I went through the last crash 12 years ago; if this one follows the same pattern, we’ll see a 50% drop in the next two years, with an overshoot to probably a 60% drop before bottoming out. Since the relative prices of houses seem to hold in proportion, I should be able to pick up a repo at that point no matter how low my current place goes.

Be nice for Chuck or some of the other financial people to describe the point where you are into the death spiral.

Mozzilo and Countrywide… he had lots of options in the works so he says the market is in great shape and goes on and even bigger loan making spree.

I wonder how much of that was offering extra heavy teaser rate stupid loans to bail out the high rate of failure of loans in existance.

That would be a last desperate measure to keep stock prices up long enough to cash out.

OK… Not the last most desperate measure… till a handout from the FED allowed him to keep going for another few months… perhaps till the next reporting cycle.

I am shocked and stunned, but there is a sucker born every minute, and they are fishing for this minute’s sucker.

I received this just now from INDYMAC. They are a large thrift based lender that does retail and wholesale….

http://www.thegreatloanblog.blogspot.com/

I am not amused, I am stunned.

We are not even in the eye of the hurricane with this problem, it’s barely a drizzle

The typical pattern is the realtors marketing will get to a few people. They hear real estate is going down but don’t see any data (not checking sales/inventory).

If it weren’t for the few blogs what real data would be out there?

Didn’t the blogs call LA and SF bubble proof just a few months back? Not to mention they are still saying there are good markets.