Pay special attention to the unemployment rate in Michigan!
Friday, December 11, 2009
Wednesday, November 11, 2009
Just an update on my situation as of November 2009.
I have been married a little over a year and I am currently taking Organic Chemistry and doing well. I am working two jobs still and have been slowly paying down debt.
My wife pretty much hates the condo because the location is 20 minutes away from her job, and her mom, and about 40 minutes away from her second job. We qualified for a 120,000 dollar mortgage, meaning we could keep ownership of the current condo and still be able to buy another 120,000 dollar home. In California or Florida that may sound like a joke but in Michigan 6 months ago that would have got you a lot of house.
The real estate market in Michigan is not working in my favor though as of right now. The problem involves the first time homebuyers credit. As a result of the credit all the good foreclosures are being fought over and are gone off the MLS in a week or two. It is not so much that the real estate market is recovering. It is just that people are looking for steals and deals and they fly off the market while the regular priced homes languish forever. We put a bid in on a house we loved and were outbid and we have not really found anything else that we like as much.
The Government just expanded the tax credit it to people who already own a home and want to buy another one.
Great!!? right??? I could just use the credit to buy another 120,000 house! and compete on equal ground with the first time home buyers!
WRONG!!! You have to own your home for 5 years, and I have only owned mine for 4 years! Talk about adding insult to injury.
My sisters lease expires in January and she agreed to lease my condo. Because we don't see any good deals right now in terms of housing, and I don't want to lose the ability to get a good renter I could trust I think I am going to rent a place 20 minutes south of here for the same price I am paying on my condo. I would simultaneously rent my old condo to my sister.
This allows me to have a tenant in my condo who I know will not destroy my place.
It makes my wife happy because she is in a location she likes much better.
And it allows me to buy some time for the first time homebuyers credit to expire and the second wave of option arms to hit possibly producing more foreclosures that I could snatch up at the end of 2010.
They say Patience is a virtue... Lets hope that stays true.
Posted by Chris at 7:51 PM
Wednesday, October 28, 2009
The first time home buyer credit is about to expire, unfortunatly I am sure congress will extend it. If congress does let it die a natural death the net result will be a huge drop in demand for homes.
With winter coming up, which is a historically slow time in the housing market, combined with the tax credit ending I think we will see the real estate market worsen.
In Michigan, the prices have fallen back to affordable levels, the problem is that everyone is losing their job so no one can really afford what is a very great price.
Lets hope the government stays out of the mess and let the free market work its magic....I can still dream right?
Posted by Chris at 7:42 PM
Wednesday, September 9, 2009
Back in January I wrote a post with some predictions for 2009. Almost all of them have came true exactly as I predicted or have come very, very close.
One of my predictions for 2009 was that gold would hit 1200 an ounce. Today it has soared over 1,000 and I don't think it is going to slow down just yet.
The move could be seen as a sign that investors believe the worst of the global recession is over and are worried about inflation.
Others who are less convinced about the strength of the recovery are moving into gold, which is usually sought as a haven from economic turmoil.
Caroline Hepker reports from New York.
I can only say one thing... "Gold to da moon Alice!"
Posted by Chris at 8:31 PM
Friday, August 21, 2009
A Condo Fiasco
Zack Preble auctions his contract for $355,000 condo in downtown Miami. The online reverse auction drops to $215,000 before he gives up. The developer takes his unit and the 70,000 deposit.
I guess not everything has a happy ending... If you are unfamiliar you can read my last article on this fascinating story here . It looks like Zack's last ditch effort, a reverse auction, failed. He could not even recover 5,000 dollars of his 70,000 dollar deposit and finally gave up turning his condo back over to the developer and forfeiting his $70,000 dollar deposit. That is a pretty expensive lesson to learn considering that amount of money would pay off the whole mortgage on my condo in Michigan, with enough left over for a years supply of beer.
The bright side is that it was only a contract with a developer so he still has his credit history in tact, and the $70,000 dollars came as profit from selling his first house during the boom. So it really was a case of easy come...easy go.
It is a shame he never made a final post on his blog Condofiasco.com, however, it is nice to finally see how this story ends.
Posted by Chris at 3:12 AM
Wednesday, August 19, 2009
Talk about a total ghost town.
I never go to the mall, because I have been following the Dave Ramsey plan and getting out of debt. However, I did go last weekend because I really had a craving for a slice of Sbarro pizza. lol.
What really shocked me was just how many stores were closed. The Great Lakes Crossings mall in Auburn Hills, Michigan was once a pretty affluent area before Michigan's 20% unemployment rate started to transform SE Michigan into the post apocalyptic wasteland it is slowly becoming.
As I walked down the corridors I still saw a lot of people but about 1/3 of the stores were closed or covered up with paper. Even many of the restaurants in the food court were closed.
Once thing is for sure... When this economy does recover from the depression...SE Michigan will be one of the last places that comes out of it.
Posted by Chris at 5:11 AM
Monday, August 17, 2009
NEW YORK (Reuters) - One in four U.S. homes for sale on August 1 had their prices marked down at least once since landing on the market, data compiled by real estate website Trulia.com showed on Friday.
A total of 24.4 percent of homes had their prices reduced in July, up from June's 23.6 percent. The average discount was 10 percent from the original price, or $40,173 of a median house value, Trulia.com said in its monthly price report obtained exclusively by Reuters prior to its release.
When will these home debtors get it? Your house is not worth what your neighbor sold his for in 2006. It is not worth what you paid for it in 2004, and it probably can't even sell for the amount needed to pay off your outstanding mortgage balance if you bought it in the last five years.
Welcome to the new reality folks. I paid $87,000 for my condo in 12/2005. Now it is worth about $47,000. In fact my whole 20% down payment has been eaten through and I am still underwater.
Buyers don't care what you paid during the bubble. They don't care that you have had your house staged, or that you have granite counter tops. They simply want a house for as cheap as possible and with foreclosures everywhere they will not be looking at your house until the stream of foreclosures has dried up which will not be anytime soon.
Its the price...stupid.
Posted by Chris at 7:39 PM
Check it out!
It would be really interesting if Google could start making some headway into the real estate market and put Realtors out of business forever. Think what happened to travel agents after the internet became popular....I guess we can only hope...
Posted by Chris at 3:38 AM
Saturday, August 15, 2009
I love the NAR. I love how they will try to make horrible news sound better in order to advance whatever agenda they have. House prices are falling, however, it is time to celebrate because they are falling at a much slower rate than last quarter!!!
The industry group's chief economist, Lawrence Yun, called the second-quarter sales figures, which are based on a survey of its members, "a hopeful sign for the economy" because sales were up compared with the first quarter.
This is as ridiculous as a doctor telling someone that they are still going to die from a horrible disease, but worry not, you are dying at a much slower rate then you were a few months ago. Somehow I have a hard time seeing the brighter side of that situation. Here are the numbers from Reuters...
*U.S. home values posted their 10th consecutive quarterly decline, falling to $186,500 on the Zillow Home Value Index.
*Home values in the first quarter had fallen by 12.4 percent from the prior-year.
*In the second quarter, 23 percent of all owners of single-family homes with mortgages were "underwater"
*Sales of previously foreclosed homes accounted for 22 percent of all home sales nationally in June
*Nationally, the number of home sales in June fell 23.7 percent versus a year earlier Regionally, price drops were sharpest in the West (-26.6 percent), followed by the South (-10.3 percent), the Northeast (-9.7 percent) and the Midwest (-8.6 percent).
Top 10 decliners, year-over-year
1. Cape Coral-Fort Myers, Fla., down 52.8 to $84,000
2. Las Vegas-Paradise, Nev., down 39.7 percent to $141,000
3. Riverside-San Bernardino-Ontario, Calif., down 39.1 percent to $161,000
4. Phoenix-Mesa-Scottsdale, Ariz., down 36.1 percent to $131,100
5. Sarasota-Bradenton-Venice, Fla., down 34 percent to $175,800
6. San Jose-Sunnyvale-Santa Clara, Calif., down 33.8 percent to $500,000
7. Orlando, Fla., down 33.2 percent to $149,200
8. Miami-Fort Lauderdale-Miami Beach, Fla., down 33.1 percent to $207,400
9. San Francisco-Oakland-Fremont, Calif., down 31 percent to $472,900
10. Saginaw-Saginaw Township North, Mich., down 30.6 percent to $55,700
Don't break out the champagne just yet... the housing crash is still not over.
Posted by Chris at 4:53 AM
Friday, August 7, 2009
Wednesday, August 5, 2009
Tuesday, June 30, 2009
Posted by Chris at 10:36 PM
Thursday, June 25, 2009
So, I finally decided to give in and sell my house for what I owe.
For those who have not been reading this blog since the start I purchased a 1 bed/ 1 bath 890 sqaure foot condo with a detached garage for $89,000 dollars in January of 2006.
I put 20% down on a 6.5% 30 year fixed mortgage.
After the down payment and 3.5 years of mortage payments I owe about $66,500 on my home.
I figure even though it would be devestating to lose $22,500 dollars in life savings basically giving the house away for what I owe on it, my credit would be intact, and I would be able to get a much larger house at a steal from someone who was taking a much bigger loss.
The problem is when I went to realtor.com I am seeing 1200 sqaure foot 2 bed/2 bath condos selling for $67,000.
Even after putting 20% down and living in the house for 3.5 years of solid payments I am underwater!!!
There is no way I can possibly sell this place without damaging my credit, and damaging my credit would defeat the whole purpose of selling it because we want a bigger house.
It is a really sad situation because while this is a fine condo for a single person, I am married now and my wife would like a real house. We are trapped here and can't move on with the next stage of our lives.
The house crash has claimed another victim.
Posted by Chris at 8:08 PM
Wednesday, March 25, 2009
Tuesday, March 24, 2009
I am a good credit card customer. I have never missed a payment and always paid atleast my minimum payment no matter how bad my financial situation has been for almost 10 years now. You would think that credit card companies would appreciate me as a customer considering how many defaults have been taking place.
You thought wrong, I am getting the feeling that the card companies see me, and many other good customers, as defaults waiting to happen rather then the responsible customers we are.
American Express is the worst offender, they have slashed my limit twice and have been "chasing" me down as I pay off my card. It is kind of insulting that they would do this when I have given them no reason to suspect I would stop paying my bills.
I know that my credit score is much lower now simply because they have lowered my limit to just above my balance reducing my debt ratio and it pretty much sucks.
My opinion of American Express has really been adversly affected after this treatment and I really question what will happen to them in the future if they continue to treat their good customers this way.
Maybe Dave Ramsey was right after all.
Posted by Chris at 5:57 AM
Thursday, March 19, 2009
A dead cat bounce is a figurative term used by traders in the finance industry to describe a pattern wherein a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement, with the connotation that the rise was not an indication of improving circumstances in the fundamentals of the stock. It is derived from the notion that "even a dead cat will bounce if it falls from a great height".
Posted by Chris at 6:05 AM
Wednesday, March 18, 2009
The New World Order is about to strike a blow to freedom: World Reserve Currency to be proposed @ G20
In this post back in December, I showed a video of Alex Jones interviewing Ron Paul about the NWO making a move to have a global currency and the inevitable loss of American Sovereignty.
The general consensus at the time was Alex Jones is a nut case and this would never happen:
Well friends...It really is happening and the evidence is right here:
At G20, Kremlin to Pitch New Currency
17 March 2009, Moscow Times Article:
The Kremlin published its priorities Monday for an upcoming meeting of the G20, calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system.
The International Monetary Fund should investigate the possible creation of a new reserve currency, widening the list of reserve currencies or using its already existing Special Drawing Rights, or SDRs, as a "superreserve currency accepted by the whole of the international community," the Kremlin said in a statement issued on its web site.
The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries.
The Kremlin has persistently criticized the dollar's status as the dominant global reserve currency and has lowered its own dollar holdings in the last few years. Both President Dmitry Medvedev and Prime Minister Vladimir Putin have repeatedly called for the ruble to be used as a regional reserve currency, although the idea has received little support outside of Russia.
The Kremlin document also called for national banks and international financial institutions to diversify their foreign currency reserves. It said the global financial system should be restructured to prevent future crises and proposed holding an international conference after the G20 summit to adopt conventions on a new global financial structure.
The Group of 20 industrialized and developing countries will meet in London on April 2.
Posted by Chris at 9:21 AM
Our Obama, who art in Washington
Flip-flop be thy name.
They Presidency come, they will be done
In D.C. as it was in Chicago.
Please take away our daily bread
And raise our taxes
As we appease voters who want social services.
And lead us away from self defense
And deliver us from sovereignty.
For thine is the way of globalism
And the power of Socialism
Forever and ever,
Yes we can.
Posted by Chris at 5:26 AM
Tuesday, March 17, 2009
Someone help me understand the logic here...
If I was emperor of America, AIG would have been allowed to fail, the company would have went bankrupt and no one would have gotten a bonus. Voila!
However, Congress in all of its wisdom, decided to bailout an insolvent insurance company (AIG). The company was insolvent because it was poorly ran.
So please tell me why Obama and congress are all in an uproar that the same morons who are responsible for the poor business choices that led to AIG's demise would make an equally foolish move in rewarding bonus's with ill-gotten taxpayer money.
Don't you get it you monkeys? you created this mess! you allowed this to happen by bailing out an insolvent company which would not even be around right now to issue a bonus check if not for your wrong doing in the first place.
When you reward stupidity...stupid will keep happening.
Posted by Chris at 9:10 PM
Thursday, March 12, 2009
The blog MiamiCondoInvestments.com is a daily must read. The blog is ran by a Miami Realtor named Lucas who uses his blog as advertising to sell condo's, fair enough.
However, what makes the blog spectacular is the cast of characters who frequent it daily and constantly bicker, insult, and battle with eachother about the true value and future price of Miami condo's.
As I was reading the comments I noticed a debate had erupted over the idea that rich investors from latin America would save the condo market by purchasing the inventory. What follows are four comments from someone obviously pretending to be potential latin american investors which I feel is pure comedic gold, and they have to be shared.
I laughed so hard I cried, so I am hoping you enjoy these almost as much as I did... here we go...
Che Cavera /Mar 9, 2009 at 7:57 pm Vote:
As a formerly rich citizen of the Bolivarian Republic of Venezuela I am not offended by the Ace remarks for he speaks the truth. Venezuela like all of South American countries are extremely poor and those few Venezuelans that had money lost it all to Hugo Chavez. Just like Fidel Castro he took over the banks, the railroads, hospitals, refineries and most other private enterprise and property. If you weren’t fortunate to escape with your wealth then what you have left is worthless because it can only be sold at what the Chavez government says it is worth. I now sell used cars in Miami for a living and live in a small rented house with my wife a seven children I can assure you that I cannot afford the over priced Miami Condos but I dream of better days.Pablo Picasso /Mar 9, 2009 at 8:39 pm Vote:
I come from San Pablo, Brazil and if I were to paint a picture of the slums in my home country it would offend your senses. As I never made it as a soccer player I came to the US as an illegle and been in Miami for 10 years and I me and my friends may squat in one of these Condos, we like the Jade!
(For those who don't know Jade is perhaps the most luxurious and expensive condo in Miami)Speedy Gonzalas /Mar 9, 2009 at 11:21 pm Vote:
Sie senior I come frrom Guatamala and I must agree wid the Ace he the man that predicked $125.00 per squre inch I like to buy at that. Arrrrrrriba , ondelay! ondelay!
Salvador Dali /Mar 10, 2009 at 12:32 am Vote:
Many of you may find this abstract but the reality is we South Americans cannot aford the price of a taco let alone a condo.
Posted by Chris at 9:38 AM
Wednesday, March 11, 2009
$75 per sq ft is what Miami condos will soon be worth. We are looking at a period of 5 years (at least) thru which prices will slide and slide and slie. Once the food riots and civil unrest get underway…yes in Miami…you’re are going to see prices come off faster than clothes off a hooker.
Posted by Chris at 8:35 PM
Thursday, March 5, 2009
MY STOCK MARKET PREDICTION I MADE ON NOVEMBER 12th IS ABOUT TO COME TRUE!
It feels good to be right everyone once in a while
Posted by Chris at 8:35 PM
Sunday, March 1, 2009
The S&P500 was at 735 in 1996 and is at 735 in 2009. In 2009 a dollar is worth just $0.74 compared to a dollar in 1996. This means in actual buying power, the S&P500 is in reality at 544 today if inflation were not a factor. The S&P500 would need to be at 933 today to be worth the same value as 735 in 1996.
Posted by Chris at 4:58 PM
Sunday, February 22, 2009
When Historians look back at the Second Great Depression of 2009->2019 they will conclude it was caused by one thing...
BANKS GAVE LOANS TO PEOPLE WITH NO DOWN PAYMENT AND BAD CREDIT, WHO HAD ALREADY PROVEN THEY WOULD NOT PAY BACK DEBT!!!
That is how it all started, the global great depression, civil unrest, and unraveling of the world financial system was all because greedy idiots thought this was a smart idea. Let this always be remembered.
Posted by Chris at 7:22 PM
Has anyone noticed its been impossible to get your hands on AK-47 ammo lately? In fact It seems like handgun ammo is almost all gone also.
Went to Dunhams and they were out of 7.62, Walmart had 1 box of really expensive hunting loads, and all Meijers had was shotgun and .22 ammo.
Even Cheaper than dirt is running low on assault rifle ammo
Either people are afraid that Pelosi and Obama will ban firearms or they are getting ready for all hell to break loose...Both idea's are overwhelming.
Posted by Chris at 4:18 PM
Friday, February 20, 2009
I have just changed the title page of my blog from Hyperinflationary Recession to Depression.
I have been around long enough to know what a Recession is, and I was feeling that back in 2007. In fact If you read my older posts you will see I was calling this a recession back when everyone said the economy was "strong"
As always, I have proven myself to be one step ahead of the criminal media propaganda, and while they are finally coming around to calling this a recession, we all know the truth, this is far beyond a simple contraction in the economy. This is the great unraveling of the financial system as we know it.
Therefore, On Feb. 20th 2009, I am declaring the USA to be in a Depression, no math formula's, no bogus government unemployment numbers that grossly underestimate the true jobless rates here. No pseudo GDP numbers based on make-believe CPI.
This is the second American Depression.... and its well on its way to being great.
Posted by Chris at 10:08 PM
Wednesday, February 18, 2009
Headlining the plan was a $75 billion Homeowner Stability Initiative, under which would provide incentives to lenders to cut monthly mortgage payments to sustainable levels. It defines this at no more than 31 percent of a homeowners income.
Oh great... this is just wonderful for all of the illegals living in 500k mcmansions.
I could see the call now...
"Whats that pedro? your mortgage is for 500,000 and you only make 8.00 an hour working at Mcdonalds? Ok no problem... We will make your mortgage payment 333.00 a month (31% of your income) Enjoy your house and low payment.
Sounds like a great plan, I want to go out and commit mortgage fraud today!
Posted by Chris at 7:11 AM
Monday, February 16, 2009
Sunday, February 15, 2009
Thrift regulator urges suspension of foreclosures while Obama develops mortgage aid plans
- By ALAN ZIBEL |AP Real Estate Writer
- 4:00 PM CST, February 11, 2009
Welcome to communist America circa 2009.
The greedy and stupid get rewarded for purchasing homes they could not afford with government subsidized loans reducing interest rates and principal. The government is actually stepping in to the free market and altering private mortgage contracts which it has absolutly no business doing.
Furthermore, this is creating such a moral hazard that the unintended consequences and ramifications of these actions will be long lasting and astounding.
Why will the responsible people, who are now underwater on their homes also, continue to pay their bubble priced mortgages off. Yes, they do have the ability to pay and do have a down payment and credit score on the line unlike the stupid, broke, home debtors getting bailed out but that will not be enough.
A little ding on your credit score is worth it to a lot of people to get lowered principal and a lower interest rate saving them countless thousands of dollars.
Any foreclosure bailout, and sweet deals offered to the deadbeats, will simply cause more people to quit paying to get the same deal. This leads to even more tax payer money going to bail out and modify more loans and an even larger crisis.
Obama sure did give us change...but its not the kind I believe in.
Posted by Chris at 12:19 PM
Wednesday, February 11, 2009
Forty-four percent (44%) voters also think a group of people selected at random from the phone book would do a better job addressing the nation’s problems than the current Congress, but 37% disagree. Twenty percent (20%) are undecided. -Rasmussen Reports
The part that makes me laugh is the 20% who are undecided, LMFAO! That means only 37% of Americans are sure our current congress can do better than a random selection of people.
Posted by Chris at 6:41 AM
Monday, February 9, 2009
Soon the time will come when the slaves stand up to their oppressors and become free.
Soon the time will come when the congress represents the people instead of working against them.
Soon the time will come when hard work is rewarded and laziness is punished.
Soon.... Americans will descend upon washington holding sharpened pitchforks and demanding justice.
Soon that day will come....For now...Sharpen that pitchfork!
Posted by Chris at 8:58 PM
Monday, February 2, 2009
It is a shame that more people do not listen to this man. How do you expect to solve a recession created by debt by piling on even more debt. Obama is trying to pump a heroin addict up with more a huge dose of heroin to make him feel better. The reality is that withdrawl is painful, but that pain purifies the body and solves the problem of addiction to credit long term.
Posted by Chris at 10:20 AM
Tuesday, January 27, 2009
Tuesday, January 20, 2009
We will still be in a recession tommorow.
Your house will still be under water.
Your credit card debt will not be forgivin.
Your 401K will still be down 30-40%.
Your mortgage will not be paid for you.
Obama will not save you. Now let that cruel, cold reality sink in to your thick skull...
...So help you God.
Posted by Chris at 4:30 AM
Wednesday, January 14, 2009
Saturday, January 3, 2009
- The Dow drops to 6,000 at least once this year
- The Unemployment rate in Michigan rises to 15%, breaks 10% nationally
- The US Dollar will be significantly devalued
- Gold will rise above $1200
- Oil will double in price, and be approx 70-80 dollars a barrel due to dollar weakness
- The Real Estate market will continue to plummet in terms of home price index.
- Obama passes a massive stimulus plan sending more rebate checks to everyone.
- I pay off most, if not all of my outstanding consumer debt this year.
- The Dave Ramsey Show ratings go through the roof
- Americans stop spending money they don't have.
My Investment picks for this year are:
OPGSX Currently @$20.00
Bullish on Gold and Metals as hedge against Inflation
RERCX Currently @ $28.20
Bullish on Asian Currency compared to USD
DNLAX Currently @ $17.20
Bullish on Oil
As far as ETF's I like the following:
USO Currently @ $35.63
Oil is going to go up this year due to devalued US Dollar
UDN Currently @$24.98
Dollar is going down due to Bernanke and Obama's printing press
GLD Currently @$86.23
Gold to da moon alice
Disclaimer: All investments have risk, these are only my opinions and I accept no responsibility for any money you may lose following my advice, likewise I expect no compensation for any money you may gain following my advice.
Posted by Chris at 7:32 AM