tag:blogger.com,1999:blog-18675105.post317246738905246301..comments2023-12-30T10:06:37.450+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: Is Ben Bernanke trying to create a new stock market bubble, to replace the housing bubble, which replaced the stock market bubble?bloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger46125tag:blogger.com,1999:blog-18675105.post-23043387273760974302008-01-28T20:58:00.000+00:002008-01-28T20:58:00.000+00:00Good article about Fed being push around by market...Good article about Fed being push around by markets...<BR/><BR/>http://money.cnn.com/2008/01/28/markets/morningbuzz/index.htm?cnn=yesAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-78127663793940446272008-01-28T18:20:00.000+00:002008-01-28T18:20:00.000+00:00Commodities Index Funds.Since Joe Sixpack can't ac...Commodities Index Funds.<BR/><BR/>Since Joe Sixpack can't actively participate in commodities trading, mutual fund companies will setup CIFs allowing Joe to buy into agro, energy, metals commodities.<BR/><BR/>The brainless masses will buy anything if it has two-digits followed by a percent sign and an arrow pointing to the moon.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-36989644227711640152008-01-28T17:51:00.000+00:002008-01-28T17:51:00.000+00:00Bernanke LIVES!! I hear helicopter blades whirrin...Bernanke LIVES!! I hear helicopter blades whirring over my house. MORE FREE MONEY WHEN WE SUCKER TAXPAYERS END UP BAILING OUT THE STOCK MARKET! Who's next? Gamblers in Las Vegas?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-82501654471146427872008-01-28T16:17:00.000+00:002008-01-28T16:17:00.000+00:00"how do you refi at these lower rates when your ho...<B>"how do you refi at these lower rates when your house is worth less than the outstanding loan? do most fb-ers have enough cash to bring to the table?"</B><BR/><BR/>They will work something out. I envision some kind of bridge loan package guaranteed by Uncle Sam to effect the short sale and get the borrower into the new mortgage. If the bridge loan is at some ridiculous low rate or has a long term, then the numbers might work. As inflation floats the equity back up in a few years, the bank can refi the mortgage again to get rid of the bridge loan.<BR/><BR/>Of course the bank earns fees and interest on both transactions while Uncle S takes all the risk -- sweeeet!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-43918201915428762822008-01-28T14:51:00.000+00:002008-01-28T14:51:00.000+00:00pyramid schemes always eventually crash.pyramid schemes always eventually crash.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-5036098075073028032008-01-28T04:59:00.000+00:002008-01-28T04:59:00.000+00:00The essence of a Chinese fire drill, is to display...The essence of a Chinese fire drill, is to display action, as if to solve the problem, but what is done accomplishes nothing, kind of like our Congress at work!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-6586498591824731302008-01-28T04:30:00.000+00:002008-01-28T04:30:00.000+00:00they have a name for it now:Bernanke put.you can g...they have a name for it now:<BR/><BR/>Bernanke put.<BR/><BR/>you can go long knowing that ben is there to back you up with a rate cut if the market start to move against you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-48663587187351804332008-01-28T03:06:00.000+00:002008-01-28T03:06:00.000+00:00Of course he is.Next year around election time, th...Of course he is.<BR/><BR/>Next year around election time, the stock market will be reaching new highs, gas will be at multiyear lows, of course home prices will be down another 10% nationally but no one will care cuz their 401Ks went up by twice what their home lost.<BR/><BR/>Happy days will be here again.<BR/><BR/>Worried about inflation? Hahahahhahahah. They are going to lie and say they are for the next 10 years right to the point that we are at 20% inflation or so.<BR/><BR/>What will undo some of the massive the inflationary pressures of the "stimulus package", and the deficit spending, and the stock market bubble (the next one), will be when they actually allow the stock market to tumble in 2009 or 2010 and wipe trillions from the economy overnight. That will be perfectly timed deflationary stimulus and by then all the suckers stuck in their ARM rate homes will be forced to fight their way toward the next 25 years of their loan term. <BR/><BR/>The government can make money but they can also take it all away.<BR/><BR/>What ever inflation remains will be great! Inflation is the biggest tax anyone pays in their lifetime. Invest wisely to beat inflation and essentially everyone else is paying more taxes than I am. That's all I hope for.<BR/><BR/>Suckerzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-80726774646524424952008-01-28T02:51:00.000+00:002008-01-28T02:51:00.000+00:00Too many people are stretched beyond their limits....Too many people are stretched beyond their limits. Those who aren't stretched are too smart to start borrowing. The banks are also stretched beyond their limits and are now very careful about lending money. The government can push on a string all it wants, but it cannot force consumers with good credit to borrow or banks to continue making risky loans.<BR/><BR/>The only option are these tax "rebates" to force money into the hands of consumers and hope that they keep buying uselessjunkAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-42294979892344127622008-01-28T02:38:00.000+00:002008-01-28T02:38:00.000+00:00i don't think it was low rates that caused the bub...i don't think it was low rates that caused the bubble as much as the offloading of risk and housing "euphoria". this helped mortage rates track as low as the fed funds rate. Mortgate rates aren't determined by the Fed, but by the supply and demand of mortgages. <BR/>In the early 90's (last crash here is CA) the fed funds rate was about 3% yet mortgages were still about 6-7%. (Banks had to price default risk into the loans). There are obvously too many lenders that think this is a blip and a not a full correction. Once it becomes clear that it is a correction (prices dropping YoY for years, mortgage rates will be well higher then whatever the rate the Fed sets.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39530933244144238042008-01-28T02:13:00.000+00:002008-01-28T02:13:00.000+00:00Buzz Saw said... We can't have inflation, we will ...Buzz Saw said... <BR/>We can't have inflation, we will have deflation. Mish said so, and he is uber-smart.<BR/><BR/>-----------------------------<BR/>Yaaahhh.Nein Sheist.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-80882007534543726112008-01-28T02:08:00.000+00:002008-01-28T02:08:00.000+00:00Long Termer and Lady DIYour both right on!!!Keith ...Long Termer and Lady DI<BR/><BR/>Your both right on!!!<BR/><BR/><BR/>Keith I sense a full blown panic is about to start in Riverside. Everywhere I go it seems like all I hear is conversations about the poor economy and horrific housing market.<BR/><BR/>Check these numbers out :<BR/><BR/>Mira Loma - oct-dec. 2007 $158.60 sf<BR/> oct-dec.2006 $320.29 sf<BR/>zip code 91752 % change -50.48<BR/><BR/><BR/>riv. 92503 oct-dec. 2007 $200.40 sf.<BR/> oct-dec. 2006 $279.20<BR/> % change -28.22<BR/><BR/>source: First American real estate solutions<BR/><BR/>These are just samples of numbers here in Riverside area.<BR/><BR/>Listings on MLS under $229,000 are a total of 246 homes in the city of Riverside. One year ago avg. med home was $415,000 here in city.<BR/><BR/>Look up home 9242 Agave pl riverside ca. 92503 its on sale for $100,000 on MLS. your looking at a whopping price drop. Listings have just begun an aggressive downturn in price started by the banks. I smell fire sales are just around the corner. <BR/><BR/>I spoke with city employees who are in the budget dep. and they tell me that pain is being held up as possible. If poor times linger, then there are some serious cuts that will be felt throughout deps. A hiring freeze has already been enacted and School Districts are bracing for the same scenario.<BR/><BR/>I think the Inland Empire is on the verge of Implosion.<BR/><BR/><BR/> ICEMANAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-48278080378072202252008-01-28T02:00:00.000+00:002008-01-28T02:00:00.000+00:00I know one thing, count me in to game the system, ...I know one thing, count me in to game the system, too. No more Mr. Nice Guy. I'll rape this country in the next bubble like anyone else. Nobody cares, from the White House to the FBI and IRS, so why should I? All the con artists, including bankers, are enjoying the fortunes they made with the housing ponzi scheme. And the honest taxpayer is the ultimate bag holder. So f*ck this sh!t!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-34880000538654712622008-01-28T01:50:00.000+00:002008-01-28T01:50:00.000+00:00The Fed is now in collusion with the BOJ (Bank of ...The Fed is now in collusion with the BOJ (Bank of Japan) to establish a 0% rate in order to prevent systemic national bank failures.<BR/><BR/>Game over.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-20711789420790383802008-01-28T01:39:00.000+00:002008-01-28T01:39:00.000+00:00Bank Dick, I agree that the fed will lower rates e...Bank Dick, I agree that the fed will lower rates even further and will opt for what they consider to be the lesser evil, inflation, rather than systemic collapse.<BR/><BR/>But I don't see how the fed will succeed. The fed needs to implement their interest rate policy by increasing the money supply through increased borrowing - I don't see how they are going to increase borrowing.<BR/><BR/>Banks will NOT be able to refi these toxic mortgages, nor many of the supposedly 'safe' conventional mortgages. The reason refis are unlikely is that so many borrowers now owe more than the home is worth after home price declines and therefore will not qualify for a refi.<BR/><BR/>Commodities may rise dramatically but I don't believe they will be a bubble because the average J6P on the street will not be getting a 100% LTV loan to buy soybeans.<BR/><BR/>The more I think about it the more I believe in 'bothflation' - deflating assets (homes, stocks) and inflating consumer goods and commodities (food, gas, cars). <BR/><BR/>I'm not sure about electronics and things made in China. While they may remain low for awhile, as Jim Rogers has said, prices will creep up as the Chinese begin to purchase these products themselves.Paul E. Mathhttps://www.blogger.com/profile/03719759088047080921noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-38555682812100595402008-01-28T01:14:00.000+00:002008-01-28T01:14:00.000+00:00If you want to know about Bernanke, read the paper...If you want to know about Bernanke, read the papers he wrote before he became the head of the Fed. He's a scholar of 1929 and will avoid deflation at all costs. He is going to attempt to pump the economy up and hyperinflate, dollar be damned.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-46733490248637378832008-01-28T01:13:00.000+00:002008-01-28T01:13:00.000+00:00I'm not a Mike Huckabee guy, but I did gain some r...I'm not a Mike Huckabee guy, but I did gain some respect for him this morning on Late Edition. He was allowed to ask one question of Paulson and he asked, "If we borrow 15 billion dollars from China in order to distribute it to the American people, who will spend it on 15 billion dollars worth of goods from China, which economy did we really stimulate?"<BR/><BR/>Paulson of course stumbled, bumbled, avoided the question, and Blitzer let him.<BR/><BR/>Bernanke is trying to stimulate his wall street buddies with his rate cuts. He's determined to avoid 1929, but apparently forgot about the 70's.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-6353016321488990172008-01-28T01:10:00.000+00:002008-01-28T01:10:00.000+00:00He belongs to the tribe of "God's chosen people". ...He belongs to the tribe of "God's chosen people". In a country ( left, right and center) that is more loyal than the king regarding a key foreign policy matter, how can he fail ?<BR/><BR/>The chances of AIPAC passing anti-Israeli resolutions is higher than Bernanke not succeeding. <BR/><BR/>True Americans want Bernanke to succeed and he will....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-88765541753947805522008-01-28T00:38:00.000+00:002008-01-28T00:38:00.000+00:00Went to a boat show over the weekend and saw the s...Went to a boat show over the weekend and saw the salesman that my buddy bought a boat from last year. Since I wasn't buying and he didn't look busy we started talking. After awhile I asked how was the boat show going and he said its slow. Same show last year this high end dealer (Grady White) sold 45 boats, this year 14. He said the news is scaring people that tough times are coming.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-6709440645435789492008-01-28T00:23:00.000+00:002008-01-28T00:23:00.000+00:00how do you refi at these lower rates when your hou...how do you refi at these lower rates when your house is worth less than the outstanding loan? do most fb-ers have enough cash to bring to the table?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-18277957208674910692008-01-28T00:03:00.000+00:002008-01-28T00:03:00.000+00:00Bank Dick,Tell that to Japan that's been at 0% for...Bank Dick,<BR/><BR/>Tell that to Japan that's been at 0% for years trying to get some inflation going. I think Japan is the only country where inflation growth is a good thing.<BR/><BR/>DannyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-77686483658661857192008-01-27T23:35:00.000+00:002008-01-27T23:35:00.000+00:00long termer said... ‘The Frenchie that supposedly ...long termer said... <BR/>‘The Frenchie that supposedly did ‘unauthorized’ trading at Societe Generale<BR/>to the tune of $73.5 billion.<BR/>- http://tinyurl.com/29fkmf<BR/>Is just the tip of the iceberg. <BR/>Its all common sense, and if you look a little closer its obvious that all European economies, beginning with the Russian (Putin) boom, all the way to Briton, Germany, Ireland, France, Spain.etc. are all FAKE.’<BR/><BR/>I could not agree more:<BR/><BR/>It is very likely that the previous French government (Chirac) had a lot to do with what was going on at Societe Generale, don’t believe that it was a lonely investor.<BR/><BR/>What about this story – in Britain<BR/>http://tinyurl.com/2awpgx<BR/><BR/>Northern Rock, is also a story of European corruption.<BR/><BR/>I have never bought into the Euro story.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-30710642743852927492008-01-27T23:09:00.000+00:002008-01-27T23:09:00.000+00:00you idiots can cry about it or profit from it. you...you idiots can cry about it or profit from it. you all seem convinced on what will happen. fine. invest accordingly and you'll be rich.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-90450336004920910642008-01-27T21:53:00.000+00:002008-01-27T21:53:00.000+00:00The new bushco years mantra:"No Bank Left Behind"The new bushco years mantra:<BR/><BR/>"No Bank Left Behind"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-81488767616391084972008-01-27T21:19:00.000+00:002008-01-27T21:19:00.000+00:00Experts like Bill Gross of PIMCO see the Fed rate ...Experts like Bill Gross of PIMCO see the Fed rate dropping to 2.5%. I think the bank liquidity and reserve problems are much worse than they have admitted, and to avert a collapse the Fed will have to lower interest rates below the 1% we saw in 2003.<BR/><BR/>This will be good news for the banks as it will allow them to refi many of the toxic mortgages that are resetting and earn even higher returns from screwing credit card customers. The downside is it will kill the USD, and that is where you deflationists are wrong.<BR/><BR/>About 1/3 of our consumption is imported goods and commodities - $5 trillion a year - and prices for those goods are going to skyrocket as the dollar declines. We may have deflation in some asset classes (houses, used cars, commercial RE) but it will be offset by rather extreme inflation for other commodities and services. The Fed is already on record favoring inflation as a cure for the banking system's ills.<BR/><BR/>Don't fight the fed. Our future is inflation not deflation.Anonymousnoreply@blogger.com