The stupidity of our Elected Leaders

The government is trying to put an end to a recession that was caused by overspending and debt... by spending even more money and creating an even bigger debt!

-HousingFEAR

Obama Will Not Save You

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.

Are you a good Slave for the Federal Reserve.

Very enlightening and thought provoking video.

My Predictions for 2009

HOUSING FEARS 2009 PREDICTIONS!

1. The Dow drops to 6,000 at least once this year
2. The Unemployment rate in Michigan rises to 15%, breaks 10% nationally
   
3. The US Dollar will be significantly devalued
4. Gold will rise above $1200
5. Oil will double in price, and be approx 70-80 dollars a barrel due to dollar weakness
6. The Real Estate market will continue to plummet in terms of home price index.
7. Obama passes a massive stimulus plan sending more rebate checks to everyone.
8. I pay off most, if not all of my outstanding consumer debt this year.
9. The Dave Ramsey Show ratings go through the roof
   
10. 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.

Miami Realtor Has Rebuttal to Letter About Miami Condo Market

In this original post a person uses the Club @ Brickell recent sales price to prove that the Miami Condo Market is undergoing an epic crash.

In the issue of fairness, and to tell both sides of the story, Realtor Kevin Tomlinson would like me to tell the other side of the story as he see's it.

Please enjoy his article and decide for yourself....

A story on Miami real estate? At first, the reporting seemed okay. But when I watched it again — a 60 Minutes real estate piece that mentions the troubled downtown Miami condo Jade on Brickell — I realized part of the story really missed the mark.

Here’s the problem I have with the media in this digital age. In the 25/7 rush to scoop each other on headline news, sometimes stories lack facts. Sometimes the “facts” presented aren’t entirely factual. And sometimes the interview is angled to fit the reporter’s notion of what the story is perceived or desired to be.

Don’t get me wrong. I have a lot of respect for the media in general and participate in many interviews myself. But like so many industries pressured by the ubiquity of Web information, and in the media’s case, significant declines in ad revenue, circulation, and staff resources, haste can make waste.

How did CBS make the already bad news about Jade on Brickell worse? 60 Minutes reporter Scott Pelley toured the downtown Miami condo with local broker Peter Zalewski and portrayed it as a victim of the subprime meltdown. False! This story line actually sounds better for Jade than the reality, but it disservices the truth.

The Real Story on Miami Condos

Anyone in Miami real estate since, say, 2004, knows that Jade’s problems are because of mortgage fraud, overspeculation, and oversupply, NOT because of subprime lending. It is well known that Jade sold at the VERY top of the market. It is also common knowledge here that the majority of Jade’s contract-holders are speculators, though no one would EVER admit it.

Jade on Brickell started closing units in 2004-2005, WELL BEFORE any hint of financial fallout. The 60 Minutes segment further misses the point by leaving out important details. For example, when people buy preconstruction condo units, they do so WITHOUT a mortgage contingency.

Flipping Miami Condos

When Miami’s condo rush was in full swing, money was cheap and easy to get. Condo sales were not hooked to the mortgage market. Cheap mortgages and subprime loans were not used as an enticement. Zalewski commented that Option Arm and Alt-A loans were “essential” for Miami condo buyers. Not the case.

Back then, obtaining a mortgage was rarely discussed because most buyers planned to flip (remember that word?) their condo BEFORE closing. Bad CBS.

I can name many high-end buildings that are or were RAMPANT with mortgage fraud. Hello! Where’s the story on that??

Jade’s issues, I repeat, are NOT from subprime lending practices, and Zalewski should have known that and pointed it out. In the 60 Minutes segment, new condos in the downtown Miami/Brickell area seem to be portrayed as a hotbed of foreclosure activity (because of the subprime collapses). They are not.

I wish CBS had asked another broker or agent for the real story and the real center of foreclosure activity in South Florida real estate. But since they didn’t, I’ll help them out: Homestead, Florida. Working class Homestead, Florida.

Some of the more interesting (and hopefully more accurate) footage in the interview comes from Whitney Tilson, who tracks U.S. mortgage information. Here are the residential real estate loans coming up for readjustment:

• Sub Prime: $1 trillion. We seem to be near the end of these resets.
• Alt-As: $1 trillion.
• Option Arms: $500-600 billion.

Then there’s the commercial real estate market, but we won’t go there right now.

From the Credit Suisse graphs on CBS, it looks as if Alt A and Option Arm loan resets won’t peak until mid-2011. Yikes. These mortgage defaults could be more numerous and longer lasting than the subprime plunge.

Don’t you love the interview with the speculator who plays victim because she “didn’t ask enough questions” about her loan terms? Oh, okay. Sign six mortgages, but don’t read your contracts. This one gets the big “Duh!”

And did you see Oscar Munoz cleaning out ONE condo? He used to be a Miami real estate agent. Now banks hire his company to empty out foreclosed properties.

Peter: There really isn’t any way to spin “Vulture.” You tried, though.

Kevin Tomlinson
EWM Realtors
419 Arthur Godfrey Road
Miami Beach, FL 33140
305.674.4053 Direct
305.213.6898 Cell
305.675.8570 Fax

10 Worst Real Estate Markets for 2009

The housing market hasn't bottomed out yet. For the third quarter, the closely-watched S&P Case-Shiller national home-price index fell 16.6%, and experts are predicting further declines. Of the top 100 markets, here are 10 with the worst forecasts.

1. Los Angeles

2008 median house price: $375,340

2009 projected change: -24.9%

2010 projected change: -5.1%

The median home price in the L.A.-Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 - the biggest drop in the country.

Courtesy: Stockton CVE

2. Stockton, Calif.

2008 median house price: $248,050

2009 projected change: -24.7%

2010 projected change: -4.0%

3. Riverside, Calif.

2008 median house price: $256,540

2009 projected change: -23.3%

2010 projected change: -4.8%

AP Photo

4. Miami-Miami Beach

2008 median house price: $293,590

2009 projected change: -22.8%

2010 projected change: -6.4%

Miami will be nursing the hangover from its epic building boom for years to come. After falling 22% in 2008, prices are predicted to plunge another 23% next year.

5. Sacramento

2008 median house price: $225,140

2009 projected change: -22.2%

2010 projected change: 2.3%

AP Photo/Joan C. Fahrenthold

6. Santa Ana-Anaheim

2008 median house price: $532,810

2009 projected change: -22.0%

2010 projected change: -3.5%

7. Fresno

2008 median house price: $257,170

2009 projected change: -21.6%

2010 projected change: -3.3%

BusinessFacilities.com

8. San Diego

2008 median house price: $412,490

2009 projected change: -21.1%

2010 projected change: -2.9%

9. Bakersfield, Calif.

2008 median house price: $227,270

2009 projected change: -20.9%

2010 projected change: -2.5%

AP Photo/J. Scott Applewhite

10. Washington, D.C.

2008 median house price: $343,160

2009 projected change: -19.9%

2010 projected change: -5.7%

Source: Yahoo Finance

Make my wiss come twueeeeewwwww

All I want for Christmas is you!

Weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!

The Federal Reserve entered a new era Tuesday, lowering its benchmark interest rate virtually to zero — for the first time in its 95-year history — and declaring that it will now fight the recession by pumping out vast amounts of money to businesses and consumers through an expanding array of new programs.

Guest Post #1: Where America Went Wrong.

The following is written by Mike at Malcolmrant.blogspot.com

Where America Went Wrong

All across the United States, families are gathering around the kitchen table worrying about the future.

Husbands and wives are wondering if they will have jobs next month; retirement savings are being erased with nearly every days trading on the stock exchange; and the American Dream, the anchor for millions here and around the world seems in peril of collapsing.

It would be easy at this point to say “I told you so”. For at least the last five years bloggers around the world have been trying to warn people that this was going to happen. Until very recently their warnings were met with disbelief, scorn, and outright mockery.

And now, at long last, the mainstream media has discovered that we have a problem, and have thrown their hands up, claiming that this problem just “came out of nowhere.”

But we know better, don’t we? The events that have taken place these in these last few months are nothing more than the logical effect of causes put in place decades ago.

There is no mystery here. Actions have consequence; that is a fundamental law of nature and history. When you deny that reality exists (or, as Ayn Rand put it; that “A is A”) you set yourself on the path of unavoidable ruin.

And yet, that is exactly what has happened in the United States. After decades of trying to force a reality that says that debt is wealth; that value comes from the number of visible possessions you have; and a reality that where truth no longer matters - we have, at long last, painted ourselves into a corner. At long last the bill has come due, and we find ourselves begging for compassion in a world where compassion has been banished.

Yes, it would be easy to say “I told you so”, but there’s no time for that now. We are in a crisis, and the crisis must be dealt with. When someone sets your house on fire, you put out the fire first; then you worry about assigning blame and prosecuting the arsonist.

So it is now for us, the people who saw this coming and made plans to weather the storm; it is now time for US to step up and save the world.

No, we will not save the world in order to validate the poor decisions made by so many people. Nor will we save it in order to give credence to the money vultures in New York and Washington DC.

No, we must now save the world because it is necessary if we wish to save ourselves.

In historical times, it was possible for a man to move his family into the wilderness where he could live in peace and freedom, untouched by events around the world. But that is no longer possible. Short of living in a bunker on canned food and bottled water, the freedom and happiness of a man is unavoidably tied to the freedom and happiness of his neighbor.

And so, out of the ashes and ruin brought down on us by the folly of greed, we must rebuild. Only this time, we should rebuild on rock, and not sand.

A nation is only as strong as the philosophy that guides its people. If the philosophy is honest, the nation will thrive. If the philosophy is built on lies, the country will not stand.

The current crisis is not a failure of America or capitalism; it is a failure of philosophy.

Personally, I blame the movie “Wall Street”, which taught a generation that greed was good. Sure, the crooks get caught in the end, but the real moral of that film was “as long as you don’t get caught, crime pays well.”

Look back on the horrors of the last 2 years, and you will see that nearly every one of them was the result of greed and lies.

Citizens signing on to loans they knew they couldn’t afford. Mortgage companies writing loans they knew would fail. Brokerage houses packaging these poison loans into “investments”, and then lying to their customers by calling them “low risk”.

Rating agencies, paid for by the very entities they were rating, giving triple-A ratings on nothing more than hope, fuzzy math, and a commission check.

Lawmakers in Washington who place party loyalty above their oath of office. Congresspersons who accept millions of dollars in donations from the very industries they are regulating.

Corporate heads whose yearly bonus could pay the salary of 10,000 people. Corporate boards who worry more about stock price than actual profit, and are therefore willing to turn a blind eye to lies, as long as the price of the stock goes up.

Reporters and commentators on business-oriented cable networks who, with one hand, take advertising dollars from the greatest offenders, and then, with the other hand, try to convince the viewer that everything is fine and that they are not being robbed blind.

Reporters and managers on news networks who deny the truth, cover up wrong-doing, and lead the people into slavery: all because the problem might make their favorite political party look bad. Networks that talk down solutions because they were offered by the political party they don’t support.

Day traders, who buy on margin and then spend all day trying to stir up rumors about otherwise healthy companies. Short sellers, who profit by picking the bones of dying companies; who will often pick the bones of live companies until nothing is left but ruin and thousands of broken and unemployed families.

Entertainment channels that run shows telling you how easy it is to make money buy buying and flipping houses. TV shows that try to convince you that your measure as a human being can be measured in dollars and possessions.

In the end, we are all to blame. Each and every one of us.

Each of us accepted responsibility the first time we voted for a presidential candidate based on their appearance and personality instead of their experience and knowledge.

We each accepted responsibility when we saw the gains in our investments and didn’t ask where the money was coming from.

We accepted responsibility when we helped to bankrupt local companies who couldn’t fight a price war against companies that use foreign slave labor.

We accepted responsibility when we allowed ourselves to be distracted by singing and dancing contests, celebrity gossip and the criminal activities of the rich and famous.

We accepted responsibility when we chose the making of money over right and wrong.

And now, as we are boiling in a stew that we paid for and cooked ourselves, now is the time to say enough.

Now is the time to remind our Congresspersons that they are not being paid to steal from us. It is time to remind them that they work for us, not the money-vultures who donate millions. It’s time to remind them that if they are unwilling or unable to complete the job they were hired for, we can fix that at the next election.

It is time for us to turn our back on the news channels who profit by lying to us and creating non-existent controversy. It is time to remind them that the first duty of the press is to truth. It’s time to remind them that you aren’t fair and balanced, just because you call yourself so.

It’s time for us to know the companies where our money is invested. To invest only in companies that exercise prudence and self-control. It is time to weed out the companies who trade on lies and creative accounting.

It’s time for us to remember that you only make money or lose money on a stock or house when you sell it, and that cash in the bank is worth more than all the paper profits you may have.

It’s time to save our industrial base while we still have time to save it.

It’s time for us to regain our long-term vision. To learn to see further ahead than the next week. To understand that sometimes the work is hard and the results may be years away.

And finally, it’s time for each of us to experience a personal revelation; to finally recognize that possessions are not the measure of a man; that the house you live in and the car you drive are nothing more than the tools by which to live your real life; that the true measure of a man is what is in his head, not in his wallet.

Article written by Mike Lombardini

Do You Want To See Your Article, Rant or Story Published on Housing FEAR?

Here's your chance.

HousingFEAR is a Page Rank 4 Blog, and has a yearly readership of over 33,000 unique visitors.

Simply Email your Story, Article, or Rant on the Housing Market, Mortgage Meltdown, Auto Bailout, Incompetent Government, or Finance Markets and I will post your story here for free. (As long as it contains no profanity)

For Christmas, I am giving YOU, the readers, the chance to have your voices heard.

Send your story to HousingFEAR@Gmail.com.

(Please do not include links in your submissions)

Get your Shorts in Players...The Yield Curve just flipped.

Investors by U.S. Debt at Zero Yield

By VIKAS BAJAJ and MICHAEL M. GRYNBAUM

Published: December 9, 2008

When was the last time you invested in something that you knew wouldn’t make money?

In the market equivalent of shoveling cash under the mattress, hordes of buyers were so eager on Tuesday to park money in the world’s safest investment, United States government debt, that they agreed to accept a zero percent rate of return.

The news sent a sobering signal: in these troubled economic times, when people have lost vast amounts on stocks, bonds and real estate, making an investment that offers security but no gain is tantamount to coming out ahead. This extremely cautious approach reflects concerns that a global recession could deepen next year, and continue to jeopardize all types of investments.

While this will lower the cost of borrowing for the United States government, economists worry that a widespread hunkering-down could have broader implications that could slow an economic recovery. If investors remain reluctant to put money into stocks and corporate bonds, that could choke off funds that businesses need to keep financing their day-to-day operations.




When you see something like this you have to short the market, especially after this sucker rally. I predicted DOW was going to 6K, and I stand by it. This market is going to tank.

Government "FIX" for homeowners will only cause MORE Foreclosures

R U REALLY THIS DUMB?


I guess this is just another case of an ignorant blogger having more common and financial sense than the incompetent idiots running the Congress and Federal Reserve.

If you start rewarding people who are delinquint on their payments with principal forgiveness and much lower interest rates saving them thousands and thousands of dollars what do you naturally think will result from that?

Well friends, the retards running the country think that this will solve the housing crisis.

Everyone else realizes that this will simply cause people who are capable of paying their mortgage to stop paying to try and get the same deal.

Why would you ever pay your mortgage on time when being a few months late could save you thousands of dollars.

The moral hazard and stupidity of what is being proposed is so astoundingly thoughtless and dangerous I can't believe it is being even proposed.

Welcome to the welfare state!

With all the foreclosures, homeless flippers still want to maintain their lifestyle.

Enjoy

WARNING TO THE NEW WORLD ORDER (SONS OF LIBERTY)

This is a viral video that is going around the internet. The video contains the Sons of Liberty message to the NWO.

Its Good to see the Nobel Prize is now awarded to No Talent Assclowns

Paul Krugman is a Keynesian. It will be Keynesian economics that do away with capitalism and create serfdom with a ruling government elite. It will be just like the USSR before you know it.



Check out how Cramer and joe Scarborough can't keep a straight face when they hear the news that Assclown Krugman wins the Nobel Prize.


Nobody understands what the free market means any more. Central bank, economic inflationary centrally planned Keynesianism has infected the minds of the so called "economic" experts.

All you hear from them is how we need to "stimulate" the economy more, save the auto-makers, how we need to encourage lending, how we need to "kickstart" the economy.

All of these "economic experts" that were calling the "Goldilocks economy" and the "new paradigm" of Ponzi finance.

The average moron on the street has no understanding of free markets and how free market capitalism made America the wealthiest nation on the planet.

No these clowns will blame the free market when it was government intervention that caused the credit crisis, meltdown and housing bubble.

The "experts" and main street morons will beg and plead for the same criminals that caused the problem to save them. Such leaders and experts like Bernanke, Paulson and now Obama and Volker.

The consensus today is that the government can and has an obligation to stimulate and save the economy. It is the economics of the free lunch or the perpetual motion machine.

There is one excellent, concise and timeless classic that should be required reading by every individual:

Economics in One Lesson by Henry Hazlitt

Of course, nobody reads any more but if they did these CNBC, Federal Reserve, Nobel prize winning assclowns would be a laughing stock.

Economic Analogies by Peter Schiff

Schiff compares Wells Fargo to a Kindergarden class after consuming Pixie Sticks and Soda Pop.

This is Classic.

Bruno Powroznik Was Wrong About the Property Crash!

Even though this video was posted on Youtube recently, It was actually created back in early 2007 before the housing market began to unravel.

As Predicted, Miami Condo Market Continues Price Crash

Click to Enlarge

Price Per Square Foot In Miami

Hey Patrick,

Thought I would send you a chart I made of $ price per square foot paid
in a typical Miami condo development over time. I used public records
because the MLSdoesn't list all sales. My chart starts in 2007
(which isn't even the truepeak). The somewhat unique thing about Miami is the
level of fraud perpetrated here. Note that late sale for $848/sf; this is most
likely fraud. Unfortunately the banks were and are very slow to reform lending
standards. As you probably know, the usual scam involves purchasing a property
and then paying a straw buyer (who likely doesn't speak English) a nominal sum
to take out a NINJA loan to pay whatever you ask.

However, the real question is, what are those people that bought at the left of
the graph going to do when they find out they paid 5 times too much? I'll tell
you what - dump their properties resulting in prices being further pushed down.

Regards,
MS, M.D.

The above post is an email sent to Patrick@Patrick.Net