March 31, 2008

HousingPANIC Quote of the Day

"At current levels, the average American still can't afford the average house. Despite the creativity of its new policies, Washington can't alter that math."

"The only mechanism to restore balance and get the credit flowing is for prices to fall steeply to a true market level, and for losses (for consumers and corporations) to be recognized and absorbed."

- Peter Schiff, March 2008

Alphonso Jackson, Bush's incompetent Secretary of Housing, to resign. Mike Brown probably on the short list to replace him.

incompetent - in·com·pe·tent

1: not legally qualified
2: inadequate to or unsuitable for a particular purpose
3 a: lacking the qualities needed for effective action b: unable to function properly

Embattled HUD chief reportedly set to resign
Jackson, facing allegations of cronyism, will hold press conference Monday

Housing and Urban Development Secretary Alphonso Jackson, buffeted by allegations of cronyism and favoritism, is expected to announce his resignation Monday, sources close to the matter told the Wall Street Journal.

HousingPANIC Stupid Question of the Day

Flipside to yesterday's question: Which of the
largest American cities and towns (over 100,000) are infested with the LEAST amount of scum per capita?

Here's my top five for starters, although it's going mainly from past memory vs. current conditions (and REIC infestation) on the ground today:

1) Ft. Collins, CO
2) Madison, WI
3) Lincoln, NE
4) Portland, OR
5) Ann Arbor, MI

You know I'm thinking a computer could do this for us. It'd be great to get a list of towns with the highest and lowest amount of mortgage brokers and realtors per capita. There's your answer.

The REIC and easy credit ruined towns.


Housing Anarchy is here. And a big thank you to the monkeys running the show in Philadelphia. You have just lit the fuse, and you have just told the people to stop paying their mortgages. Amazing.

The credibility of the United States of America is now at risk. NOBODY in the world is going to have confidence buying US debt anymore. The monkeys running our government are now telling investors that loans no longer have to be paid in the good ol' USA. Crime pays. Mortgage fraud will not be prosecuted. Loans do not have to be paid back. And money will fall from the sky.

Head to the shelter ma. Storm is coming.

Philadelphia suspends sales of foreclosed homes

Authorities in Philadelphia will suspend foreclosure sales of homes whose owners have fallen behind on adjustable-rate subprime loan payments -- potential relief for tens of thousands of struggling debtors.

Sheriff John Green said on Friday he would halt sales of foreclosed properties in April and would seek a court order extending a moratorium for an unspecified period.

Philadelphia becomes the first U.S. city to halt foreclosure sales in the current crisis, although Cleveland and Baltimore are considering similar measures, said ACORN, an advocacy group for low-income families.

John McCain draws a crystal clear line in the sand - NO GOVERNMENT BAILOUTS FOR FAILED BANKS & MORTGAGE GAMBLERS. Well, maybe not that clear of a line

"It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers"

- John McCain, before he eventually modifies his position after seeing the media coverage, polling data and drop in contributions, and after he already said bailing out Bear Stearns with $29 billion in government money and selling it to one of his top contributors was not a bailout, March 2008

Top Contributors

1 Blank Rome LLP

2 Merrill Lynch

3 Citigroup Inc

4 Greenberg Traurig LLP

5 Goldman Sachs

6 IDT Corp

7 Credit Suisse Group

8 JPMorgan Chase & Co

9 Bank of New York Mellon

10 Pinnacle West Capital

11 Lehman Brothers

March 30, 2008

Genuine Bank of America ad. You fill in the punchline

Thanks Michael for the pic

So, how's that "Ownership Society" working out for America now Mr. Bush?

Well, let's see

* The banks are failing
* Millions of Americans have been financially destroyed
* The last suckers in - women and minorities - got hurt the worst after being encouraged to buy at the top regardless of price
* Trillions have been lost with trillions more to go
* Hundreds of thousands have lost their jobs
* Neighborhoods are filling up with foreclosures and falling into decay
* The world financial system is collapsing
* America is in recession

Well, I'd say it's working out pretty good! Almost as good as that Iraq strategy. Almost as good as that Social Security reform.

George W. Bush - the Worst and Most Destructive President in the History of the United States.

President Bush's Policies Promoting the Ownership Society

The President believes that homeownership is the cornerstone of America's vibrant communities and benefits individual families by building stability and long-term financial security.

In June 2002, President Bush issued America's Homeownership Challenge to the real estate and mortgage finance industries to encourage them to join the effort to close the gap that exists between the homeownership rates of minorities and non-minorities.

HousingPANIC Stupid Question of the Day

What American city is full of the most scum?

1) Miami / South Beach
2) Las Vegas
3) Phoenix / Scottsdale
4) Los Angeles / Orange County
5) _______

(Funny how the scum to housing bubble market correlation is so high, eh? Wonder why that is... )

Mortgage fraud case update - the St. Louis basketball coach, the straw buyers and a case of obvious mortgage fraud

Back in December of 2006, we came across
this innocent little article in the St. Louis Post Dispatch about an obvious case of mortgage fraud by a popular high school basketball coach Floyd Irons. Obvious to us, but not to the St. Louis Post Dispatch.

So we emailed the reporter with how the scam works, and HP'ers also
sent it in to the FBI. But then time went by, nothing happened, the reporter didn't understand mortgage fraud and wouldn't follow up, and just like Casey Serin and the other million mortgage fraudsters, we figured this would just be another case where crime did pay.

Well, for the first time in the history of this blog, we've got some good news on that front - we got our man, and the guilty are on their way to federal prison, with some hefty fines too. And the FBI in St. Louis should be commended for DOING THEIR F*CKING JOB.

Glad we could help.

One down. Millions to go.

St. Louis Post Dispatch reporter stumbles onto classic mortgage fraud and doesn't realize it

Floyd Irons sentenced to year in prison in mortgage scheme

More on homeowners versus homedebtors...

Agreeing to pay a lender interest for the next 30 years, or 10,950 days, in order to live in a home that is not yours does not make you a homeowner. It makes you a homedebtor.

Homeowners are not losing their homes. They weren't their homes in the first place.

Homeowners are not in troube.

Homeowners don't need to be bailed out.

Homeowners don't have toxic loans.

Homeowners were not victimized by predatory lenders.

Putting little or nothing down and signing up for a loan does not make you a homeowner. It did not give you special status versus renters. It did not elevate you to a new class or socioeconomic status. It did not mean you have arrived.


"Home Rage": Banks are now offering foreclosed homedebtors cold hard cash to not destroy their homes before they clear out

Do you have any comprehension now about how ugly it's getting out there?

Thank you realtors. Thank you mortgage brokers. Thank you housing gamblers. Thank you Alan Greenspan.

This mess is only gonna get messier now. The screwed sheeple are getting pissed.

Buyers' Revenge: Trash the House - After Foreclosure Banks Pay People Off To Deter Home Rage

The stucco subdivisions of Las Vegas are caught up in the nation's foreclosure crisis. These days, bankers and mortgage companies often find that by the time they get the keys back, embittered homeowners have stripped out appliances, punched holes in walls, dumped paint on carpets and, as a parting gift, locked their pets inside to wreak further havoc.

Real-estate agents estimate that about half of foreclosed properties to be sold by mortgage companies nationwide have "substantial" damage, according to a new survey by Campbell Communications, a marketing and research firm based in Washington, D.C.

The most practical way to ensure the houses are returned in decent shape, lenders and their agents say, is to pay homeowners hundreds or even thousands of dollars to put their anger in escrow and leave quietly.

March 29, 2008

Vegas home for sale: Includes a hot 22-year old model, two cars, and porn star and stripper phone numbers. Cocaine not included.

Man, it's getting ugly out there now. People are trying to sell their life along with their house.

Meanwhile, I think we can now confirm that Vegas is indeed full of hookers, strippers, porn stars, shallow people, unemployed mortgage brokers and screwed homedebtors.

Las Vegas - the cesspool of America. On sale now!

Thanks Richard for the link. I'm going to take a shower now.

Las Vegas Life - House, Benz, and priceless extras

Perfect way to move to Las Vegas and get a head start in your new home. You are bidding on a complete package that includes:

My 2750 sq ft luxury home on the 15th fairway of the prestigious Las Vegas Country Club, right in the middle of everything that is Las Vegas. Granite and Travertine flooring, Granite Kitchen, Euro Cabinets, Stainless appliances, His and her shower and fireplace in Master Suite. House has been completely custom remodeled and has a new automated lap pool and spa, new A/C, Heat, Water softener, too much too mention.

If you like, you also have the opportunity to continue having ( as long as you are cool enough to keep her around) my very cool and gorgeous 22 year old aspiring model, rent paying, best I ever lived with, rock and roll connoisseur roommate(pictured)-This alone is worth the purchase price.

1996 Triple Black Mercedes Benz 500sl Sport Edition(117,000 miles),

2004 Toyota Tundra pickup(20,000 miles, loaded) (Appeared in 2006 Gumball Rally and the movie 3000 miles)

My cell phone number(702) SEL-SEXY, including many stored numbers (and some introductions), highlights include 3 porn stars, one a 2007 AVN award winner, numerous strippers, "VIP girls", bartenders, club hosts, DJ's, and an original member of Guns n Roses, who will even come over and have a drink or two to welcome you.

Sale will be treated as 700,000 for the real estate(less than the most recent appraisal) and the rest as a personal property and goodwill sale. Good luck and happy bidding

COUP ALERT: Bush and Paulson want to give even MORE powers to the Federal Reserve Bank. Be afraid America, be very afraid.

The Federal Reserve was supposed to regulate the lending industry and didn't. Maybe that was the plan - offload the responsibility, and then let the banks run ramshod.

So instead of proposing legislation to disband or rein in the Fed, George Bush and Goldman Sachs CEO Hank Paulson (oops, I mean Treasury Secretary Paulson) want to give them more responsibilities (whether they choose to use them, or ignore them like they did in the past).

Here's the plan that SHOULD be being proposed:


Be afraid America, be very afraid. Fear for your country, because your countrymen either don't understand or could care less.

The Federal Reserve Bank and its leaders have failed America and were directly responsible for creating this current mess. The blood of the housing bubble and crash is on their hands. They should be destroyed, not deployed.

Ron Paul is going to go nuts when he hears about this.

WASHINGTON - The Bush administration is proposing a sweeping overhaul of the way the government regulates the nation's financial services industry from banks and securities firms to mortgage brokers and insurance companies.

The plan would give major new powers to the Federal Reserve, according to a 22-page executive summary obtained by The Associated Press.

The Fed would be given broad authority to oversee financial market stability. That would include new powers to examine the books of any institution deemed to represent a potential threat to the proper functioning of the overall financial system.

HousingPANIC Stupid Question of the Day

Should the realtors and mortgage brokers be sued for damages?


It is seriously driving me crazy how much I see and hear the word "homeowner" in the media, as if America was full of 'em.

It's not.

Very few people actually OWN their homes. It's the nation's dirty little secret. And with HELOCs, even people who used to truly own their homes are now indeed owned.

So HP salutes the true OWNERS. Yes, they still have to pay their property taxes or lose their homes. Yes, they still need to mind community or association regulations. So even OWNERS are not truly free.

But they're as close as they can come to that ideal.

Here's a funny piece from the past that reinforces my message: homeDEBTORSHIP is not homeOWNERSHIP. Enjoy.

Minneapolis, Minn. — Showing no ill effects from a weak economy, housing numbers released by the National Association of Realtors today showed that a record 75 million Americans are now participating in the mass self-delusion that they, and not their banks, actually own their homes.

"Home ownership is the fulfillment of the American (banking industry's) dream, and we are proud to announce that more Americans than ever have been able to (help lending institutions) achieve that dream," said NAR President Richard Schicter.

After putting 20 percent down on a $235,000 house yesterday morning, Minneapolis pediatric nurse Stephanie Doogan officially became the 75 millionth American to take part in the widely accepted fantasy.

"Ever since I was a little girl, I've wanted to (deceive myself into believing I could) be a homeowner," said Doogan, 35. "Well, look at me now! Me, little Stephanie Doogan, I actually have a place I can call 100 percent (minus 80 percent) my own!"

HousingPANIC calls for the overthrow of the government of the United States of America

Just vote 'em all out. All of 'em.

There. That wasn't so hard, was it.

No guillotines. No bullets. No goose-stepping thugs. Just a bunch of pissed off and screwed-over voters doing the most patriotic thing they can this November - overthrowing their government.

God bless America. And vote against EVERY incumbent - local, state and national. Our democracy needs an enema.

This should be fun.

Oh, on the Presidential election, kinda sucks, we get two viable choices in November and that's it, but the GOP team sure stunk up the joint these past eight years, so voting Dem (or writing in Ron Paul) is essentially voting for an overthrow. And voting Obama is more of an establishment overthrow than voting for Bill (oops, I mean Hillary) Clinton.

Come November, the American voter is gonna be PISSED. And I mean really, really PISSED. The housing crash changed everything.

You - old white guy with the briefcase - get in the truck

Thanks GT

March 28, 2008

HousingPANIC Quote of the Day

"Home Depot looks like the Neutron Bomb dropped as the euphoric punch bowl crowds are gone and only a few shell shocked/drunk Boomers are still walking around"

- Anon HP'er, March 2008

It'll be a sad day when all the HELOC and REIC money runs out. Oh, wait, you mean the HELOC and REIC money did run out?

Do NOT watch this Leper video from ds if you're easily offended. Or are saddened at what's happened to Dallas, Scottsdale, Miami and Vegas, the most disgusting towns in America.

Frank - this one's for you..

Been awhile. Let's do it. Where are we now?

Work with me people, work with me...

And remember, this crash doesn't end until the majority of Americans find their way to "Despondency".

In other words, thanks to cheerleaders at the NAR, the ramen eaters and rolodex-of-reators Catherine Reagor, we've still got a long, long, long, long way to go.

Unfortunately, I think we're still somewhere between Denial and Fear.

HousingPANIC calls for Lawrence Yun to resign from the NAR and become an HP'er

I feel sorry for any fool who takes the "NAR Chief Economist" job. It's pretty obvious that "sell your soul", "permanently destroy your future job prospects" and "lie, deceive and distort" are at the top of the job description.

Here's Yun saying that home prices are NOT GOING TO DROP in 2008. He also has a message for Bernanke - stop cutting rates. Why? Because inflation is going to roar, long term bond rates will soar, and a 30 year mortgage will be at a double-digit rate soon enough. And on that, I think we can agree with Yun.

That said, a special HousingPANIC message to Lawrence Yun, who reads this board:

Lawrence, do good in this world. Quit. Resign. Blow the whistle. Testify in front of congress. Spill the beans. Redeem yourself.

Your predecessor David Lereah was obviously a slimy snake, a used car salesman, pretty much scum of the earth. You seem like a nice fellow. But both of you have done very very bad things to America.

Lawrence, we're pulling for you big guy. Walk away. Go out in a blaze of glory. Step away from the Dark Side. Join forces with us. Become an HP'er! You, my friend, right now, have the ability to rock this world and make history.

Or not.

FLASH: We have our first major mortgage fraud smoking gun: "Zippy Cheats & Tricks"

Hopefully the Oregonian did their homework and verified this document isn't a fake, but assuming it's real, it's one of the first of many REIC smoking guns to be found - once the FBI and SEC do their jobs and start raiding REIC offices nationwide.

And Angelo Mozilo's home of course...

Here's the skinny on "Zippy":

Chase mortgage memo pushes 'Cheats & Tricks' - The bank says it never backed the strategies, which detail how to get an iffy loan approved

A newly surfaced memo from banking giant JPMorgan Chase provides a rare glimpse into the mentality that fueled the mortgage crisis.

The memo's title says it all: "Zippy Cheats & Tricks."

It is a primer on how to get risky mortgage loans approved by Zippy, Chase's in-house automated loan underwriting system. The secret to approval? Inflate the borrowers' income or otherwise falsify their loan application.

The way-back machine has already taken us to 2003-2005 on home prices. So where does it stop? 1999? 1992?

You'll want to check this article by Jim Willie

Here's a snippet.

Ready to party like it's 1999? And ready for the complete and total destruction of the US dollar?

The usual outcome of busted bubbles is a return to pre-bubble prices. That means at least a return to 1999 housing prices, and possibly a return to 1992 prices if the new collections fail to deliver.

The gigantic rescue platform for mortgages, the official bond refund lending facilities, the flimsy USGovt stimulus plan, these had better be designed as large, really large, because the current housing crisis and mortgage debacle is bigger than anything the nation has ever faced. It will require a remedy apparatus larger than anything ever devised.

March 27, 2008

HousingDoom always has the best charts. And this is what falling off a cliff looks like, not a market bottom, Lawrence Yun and Catherine Reagor

How many times do Lawrence Yun and Catherine "rolodex of realtors" Reagor call bottom until we tar and feather them and put them out in the town square for all to mock?

Well, what would you expect from a couple of screwed homedebtors who are more interested in stopping the freefall in the price of their own homes than telling the American people the truth?

Here's another shot at falling off a cliff - the Case Shiller index graph

Doesn't look quite like a bottom here either...

But what do I know? Lawrence Yun and Catherine Reagor have been so right to this point...

So the "party all the time" Americans owe $1.1 TRILLION in home equity loans (HELOCs). How much of that do you figure won't be getting paid back?





Granite Countertops

And one hell of a spending binge these past few years. Free money! Free money! Oh, crap, you mean it has to be paid back? But that's not fair - my home value has plummeted. OK, screw it, you can have the damn house. Here. Take the keys.

thanks ace...

Home-Equity Loans May Be Next Round in Credit Crisis

Little by little, millions of Americans surrendered equity in their homes in recent years. Lulled by good times, they borrowed — sometimes heavily — against the roofs over their heads.

Now the bill is coming due. As the housing market spirals downward, home equity loans, which turn home sweet home into cash sweet cash, are becoming the next flash point in the mortgage crisis.

Americans owe a staggering $1.1 trillion on home equity loans — and banks are increasingly worried they may not get some of that money back.

Wonk Alert - Here's Obama's speech today on the economy, economic history, capitalism and his plans for financial regulation

31 minutes. Lots of detail. A terrible idea or two, and many great ones. And in the end, if he wins in November, I think we can all be glad that we'll no longer have an idiot as president.

I hope even the Fox-News-Obama-Haters listen to the speech. America is a great country, Obama is not the devil your channel is programming you to believe, and there is cause for hope.

Obama's plan to change the economy

In the past quarter-century, there has probably never been a better time for a presidential candidate to charge into downtown Manhattan and make a speech arguing for more regulation of the financial industry.

The moral authority of market fundamentalism (if such a thing ever existed) is in tatters, and even Treasury Secretary Hank Paulson, the former CEO of Wall Street's crown jewel, Goldman-Sachs, is acknowledging that new rules are necessary to clean up the current mess.

So for liberal critics of capitalism as currently practiced in the United States, there was much to admire and appreciate in Barack Obama's speech Thursday morning at Cooper Union in New York. The address provided yet another example of what the Senator from Illinois does best: it was an eloquent, nuanced, smart defense of the pressing need to roll back decades of government irresponsibility and ensure that the interests of, as he put it, "Main Street and Wall Street," are better aligned.

HousingPANIC Stupid Question of the Day

Will you vote against EVERY incumbent this November?

FLASH: Senate to investigate Bush Administration meddling into Federal Reserve actions during Bear Stearns shotgun wedding fiasco

As you all know the Federal Reserve is supposed to be independent.

Yeah, right.

Ben Bernanke's head is so far up Goldman Sachs CEO Hank Paulson's ass (oops, I mean US Treasury Secretary Hank Paulson's ass) that they might as well be the same person.

The truth will eventually come out as to Paulson and Bush's role in the Bear fiasco, their commitment with no Congressional approval of $29 billion in taxpayer funds to bail out Bear Stearns, and the ongoing coordination between the Fed and the Treasury to bail out Paulson's investment banker gambler buddies using taxpayer money.

And now, shockingly, our corrupt Congress is going to investigate this matter. What, didn't Grassley get his hush money this month?

Grassley Asks Whether Paulson Pushed Fed Into Bear Stearns Deal

The top Republican on the Senate Finance Committee said he wants to know whether Treasury Secretary Henry Paulson pressured Federal Reserve Chairman Ben S. Bernanke into brokering the deal that allowed the sale of Bear Stearns Cos. to JPMorgan Chase & Co.

Iowa Senator Charles Grassley, who will be involved in one of two congressional inquiries into the deal, asked in an interview with Bloomberg Television yesterday whether Paulson pushed Bernanke into authorizing the $29 billion loan needed to make the sale or if the agreement was the result of an ``independent Fed decision.''

``We want to know the extent to which Paulson was involved in the deal,'' Grassley said. ``The extent to which this was a political decision by a political branch of government that was urged on the Fed is very important to me -- that that not happen.''

Bush & his buds are saying "no bailout" for housing gamblers, and supposedly no bailout for banks. Yeah, right.

Talk is cheap. And just like so many other things with this crew, they say one thing and then do another.

The Bush Administration has done and will do whatever they need to do to rescue the investment banks and toxic lenders, in addition to Fannie and Freddie. They're lying to the American people, again, and the taxpayer is gonna eat it again in the end.

But if you read these quotes, even though their banker buddies will get billions, they're pretty clear - the housing gambler ain't getting anything (except for his $600 check in a few days). Let's see how long they can keep up that front.

"It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers.”

- John McCain, March 2008, ending his presidential campaign

"It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions."

- Ben Bernanke, in a bald-faced lie, August 31, 2007

"It's not the government's job to bail out speculators or those who made the decision to buy a home they knew they could never afford."

- George W. Bush, August 31, 2007, before sending $600 checks to everyone

"Housing prices need to fall further to permit shell-shocked housing markets to stabilize and policy-makers should not interfere with that process"

- Goldman Sachs CEO (oops, I mean US Treasury Secretary) Henry Paulson, March 2008

BUBBLETALK - open thread to talk about the housing bubble and crash and ongoing mortgage meltdown

Chatter away

HousingPANIC salutes the brave monks of Tibet who continue to stand up to the evil Chinese leadership, while Americans plan their next Wal-Mart trip

No, I will not stop posting on this subject.

Yes, I do attend Tibet protests, a few people can have a major impact, and there's some good things going on here in Budapest and where you are too.

And yes, you should get off your asses once in your life and care. And do the right thing. And stop supporting evil.

It's time to hit the evil communist leaders of China where it hurts (at Wal-Mart), and I hope their people rise up as we head into this summer's 'festivities'. Now THAT'S the Olympic spirit.

You just know a bunch of would-be players watched this over and over and thought by committing mortgage fraud and flipping homes they could be Bud Fox

And now, penniless and with no more access to credit, they're going back to being bartenders, car salesmen and call center jockeys, and hoping the government never does get around to prosecuting mortgage fraud and tax evasion.

And they wait for the next bubble, so they can do it again...

So how did the mortgage lenders lose hundreds of billions, while nobody knew what was going on? It was the corrupt and incompetent auditors - again

We knew what was going on. We told you IndyMac, First Fed, New Century, WaMu, Countrywide, Bear Stearns, Lehman Brothers and so many more were cooking their books, not marking to market, aiding in obvious mortgage fraud, violating Sarbanes-Oxley, and possibly going bankrupt.

It was all so obvious.

But if you look at these toxic lenders' audited financial statements over the past few years (and weeks), there was no problema. Everything was fine, the books were in order, the balance sheet was great. Write-down? Mark-to-market? Nah! Everything's fine!

Thank you KPMG. Thank you PriceWaterhouse. Thank you Deloitte. And thank you Ernst & Young. You fu*ked America. You destroyed the worldwide financial system, and the world's trust in America. And you all need to get sued something fierce.


New Century Bankruptcy Examiner Says KPMG Aided Fraud (Update2)

March 26 (Bloomberg) -- New Century Financial Corp.'s bankrupt estate might have cause to sue its former accountant KPMG LLP and some directors and officers for improper accounting leading up to its bankruptcy, a court examiner said in a report.

New Century ``engaged in a number of significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes,'' Missal wrote in the report. He said ``KPMG contributed to certain of these accounting and financial reporting deficiencies by enabling them to persist'' and in some cases ``precipitating'' a departure from ``applicable accounting standards.''

``This is really the embryo of the credit crisis,'' Missal said today in a phone interview. ``The theme of the report is how easily the loans were originated, how exceptions were made, how they used bad appraisals. There were no appropriate internal controls and KPMG failed to look at these things skeptically.''

March 26, 2008

California housing disaster: Home prices down 26% statewide, falling $3000 A WEEK. Prices off 31% in Sacramento and 39% in Santa Barbara

Man, renting was never better than it is today.

Losing $3000 a f*cking week? That's gotta suck. $13,000 a month in capital depreciation, combined with $5000 a month or so in carrying costs, and you've got a $18,000 a month problem. And that's why millions are just going to say f*ck it, f*ck the bank, and just turn in the keys.

Yup, should've listened to HousingPANIC instead of idiot realtors on commission, or the biggest fraud of them all, Leslie Appleton-Young at the California realtors Association.

Hey, we were only trying to help. Meanwhile, California is now going to have a budget shortfall and economic downturn that will shock the world.

California freefall: Home prices fell 26% in February

Signs of distress are piling up in the California housing market, where prices are falling at three times the national rate of decline.

--Statewide, median sales prices fell by a stunning 26% in February, with home prices dropping at a rate of nearly $3,000 a week, the California Association of Realtors reports. Further, the CAR says the Fed's interest rate-cutting campaign "will have little near-term direct effect on the housing market."

"It's bad. It's really bad," market analyst Nima Nattagh told the Daily News.

The California Association of Realtors reports median prices fell 27.2% from year-ago levels in the hard-hit Inland Empire east of Los Angeles, 30.9% in Sacramento, and 39.1% in Santa Barbara County.

HousingPANIC Stupid Question of the Day

Remember the carefree and lazy days of 2006 when all we did was debate whether there was a housing bubble with realtors, housing gamblers and homedebtors?

You know, before the entire Housing Ponzi Scheme blew up in spectacular fashion, taking the worldwide financial system to the brink of ruin?

Goldman Sachs ups subprime mortgage mess loss estimate to a HP-worthy $1.2 TRILLION. But just wait until they find out about the Alt-A and Prime mess

Still seeing 'subprime this' and 'subprime that', when we all know the REALLY big mess coming up ain't subprime at all.

Why is it so tough for everyone to see what we see? Maybe they know and just don't want to say?

When you see nationwide home values plummeting 10%+, and major cities like Vegas, Miami and Phoenix in total freefall, it's not just subprime that's for dinner. Nope, it's EVERY mortgage written the past few years that may be in trouble.

It's the IndyMac Alt-A garbage, and the First Federal Option Arm timebombs. It's the entire Countrywide portfolio. And it's regular prime loans made by regular lenders all over the country. It's all melting down now - any loan made 2003 - 2007 is suspect, especially when the rates adjust or the job losses mount.

And it infuriates me to no end to keep hearing reporting over here about the "dodgy loans made to poor people" who couldn't afford their loan that caused this mess.

IT WASN'T JUST THE POOR PEOPLE!!! It was the housing gamblers, failed flippers and mortgage fraudsters who brought down the system. A million Casey Serin's, putting no or little money down on lottery ticket STUPIDLY PRICED homes, and when prices went south, the f*cked buyers just walked away.

$1.2 trillion for subprime and we're good to go? I don't think so. Trillions in the plural will be lost by the time this is done. Trillions. And I'm looking for just ONE respected source to say it.

You want the truth America? You can't handle the truth.

Goldman sees $1.2 trillion global credit loss

Goldman Sachs forecasts global credit losses stemming from the current market turmoil will reach $1.2 trillion, with Wall Street accounting for nearly 40 percent of the losses.

U.S. leveraged institutions, which include banks, brokers-dealers, hedge funds and government-sponsored enterprises, will suffer roughly $460 billion in credit losses after loan loss provisions, Goldman Sachs economists wrote in a research note released late on Monday.

Goldman estimated $120 billion in write-offs have been reported by these leveraged institutions since the credit crunch began last summer.

"U.S. leveraged institutions have written off less than half of the losses associated with the bursting of the credit bubble," they said. "There is light at the end of the tunnel, but it is still rather dim."

A special HousingPANIC message for Hillary Clinton: You lost. Go home.

You lost.

Go home.

You've disgraced yourself and lost without class. Your power-mad, negative and hopeless scorched-earth campaign has made a third Bush term more likely (via his surrogate McCain). And you just can't seem to get the message, so let's try one more time:

You lost.

Go home.

And take your stupid Housing Gambler Bailout plans with you.

The Long Defeat

In short, Hillary Clinton’s presidential prospects continue to dim. The door is closing. Night is coming. The end, however, is not near.

Last week, an important Clinton adviser told Jim VandeHei and Mike Allen (also of Politico) that Clinton had no more than a 10 percent chance of getting the nomination. Now, she’s probably down to a 5 percent chance.

Five percent.

Let’s take a look at what she’s going to put her party through for the sake of that 5 percent chance: The Democratic Party is probably going to have to endure another three months of daily sniping. For another three months, we’ll have the Carvilles likening the Obamaites to Judas and former generals accusing Clintonites of McCarthyism. For three months, we’ll have the daily round of résumé padding and sulfurous conference calls. We’ll have campaign aides blurting “blue dress” and only-because-he’s-black references as they let slip their private contempt.

For three more months (maybe more!) the campaign will proceed along in its Verdun-like pattern. There will be a steady rifle fire of character assassination from the underlings, interrupted by the occasional firestorm of artillery when the contest touches upon race, gender or patriotism. The policy debates between the two have been long exhausted, so the only way to get the public really engaged is by poking some raw national wound.

For the sake of that 5 percent, this will be the sourest spring

Housing bubble, what's the trouble?

So we all know by now that Phoenix Arizona is one of the worst real estate markets in the world. Right? So let's see what the realtors have to say

I love taking a random run around realtytimes. You can really get a sense of the kind of person who ends up selling used houses there. Not a lot of intellectual firepower to be found among the six-percenters..

So here's what the ramen eaters have to say about housing-crash-central Phoenix today:

Exhibit A: The city of Phoenix has had one of Arizona's highest real estate appreciation rates for the last 5-6 years. This area is still experiencing a good market.

Exhibit B: One of the most sought after cities in the nation; Phoenix is beautiful, diverse & affordable! Even with the turn of the market, Phoenix invites hundreds of people that move here daily! With some homes under $100,000!!! the average new home price (2007-2008) in Phoenix is $330,000! There are many affluent areas in Phoenix where homes are well over $1Million!

Exhibit C: We will be offering several Limo Foreclosure Tours, open to 16 buyers and/or investors; not currently working with a Realtor, interested in viewing between 20 - 30 homes that are bank/lender owned foreclosures in the comfort of a Limousine.

Exhibit D: It's a good time to buy a home in Chandler Arizona. Home prices in the city have stabilized after 2 years of tremendous appreciation (50%-60%.).

Exhibit E: The Real Estate Market is showing signs of life again!

Exhibit F (just for Frank): While other parts of the valley seem to be seeing the reduction of prices. Scottsdale properties are holding their value. If looking for a property that fits the lifestyle and at the same time in a location that holds it's value Scottsdale is the place to be

March 25, 2008

Like a broken watch, even John McCain is right twice a day. And today, he was AMAZINGLY AND EXTREMELY RIGHT on the housing mess

Dude doesn't say anything on the housing issue for months and months and then today he comes out and is the smartest guy in the room? Hmmm... Looks like some of McCain's advisors are reading HP. Hello McCain advisors!

So Bill (oops, I mean Hillary) Clinton weighed in yesterday, and if she had her way billions and billions more would be stupidly and wrongly spent bailing out housing gamblers and failed flippers, and the guy who caused the mess (Greenspan) would be leading her committee to get us out of the mess.

So that leaves Obama. Let's see what he has to say, 'cause he hasn't said much yet. But as of this moment, when it comes to the housing crash and what to do about it, with today's speech, McCain is far and away in the lead.

Clinton: E
McCain: A
Obama: Present

And come November, as we've predicted here for years, the Great Housing Crash will be the #1 issue on everyone's minds as they step into the voting booth.

McCain offers tough love on housing woes

"In our effort to help deserving homeowners, no assistance should be given to speculators," McCain continued.

"Any assistance for borrowers should be focused solely on homeowners, not people who bought houses for speculative purposes, to rent or as second homes. Any assistance must be temporary and must not reward people who were irresponsible at the expense of those who weren’t."

He then called for homeowners to be required to put down payments on homes, for lenders to raise standards, and for all those involved to move to more transparency

FLASH: S&P Case-Shiller index shows 11% drop in US home values. Vegas and Miami crash 19%, Phoenix, San Diego and LA down 15%+

Home prices only go up.

There's hasn't been a fall in US home values since the Depression.

It's always a great time to buy.

If you don't buy now, you'll be forever priced out of the market.

It's a new paradigm. It's different this time.

Real estate is your safest investment.

Bubbles are for bathtubs.

Phoenix has year-round golf and pro athletes.

And anyone who listened to an idiot realtor on commission the past few years got killed.

Home prices: Down record 11% - The residential real estate market continues to deteriorate in 2008, with 20 key markets reporting steep drops.

Residential real estate has posted another record decline.

The S&P Case/Shiller Home Price index of 20 key markets, released Tuesday, shows that home prices plunged 10.7% in the 12 months ending January.

Las Vegas and Miami reported the weakest markets in January, with each city posting an annual decline of 19.3%. Phoenix was the second worst with a decline of 18.2%.

It's now "buy one get one free" for homes in Florida. And that's probably STILL not even close to what these units will end up going for

One thing about these firesales? The comps will be destroyed for years and years to come. One bad thing? Anyone who "owns" a house in the area now has a new comp.

And just because it seems like a good deal today (comparing against the bubble high) doesn't mean it's a good deal. Just ask the buyers of stock as it headed down.

Thanks Eric for the link..

And to think the USAToday just named Lawrence Yun one of the most accruate economists in America. I guess there were only five economists in America.

Click on the graphic to see the detail

Thanks to David at bubblemeter and lawrenceyunwatch for putting this one together. Picture is worth 1000 bad forecasts...

One day we'll know the truth about the Bear Stearns blowup and shotgun marriage, and how the government forced them to sell to JPMorgan at any price

You'll be amazed when it comes out at the 2009 Senate REIC Investigations what went on behind the scenes.

Paulson and Bush will be gone by then, but what the investigators will find will be that the world financial system came within hours of falling apart, and that the multi-trillion dollar derivatives market almost exploded.

But then again, by the time the investigation starts in 2009, and trillions have been lost, banks have failed, and the taxpayers have paid the bill, maybe Bear's collapse will be just a footnote.

“The rescue was absolutely all about counterparty risk. If Bear went under, everyone’s solvency was going to be thrown into question. There could have been a systematic run on counterparties in general,” said Meredith Whitney, a bank analyst at Oppenheimer. “It was 100 percent related to credit default swaps.”

“It showed that anything important is going to be bailed out one way or the other,” says Kevin Phillips, a former Republican strategist.

The results are in... and the death of the realtor profession can't come fast enough

HP Poll Results:

realtors are:

521 (62%)
505 (60%)
401 (47%)
457 (54%)
No longer needed
593 (70%)
472 (56%)
Forever discredited
507 (60%)

Votes so far: 837
Poll closed

HousingPANIC Quote of the Day

"The housing crash, currently in its infancy, will soon grow up into an economy killing monster that the Federal Reserve has no weapon strong enough to defeat"

- Rob Blake,, March 2008

John McCain fumbling around feebly on the economy & housing crash, pretending he cares, pretending he knows what's going on

No way this angry and ignorant old man is gonna be president.

Too bad the GOP didn't nominate a viable candidate. Still not too late.

March 24, 2008

What are the five most "Ugly American" companies?

Here's mine:

1) Halliburton
2) Countrywide
3) Wal-Mart
4) Microsoft
5) General Motors

Get your nominations in and I'll do a poll...

(An ugly American company would be US-based, self-centered, corrupt, evil and hurtful to the people of the world while exhibiting boorish and obnoxious behavior. Fanny packs and sports jerseys optional)

FLASH: Used home sales crash 24%, prices down record 8% vs. year ago. Mainstream media reports home sales up, Dow rockets on NAR's great news!

I swear, HP'ers live in an alternative reality.

It's called "truthland".

You gotta love Lawrence Yun and the NAR though - they can spin with the best of 'em. And you gotta love the copy/paste crowd at our nation's mainstream media. Why work when you can just report lobby group press releases as news?


Here's the hilarious NAR lipstick-on-a-pig spin:

Existing Home Sales Rise In February

Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”

But here's the truth

Hillary Clinton has a massive brainfart, calls on Alan Greenspan (who created the housing mess) to head a special panel to solve the housing problem

Monkeys I tell ya.


Go away Hillary. Go home. You're no longer needed around here.

Clinton calls for panel on housing woes

Democrat Hillary Rodham Clinton called on President Bush on Monday to appoint "an emergency working group on foreclosures" to recommend new ways to confront the nation's housing finance troubles.

The New York senator said the panel should be led by financial experts such as Robert Rubin, who was treasury secretary in her husband's administration, and former Federal Reserve chairmen Alan Greenspan and Paul Volcker.

Before he was taken out by a government wiretap, Eliot Spitzer had a few things to say about the REIC and the Bush Administration

I've gotta believe there were some in the government who knew of Spitzer's hooker problem for quite some time. And they leaked it right when they needed to - when he decided to go after the mortgage industrial complex and Bush.

Well, at least it was just a public shaming and loss of his job, and not a bullet.

HousingPANIC Stupid Question of the Day

So how long have you been comin round here?

Do you consider yourself an HP'er?

We may not agree on everything, hell, it's my hope that we don't agree on everything, cause that would be boring, and that would mean you were nuts too.

March 22, 2008

Steve Forbes has a massive brainfart: "Here's How to End the Panic". His solution? Just sweep the crap mortgages under the rug. Presto!


What panic?

I thought everything was gonna be fine?

I thought there was no housing bubble?

I thought the subprime fallout was contained?

But come on Steve-O. Junking the nation's accounting standards as the solution to the problem? ARE YOU F*CKING OUT OF YOUR MIND?

Yeah, that'll instill even greater confidence worldwide in the ol' USofA. Just fudge the numbers! Cook the books! Brilliant! The numbers aren't bad if you just say they're not bad! Crisis over!

Monkeys I tell ya. Monkeys. And the world may never trust the United States again.

Here's How to End the Panic
Steve Forbes

The Bush administration must take two steps immediately to quickly halt the unending, enervating credit crisis: shore up the anemic dollar and, for the time being, suspend "marking to market" those new financial instruments, such as packages of subprime mortgages.

The Treasury Department and the Fed should get together with the SEC, the Comptroller of the Currency and other bank regulators and announce that financial institutions for the next 12 months will no longer write down the value of exotic financial instruments (primarily packages of subprime mortgages).

Instead, writedowns will occur only when there have been actual losses on those assets. If a mortgage defaults, a bank will then--and only then--recognize the loss.

On the road until Monday...

Heading to Budapest for the next month, may check in Sunday night if they have this crazy thing called the internet on the way... I'm just hoping for paved roads and running water though...

Meanwhile, here's a refresher on the 1956 Hungarian revolution against the evil freedom-hating Soviet communists, which was crushed, as the world did nothing.

Let's hope this new revolution against evil freedom-hating communist rulers succeeds.

Boycott Wal-Mart. Boycott China.

Happy Easter

Remember, don't talk about housing...

UPDATE: The 3-month US treasury bill is now paying 0.37%. This is not a drill.

Some animals are said to be able to sense earthquakes before they happen.

It looks like some bond buyers have the same ability.

March 20 (Bloomberg) -- U.S. Treasury three-month bill rates dropped to the lowest since at least 1954 as investors seek the safety of government debt amid a loss of confidence in credit markets.

Bill rates declined as low as 0.387 percent as finance company CIT Group Inc. drew on $7.3 billion in credit lines after being shut out of short-term debt markets. Institutions worldwide have reported $195 billion in writedowns and losses related to subprime mortgage and collateralized debt obligations since the start of 2007.

``All the evidence out there suggests there's more pain to come,'' said Andrew Milligan, head of global strategy in Edinburgh at Standard Life Investments Ltd., which manages $265 billion in assets. ``Investors are going to say they need safer assets.''

MESSAGE TO THE MAINSTREAM MEDIA: People who have mortgages are not "homeowners". They are "homedebtors" or "people with mortgages". GET IT RIGHT!!!

You can't bail out a "homeowner". They truly own their homes.

You can't assist a "homeowner" with a mortgage - they don't have mortgages.

You generally can't kick a "homeowner" out of their home - they own it.

"Homeowners" don't have toxic loans, and haven't been taken advantage of by unscrupulous mortgage brokers. Again, they own their homes.

Stop insulting true homeowners. Stop confusing owners with "debtors". And start doing a better f*cking job. You are failing America.

Peace out.

Phoenix new home price now down 25% or $75,000 from bubble peak. And anyone who listened to realtors on commission these past few years got killed

Man, $75,000 in a matter of months, that's just brutal... No matter how the Arizona Republic's Rolodex-of-Realtors Catherine Reagor (she's still employed?), Phoenix realtors on commission or RL Brown wants to spin it.

If you listened to the new-home-ad-supported Arizona Republic or Reagor's always-good-for-a-quote realtor buddies these past few years and stupidly bought a new home in Phoenix, you simply got destroyed.

Here's the latest from Housing Ponzi Scheme Ground Zero, Phoenix Arizona:

Valley new-home permits dip during Feb.

Home-building was down 64 percent from a year earlier, and sales were off by 38 percent.

New-home building permits and sales across the Valley both dropped slightly in February, according to RL Brown's Phoenix Housing Market Letter. Brown said the continued slowing in permits and sales is expected as builders sell off existing speculatively built homes.

The median new-home price in the Valley fell to $225,000 last month, compared with $231,000 in January. In 2006, the Valley's median price hit $300,000.

And here again are the immortal words of a ramen-eating Phoenix six-percenter, the most discredited realtor in America who is still allowed to pollute the Arizona Republic, who has yet to admit to how horribly wrong he was or apologize to HP'ers, Phoenicians or his former clients.

The BubbleBloggers will someday bawl balefully in private, but they will never, ever admit that they have been very publicly very foolish

You will know and I will know and in the secret chambers of their hearts they will know they were wrong all along. But as long as you don't hold your breath waiting for that contrite admission of error, you should be fine.

HousingPANIC Quote of the Day

"Realtors have to remember they work for us not the other way around. They will get paid what WE decide to pay them and right now good luck getting your 6%. You will get it from the uninformed but those days are numbered. People are sick and tired of getting ripped off."

- Anon poster on that hilarious realtor thread about charging 6%, March 2008

The banks will fail. The taxpayers will bail them out. Their shareholders will be crushed. The dollar will fall. It's just the way it's gonna be.

"If the government must bail the bank out … it should basically wipe out the management and wipe out the shareholders"

- David Beim, Columbia University, March 2008

"There probably will be some bank failures"

- Federal Reserve Chairman Ben Bernanke, February 2008

"There is a strong need for urgent action. I would be very, very seriously considering the possibility of using public funds in one form or another."

-Former Treasury Secretary and current Citigroup whore Robert Rubin, March 2008

HousingPANIC Stupid Question of the Day

Will US house prices now actually over-correct - where they end up falling below the historical mean?

That's it. Enough is enough. It's time to call for a boycott of communist China's propaganda Olympics, and a worldwide boycott of Chinese goods

Any advertiser who associates their brand with the Chinese Olympics should be boycotted.

Any US politician who goes to the Olympics should be voted out of office.

Any country or athlete who participates without protest is complicit.

Any anytime you buy a Chinese product, you endorse China's murderous leadership, you endorse house-to-house searches for protesters, you endorse fear and intimidation and murder, and you endorse evil.

The people of the world can rise up together, and end this brutality in Tibet and within China. The leaders of the world can thumb their noses at the evil cabal in Beijing and embarrass and shame them on the world stage for all to see. And the people of China can rise up, overthrow their corrupt leaders, put them in jail or string them up, and become the free and powerful capitalist democracy that they're destined to be.

Play a role HP'ers. Question your previous thinking and behavior. Do the right thing.

BEIJING - The flagship newspaper of China's ruling Communist Party called Saturday for efforts to "resolutely crush" anti-government demonstrations by Tibetans, while Beijing urged people to turn in those on a "Most Wanted" list of 21 protesters.

"We must see through the secessionist forces' evil intentions, uphold the banner of maintaining social stability ... and resolutely crush the 'Tibet independence' forces' conspiracy," the People's Daily said in an editorial.

March 21, 2008

Matching up the Seven Deadly Sins and the Late Great Housing Bubble

Lust (MTV Cribs, Housing Ladder, Flip This House)

Gluttony (McMansions, Angelo Mozilo, Hummers)

Greed (Option-ARM, no-down mortgages, Greg Swann talking about how rich he was going to get)

Sloth (Casey Serin, mortgage brokers, realtors, flippers)

Anger (Wives angrily bullying their husbands (or visa versa) into stupid housing decisions, Suzanne researched it, realtors striking out at the bubble bloggers and media)

Envy (Pottery Barn, Restoration Hardware, poor people buying rich people houses)

Pride (talking about your house, how much it appreciated, and you possessions everywhere you went)

HP dedicates this song to the unemployed mortgage brokers of America. Missin that VIP lounge right about now, eh?

Yo VIP let's kick it

Now that the party is jumping
With the bass kicked in and the vegas are pumpin'
Quick to the point to the point no faking
I'm cooking MC's like a pound of bacon

Burning them if you ain't quick and nimble
I go crazy when I hear a cymbal
And a hi-hat with a souped up tempo
I'm on a roll and it's time to go solo

HousingPANIC Stupid Question of the Day

How will we know when we've hit bottom?

When do you think that'll be?

Wall Street or Main Street?

Watch this to be the BIG campaign theme in 2008 in local and national races around the country.

* GOP - fighting for Wall Street.
* Dems - fighting for Main Street.

Watch the Dems up the ante on foreclosure bailout plans. Watch McCain have no idea what to do. And watch Bush's popularity rating fall into the single digits as he goes Herbert Hoover.

I'm against ANY type of bailout plan using taxpayer funds, for bankers or housing gamblers, so I'm against BOTH the GOP and Dems on this one. They both want to spend our money, it's just a question of who gets it.

I will fight Obama when he stupidly promotes a bailout. And Clinton just offered another $30 billion today - watch her keep upping that number. Poor McCain just avoids the whole issue, since economics just ain't his thing.

But in terms of general theme, watch this 'Wall Street vs. Main Street' theme really take off now, and watch the housing crash be the #1 issue in November by far.