Are you Stanley Johnson?

PRISONERS OF DEBT

Check out this great Business Week article about the debt collection agency scum who buy debt that has been discharged in bankruptcy court, and still try to collect on it!

Also highlights the practices of credit card companies like Capital One that will not remove the discharged debt off the victims credit score.

Miami Real Estate: Bad to Worse

The following two graphs really capture and convey the whole picture of Miami Real estate better than words ever can.





Maybe real estate agents are not as dishonest as everyone thinks. When they say real estate only goes up and up and up. Maybe they really meant inventory instead of price.

Miami Condo Fiasco

www.Condofiasco.com is currently one of my favorite websites.

To make a long story short the owner of the blog, Zach, signed a purchase agreement on a pre-construction one bedroom, one bathroom condo in downtown Miami. The condo is about 850 sq feet, and he agreed to pay $375,000 (No it's not a typo) for the unit. He also put down $70,000 dollars of his own money in a non refundable deposit.

Closing on the unit is scheduled for January 2008 and the guy now has two options, walk away from his life savings of $70,000... Or close on the unit, paying $375,000 for a condo that is now worth 1/2 that amount. Basically he is screwed.

However, Zach is trying something new and creative. He is selling 10,000 virtual shares of his condo and a link on his blog for $35.50 a share (he calls them link units).



You have to hand it to the guy for being creative. If you have time give his blog a look, it really highlights how massively out of hand the bubble got in Miami.

Breaking News: Mortgage Brokers now in a panic that they are about to lose their careers!

LOL!

Poor mortgage brokers, Looks like your days of taking advantage of consumers is soon coming to an end.

For those of you who are unfamiliar, YSP or Yield Spread Premium is is the cash rebate paid to a mortgage broker based on selling an interest rate above the wholesale par rate that the borrower qualifies for.

In other words, Brokers make money off screwing you and locking you into a higher rate than you have earned.

Well Congress is trying to put an end to this practice with a new bill HR3915 "The Mortgage Reform and Anti-Predatory Lending Act of 2007"

Mortgage brokers nationwide are now in a panic knowing that the end of their career is at hand, check out some of these threads on the broker outpost for a great laugh.

The End is Near

And

Sign the petition to save YSP

Don't worry guys, there are new Wal Marts opening all over America selling cheap Chinese products. I am sure you can get a new job soon.

Ron Paul gets it, Peter Schiff gets it, Do You?

Inflation is rampant, Energy expenses at all time high, yet, Wages are stagnant.

Why are wages not rising?

Housing costs more money, Food costs have increased, Energy costs have skyrocketed, Consumer goods have increased. Yet wages are basically stagnant across the nation.

In the late 70's, during a time of great inflation, there were cost of living wage increases given to employee's every quarter to maintain the quality of life the worker was accustomed to.

Now, wages are not even increasing based on the phony government inflation numbers, much less rising based on the true amount of inflation and cost increasing hitting the wallet of the American Consumer.

The destruction of the US dollar is already being felt with people using credit cards just to supplement monthly income enough to get by each month. This can only go on so long before the minimum payments and the outrage of the American consumer catches up to the policy makers and big banks.

Ron Paul is the only candidate who cares about you, and cares about the dollar. Donate to the campaign and vote in the primaries this January.

You can't afford not to.

RIGHT NOW...... THE DOLLAR IS BEING DESTROYED...

Federal Reserve Cuts Rate by 1/4 Point today and Dooms America's Middle Class and Poor.

Good Job Bernanke, You just Doomed America.

You are a traitor, a puppet of Wall Street, and I hope you face the consequences for your treasonous actions today.

Bernanke and The Federal Reserve cut the federal funds rate by a quarter point today, Lets look at some of the aftermath of this decision.


1) Canadian Loonie hits 130-year high vs US-Dollar.
TORONTO -- The Canadian dollar rose to its highest level in nearly 130 years against the U.S. dollar on Wednesday, hitting US$1.0617 as the greenback slide lower in the aftermath of a U.S. Federal reserve rate cut.

2) Oil prices surge to US Record $95.00 a Barrel.
NEW YORK -- Oil surged 5% to a record US$95 a barrel on Wednesday after a steep drop in U.S. inventories fueled winter supply concerns and the U.S. Federal Reserve cut interest rates

3) Gold closes in on $800.00 per ounce.
An ounce of gold gained $6.50 to $794.30 in midday trading on the New York Mercantile Exchange. Silver futures jumped 19.7 cents to $14.525 an ounce.

4) Dollar falls to record low
NEW YORK (Reuters) - The dollar dropped to a record low against the euro on Wednesday as investors discounted as old news strong U.S. data, concluding that risks to economic growth persist and the Federal Reserve would cut rates as has been expected later in the day.


Time to get your wheelbarrows out next time you go shopping, because you will need something to carry all those extra worthless US dollars it will take to buy those groceries and other necessities.

We are in a lot of trouble... But atleast Wall Street is happy.

The Housing Market has created such fear, people can't even sell Cash flow Positive Properties in Auburn Hills, Michigan anymore.

This is really getting interesting now.

This property is a 2 Bedroom, 2 bath LOFT condo in Auburn hills within walking distance to Oakland University. Granite counter tops, Hardwood floors, View of a pond, 1,150 Sq foot. or $82.50 per sq ft.

In 2004 this place sold for about $120,000 and is now being discounted to about $95,000. Housing Fear has taken hold to the point where people will not even touch this cash flow positive property.

This place can easily be rented out by simply placing a flier on the bulletin boards in OU just a block away. I think it could be rented out for $850 a month no problem, because this is what these units went for before the condo conversion took place a few years ago and there was always a waiting list.

At $95,000 dollars you have to figure your total housing expense even with taxes and association fee's will only be about $725 a month tops.

This is a $125 a month cash flow positive property, and now cost less to own than equivalent rent in the area but people are still afraid to buy.

Warren buffet said when people get greedy... be afraid, and when people are afraid... be greedy.

Housing Fear is creating some great buying opportunities in Oakland County Michigan. To bad no one can get a loan!


I just wanted to add I really feel bad for this guy, the picture has snow, and this place has been on the market a long time with many price drops and no takers. He is probably listing it at a price where he is losing money just to unload it and still can't do it.

The Housing Crash is on! Can you feel it?

Thanks to John Elco over at Youtube for continuing to produce more great Housing Crash videos. For those of you who don't know the voice at the end is Peter Schiff who predicted all of this before it happened.

Will you be Paying for that with Cash, Check, Charge or 7 years of indentured servitude?

You want something you don't deserve or can't afford? No problem! Just get no down payment mortgage thanks to non existent lending standards, or better yet, put it on the credit card!!

Millions of Americans are so cash strapped that they are now using credit cards simply to cover Gasoline and Food because their income does not even make enough to survive. Now it is to the point where people are paying their mortgages with credit cards. Check out this article from Yahoo:

http://news.yahoo.com/s/nm/20071028/us_nm/usa_creditcards_debt_dc

In August 2006, Reeves and her husband bought a $214,000 home with almost no money down, leaving them with a monthly payment of $1,636 -- higher than they planned on, especially with her husband's furniture sales job largely commission-based and business not good due to the U.S. housing slowdown.

An attempt this spring at refinancing with another lender fell through, leaving them behind on payments and struggling.

But as part of her efforts to avoid defaulting on the mortgage, Reeves said she has "maxed out" all her credit cards, spending to the limit on basic needs. "Now all I'm doing is making the minimum monthly payments."

Welcome to the new paradigm in America. Doesn't it ring eerily familiar to the coal mines of the 1800's, and that song sixteen tons by Tennesse Ford.

You load sixteen tons, what do you get?
Another day older and deeper in debt
Saint Peter don't you call me 'cause I can't go
I owe my soul to the company store

Miners were usually paid monthly. By the end of the month, they owed the company for the company house they were living in, for the tools they used to mine, for groceries to feed their family, and for any doctor bills. Miners had no choice but to buy from the companies. They were paid in scrip, not real money and this could only be spent at the company store.

Naturally this enabled the company to charge the miners whatever they wished. Most miners with families were constantly in debt to the company. When the miners did get paid at the end of the month, if there was any money left after they paid their employers, it was certainly not enough to last them another month. So it was a viscious cycle, and the next month, they again had to pay the company first and were lucky to have anything left for their families.

Credit cards are the new "miners script" my friends, allowing people to go deeper in debt just to buy the basic necessities to survive. This can't go on forever, and when it does finally reach critical mass its going to be very, very bad.

Ron Paul Commerical

If you are actually able to watch this Ron Paul campaign ad without getting emotional then you are not human.

Please God, let Ron Paul be elected, and restore America to the great country it was and still can be.




Ron Paul, 2008. Hope for America.

Heading towards Hyperinflation

We all loved hearing the stories as kids about how you could move to some third world country with $10,000 American dollars and live like a king. When 1 American dollar was worth 100 or even 1,000 dollars of another country's currency it made us feel all warm and fuzzy inside knowing that taking vacations or buying products from a foreign country was a great value.

Now the tables have turned and foreigners are buying up our real estate because our currency is becoming so devalued that they can buy an equivalent house here for 50% less than they could in their own country due to exchange rates.

When Bernanke cuts rates again, this problem will be further exacerbated. It is time to face the truth that Wall Street and the fed are destroying the middle class. How much longer can stagnant wages continue to endure $4.00 a gallon gas and milk?

Wake up!

Are any US-Americans reading my blog?

If any US-Americans that have maps are reading my blog please feel free to leave me a comment. You can leave an anonymous comment and do not have to register to do so. It is kind of demoralizing writing with no one reading, so if you are out there and enjoy my blog please leave me a comment. : )

Oil soars past $93 a barrel

Don't kid yourself, $93.00 a barrel oil at the end of October has little to do with supply and demand and everything to do with the tanking dollar.

Bernake's irresponsible and treasonous decision to lower interest rates is resulting in rampant inflation. Oil, gold and other commodities are soaring to all time highs. Why is the main stream media not covering this? Do they think that the sheeple won't be able to understand the correlation between lowered interest rates and inflation?

The next fed meeting will be critical, If bernake does cut rates again then this country is doomed.

Country Wide Admits even Prime option-arms are Screwed.

How did people who took out these loans not understand how they work, and how did the lenders not realize the ramification's?

Subprime:
You mean people with bad credit who have long histories of not paying their bills or filing bankruptcy will continue to behave the same way once we put them in a half a million dollar house?!?!? No way!!!! Who could have possibly known?!?


Negative Amortization Option-arm:
If people can only afford 900 a month on a house payment, and you qualify them on an option arm where 900 is the absolute minimum payment that does not even cover the interest....Are you really trying to say that mean those people will have a mortgage balance that grows every month and will default once it resets to include principle? You must be kidding me, lol. We could have never known.


The stupidity of this whole situation really astounds me.

I guess Rock Financials "Secure Advantage Loan" Wasn't so secure after all.

Nice going D-Hall, with your scrupulous advertising blitz's and admittedly catchy theme song heard every 5 minutes on Detroit radio you have destroyed the lives of thousands.


The Secure Advantage Loan was a highly advertised negative amp, option-arm loan that was being promoted as a way to “lower your payment and get more cash flow”. Here lies the problem: The more cash flow comes at the expense of your mortgage balance GROWING every month that only the minimum was made. Of course people were qualified for the home purchase based on the minimum payment only so what did he really think would happen giving these people this toxic mortgage.

Well, now its time for the shit to hit the fan. Only 80% of the people with these loans are currently making more than the minimum negative equity payment. YES ONLY 80%. When these loans reset to include principle + additional principle tacked on via the –3% minimum payment, all of those people will surely lose their homes. Luckily the fun won’t really begin to 2009.

When you choose to pay the minimum payment, you’re paying less than the full interest that is due for that month. By deferring your interest, the unpaid interest is added each month to your outstanding principal loan balance.

If you defer payment of interest, your outstanding loan amount could exceed the value of your home. This may affect your ability to refinance your loan or sell your home since you will owe more than what your home is worth. A higher loan amount may also result in larger payments down the road.” [Quicken Loans website]

On October 14, 2007 Quicken loans suspended the Secure advantage and most of their other non conforming loans… I guess it was not so secure after all.