Comments on: Bubbles that Go Pop in the Night

By: hetty

hetty — Thu, 18 Dec 2008 20:27:34 +0000

The real estate decline caused alot of people to lose more than their initial investment. Not like the stock market where it can only go to zero. We attended a meeting on Real Estate Holding Companies and learned to protect assets . Seminar speaker was Steven Sears Attorney CPA from Irvine CA. Mike Sears covered tax issues on relief of debt. searsatty.

By: LAEF2

LAEF2 — Thu, 14 Jun 2007 01:31:50 +0000

I have to tell you that I talked to some coworkers about the FED. I get a sense of fear from people when I talk about it.

Strange.

I really don’t think banking cartels are “disapearing” people in the night.

Anyhow, the topic of homes losing value is way too sensitive to talk about other than in anonymity

I have friends selling a home concerned about it loosing value. Its an inheritance so no loan concerns. I basically said “who cares”.. you are hedged against losses. If you lose value so does what you are buying.

The still get pretty hostile to it.

By: Chuck Ponzi

Chuck Ponzi — Wed, 13 Jun 2007 05:56:00 +0000

Not yet.

I laugh internally when you say that, but perhaps it’s only a little nervous laughter.

I remember when I started the blog in April 2005. I mentioned to some people my views about the housing market. It was like I was stomping on kittens. Nothing could be more self-evident to the general population than housing prices always go up 15-20% per year. Anything else was absurd beyond clinical insanity.

Now that everything that I predicted is coming true, I have shut up. I’ve seen this before. Everyone shoots the messenger. I’ve just been quietly cleaning up in the markets that make sense (stock markets until recently, and still for specific stock classes) while housing prices are falling.

I’ll put it bluntly. Those who know the jig is up are in no position to disclose it to the general masses. There’s a reason I use a pseudonym. Nobody can firebomb my place (my landlord’s place) if they don’t know where I live or who I am.

Chuck Ponzi

By: LAEF2

LAEF2 — Wed, 13 Jun 2007 05:31:55 +0000

Oddly enough those videos you linked me to on youtube about money supply are no longer available.

Not that I’m paranoid or anything but do wear a flak vest when you go out?

By: Hungry Teacher

Hungry Teacher — Mon, 11 Jun 2007 15:17:44 +0000

Housing Revolution, I totally agree with you there. At some point, the fed has to raise interest rates. Im not sure where you live, but inventory for Southern California, especially the Inland Empire area is going to raise further this summer. However, I think this process will help to enhance the “American Dream”, where once again, a person that graduate from college and has good job may once again be able to purchase a home within the fundamental. He doesn’t have to spend more than 5 times his yearly income to do so either…

By: Housing Revolution

Housing Revolution — Sat, 09 Jun 2007 19:57:16 +0000

The market is done. The jump in interest rates is a foregone conclusions. Summer inventory is rising and you are right, we haven’t felt the subprime implications as of yet. The American Dream is going to cave in these next few years.

By: beachhunter

beachhunter — Sat, 09 Jun 2007 15:11:22 +0000

brokers and lenders are married.. they fight, cheat and lie to each other.. i’ve been in the love hate war for 18 years.. not going to change.. it can’t.. even though i would like it to.. as long as people need money they will create stories.. fico was a good attempt to eliminate stores but that did not work.. income to bills is a great way to do it but do the math nobody qualifies…

By: www.realvana.com

www.realvana.com — Sat, 09 Jun 2007 02:32:24 +0000

Good luck enforcing such vague “guidelines”! It reminds me of the CA prohibition on “arbitrary” discrimination relating to the Fair Housing Act. What does it mean? The bottom line is that interest rates will rise this year. Brokers will refi people on ARMs that haven’t already done so. Purchases will be slow, but steady due to the constant increase in population, job growth, and a slow in housing starts. The ‘08 presidential election means that rates will fall next year, enabling the brokers who handled the ‘07 refies to do so agian. Cycles are cycles, a normalized market is just that, we will all be rich again in 30 or 40 years!

By: Chris

Chris — Fri, 08 Jun 2007 23:29:26 +0000

You are right Hungry Teacher. With tighter guidelines these brokers are unable to get transctions done like they used to.

Banks are dropping brokers like flies that have made loans to clients and have a high percentage of loans that default as compared to what the bank feels is “normal” or “average.” This is a good thing

By: Hungry Teacher

Hungry Teacher — Fri, 08 Jun 2007 20:14:37 +0000

Chris…
The point is that many of these brokers ARE/WERE committing mortgage fraud… :o)

By: Chris

Chris — Fri, 08 Jun 2007 19:46:08 +0000

As a mortgage broker myself, I don’t fully understand how a broker would provide the due diligence in ensuring a client can make payments. The reason I say that is because what we do for our clients is to bring their transaction to the appropriate bank. In doing so, the loan is underwritten by the respective bank. The yes decision is therefore not given by us, it’s given by the bank. As long as we follow the rules we will be fine.

This stuff that came out is simply going to change some guidelines at banks but not going to make brokers get in legal trouble if they are following the rules and not committing mortgage fraud.