Friday, December 28, 2007
2 a: the act of surrendering or yielding b: the terms of surrender
I have reached the point where I realize I am not going to be able to sell my condo. With much nicer units languishing on the market for months, priced 10% below what I paid for my inferior unit, I realized that there is no hope of selling and I have given up.
It has almost left me with a sense of peace, I liken it to someone realizing that they are going to die and understanding that there is nothing they can do about it, the person reaches a point where they accept that fate and are at peace with it.
I am have acceped the fact I cannot sell my condo and I will be stuck here for a long time. I am going to make the most of it by re-painting it, getting rid of some old furniture, and maybe buying a nice book shelf.
I am going to try and be thankful that I live in a place that costs me less to own than equivlent rent in the area, and be thankful that I do not live in bubble markets like Miami or California where I could be a lot worse off and actually be renting the same house for cheaper.
I have entered the stage of housing capitulation, and I am at peace.
Posted by Chris at 8:02 AM
Monday, December 24, 2007
3) Ron Paul (media finally begins to take Ron Paul seriously)
2) Ron Paul (I still think Paul can surprise everyone and win)
2) Ron Paul
1) Ron Paul
1) Ron Paul
Based on this estimate if you award 5 points for a first place finish, 3 points for a second, and 1 for a third (I know this is not how its done, but just making a point)
Ron Paul = 17
Romney = 15
Huckabee = 11
McCain = 2
If there is not vote fraud (my worst fear is they will do this to deny Ron Paul) I really see him being ahead after the first 5 states with a narrow lead over Romney.
I see Romney winning Utah, and Massachusetts.
Huckabee will win Arkansas, Georgia, Alabama and Mississippi
Giuliani will win Florida, New York, New Jersey and Connecticut
I still think Ron Paul can win Texas and California and get the nomination. Iowa is crucial though, even though I doubt he will win, he really has to finish third to get media attention going into New Hampshire.
Third in Iowa would be a considered a success and fourth would be a moderate disappointment for Paul supporters and his campaign, anything less than fourth would be a disaster.
Posted by Chris at 6:07 AM
Sunday, December 23, 2007
By JACQUES BILLEAUD Associated Press Writer
Wednesday, December 19, 2007 8:56 PM MST
SURPRISE, Ariz. (AP) - Unable to sell his house in suburban Phoenix's anemic real estate market, Jason Winterholler rented to a couple who paid the deposit in cash and didn't haggle over price.
It was a deal he came to regret.
The renters were fronts for immigrant smugglers who used the house as a hiding place for illegal immigrants and trashed the home. In October, a SWAT team drove an armored personnel carrier onto the lawn and raided the house, rounding up nearly two dozen people.
“That was the biggest disappointment. I definitely felt violated,” said Winterholler, a high school athletic director now living in Pasadena, Calif. He said that whenever he spoke to the renters, “everything seemed OK.”Immigrant smugglers are seeing a business opportunity in the nation's mortgage crisis: They are renting vacant new homes in the Phoenix suburbs and using them as stash houses for the people they have slipped across the Mexican border, authorities say.
Stash houses are stopover points where smugglers collect their fees and make travel arrangements for immigrants headed to points throughout the country.
The homeowners, often out-of-state residents who bought the houses as investments, get suckered into renting to immigrant smugglers because they are desperate to generate income from properties that aren't selling, authorities say. The background checks they do on the prospective renters are not as rigorous as they might otherwise be.
Immigrant smugglers “are opportunistic,” said Troy Henley, deputy special agent in charge of investigations for U.S. Immigration and Customs Enforcement in Arizona. “They will go where it's easiest and where it gives them the most benefit.”
The Phoenix metropolitan area is believed to have about 1,000 immigrant stash houses. Exactly how many of them are new houses that languished on the market and were rented out in desperation is unclear. But authorities say they are seeing more and more such cases.
Immigration authorities elsewhere said they have no evidence the same thing is happening in other cities near the country's southern border.
Arizona is the busiest entry point for illegal immigrants coming through Mexico, and Phoenix's proximity to the border has make it the nation's busiest smuggling hub.
Smugglers started renting vacant new suburban homes in Phoenix a few months ago, and the practice is expected to increase during the peak smuggling season that begins in mid-January, authorities say.
Although knowingly renting homes to immigrant smugglers leaves properties open to seizure by the government, immigration agents said they don't believe the homeowners are intentionally helping the traffickers, because most people would not want their new properties to get trashed.
After getting a tip that smugglers were holding immigrants for ransom at Winterholler's home 25 miles from downtown Phoenix, police girded for a violent confrontation that never came. They entered by knocking down a door and punching holes in the ceiling so they could throw in tear gas canisters.
Twenty-two illegal immigrants were kept in an upstairs bedroom that had plywood nailed over its windows to prevent escapes and a milk jug that served as a toilet. Flies buzzed amid the empty beer cars and open bags of garbage that littered the house.
No smugglers were arrested; they may have given immigration agents the slip. The home had $11,000 in damage. The couple who acted as the front for the renters disappeared.
The housing glut here is blamed on the mortgage crisis along with overbuilding by developers who misjudged the appeal of homes a considerable commuting distance from Phoenix.
Homes like Winterholler's appeal to smugglers because of the privacy. They have garage doors that allow people to be brought in undetected. Subdivisions with lots of vacant homes have fewer neighbors who might call police. Unlike motels and apartments, which also are used as stash houses, houses don't share walls or courtyards with the neighbors.
And while smugglers have long used rental houses, these new suburban homes are in places where neighbors wouldn't expect to find illegal immigrants hiding.
Tyler Renner, who lives on the same block, said he and other neighbors never noticed people or sounds coming from the Winterholler house.
Police said homeowners should do credit and criminal background checks on prospective tenants. They also warned owners to be skeptical of overly favorable deals and resist the urge to skip background checks just because the prospective renters seem nice.
Winterholler, who moved into his roughly $260,000 house brand-new in 2006 and lived there until last August, said the man and woman who rented the place provided four references, all of which checked out.
As tenants for nearly three months, the couple always paid on time and answered Winterholler's calls, he said.
“I remember when they came over,” Winterholler said. “We gave them water. I shook his hand.”
Posted by Chris at 4:27 AM
Friday, December 21, 2007
I live in an apartment to condo conversion. Each building has 20 individual units.
In the building I live in right now out of 20 units...
5 have never been sold and are owned by the builder. (currently for sale by builder)
4 are for sale by the current owners
1 is abandoned (Because I think the old guy living there has passed away)
10 are occupied and not for sale.
As you can see I really have no chance of getting out, and I am trapped here.
Posted by Chris at 11:15 AM
The collapse of the housing market is this year's big business story, but it's a crisis driven by more than simple economics. Like the dot-com boom before it, our soaring home values were fueled partly by psychology, as so many of us dreamed of trading up, building from scratch or renovating—and as so many dinner parties devolved into real estate gossip. In "HOUSE LUST: America's Obsession with our Homes," NEWSWEEK's Resident Expert Daniel McGinn explores why so many Americans became so enamored with homes—and why many remain so even after the boom has faded.
Posted by Chris at 11:10 AM
Thursday, December 20, 2007
Wednesday, December 19, 2007
Ron Paul fan or not, check out what happens at exactly 1:36 into this clip. This is really one of the coolest things I have ever seen, and I really think the MSM claiming 4% nationally in the polls is completely clueless.
4% does not get this reaction.
Posted by Chris at 10:55 PM
Sunday, December 16, 2007
As of 11:00 PM Eastern Time on Dec 15th 2007 Ron Paul has roughly $11,550,000. Anything you see in the animation below beyond that is what will be attributed to the TEAPARTY 07 drive.
Win or lose in 2008, This is the day that all Americans who are sick of voting for the better of two evils, sick of being told who we should vote for by the media take back our political system and make sure our voice is heard.
Even if you don't have $100, give $10 if you believe in the message that Ron Paul speaks for us.
The media can no longer ignore the revolution that is sweeping through America!
Posted by Chris at 12:00 AM
Friday, December 14, 2007
Fantastic Clip of Jim Cramer and Ron Paul discussing the Federal Reserve's roll in the Housing Bubble
Ron Paul and Jim Cramer lay it all on the line and tell the truth about the economic disaster the USA is facing. Of course the root cause lays with the flawed monetary policy and corrupt federal reserve which answers to no one and has no checks & balance.
Really fantastic interview even for those who do not like Ron Paul but want to understand how this whole mess happened in the first place.
Americans are starting to wake up.
Posted by Chris at 9:28 PM
Thursday, December 13, 2007
BACKGROUND INFORMATION:WaMu purchased the subprime credit card company Providian in 2005, Here you can read 2 articles I wrote about them back in 2001
WaMu makes horrible business desicion to purchase Providian in 2005
HousingFEAR wants to take you to a blast from the past!
My first writing experience online was writing for a website called Epinions.com where you would write reviews on companies and products.
In 2001, and 2002 I wrote two reviews about a loan shark credit card company named Providian. When I was first establishing my credit, I had to go through them to get a credit card, and they took advantage of me with a big annual fee, exorbitant 20%+ interest rate, and other shady practices.
After paying my bills on time, I received offers from real credit card lenders and dumped Providian. However, the experience left me disgusted with them and I wanted to warn others of their practices.
The point behind this all is that some genius at WaMu actually purchased this horrible company in 2005, so it is no surprise to me at all that the same genius was probably behind WaMu's heavy involvement in the sub prime mortgage lending debacle.
Needless to say, here is an article i wrote back in 2002 about Providian for your reading pleasure. And yes, I do find it somehow satisfying to see these snakes get burned.
Article written about Providian Classic Visa in Oct 2001
Article written about Providian Aria Visa in Jan 2002
Very Nostalgic. :)
Again, the meltdown of WaMu really comes as no shock to me at all, I hope after reading my reviews it doesn't shock you either, that whoever was running this company in 2005 and thought it was a great idea to purchase sub prime monstrosity Providian would also be making bad home loans.
In fact, it makes perfect sense.
Posted by Chris at 8:07 AM
Washington Mutual to close 190 offices
It will shut 12 Bay Area home loan centers, expects to lose $1 billion in 1st quarter of '08
Additionally, the company slashed its quarterly dividend 73 percent and said it plans a $2.5 billion offering of convertible preferred stock. Washington Mutual has not yet priced the offering, but increasing the total number of company shares will dilute their value for existing stockholders. In after-hours trading, shares fell $1.73, or nearly 9 percent, to $18.15 following the company's announcement.
Chairman Kerry Killinger said in a statement that "significant expense reductions" were needed "to further fortify" the bank's capital and liquidity.
The Seattle thrift dismantled much of its subprime mortgage business in September, cutting 1,000 jobs related to the sale of home loans to people with questionable credit. It folded the remaining subprime operations into its regular mortgage business.
The savings and loan will now get out of the subprime mortgage business entirely.
The company said it will close about 190 of its 335 home loan centers and sales offices, shut down nine call centers, and eliminate 2,600 home loan workers and 550 corporate and support jobs.
Locally, Washington Mutual spokeswoman Elizabeth Borrelli said 110 jobs would be eliminated with the closure of a retail home loan fulfillment center in Pleasanton. Another 20 jobs will be cut in San Francisco. Elsewhere in California, Washington Mutual will close home-loan-related offices in Downey (Los Angeles County), 35 jobs; Irwindale (Los Angeles County), 35 jobs; and Irvine, 230 jobs.
Spokesman Gary Kirshner said Washington Mutual will also shutter 31 home loan centers in Northern California. These will include 12 Bay Area locations: two each in San Francisco and San Jose, plus one center each in Dublin, Lafayette, Los Altos, Oakland, Pleasant Hill, San Bruno, San Rafael and Saratoga.
These changes, meant to address what the company called "unprecedented challenges in the mortgage and credit markets," will save the thrift $140 million in the fourth quarter. But the company still expects to post a loss, due in part to a $1.6 billion charge for the write-down of goodwill associated with the shrinking home loans business.
On top of that, Washington Mutual increased its loan loss provision to $1.5 billion to $1.6 billion for the fourth quarter, from the $1.1 billion to $1.3 billion predicted by executives in early November.
For the first quarter of 2008, the company said it expects loan losses to total $1.8 billion to $2 billion. Loan losses will remain high throughout the year, the thrift added.
The company also slashed its quarterly dividend to 15 cents per share from its most recent dividend of 56 cents per share, for savings of more than $1 billion.
Moody's Investors Service downgraded several long-term and short-term ratings for the company and said in a statement that the move "was based on its view that credit losses from WaMu's mortgage operations will be noticeably higher than previously estimated." The credit rating agency said it doesn't expect the company's profitability to begin to recover until 2010.
Fitch Ratings also downgraded the thrift's credit ratings.
Before the news, shares rose about 85 cents, or more than 4 percent, to close at $19.88 Monday.
Posted by Chris at 8:05 AM
Wednesday, December 12, 2007
ANCHORAGE, Alaska -- In a poll conducted Monday, Dec. 10, Channel 2 News asked which GOP presidential candidate Alaskan Republicans plan to support in the Super Tuesday caucus. A slim majority of respondents support Ron Paul, a Texas congressman known for wanting to abolish the IRS and opposing the Iraq War. Former Arkansas Gov. Mike Huckabee, who's surging in national polls as well as Iowa caucus polls, came in a close second. Which Republican presidential candidate will you support in Alaska's caucus? Rudy Giuliani -- 14% All polls conducted by Channel 2 News and KTUU.com are unscientific.
Ron Paul is Winning in Alaska!
Mike Huckabee -- 22%
John McCain -- 9%
Ron Paul -- 29%
Mitt Romney -- 9%
Fred Thompson -- 12%
Other -- 6%
ANCHORAGE, Alaska -- In a poll conducted Monday, Dec. 10, Channel 2 News asked which GOP presidential candidate Alaskan Republicans plan to support in the Super Tuesday caucus.
A slim majority of respondents support Ron Paul, a Texas congressman known for wanting to abolish the IRS and opposing the Iraq War.
Former Arkansas Gov. Mike Huckabee, who's surging in national polls as well as Iowa caucus polls, came in a close second.
Which Republican presidential candidate will you support in Alaska's caucus?
Rudy Giuliani -- 14%
All polls conducted by Channel 2 News and KTUU.com are unscientific.
Posted by Chris at 4:01 PM
Tuesday, December 11, 2007
“Are they living here?” is a frequent question from Michigan home buyers when looking at homes for sale. If in doubt, I head straight to the refrigerator for the answer. The contents usually tell me right away.
Last year one of our sellers took care of the “empty refrigerator syndrome” by leaving things in it that made the home look lived in. In addition to her jars of condiments, she left yogurt containers, eggs, and a half full milk jug. I have no idea what was actually in that milk jug, but it looked like milk. The things she left made it look like her family was still living in the home. They moved to New York a few months before their home sold, but it never looked vacant, which helped us close a sale on the home.
Now I would recommend that any seller who is going to be away for an extended time try refrigerator staging. Clean out the refrigerator well first then put back items that you don’t have to worry about looking spoiled over a longer period of time. Nothing stinky or too perishable, please. You’ll throw those of us doing the refrigerator test right off the track.
I guess all I have to say to this Realtor is.... LOL!
Here is a better idea, I will give some sound advice to all those who can't sell their house in the current market;
Posted by Chris at 7:22 PM
Logic would dictate that with a fed rate cut, the stock market would have a great day. Gold, Oil, and Commodities would soar as smart investors who wanted to preserve their wealth would flee to these "safe havens" as a hedge against inflation.
The dollar would continue to crash, and I could write a very entertaining post bashing Bernanke for all to enjoy.
However, It seemed like everyone was annoyed with the quarter point rate cut.
The stock market had a sell off because they were expecting a larger cut, Gold went down, and the dollar index actually went up.
I have to admit I am very confused about the days events, and all i really have to offer you is a cute picture of a cat.
Posted by Chris at 7:15 PM
Monday, December 10, 2007
Fear is definitely in the air regarding the housing crash in SE michigan.
The sign reads...
"FREE Land Rover 2 Year Lease
FREE Mortgage Payments For 1 Year
with purchase of loft"
The advertisement is almost tragically ironic considering that the reason the Metro-Detroit housing crash is underway is primarily due to job loss, plant closings, and lay-offs in the auto industry. It is kind of adding insult to injury offering a free lease on a foreign car to a person who can no longer buy the home because he lost his job thanks to people buying foreign cars in the first place.
Good luck guys. However, if you want my advice how to sell your lofts, its simple, lower the price.
Posted by Chris at 5:53 AM
The snow brings a new problem with the high number of foreclosures in the Twin Cities. All those empty homes mean no one is around to clear the sidewalks.
Kathy Nitschke shovels out her own property, but sees that no one is looking after the vacant home in her Minneapolis neighborhood.
"A lot of traffic through here, so it's unfortunate when they don't clean things up," said Nitschke.
In Minneapolis, there are 50 percent more homes in foreclosures this year than last. In St. Paul, there are four times more vacant homes than in 2006.
It means more work for the city--both Minneapolis and St. Paul have a rule, stating snow must be cleared within 24 hours.
If a sidewalk stays covered in snow for more than a day, a letter is mailed to the address. If nothing happens, city crews come and do the work. The city of St. Paul charges $160 an hour, while Minneapolis charges $300 an hour—plus a $103 citation.
"We only have limited resources to do the work," said Minneapolis city spokesman Mike Kennedy.
If there are no homeowners to pay the snow removal costs, it will be forwarded to the bank that owns the foreclosed home.
The city of Minneapolis told 5 EYEWITNESS NEWS it answered more than 100 calls reporting snow-covered sidewalks on Monday alone.Source
I love it. The city charges the banks $303 per hour, +$103 dollar fine per each foreclosed home, every single time it snows!
In Minnesota that is going to add up to some real money pretty quickly. I have a feeling now would be a great time to make a low ball offer on a Minneapolis foreclosed home. :)
Posted by Chris at 5:52 AM
Sunday, December 9, 2007
Friday, December 7, 2007
"The root of this crisis, as with past financial and economic crises, results from federal government intervention into the economy, not to anything endemic to the market, nor to the actions of market participants.
"The collapse of the housing market has served as a catalyst for the economy's latest bust. Various federal mortgage programs through the FHA, Fannie Mae, and Freddie Mac have distorted the normal workings of the housing market.
"The Federal Reserve's loose monetary policy and lowering of interest rates were a major spur to the housing boom. Low interest rates influence marginal buyers, those who are sitting on the fence, and encourage them to take on a mortgage that they otherwise would not.
"It is time for the federal government to get out of the housing business."
Posted by Chris at 11:23 PM
This Sunday, Residents of the Detroit Area who opened their paper were greeted with 122 pages of the 2008 Tax Foreclosure List for Wayne County. The current figure for Wayne County reports that a staggering 1 in 4 homeowners are in default on their mortgage. Bubble markets like California, Vegas, Miami, and Phoenix crashed due to exorbitant prices, however, Detroit crashed simply because the economy was plain horrible.
Thanks to governor Granholm, Michigan is one of the only states currently in a recession and the way it looks, headed for an actually depression. Yes, I did use the D-Word. A Depression is exactly what is headed Michigan's way very soon if things continue at this rate.
In 121 printed pages of the Sunday Free Press, Wayne County Treasurer Raymond Wojtowicz listed more than 18,000 properties across Wayne County facing foreclosure. Notices sent to homeowners since March have whittled the list from 161,000 properties that had been delinquent on tax payments The advertisement will run the next two Sundays. The printed pages cost the county more than $400,000, and are required by law. It's just one more way the county tries to make sure property owners know that they're facing foreclosure.
Posted by Chris at 8:06 AM
Thursday, December 6, 2007
I look at the situation this way: the reason for the housing bubble and the ridiculous run-up in house prices was mainly due to exotic mortgages like those found in the sub prime mortgage market. Sub prime loans were responsible for that starter home in California costing 1/2 a million dollars.
Allowing people with bad credit, low income, and high debt ratio's to buy a house may have seemed like a good deed at the time because it allowed more Americans to achieve the dream of home ownership, however, it really did the opposite.
These kinds of loans drove the price up and made homes basically unaffordable in some markets to those wanting to use conventional financing. The people who should not have bought the home, and gambled everything to do so, ruined the chances of home ownership for the people who really earned it.
The sub prime market was driven by greed. Greedy flippers wanting to make a profit after living in a home for a year or two, greedy mortgage brokers and Realtors earning their commission for doing next to nothing. greedy banks wanting to rake in massive profits, and greedy investors and hedge fund managers who bought this debt on wall street.
Now the government is stepping in where it does not belong, and is trying to bailout these sub prime borrowers who cannot afford the house in the first place and in doing so, is helping to keep house prices artificially high.
The Ponzi scheme collapsed, and the greedy should be punished and taught a lesson. Instead they are getting bailed out, which will cause them to repeat the bad behavior in the future. It is a shame that the government allowing this to occur without considering the moral hazard.
The only way for the housing market to recover is for prices to continue to fall back in line with the median income of the area. Only then, will demand increase, and the situation will improve. Falling house prices, although bad for some, are healthy for the housing market and the economy.
Mr Freeze is on the way... And its a very bitter cold.
Posted by Chris at 11:00 PM
Peter Schiff explains the current state of the housing market and crash with brilliant, easy to understand logic. This is a must watch.
Posted by Chris at 11:38 AM
Tuesday, December 4, 2007
Insurance fraud investigators are girding for an expected rash of arson's by cash-strapped homeowners trying to avoid foreclosures and ballooning monthly payments as the sub prime mortgage crisis deepens.
"Home arson's for insurance money by mortgage-burdened owners are hardly new. The question is whether a new and virulent spike looms," says the Coalition Against Insurance Fraud.
Falling home values and tighter lending are making it difficult for many people to finance their way out of trouble. More than $50 billion in adjustable-rate mortgages were reset last month, thus intensifying the financial crunch on homeowners, says the coalition's Executive Director Dennis Jay.
"The sub prime mortgage crisis is crushing untold thousands of homeowners under heavy mortgage payments they can't afford—especially as many monthly payments adjust upward sharply after introductory teaser periods of low-interest rates," he writes in an article in its publication, Fraud Focus.
Only a few suspected home torchings have surfaced so far. Samuel White allegedly burned down his Houston home for insurance money to dodge a scheduled foreclosure. An African-American, he allegedly spray-painted racial slurs around the interior to make the suspected crime appear to be a hate crime.
Suspected mortgage-related home arson's already have jumped 50 percent above the 2006 rate in California, though the numbers are still relatively small, the insurance department says.
The industry's Rocky Mountain Insurance Association also is watching its region closely. In fact, one Woodland Park owner allegedly torched his home just days before he was scheduled to evicted in a foreclosure.
"I don't believe that it's had time to ripple through the market yet to the point that many people have reached the point of desperation," EFI Global fire investigator Alex Ahart says. "But I absolutely think it's coming."
Can anyone explain how this would benefit the home debtor? If the house is burned to the ground won't the insurance company simply rebuild the house? It would seem The sub prime borrower would still owe the full mortgage amount, he would just get a new house. Am I missing something? How would a fire, assuming it were actually legitimate, relieve the mortgage holder of his obligations?
Posted by Chris at 5:02 PM
Monday, December 3, 2007
"For many years 1 USD = 3.67 AED. This is a holiday weekend (UAE National Day) and the UAE Central Bank is expected to drop it to 3.5 and at least one exchange was offering only 3.25 yesterday.
Today (Saturday), most places are not accepting any USD... they are worth zero effectively."
Posted by Chris at 6:45 AM
Dec. 7, there will be a pre-launch ceremony in Elizabeth City, NC.
Dec. 10, it will fly over Washinton D.C.
Dec. 12, it will make a flyover of Wall Street, in New York.
Dec. 14, it will arrive in Boston in time for the Tea Party moneybomb, which takes place Dec. 16.
From Dec. 18 on, it will be in New Hamshire.
How can anyone not be moved by this?
This is not the work of a campaign, or a billion dollar corporation, this is the result of regular people coming together on the internet to raise money for something and someone they believe in. The media will look on in horror as they realize that a new era has arrived and they can no longer influence who gets elected in this country.
On Dec 16th, there will be a blimp in the air over Boston, thousands of people in the streets, and a fundraising record being set over the internet.
The Ron Paul Revolution has begun.
Posted by Chris at 6:18 AM
Sunday, December 2, 2007
Mortgage Broker who has been living in a cave for past year, poses this question to the Broker Outpost:
"I have noticed that a lot of the lenders I like to use keep going out of business (New Century, WMC, LownHome). Why would they do that? Has anyone else noticed this? What is going on in the market or with their bottom line to cause this? There are still plenty of customers, I don't get it."
The rest is pure comedy gold...Enjoy Here
Posted by Chris at 7:04 AM
"I think they're sick and tired of what they're getting. They've lost all trust and faith in the government. They believe in the American Dream, and they're getting a nightmare. And they're rallying behind the program I've been working on for 30 years—defending the Constitution, limited government, free markets, sound money, and self-reliance; believing people can take care of themselves better than government can. The nanny state doesn't work, the police state doesn't work, and neither does the warfare. And they know it."
Posted by Chris at 6:39 AM
Friday, November 30, 2007
Hell clearly has indeed frozen over
Get ready for the Housing gambler bailout!
House Flippers, Wanna-be real estate kings, Illegal immigrants, and sub prime borrowers who can't pay a credit card bill on time but were given a 1/2 million dollar mortgage nonetheless REJOICE!
Your bad credit, irresponsible behavior, and reckless financial decisions are about to be rewarded!
During the real estate boom billions of dollars in toxic mortgages were made to people with undocumented incomes, and abysmal credit scores with complete disregard to any lending standards.
Recently, the consequences of these idiotic lending practices have been felt by all as foreclosure rates have soared. Banks and hedge funds are losing massive amounts of money, and property values are going down faster than a cheerleader on prom night.
Instead of letting the market play itself out, and letting the bad boys and girls get spanked, the fed is trying to bail out these fools at the expense of the rest of us who actually did things the right way.
... You know... Got a mortgage based on our income, paid our bills on time, had money for a down payment, and actually bought the house to live in, not flip for a quick profit.
The Moral Hazard ramifications of this situation are astounding. People who are not punished for their bad choices will continue to make them in the future, people who did things the right way and see the ignorant and greedy get rewarded for their actions will grow angry, and may be less likely to do things the right way in the future knowing that they will get a far greater reward by being irresponsible.
Read the full story here:
Paulson's mortgage bailout
Lenders discuss freeze on intro rates
WASHINGTON (AP) -- Treasury Secretary Henry Paulson and federal banking regulators are working out the details of a plan to extend lower, introductory interest rates on home loans before they reset at higher levels...
There are an estimated 2.3 million borrowers with poor credit records whose home loans are projected to reset at higher rates through the end of next year. There are fears many of those loans risk default, worsening the nation's soaring foreclosure rate....
Last week, John M. Reich, director of the Office of Thrift Supervision, the federal regulator of the nation's savings and loans, came up with a more modest proposal in which borrowers would get a three-year extension of low initial "teaser" mortgage rates. That plan,would be funded from surpluses in mortgage-backed securities.
So basically to sum up the plan, the borrowers with horrible credit who did not deserve the home in the first place, get to have the low teaser rate locked in for years.
The responsible who got fixed conventional mortgages on good credit, receive no such advantage. The responsible get punished, while the irresponsible get rewarded.
I guess Hell truly has frozen over.
Posted by Chris at 5:20 AM
Thursday, November 29, 2007
WASHINGTON (MarketWatch) -- Sales of existing homes fell for an eighth straight month in October even as more properties came on the U.S. housing market, driving the supply of homes up for sale to the highest level in 22 years, the National Association of Realtors reported Wednesday.
The following facts and figures are staggering...
- The inventory of unsold homes rose by 1.9% to 4.45 million, representing a 10.8-month supply, the highest in at least eight years.
- For single-family homes alone, the inventory of 10.5 months is the highest since July 1985.
- Sales are down 20.7% in the past year and are down 31% from the peak of 7.21 million two years ago.
- The median sales price fell 5.1% in the past year to $207,800. That's the largest year-over-year price decline ever recorded.
This is the part that makes me giggle like a school girl:
As bleak as the data are, the fundamentals of the market don't support a further decline in sales, according to NAR chief economist Lawrence Yun, who said low mortgage rates and job growth should keep sales from falling. While the subprime mortgage market has disappeared, the Federal Housing Administration is picking up its lending."I don't anticipate any further major sales declines," Yun said.
Someone needs to give Yun a lesson in supply and demand. Heres one for starters: when you have a record amount of supply, and virtually no demand, prices are going to continue to fall. period.
Never trust a Realtor!
Posted by Chris at 9:29 PM
NEW YORK — The stock market surged Wednesday for a second consecutive session after a top-ranking Federal Reserve official indicated that policymakers could be amenable to lowering short-term interest rates further.
In a speech in New York, Fed Vice Chairman Donald Kohn said the central bank would remain "flexible" and would "act as needed" to prevent the housing crisis and credit crunch from damaging the economy.
After a string of recent comments from Fed officials that they would stand pat, investors embraced Kohn's remarks as a sign that policymakers were reassessing recent signs of economic softness and could cut rates at their Dec. 11 meeting. That would be the third consecutive Fed reduction, after cuts Sept. 18 and Oct. 31.Source
This is just more pandering to wall street. It is disgusting that the Fed will do anything to save the stock market at the expense of the dollar. How far will they allow the dollar to fall and inflation to rage before something is done?
Perhaps the conspiracy theorist are correct. Won't Americans be much more willing to accept the NAU, and the "Amero" (the proposed new currency between USA, Canada, & Mexico) if the dollar is in rubble.
The Amero and the NAU will be looked at like a savior.
Step 1) Destroy the US Dollar so that the Canadian looney has more value. (Complete)
Step 2) Continue to erode the currency further creating rampant inflation and hardship
Step 3) Propose the NAU and Amero as a solution to the economic disaster
Step 4) Americans gladly hand over sovereignty in order to afford gasoline again
Step 5) Success
Wake up America!
Posted by Chris at 7:32 AM
The question designed to make him look conspiracy theorist back fired and Americans are waking up to the fact that their national sovereignty is under threat.
The new currency for the North American union. "The Amero"
Proposed Nafta Superhighway.
Posted by Chris at 6:50 AM
Wednesday, November 28, 2007
You can read my previous article about the MSM bias and corruption regarding elections here.
This debate was a complete disgrace. Ron Paul received absolutely no time to talk and the two questions he did receive were from people out to discredit him and make him look like wacko.
Question 1: Do you believe in the Conspiracy theory regarding the North American Union?
Ron Paul Schools this Douche Bag
Question 2: Ron Paul, You know you will never win the election, Will you run as a third party candidate?
What I just witnessed was completely shameful, and I am completely convinced that those with power are truly afraid of Paul, and afraid of the revolution that is brewing in America.
Gandhi said,“First they ignore you, then they laugh at you, then they fight you, then you win.”
I am fighting mad now.
Posted by Chris at 7:17 PM
Tuesday, November 27, 2007
This article really hits home, you can read my condo story here.
The housing market in the Detroit area is bad. However, people here seem to have an irrational, almost mentally retarded thinking when it comes to the condo market. Although the condo market was booming 2 years ago, now, people here will not even consider a condo when the price is substantially below rent in the area for a similar unit.
It simply defies all logic and reasoning.
I can almost understand in big bubble markets like Miami or California, why buy a condo for 3,000 a month PTI when you can rent the same place for 1500. Very logical and understandable choice by the consumer to avoid that situation.
In SE Michigan for example, it is just downright dumb. Rent Cost 700 a month, Condo cost 550 a month to OWN. They will avoid buying like a plague.
They Psychology has turned so much, and so quickly here regarding real estate in general, but especially towards condo that it almost defies all reason.
I can only hope that eventually people here will realize that if a condos expenses; Mortgage, Taxes, And Association fee's actually cost less than equivalent rent in the area that it IS A GOOD BUYING OPPORTUNITY FOR THE LONG TERM.
I think with people fleeing the state of Michigan in droves, apartment complex drastically cutting prices and offering incentives fighting over the people who are left, the situation will not recover until 2010-2011.
Housing slump wallops condos
Segment is hardest hit as construction, sales plummet
Nathan Hurst / The Detroit News
BLOOMFIELD HILLS -- Metro Detroit's once-booming condo market has hit the skids.
From Downriver up through the northern reaches of Macomb County, condominium developers are slashing prices and offering incentives as they struggle to sell a glut of units languishing for sale even longer than single-family homes. Others are canceling projects that promised to bring fresh development geared toward young buyers into popular suburbs like Ferndale and Royal Oak.
The number of building permits issued for condos in Metro Detroit has plummeted from a 2004 peak of 6,377 to only 692 through October of this year, according to data compiled by the Southeast Michigan Council of Governments.
Caught in the middle of the condo slump is Anne Feighan, a 34-year-old strategic planner, who bought her two-bedroom, two-bath condominium at the SkyLofts Market Square building in Royal Oak for $310,000 in October 2005. Just two years later, it has lost $50,000 in value.
"I wish I would've rented," Feighan said. "It stinks. For me to try and sell right now would be insane. I know that no matter what happens, I'm going to lose money on it."
Condo sales in Metro Detroit are included with single-family house sales in monthly reports from Realcomp Inc. multiple listing service, so tracking the condo sales decline is difficult. But agents, developers and experts say the condo market has been especially hard hit in this housing slump, one of the worst in Michigan in decades.
"Condominiums tend to be much more volatile than any other part of the housing market," said Don Grimes, a senior economic research specialist at the University of Michigan.
"There's more turnover, and the projects tend to come together and fall apart much more quickly than traditional single-family developments."
Recent reports from the National Association of Realtors are pointing to another troubled year for the U.S. housing sector in 2008, with some uptick as the nation's credit crunch begins to ease. Locally, agents and analysts predict a similar situation.
But Grimes said a recovery in the residential condominium sector will follow that for single-family properties.
"Because of the volatility, the eventual gains could be more," he said. "But whatever recovery happens will be later."
Buyers offered incentives
Feighan in Royal Oak plans to wait the downturn out.
Engaged and house hunting, she's resigned herself to leasing her loft at a loss until the market picks back up.
For those developers in the condo game, their troubles can be seen in the signs touting incentives for buyers and the empty lots awaiting new construction.
On Hickory Glen Drive in one of Bloomfield Hills' earliest condominium developments, "For Sale" signs are as prevalent as the meticulously manicured lawns and shrubberies.
The going prices on some of the units have fallen below what previous owners sold them for back in the early 1990s.
Jane Figueiredo, who spent much of this year competing with more than 40 other sellers in the nearby Adams Woods subdivision to get rid of her property, upgraded the home, dropped her price and even offered the property for trade.
After nearly a year on the market, she finally got a break-even deal.
But she's sworn off any future Metro Detroit condo buying.
"It was hell," she said of the property's sale. "Never again."
Agents for Admiral Homes, one of Macomb County's largest builders of residential condos, are hoping slashed prices and $10,000-off coupons offered on its Web site will be enough to sell what's been sitting on the market for months in its developments in Chesterfield and Shelby townships.
Downriver, agents are pitching incentives such as six months free of mortgage payments to boost the appeal of townhouses sitting unsold for several years.
Developers shelve projects
Elsewhere, developers have shelved much-hyped projects.
Jason Lewiston, co-developer of the Woodward Ave. Lofts project, planned it for a site along Woodward in Ferndale south of Nine Mile.
But earlier this month, he pulled the plug after presales of the units, which would have cost from just under $200,000 to more than $700,000, went much slower than expected.
In Southfield, the mid-rise luxury 10 Ten project slated to go up on 10 Mile has been canceled as well.
Agents and condominium owners said that they hoped the pullback on new projects would help the condo supply fall more in line with demand.
Cheryl Standard, a 62-year-old Birmingham retiree, said she yanked her two-bedroom condo off the market this summer after people kept passing it up in favor of newer units. She's hoping to move to Florida to be closer to her two sisters, but said she'll have to wait to avoid a loss on her home.
"Who could blame them?" Standard said of the buyers she courted. "I couldn't compete with these developers giving away free cars and mortgage payments. But if there's less building, it'll give everyone time to adjust to a different market."
Standard was told by numerous agents that she would likely have to take a $30,000 or $40,000 hit on her unit to get it off her hands.
But because she bought it just a few years ago, that was more than she could handle.
"I've got friends who've had trouble selling their houses, and I can't help but think this is much more extreme," Standard said. "I feel like I've been locked into a bad situation that just keeps getting worse."
Grimes, the U-M economic researcher, said Standard's inclination is right.
"If you look at real estate losses across the country, condos have been right at the front of the trouble spots," he said. "You see it in a lot of overheated places like Florida, California and Nevada. But in Michigan there's been a continued predisposition toward single-family homes. So while demand for real estate is faltering in general, it's gotten worse in the condo sector."Source
Posted by Chris at 4:33 AM
Monday, November 26, 2007
Do you ever get one of those feelings that something catastrophic is about to happen? You have no concrete evidence, and you realize you could be completely incorrect, however you can't shake the feeling that something really bad is about to occur.
I think a perfect storm has been building; a clueless fed, a collapsing housing market, The big banks keeping losses off their books to fudge the numbers and ensure their Christmas bonus. The Countries GNP almost totally based on consumer spending, and worse yet, that spending is almost completely made possible by consumers racking up massive credit card debt. A currency that is rapidly becoming debased while jobs are being shipped over seas.
I just have that "gut feeling" that we are headed towards a meltdown of epic proportions and we are about to see a crash on the level of 87'.
Of course I could be wrong...but you know what they say,"Always trust your gut"
Posted by Chris at 10:00 PM
Sunday, November 25, 2007
Please forgive me for coming across as paranoid or as some kind of a tin foil hat wearer who is convinced that everything around me is a conspiracy theory, I really do not consider myself to be one of those people.
However... After following Politics and the media coverage thereof for the past 2 months I cannot help but feel we are all clueless sheeple being fed the illusion of choice, democracy, and fair elections when the reality is we have no choice at all.
I have taken the red pill, I have woken up and seen the truth, I can never go back to the peaceful ignorance and bliss that I once knew. My world will never be the same.
I have realized that the presidential candidates are determined by the main stream media and by the people who run the biased and outdated political polls. There two outlets work in tandem to choose the two candidates well before a single vote has been cast.
The main stream media networks are in the entertainment business as well as the "news", so if a candidate has too big of a lead, and it gets boring, Obama starts gaining on Hillary or Romney starts gaining on Giuliani in the latest poll to spice things up, in the end though, the media has already told America that the presidential election will be Hillary vs Giuliani and they better learn to like it.
- The debates give an uneven amount of "talk time" to the candidates bestowed with the title of front runners, before a single vote has been cast of course, by the media. This becomes a self fulfilling prophecy because the second tier candidates do not get an equal amount of time to share their positions with the American public and gain favor.
Do you believe its just a coincidence that the candidates who get more time to talk, receive a higher % in the polls? I don't.
- With the exception of the top 3 front runners of both parties, the other candidates are never mentioned and receive almost no coverage unless there is a major event.
I can't tell you how many times I watch the news to see constant coverage of Hillary and Obama, or Romney and Giuliani with no mention of anyone else. It is disturbing.
- Most people have never even heard of Ron Paul period, much less heard enough about him to make an educated decision to consider him for their vote.
It makes me extremely angry that a truly great man such as Ron Paul has not even been introduced to the American public yet. If it was not for me reading other housing and finance blogs on the Internet, I would never known who Ron Paul was either. I would be missing out on a great message and might never have noticed the growing phenomenon that was taking place all around me. The Internet, which remains unregulated, is the only place where "truth" is able to be discerned from the information that is carefully selected and spoon fed to us by the main stream media.
- The media is controlled by the one who has the purse strings. In the case of the major TV news outlets its the big corporations who give them ad revenue.
The bottom line is that what the American public believes to be true is influenced by the media. The media is controlled by the mighty dollar, and the dollar is controlled by the huge corporations that sponsor the news networks.
He who controls the money controls everything.
Hillary has received something like 80 million in campaign donations this year, unlike Paul who received his donations mostly in small sums from regular people, Hillary is indebted and owned by the corporations, lobbyist, and special interest groups that have funded her campaign. Is it any wonder that CNN covers her constantly when those same advertisers, corporations and pharmaceutical industries pay for airtime on their network. They want to see that their horse wins the race.
In short, I have seen the truth...
The truth is that you are a slave. Like everyone else, you were born into bondage, born inside a prison that you cannot smell, taste, or touch. A prison for your mind.
You take the blue pill and the story ends. You wake in your bed and believe whatever you want to believe. You take the red pill and you stay in Wonderland and I show you how deep the rabbit-hole goes.
Remember -- all I am offering is the truth, nothing more.
Posted by Chris at 7:28 PM
Friday, November 23, 2007
While you were eating Turkey, The Dollar was crashing to record Lows, Gold and Oil Soared to record Highs
That sucking sound you hear isn't the leftovers going down the garbage disposal, its the currency being debased.
The dollar index, which tracks the greenback against a basket of major currencies, hit an all-time low of 74.484, taking year-to-date losses to 11 percent. In real terms the dollar lost about 0.8% in one day.
Gold came close to $826 an ounce, making a run back toward a recent 28-year high.
U.S. crude oil for January delivery
The question remains; Will Bernanke continue to cut interest rates in a futile attempt to stave off the inevitable recession? If another rate cut is in store, his actions will continue to destroy the dollar, and as a consequence, the standard of living of everyday Americans.
Posted by Chris at 10:41 PM