in the past several weeks. That's more than one-third of the fund's assets of $28 billion.
Local governments fear they could lose their money because the state invested it in funds backed by loans to homeowners with questionable credit -- the same loans that have triggered an international credit crunch.
Governments and agencies typically take money intended to pay for such basics as teacher salaries or road repairs and invest it in the short-term state fund so they earn interest before the bills come due.
Alarmed local officials said the move by the SBA could jeopardize local governments' payrolls, if they are not able to take money out of the fund to pay employees.
"We needed leadership today, and we didn't get it," said Bob Inzer, chief financial officer for Leon County.
Related links
*
Orlando, Orange County yank millions from state fund
*
Read the state's assesment of the risk (PDF)
*
State Board of Administration issues statement to reassure investors
*
Central Florida foreclosure trends Multimedia
*
Housing stories and features
*
Mortgage meltdown continues to affect major players in Florida banking
http://tinyurl.com/2nqy7a
Dear Keith,
You will like this Ron Paul political cartoon by Dees.
Well worth the copy paste and send efforts.
http://tinyurl.com/2o5nlq
This triggered the run.
http://tinyurl.com/yw62ee
__________________
source; Bloomberg
snip; The Florida pool, which was the largest of its kind in the U.S. at $27 billion before the recent spate of withdrawals, has invested $2 billion in SIVs and other subprime-tainted debt, state records show. Connecticut, Maine, Montana and King County, Washington, are among other governments holding similar investments, in smaller quantities.
snip;
When the subprime debt market blew up in August, investors stopped buying SIV commercial paper. As a result, in September and October, some SIVs didn't have the cash to pay debt holders.
`Disappointment'
At [Gov.] Crist's Nov. 14 cabinet meeting, Stipanovich said that while there was ``disappointment'' over recent downgraded investments, no local government had ever lost money in the pool since its creation in 1982.
“The dollar is losing its status as the world currency,” warned Chinese central bank director Xu Jian on Nov 7th. “We will favor stronger currencies over weaker ones, and will readjust accordingly,”
http://www.kitco.com/ind/dorsch/nov292007.html
What pisses me off is that if CitiGroup will pay 11% interest on $7.5 billion in loans from a foreign country why is the Fed (helicopter) willing to give the U.S. citizens money to them for 4.5% (and probably less)?
And furthermore would no U.S. lender lend money at 11%?
I thought one of the responsibilities of the Fed is to protect the U.S. dollar.
Anonymous said...
Didn't Warren Buffet put his money in Brazil recently. He is always one step ahead of the hedge funds.
==============
Yeah he also bought acouple of million of shares of Bank of America in the summer. The price for BAC was in the mid 50s.It is now in the mid 40s.
He is not always right.
Anonymous said...
Hi,
Right now Ron Paul's chances of winning the presidential nomination are excellent.
=============
5% in the polls is excellent? If you say so.
.
Warren Buffet worth untold billions said he wasn't leaving his kids all his wealth.
He said in an interview that he would only leave them ONE Billion each!
Gosh I hope they can make it!
.
.
Warren Buffet is a major shareholder in a fractional corporate jet business, I believe it's called Netjet.
It's a big and growing business.
More corporate jets in the air and in airports everywhere.
Now with more activity at airports, the airports themselves are either attaching landing fees or higher landing fees because of higher use.
Buffet is fighting this through some legislation. He doesn't feel they should have to pay!
Now if the Airlines have to pay, why shouldn't the bizjets have to pay.......albeit a smaller fee?
Do I hear crying from one of the worlds most richest??????
.
.
Excuse me. Can somebody please explain why the Western countries continue to allow Muslims to immigrate?
----------------------------------
Sudan protesters: Execute teacher
CNN International - 2 hours ago
KHARTOUM, Sudan (CNN) -- Hundreds of protesters brandishing swords and sticks gathered outside Khartoum's presidential palace Friday to vent their anger against a British teacher jailed for allowing children to name a teddy bear "Mohammed.
Here's the next big topic of conversation:
The Hope Now Alliance
Argh , the White House and banksare drawing up the BAILOUT plan right now and should be finalized in the next week or two. Sounds like they've decided to keep all the gambling homeowners' low interest rates fixed! Essentially they're bailing out everyone including wall street and leaving the responsible individuals holding the bag! George Bush will go down as the single worst president ever!!!!!
F$!#$ this country has gone to hell.
http://tinyurl.com/2at8lf
Keith where is the discussion on this new "freeze" on teaser rates resetting until after the 2008 elections? Looks like the GOP is desperate. See SEC Chair and Treasury Secretary for story links.
Princess Mono-apostrophe said...
“I feel the need to touch on the sales number's again.”
++++++++++++++++++++
You DON’T PUT THE APOSTROPHE IN FRONT OF THE “s” IN A PLURAL! Only for the possessive!
Most of your posts are spot-on, but this is like nails screeching across a blackboard.
I seldom resort to name-calling here, but for this I must make an exception.
-Mammoth
Come on mammoth, apostrophe's are good. '-)
mammoth said...
November 30, 2007 9:41 PM
With all due respect mammath, I do my best. However, every now and then I make a mistake. I never said I was perfect. If you would just take a moment to visit my Blog, you would find out what kind of person I am.
Respectfully, Princess M
Thanks to financial reality for this tidbit;
http://tinyurl.com/2xb8ck
"wall street bonuses are generally paid at the end of the year, so to allow time for the usual meetings, performance is generally assessed through the end of November."
"the last day of November has not had a negative close on the Dow in the last 25 years."
Delta Homes Files For Bankruptcy
Posted: Nov 15, 2007 10:44 PM
FOX4NOW VIDEO
Coping With Bankruptcy
Cape Coral homebuilder Delta Homes has officially filed for bankruptcy. It filed chapter seven bankruptcy which is liquidation bankruptcy. The builder shut its doors after it stiffed several sub-contractors and left dozens of homeowners with liens on their properties. We last told you about how the builder's model home received a notice from the city of Cape Coral for not cutting its grass. The builder was also evicted from its Cape Coral office for not paying its rent on time. Fox 4 will continue to follow this story.
MARISA MENDELSON, CONSUMER INVESTIGATOR
AN ASTUTE PREDICTION
Qualifications for the Presidency
" . . . All the odds are on the man who is, is, intrinsically, the most devious and mediocre — the man who can most easily and adeptly disperse the notion that his mind is a virtual vacuum. The presidency tends, year by year, to go to such men. As democracy is perfected, the office represents, more closely the inner soul of the people.
We move toward a lofty ideal. On some great and glorious day,
the plain folks of the land will reach their heart's desire at last, and the White House will be adorned by a downright moron."
— H. L. MENCKEN, The Baltimore Sun, July 26, 1920
.
What about any other tool with the name Moham.........whatever
Kill them too?
.
Seven NAU videos, each under 5 minutes, one from CNBC and others are Lou Dobbs from CNN.
NAU Gov. name: Security and Prosperity Partnership Of North America
NAU gov web sight: http://www.spp.gov/
FMW
_________________________
http://www.youtube.com/watch?v=
6hiPrsc9g98
http://www.youtube.com/watch?v=
XdxI0zClV_Y
http://www.youtube.com/watch?v=
2kjsy2Z3kdI
http://www.youtube.com/watch?v=
MBmFrYWPoG8
http://video.google.com/videopl
ay?docid=2282867471160155093
http://www.youtube.com/watch?v=
SkfzRR1Zzj8&feature=related
http://www.youtube.com/watch?v=
T74VA3xU0EA&feature=related
_________________________________
I found 'em here:
http://tinyurl.com/37jvvq
From Beerisgood, poster at Market Ticker.
Las Vegas Housing Bubble Update:
http://economicrot.blogspot.com/
BOTTOM LINE: When tourism starts to wane, due to people running out of discretionary cash, gaming/hotel industry layoffs will follow, cascading the impacts of the already doomed Valley housing market, as more locals will be unable to meet their monthly mortgage obligations. Reduced spending levels, increasing layoffs, magnified home foreclosures and tightening credit conditions will cause a doubly painful domino effect on the Commercial real estate market and in due time, the impacts will be extremely painful to the entire economy. State Tax revenues will tank, crys for budget cuts will prevail and the government layoffs to follow will only exacerbate/compound the situation.
I think one of my readers summarized the situation best: “ Las Vegas lives off the margin. Good times, fat margins; lean times, no margin. LV has no plan B, there's nothing to take up the slack from a decrease in visitor volume. Even dollar rich foreigners aren't going to hold up employment that is based on a volume service industry and housing construction.”
Guess only the future will tell...
Oh, "and the pressure builds....". The Doom and Gloom Crowd (i.e. Keith, Joe Granville, Robert Precther, etc...) has preached that we will spiral into a long recession/depression and STILL has not happened yet. Folks, ask yourself this question, if you listened to the Doom and Gloom Crowd for the past ten years, where would you be financially? You folks who are prudent and wise with your money are the REAL FOOLS. I live life to the fullest, pay check to pay check, max out my credit cards and took money out of my home and guess, what? In the end, I will get bailed out! LOL, LOL, LOL, LOL. While you won't! LOL, LOL, LOL.
"The great misfortune is that a notion obtains with those in power that the world, or the people, require more governing than is necessary. To govern well is a great science, but no country is ever improved by too much governing. Govern wisely and as little as possible! Most men think when they are elevated to position that it requires an effort to discharge their duties and they leave common sense out of the question.
Sam Houston
From The Autobiography of Sam Houston by Day & Ullom, page 254.
go Ron Paul!
I am finally hearing talk on the street here in LA about how bad the market is.
I know Ben Stein is out of favor here, but read this and see him redeemed, at least partially. He is not as concise as Keith, or as hyperbolic, but he is asking a very good question.
http://tinyurl.com/3c9lua
"I will get bailed out! LOL, LOL, LOL, LOL. While you won't! LOL, LOL, LOL."
You WILL get bailed out but since you are living from paycheck to paycheck, you're still in the same boat. Remember? The one with the gaping hole in the bottom?
Look down! See the sharks swimming below. Sorry, the lifeboats are full with first-class passengers. Guess you'll just have to ride that boat of yours down to the bottom. But you can hold your breath a loooong time so you should come out of it just swimmingly!
Cordially,
The Norwegian Coast Guard
First they ignore you, then they laugh at you, then they fight you, then you win. - Mohandas Gandhi
go ron paul!
Oh yes, shit for brains deadbeats living with mom and pop. The only crash that you'll experience is the one when your 1995 Nissan pile of junk connects with my H3.
==
LOL
So here is how awful things are out there:
Friday night: A friend of mine's new plaything is a bartender at some overpriced new bar downtown. My wife and I go to say hi. Line outside of at least 75 people and it's only 10:00. Luckily we were on the list and so didn't have to wait. Drinks in this place were $20 for watered down vodka/tonic and crowd 5 deep waiting to pay.
Sat night: Went to my wife's company Christmas Party. About 300 people there, of which 100 or so were from out of town and flown in for the event. Open bar and just excellent food that must have cost a fortune.
Yep, I tell ya the recession is hitting hard. I swear you people live in a different universe than me.
urgent message to all HP nuts:
R
O
N
P
A
U
L
W
I
L
L
N
E
V
E
R
B
E
P
R
E
S
I
D
E
N
T
As I understand it, currently in California borrowers who have not refinanced have NON-RECOURSE LOANS.
Currently, they have the right to walk away and mail the keys to the bank.
HOWEVER, IF they refinance, they LOSE their NON-RECOURSE status.
I would assume that if a FB takes the bail-out bait and calls the lender to get their interest rate increase frozen, then this revision in the contract would switch their mortgage from NON-RECOURSE to RECOURSE.
After their interest rate is frozen the FB cannot walk away from their home without losing everything: money in savings, 401k, cars… and having their wages garnished. Seems similar to the new BK laws. It's the new indentured servitude (but didn’t the servant get their freedom after they paid for 7 years, rather than 30 years or more paying on an inflated mortgage?).
I am wondering if one reason that these bail-out plans have been announced with such vague language is to test the waters to see if the public catches on about the downside for the FB’s.
FB'S: Don't take the bait! Preserve your right to walk away from an upside-down mortage. This right is the most valuable thing you have in this uncertain time. Be sceptical! When was the last time a bank just did you a favor without something in it for them??!!
Be sceptical! When was the last time a bank just did you a favor without something in it for them??!!
December 02, 2007 6:39 PM
======
I got a $75 gift certificate for opening a checking account. I was gonna do it anyway. So I got $75 without anything in it for them.
So there.
Nice site!!!So anyway when you all sold your last homes and had your realtor come over I am sure you never said you wanted the highest comparable price. You wanted just under because you were concerned about the future. Oh wait thats not what happened. Looking back I remember I was working every Sat and Sunday and you were at the car dealer getting you new SUV ready to pick up. Blame the mortgage Brokers . I actually had my customer best interest in mind. I havent sold anything at 6%. Always 5%. I always cross off and intial any small fees on a listing. I contributed to any special needs for home inspections at times. I one time purchased $1000 in extra trim for a couple because the brochure had it but the contactor hired wasn't in the loop with the builder on that. Blame the mortgage brokers if you want someone to blame.
Excuse me. Can somebody please explain why the Western countries continue to allow Muslims to immigrate?
Many people in Europe have had it with them and are voting in leaders to stop immirgration.
The teddy bear incident is just the latest of examples that show they cannot and will not leave the 5th century mentality. We should not try to change them, but by the same token we should not allow them into our advanced civilization any more so than you would allow a mountain lion to live in a residential neighborhood. Our people have rights to be free of this danger!
There are many left-wingers that call us "racists" for even discussing this, as if they are unaware that Islam is a religeon and not a race. However, it does not bother me. I'd much rather be incorrectly called a "racist" than correctly assumed to be the fools that they are.
So here is how awful things are out there:
Friday night: A friend of mine's new plaything is a bartender at some overpriced new bar downtown. My wife and I go to say hi. Line outside of at least 75 people and it's only 10:00. Luckily we were on the list and so didn't have to wait. Drinks in this place were $20 for watered down vodka/tonic and crowd 5 deep waiting to pay.
Sat night: Went to my wife's company Christmas Party. About 300 people there, of which 100 or so were from out of town and flown in for the event. Open bar and just excellent food that must have cost a fortune.
Yep, I tell ya the recession is hitting hard. I swear you people live in a different universe than me.
Moron! And I doubt that you are married.
Nice site!!!So anyway when you all sold your last homes and had your realtor come over I am sure you never said you wanted the highest comparable price. You wanted just under because you were concerned about the future. Oh wait thats not what happened.
Are you really as stupid as your words indicate?
Using gross income for housing expenses is misleading- especially for someone single- I am getting killed on Fed and State income taxes, have been trying to set cash aside for retirement and have 60K student loan debt. Should use net income.
Be skeptical! When was the last time a bank just did you a favor without something in it for them??!!
================
I too got $50. for opening an account.
And what hoties they have a teh banks these days>!
http://tinyurl.com/2dfovx
Suisun City resident Roiesha Scott, 30, sat on her dark leather sofa, holding her two-week-old baby and said it was her fault.
"Now I wish I had asked more questions and done a lot more market research," she said. "As soon as we moved into the house, the values were going down. I feel like I put my family in a predicament."
Scott and her husband Joseph, 27, were served with a notice of default in September and put their house on Tea Rose Court up for sale in late October for $400,000. They bought the home in March 2006 for $515,000 and because of a job change now can't afford monthly payments.
A notice of default means homeowners have 90 days to pay their lender or their home may be sold to the highest bidder on the steps of city hall or the courthouse. Approximately 1 in 43 homeowners in Solano County went into foreclosure from July to September, enough to affect almost every neighborhood in the county.
http://www.thereporter.com/
business/ci_7617463
Are the big banks running out of liquidity or are the big banks not trusting their counterparties because there is an obvious ‘carry’ trade for the banks to jump onto.
The three-month swap rate between the London Interbank Offered Rate (Libor) and the US Federal Reserve’s discount rate is closer to 70 basis points and normally it runs about 12 basis points.
With the Fed funds rate at 4.5 per cent (and likely to tumble further) and Libor above 5.2 per cent, there ought to be an easy arbitrage opportunity for the international banks – borrowing from their US counterparts to on-lend to their UK peers and collecting an easy 70 basis points-plus ‘turn’ in the process.
http://www.businessspectator.com
.au/bs.nsf/Article/Fear-and-
loaning-9J5L9?OpenDocument
Ok, the government is going to bail out the subprime mortgage holders, the flippers and everyone else.
Read it and weep.
Why do I feel like killing a banker?
http://www.hopenow.com
-JM
http://bankingpanic.blogspot.com
Dear God, more "victims" of the subprime mess...
Examining the subprime-lending crisis
The offer, which they accepted Wednesday, allows them to postpone payment on $150,000 of the principal until 2034 and lowers their monthly mortgage payment to a fixed $1,664.
Quite the "investment" this dumbass couple has. Buy a home in 1977 and keep making payments on it until 2034. Idiot banks; they be dead before 2034. LOL
Mike Norman gives Peter Schiff Pepto-Bismol on FoxNews:
http://tinyurl.com/2cg3wk
FLASH:
Lennar sells a chunk of their housing portfolio to Morgan Stanley at 60% off.
Now *that's* what I call mark to market!
http://tinyurl.com/2kagod
SUBPRIME BAILOUT DETAILS:
Maybe there's hope yet?
1. The plan would be most geared toward those who can afford the mortgage now but won't be able to after the adjustment.
2. The other three groups are largely left out: Borrowers who can afford an adjustment; those who are already behind on their payments; and those who can refinance into a fixed-rate loan
3. The plan would also seemingly exclude borrowers who hold option-ARMs that aren't subprime.
4. It has also been reported that homes that were bought as investments - as opposed to for the purpose of living in - would be excluded.
5. "It's hard to conceive how many people are actually going to meet this criteria. There's nothing at all in there that addresses investors,"
I still believe there should be absolutely NO bailout, but in the worst case scenario this does get approved, it's at least palateable.
The interest rate for one-month Libor - London interbank offered rate - hit 6.72 per cent from 6.09 per cent on Friday
The main interbank lending rate - three-month Libor - has also risen to 6.62 per cent
http://business.scotsman.com/
banking.cfm?id=1890602007
Can Libor Rate go even higher if major global banks don’t trust each other enough to lend to each other short term.
The Treasury-Eurodollar spread [TED spread]seems to think so since the spread widen today to level not seen since October 1987.
Can we see a TED spread of 300 or even 400 points by end of this week.
Over 200 Foreclosed Phoenix Homes Totaling $54 Million Head to Auction Block
Homes Will Be Auctioned December 8th and 9th by Hudson & Marshall
PHOENIX — Foreclosures continue to swell in Arizona, flooding the market with excess inventory, earning the state an unwanted spot in the nation’s top ten list for foreclosures. According to Realtytrac(R), Arizona ranked eighth in the nation among states with the highest foreclosure filings, reporting 6,339 filings in October 2007.
In this rough and tumble real estate market, where prices are falling, more choosey buyers are attending foreclosed real estate auctions to catch deals on homes. Hudson & Marshall, the country’s largest foreclosed property auction firm, will auction over 200 area Phoenix area foreclosed homes on December 8th and 9th at 1:00pm at the Mesa Convention Center Building A.
http://www.survival-center.com/
Captain Dave's Survival Center.
Use the drop down menu to find Recession/Depression.
There's a catagory for SARS/MERSA/Bird Flu/Terrorism/Nuclear Attack, well you get the picture.
Beans and Bullets Baby
Tyrone,
I live in Denver and read the same article. I think the key to how this idiocy happend was stated in the same paragraph that you posted:
-Donald and Phyllis bought their Brighton home for $58,000 in October 1977, counting foxes and coyotes among their neighbors, and raised two children there.
"I had 27 credit cards at one time. I can't get one now," Phyllis said.
Donald is 70, and Phyllis is 68. Their income is fixed at $4,439 a month. Their mortgage payments, insurance and property taxes exceeded $3,300 a month.
They kept trying to stay current as their mortgage payments adjusted higher and higher.
Donald called Option One, ranting that the payments were impossibly high.
The foreclosure notice came exactly 30 years to the month after they bought the house. --
27 CREDIT CARDS? Are you F$%^ing kidding me? That, my friends, is the key to this whole mess. And just think, these are the idiots who are getting bailed out.
OMFG!
Mitt Romney does NOT want you to watch this video
Spooky!
http://www.youtube.com/watch?v=n5dscqcNOGM
someone got your photo on marketwatch:
http://i.mktw.net/newsimages/news/dreds/topical/pets_com_sock_puppet_67x67.jpg
http://www.marketwatch.com/
http://www.denverpost.com/search/ci_7619800
The above link is to the
2nd story in the Denver Post's subprime lending crisis. It's a good story about fraud, flippers, and idiots. Here's a tidbit.
Michael Campbell, a flamboyant real-estate buyer who carried a teacup poodle to house closings, died of an alcohol overdose this year. At the time of his death, he was being pursued by federal and state fraud investigators.
Campbell, 40, left behind a trail of creditors, lawsuits and foreclosures.
As a speculative buyer, Campbell, like many others, repeatedly took advantage of the easy-loan era that collapsed this year into the subprime-lending crisis. From 2000 to 2006, the percentage of home loans to investors doubled nationally, and the number of mortgage-fraud cases leapt 700 percent, from about 3,500 to about 28,000.
Do you guys sense the Neocon / corporation regime is weakening and now discredited. Have we hit a turning point?
All the donations to Ron Paul, Moveon.org, etc and letters to Congress seem to be working and the message is slowly starting to be heard...
Home depot feels the pain..... CUTTING JOBS....
HAHA... So now Sub prime lenders, creditors and ex home depot workes will be in the same unemployment line... that should be a good fight.
http://news.yahoo.com/s/nm/20071205/bs_nm/homedepot_callcenter_dc
FLASH:
Merrill Lynch, Bear Stearns, Deutsche Bank, subpoenaed by NY AG over subprime loan packaging.
http://tinyurl.com/2c2xgl
1.3 trillion is sub primes out there. 20% will go into forclosure. That's 260 billion worth of mortgages foreclosed on. Assume that the banks don't get back the customary 98% of the foreclosed amount, but instead maybe 60%. That's only 104 billion in lost money. That does not seem so bad, especilly if the recovery amount is 80% which would be about 52 billion.
BAILOUT IS A DONE DEAL.
5 year freeze for all mortgages from 2005 and on.
http://biz.yahoo.com/ap/071205/mortgage_crisis.html
...BAILOUT IS A DONE DEAL.
5 year freeze for all mortgages from 2005 and on.
http://biz.yahoo.com/ap/071205/mortgage_crisis.html
Now the buyers have no excuse to walk away from their negative equity.
It also gives time for the owners of the toxic CDO's, SIVs etc to palm them off some-one (most likely JQPtaxpayer)
Oh the world we live in. What goes around comes around...
yuri6r
GOVT CONTROLLED HOUSING, WELCOME TO THE SOVIET UNION...WITH NEO ARCHETECTURE
Not so fast - according to WAPO, the "bailout" is pretty limited. It does not apply to anyone already behind in payments or capable of meeting the ARM reset. It has to be your primary residence. And it's not entirely clear how they will define the remaining people. Since most of the foreclosures are investment properties, the party continues.
I noticed that Hillary was threatening the mortgage industry to either help with this credit/housing mess or Congress would come down on ‘em hard. I wonder why she or no other politician is going to be coming down hard on the people who borrowed the money to buy houses that they otherwise couldn’t afford. These borrowers were either greedy, financially uneducated, trying to keep up with the Jones (see greedy) or downright lied on their applications. These same borrowers are more at fault, IMHO, than the mortgage companies are. That’s why this is just a political-posturing bailout for homebuyers (voters) who are looking for a free lunch. Always remember that politicians love to appear to be the “Robin Hoods” of Sherwood Forest. The only problem with that is that the money “stolen from the rich” to help the “poor” always comes from the goverment coffers, i. e. mine and your pocketbooks. Politics pure and simple
Suggestion for a topic:
Is there one person in this entire country that most everybody could agree would be able to lead us through this mess. You don't have to like him/her, you just have to believe in their ability to lead and unite the country. So far I don't see a presidential contender on either side who could do the job. Ron Paul is my favorite of the contenders but I don't think he has the charisma or whatever quality it is to bring this divided country together.
Revelstoke Real Estate>
NY Post - December 6, 2007 -- The brokerage unit of West Coast banking giant Washington Mutual appears to be on the verge of closing, according to a number of sources on Wall Street.
WaMu Capital Corp., a mortgage-backed securities (MBS) broker with an office in New York, is pulling the plug Dec. 10 on its attempt to be a player in the MBS markets, according to an individual familiar with the firm's plans. The announcement had originally been scheduled for Tuesday, but was shifted to next week due to Hanukkah.
A victim of the sustained collapse in the mortgage markets, WaMu Capital will reduce its headcount to between 10 and 20 people from 125. In September, the bank dismissed 100 traders, sales personnel and support staff.
The closure appears to have been coming for the past few weeks. Since early November, WaMu Capital was not providing repurchase agreements and in many cases, did not provide even basic bids and offers for bonds it had sold, according to hedge fund portfolio managers.
Launched in 2002 with mortgage veteran Tim Maimone at the helm, WaMu Capital was set up to recapture some of the secondary market profits from the billions of dollars worth of mortgages that the parent bank annually originated.
While no real threat to the likes of mortgage bond trading giants Bear Stearns and Lehman Brothers, WaMu Capital made a decent profit trading some of the more complicated MBS it originated to mortgage hedge funds and others.
WaMu Capital's parent has suffered mightily in the wake of the mortgage crisis. In the third quarter, it announced a 72 percent drop in profits and disclosed a $975 million mortgage loan loss provision, $550 million greater than anticipated.
well, it seems our dear beloved presdent was at that mall in omaha yesterday about the time that shooting happened....i am sure this made the secret service very nervous to say the least.
Bribe money is the reason Roland Arnall, founder of Ameriquest, and subject of dozens of predatory lending lawsuits is named ambassador to the Netherlands by Bush, and the FBs are left to fend for themselves.
When a mortgage company implodes what happens to the people who have mortgages with them? Do they have to find a place to refinance or do they get a free house or what?
I gave a presentation tonight for my accounting class about valuation of illiquid securities. Topics included FASB definitions of mark-to-market, mark-to-matrix, and mark-to-model (ie mark-to-myth per Warren Buffett).
The general response was numb boredom until I showed the reset chart and explained the moral hazard of the proposed bailout and what that means for creditworthy borrowers looking to purchase or refinance ie reduced liquidity = higher rates.
The accounting curriculum is behind the curve it seems but HP keeps me up to date on what I'll be working with when I graduate next year.
Hey Keith, there is a great Ron Paul Effort Going on it only needs 25k unlike the blimp but will be far more effective in my opinion.
http://www.ronpauldvdbomb.com/
Doin' a heckuva job:
December 6, 2007
Bush gives out wrong hotline number
WASHINGTON (CNN) — Harried homeowners seeking mortgage relief from a new Bush administration hotline Thursday had to contend with a bit of temporary misdirection from the president himself.
As he announced his plan to ease the mortgage crisis for consumers, President Bush accidentally gave out the wrong phone number for the new “Hope Now Hotline” set up by his administration.
Anyone who dialed 1-800-995-HOPE did not reach the mortgage hotline but instead contacted the Freedom Christian Academy — a Texas-based group that provides Christian education home schooling material.
The White House press office quickly put out a correction moments after the President’s remarks. After dialing the correct number, 1-888-995-HOPE, CNN was connected to a “counselor” within three minutes. [link]
Hmmmm...
Alaska fertilizer plant shuts down because of lack of natural gas.
http://tinyurl.com/2r89hm
Let's see here...
No natural gas=no fertilizer=no food...
Is that about right?
www.dieoff.com
Wall Street Journal:"Battle Lines Form
Over Mortgage Plan"
http://tinyurl.com/2aydj8
All the holes in W.'s Swiss Cheese Bailout Plan exposed!!
Finally another voice speaks the truth that IT'S NOT JUST A SUB PRIME MORTGAGE CRISIS!
The 2nd graphic half way down shows the reality! http://tinyurl.com/2b5ugl
Percent of foreclosures started:
Prime Fixed Rate = 17.6%
Prime Adjustable Rate = 18.7%
Sub Prime Fixed Rate = 12.0%
Sub Prime Adjustable rate = 43.0%
FHA and VHA = 8.7%
So while the smaller pool of sub-primes make up the largest percentage of current foreclosures 43%, the larger pool of loans considered prime currently equals 36.3% of current foreclosures. That almost comes within margin of error territory of being equal to sub prime adjustables.
And this mess is just getting started!!
Are the cracks in the facade of lies finally getting noticed by the MSM?
IT'S NOT JUST A SUB PRIME CRISIS!!!
The housing credit is b---s---. When I was faced with a difficult financial situation three years ago I did the unthinkable, I paid off my debts slowly but surely.
Now that I am back in the financial saddle and have a good downpayment in savings I find that I should've just bought back then and sheltered everything in the house!
When will our government get its head out from the sand?
Anon said:"When a mortgage company implodes what happens to the people who have mortgages with them? Do they have to find a place to refinance or do they get a free house or what?"
No such luck getting a free house from the bank. The bank going under will send a letter with new coupon book letting you know who the new mortgage holder will be. this happens in advance, and there's no interuption in you house payments.
Freezing the interest rates on these subprime loans basically equates to converting them to "below market value" interest rate loans. Such loans are taxable by the IRS (they're treated like gifts). Feel free to correct me if I'm incorrect. If not, email your congressman/woman to find out when the rest of us who were more responsible will be getting our tax fee winfalls from the government
With regards to the current poll:
Can you please change it so we can vote for all three options Keith?
PLEASE?
Stupid
Really F#**ing stupid
Impeach the retard.
Great illustration of how bad mortgages ripple through the financial system:
http://tinyurl.com/2yye7s
We know lots of people who still don't get it. Show them this.
hits 200!!!
Nicholas Retsinas, one of the biggest paid stooges for the REIC, FINALLY admits there's a problem in real estate, says: "the market is hemorrhaging."
http://tinyurl.com/yoez6m
Just a few months ago, this doofus wanted to give illegals amnesty so that they could buy houses.
All this bad news; how about some songs!
Santa's Importin' For You
Dollar Diving Down
C.D.O. Feels Like Hoover
"Stupid
Really F#**ing stupid
Impeach the retard"
That retard is laughing all the way to the bank while you're wasting your time "voting" on a web blog. Speaking of retards. I bet you lost there too.
Uncle Sam to Pay for BAILOUT counselors
The Hope Now Alliance estimates that it costs between $12,000 and $18,000 (see correction below) to identify and train each counselor, before factoring in equipment costs, said Laurie Maggiano, the deputy director of asset management for the department of Housing and Urban Development.
The Alliance hopes to offset part of those costs through a $200 million congressional appropriation.
http://money.cnn.com/2007/12/06/real_estate/hopenow_strain.moneymag/index.htm
Anonymous said...
>>The accounting curriculum is behind the curve it seems but HP keeps me up to date on what I'll be working with when I graduate next year.
December 07, 2007 2:07 AM
Right on! Way to go... and congratulations on finishing next year!!! ;)
There is already talk about how to game Bush's bailout.
Just don't pay your bills for a few month's and Bush will reward you with a locked in teaser rate.
God I love America.....
http://tinyurl.com/3xze5d
* surveillance-society political cartoon for your pleasure,I think.
http://tinyurl.com/ysbar8
Hey Keith!
Good Gawd! Is this the NEXT SHOE that's going to drop?
Any guess to how many level 3's will be reported in the coming months?
My guess is its a lot.
http://www.themoneyblogs.com/urbandigs/my.blog/level-3-assets-credits-next-concern.html
http://www.cnbc.com/id/15840232?video =605445206
I hope this link pasts up OK, It a CNBC Piece with the CEO of Overstock on where things are headed. Must See!
I was thinking about doing an honest days work for once, but then I decided to wish on a star for a miracle instead.
Confession from the far left. I had to renew my license today so, I registered to vote. I registered no it is too ugly I cannot say but I must I registered as a gasp Republican. Oh the horror the horror of it all. My hand was shaking as the pen moved closer to checking that horrible little box. I broke out in a cold sweat and I am not sure but I might have blacked out for a second there. Have I had some strange change in politics no I would say I am the same but the candidate changed. You know you I am talking about. That’s right Dr. Ron Paul. I registered as a Republican so that I can vote for Dr. Paul in the Republican Primary Election. Dr Paul you just got one more vote in Maryland. I will also have $100 for your money bomb on 12/16/07.
Burn Baby Burn
Just got back from a busy street fair here in Portland. Got nabbed by a young guy from the Ron Paul booth and WHOA, those people are total nutjobs. It was almost difficult communicating with such ignorance.
He and his older, grumpy cohort were advocating the end of the income tax "so that people would give more to charity". That's the fallacy behind conservative/libertarian ignorance- that the bulk of taxation is "welfare". God, I hate that misguided belief. Of course I had to inform the cretins that AT ITS PEAK welfare only amounted to 7% of the federal budget. Now it's around 4%. So the old man just yelled at me and walked off which is a typical communication tactic of the ignorant. Sort of like Bill O'Reilly. They hate facts.
What a platform. Totally based on selfishness, greed and ignorance. And my favorite part is all the literature that calls him "Dr. Ron Paul". Oh yeah, that gives him credibility. Seems to work for "Dr." Michael Savage.
God help this country. I hope the Paul followers get what they deserve.
200 major U.S. lending operations have "imploded"
http://ml-implode.com/
The number of distressed house properties on the market in Santa Clara County rose to 18.3 percent in November, up from 14.7 percent in October, according to a report.
In San Mateo County the number of distressed properties in November was at 15.4 percent, up from 13.1 percent the preceding month.
http://www.bizjournals.com/sanjose/
stories/2007/12/03/daily62.html
Dollar depreciation can result in enticing the foreign market though. Who wouldn't want a beachfront property in Miami!
Post a Comment