Desperate Times, Desperate Measures In California
The Press Enterprise reports from California. “The numbers of Inland families who lost their homes to foreclosure surged dramatically last month, as risky subprime mortgages strained the budgets of more households. An especially telling statistic is the comparison of bank repossessions from last year, or even the prior month, to August.”
“In Riverside County, 21 homes were seized by lenders in August 2006. In July, 189 were seized. Last month 1,198 homes were repossessed. In San Bernardino County, 10 homes were seized a year ago. Lenders repossessed 518 in July. Last month, it was 708.”
“Riverside County posted 7,266 notices of defaults, trustee sales and lender repossessions, up 347 percent from a year earlier, and San Bernardino County posted 4,876 such notices, up 351 percent in a year, according to RealtyTrac.”
“Nancy Rubi said an unaffordable mortgage and falling home prices in her Orangecrest neighborhood forced her and her husband to try to sell their house even if it means getting less than they owe their lender.”
“The couple refinanced two years ago to consolidate bills, she said.”
“They intended to refinance again before the mortgage would adjust to a higher interest rate. But in August when their rate soared from 6.7 percent to 9.7 percent and their payment from $4,200 to $5,800, they learned falling values left them too little equity to refinance.”
“Making matters more difficult, she said, the couple two years ago bought a larger house to have space for their four adopted children. Then they rented out their first home for $2,000 less than the mortgage payment.”
“Rubi said that she and her husband, a retired schoolteacher, can no longer afford both mortgages.”
“Although her husband held an open house seven days a week since July 20, Rubi said they couldn’t get the $685,000 price they need to repay their mortgage. Their next step, she said, is to try to persuade their lender to accept less than the mortgage.”
“Because the couple is 30 days behind on their mortgage payments, she figures they have six to nine months to find a buyer before the house goes to foreclosure. ‘We never, ever thought it would end up like this,’ she said.”
The Union Tribune. “There were nearly 4,900 San Diego County foreclosure filings in August, an 80 percent increase from the previous month and the first of several waves of mortgage failures anticipated by real estate analysts.”
“San Diego County recorded 4,845 foreclosure filings in August, a year-over-year increase of 247 percent.”
“‘That is an indicator that homes going into foreclosure have little or no equity,’ he said.”
“In Chula Vista, Patricia Anguiano has fallen three months behind on the mortgage for her three-bedroom house, where she operates a day-care center.”
“Anguiano said yesterday that she wasn’t told how much her mortgage payments would rise when she refinanced her home loan and took out an equity line of credit in April 2006. She says that her payments have increased from $1,200 to $3,800 per month and that she now faces foreclosure.”
“‘I feel deceived,’ Anguiano said through an interpreter. ‘I feel guilty for not being more knowledgeable, but this is not just something that is happening to me. I want to see justice and people protected from this happening in the future.’”
“University of San Diego economist Alan Gin said weak loan-underwriting standards are a major reason for the spike in foreclosures. Many adjustable mortgages issued in recent years required little or no down payment, making homeowners more likely to walk away when the going got tough.”
“‘It just made it easy for people to give up,’ Gin said.”
“Bank repossesions were up 684 percent over the July 2007 figures, RealtyTrac VP Rick Sharga said.”
“‘You went from 77 to 604,’ he said. ‘That is an indicator that homes going into foreclosure have little or no equity. The homeowner doesn’t have the option of refinancing or selling. Banks don’t have much alternative but to take possession of the house and try to resell it.’”
“‘What we are seeing in San Diego we are seeing across the Southern California region: an increased number of bank repossessions,’ he said.”
The Daily News. “Foreclosures soared nearly 400 percent across the greater San Fernando Valley in August as the residential real estate market sank further and lenders tightened credit standards, a research center said Tuesday.”
“Last month, 289 families from Glendale to Calabasas lost their homes, 231 more than in August last year, or a 398.3 percent increase, said the Economic Research Center at California State University, Northridge.”
“So far, there have been 552 foreclosures in the first two months of the year’s third quarter, and the final number will likely top the 632 foreclosures in the second quarter, said Daniel Blake, the center’s director.”
“The center’s records go back to 1988, and, in that time span, foreclosures peaked at 1,854 in the third quarter of 1996.”
“Blake said foreclosures are rising because homeowners who bought a year or two ago with adjustable-rate loans cannot afford the higher payments they are seeing now as their interest rates spike. ‘It’s climbing right now, and I don’t see any reason for it to drop off that pace,’ he said.”
From KBAK 29. “Marc Schmerler has been trying to sell his home for a year but like millions of homeowners, he’s stuck in the housing slump. ‘I’ve had quite a few offers, acceptances, people falling out because they no longer qualified for mortgages anymore.’”
“Foreclosures spiked 36% in August and that number is expected to rise. In fact, according to Bakersfield Appraiser Gary Crabtree, foreclosures jumped a shopping 750% in Kern County last month. Nearly 300 lost their homes for not making payments.”
The Ventura County Star. “In Ventura County, the total number of filings was 542 in August, up 46.9 percent from July and 298.5 percent from the same month a year ago, RealtyTrac reported.”
“The bulk of them — 432 — were default notices, the first step in the foreclosure process. Thirty-eight homes in Ventura County were repossessed by lenders in August.”
The San Francisco Chronicle. In the Bay Area, the number of houses scheduled to be sold on the courthouse steps quadrupled compared with a year ago, according to RealtyTrac.”
“In the nine-county region, 1,280 households were notified they were going on the block compared with 301 last August. By far the highest incidence of auction notices was in Contra Costa County, with 699 notices.”
“The number of homeowners behind on their payments hit 5,705 in the Bay Area, almost triple the 2,104 from last August.”
“The number of properties in the Bay Area that had reverted to the lender after foreclosure skyrocketed to 1,190 in August from 26 last year. Again, Contra Costa was most affected, with 574 bank-owned properties.”
The Contra Costa Times. “In the Bay Area, Alameda County had 166 bank-owned properties and there were 232 in Solano County.”
“Paul Ward, a broker associate in Danville, said that although many buyers are waiting for the market to hit bottom, others are already pouncing on foreclosed properties.”
“‘It’s in the tougher economic times that most of the wealth is accumulated and made,’ he said.”
The Mercury News. “The Federal Reserve’s move Tuesday to slash short-term interest rates by half a percentage point gave the financial markets a boost, but the Fed’s action is less likely to have an immediate impact on the people at the root of the problem: borrowers struggling to pay their mortgages or hoping to refinance into more affordable loans.”
“‘I don’t think we’ll see credit card rates dropping, or that all of a sudden the spigot will open and everyone will be making all those mortgages loans again,’ said Christopher Cagan, research director for First American Real Estate Solutions in Santa Ana.”
“In March, Cagan projected that nearly one-third of teaser loans taken out in 2005 and 2006 will default. ‘For a lot of them, you could lower the rate a full point, and it wouldn’t stop the defaults,’ Cagan said.”
The Sacramento Bee. “‘I don’t think at the consumer level anyone should anticipate short-term relief in terms of a return to the availability of easy mortgage terms,’ said Scott Syphax, CEO of Sacramento-based Nehemiah Corp. of America, which helps lower-income residents obtain down payments on home purchases.”
“‘This is a Wall Street interest rate cut, not a Main Street interest rate cut,’ he said.”
“Ron Leis, a real estate broker in Carmichael, said the region’s home prices are still too high for many first-timers — even with interest rate cuts.”
“‘The rate cuts will help,’ Leis said. But they don’t dent the affordability problem, he said.”
“Desperate times call for desperate measures. So over the weekend Richard and Dana Carrigan shoveled out a piece of their Fair Oaks yard, then buried a 3 1/2-inch statue of St. Joseph.”
“The couple are looking for any extra help they can get as their home goes up for sale alongside the 16,000 other area residences already on the market. ‘We’ll try anything,’ says Richard Carrigan.”
“The peculiar phenomenon seems to run in stride with chilly markets: It flourished during slow times in the 1980s, mushroomed again during the 1990s housing slump and now is again booming.”
“‘I think it’s about as efficient as an agent standing in the front yard waving a magic wand,’ says Marvelene A.J. Weyer, a veteran Elk Grove real estate agent. ‘I still think pricing property right will sell it rather than reverting to poor old Joseph.’”
‘In Riverside County, 21 homes were seized by lenders in August 2006. In July, 189 were seized. Last month 1,198 homes were repossessed. In San Bernardino County, 10 homes were seized a year ago. Lenders repossessed 518 in July. Last month, it was 708.’
So where are the ‘it’s coming from a low base’ commenters?
‘You went from 77 to 604,’ he said. ‘That is an indicator that homes going into foreclosure have little or no equity. The homeowner doesn’t have the option of refinancing or selling. Banks don’t have much alternative but to take possession of the house and try to resell it.’
‘What we are seeing in San Diego we are seeing across the Southern California region: an increased number of bank repossessions,’ he said.’
This is what we saw in the Texas bust in the 80’s. It became commonly felt that it was wise to walk away if the owner was underwater on the loan.
The numbers are still low for Trustee Sales… not quite there yet.
What Trustees and what Sales? Please explain…
You always seem to be thrown off by this phrase:
Trustee= Banks/ Mortgage Companies/ Servicers
Sales= When lender takes legal possesion on courthouse steps
“When lender takes legal possesion on courthouse steps”
Definitely thrown off. How is that a “sale?” (Sounds to me like a bagholder taking possession of a devalued asset…)
NOD is notice of default. 90 days to cure missing payments and keep the house. If not, you go to NOT
NOT is notice of TRUSTEE SALE. 21 days to repay the whole loan, or the house is auctioned off on the courthouse steps and typically, if no equity, the lender gets it. That makes it REO = Real Estate Owned
Now, now…
No need to worry. Congress and President Bush will fix the problems and housing will stay on a permanently high plateau.
“In Riverside County, 21 homes were seized by lenders in August 2006. In July, 189 were seized. Last month 1,198 homes were repossessed”
Not much truely makes me gasp anymore. This did. 534% increase in ONE MONTH!!!!
No wonder Ben dropped the interest rates .5% yesterday. CA will cost the lenders Hundreds of Billions!
The irony is he’s going to try to save that which cannot be saved and screw the economy as he does it.
Also, I had my hopes that Bernanke would shake the “Helicopter Ben” with prudent actions. Nope.
I don’t think he did it to stop house prices from crashing. I think the rate drop was to cause stagflation instead of depression.
Stagflation followed by severe recession just like the early 1980’s. Once energy prices get too high, a recession is inevitable. This time it will be worldwide.
Personally, I prefer deflation. Let the war on savers (and workers and everyone else) commence in earnest!
I think that the next few months’ financial institution revelations will explain BB’s seemingly rash actions. With the amount of US dollars held abroad and the requirement of approximately US $ 2.3 Billion being required each and every calender day (or 75% of the world’s net estimated daily savings), one would have to have very little economic education to not understand the implications of a 50 basis point rate cut.
BB is a pure academic - in my humble experience, I’ve never found them to have much gumption - he’s out of office after one term if not before.
I prayed…so much for prayers…
Perhaps this can benefit…naw…what was I thinking?
Aspirin,
Leigh
A popular halloween costume this year could be an Alan Greenspan mask with some green subprime slime. A cauldron with bubbles and froth would be a nice prop. A zombified Ben Bernanke mask could be an option with a gold lighter and fake/real dollar bills.
It’s “Bernspan” to you, mister.
Yep, 50 big ones is a huge signal the economy is crashing. After the euphoria ends, Berserkers on Wall Street will receive a rude awakening.
Agreed. But, I’m like, what took them so long to realize the economy is crashing? I mean… duh!
But didn’t he indicate that he’ll cut again? I’m out of this game. It’s fixed!
I remember times in California in 1987 when people in San Jose had a $600 town house payments ( they were so tired of their houses down or flat after 5 years,) which at the time they could have rented it out for $700 per month and they still walked away, the $100 positive cash flow was just not worth the hassle of being a landlord, give it a few more years and those times will come around again
“In Riverside County, 21 homes were seized by lenders in August 2006… Last month 1,198 homes were repossessed. In San Bernardino County, 10 homes were seized a year ago… Last month, it was 708.” This sounds like multiplication to me.
Buddy Love: “Oh, come on, Carla! Buddy does have a lot of love to give…”
(Carla storms off as 3 young ladies surround Buddy)
Buddy Love: “I had 2 titties, now I have 6! That’s multiplication…”
“They intended to refinance again before the mortgage would adjust to a higher interest rate. But in August when their rate soared from 6.7 percent to 9.7 percent and their payment from $4,200 to $5,800, they learned falling values left them too little equity to refinance.”
“Making matters more difficult, she said, the couple two years ago bought a larger house to have space for their four adopted children. Then they rented out their first home for $2,000 less than the mortgage payment.”
“Rubi said that she and her husband, a retired schoolteacher, can no longer afford both mortgages.”
Oh yeah, that rate cut is really gonna help.
Is it me, or has has everyone lost their collective minds? A retired teacher and wife (not sure what she does) commits t a $4,200 mortgage AND take a loss of $2,000/month on their alligator, and nobody had a problem with this???? Do I have that right?
Ca. Renter . These are the jerks that want to be bailed out .One story after another of overspending and speculation and equity tapping and please bail me out because I bought all this cr-p and I can’t pay for it . It’s a mad mad mad world .
You forgot the part about supporting 4 kids.
Refinance out of a probably safe fixed mortgage to “consolidate debts” (buy a lot of crap)? Check. More kids than they can afford? Check. No possibility of increased income (retired)? Check. Bought a new house before unloading the old one at the peak of the market? Check. Mr. Bernanke, we have another FB for immediate helicopter evac.
Sorry, the dollars won’t drop in the backyards of FBs, not this time around.
I’m picturing crowds of FBs huddled around the Batnanke Signal, shining it bright in the sky, waiting desperately for help to arrive and save the day. Help that will never come, because our boy Ben Batmanke is busy entertaining guests back at the mansion.
“Alfred… another round of champagne for our wonderful banker friends!”
I like it…..
that made me laugh right out load……….v funny!
I’m picturing rich Saudi’s in Helicopters departing from the roof of the US Treasury Building with duffle bags dull of EUROS
SNORT!! You owe me a new keyboard!
In California an adoptive family can receive $500 monthly for each adoptive child until age 18, even if they are related.
Go sell your sob story somewhere else.
Well, since it seems the prudent are bound to lose this game, why not join the scamsters and adopt our own kids?
More “free money” for the masses. Yippee!!!
oops, meant “adopt our own *biological* kids.” I’m sure the fraudsters could find a way to do that.
Well. Not exactly. I beleive only adoptions through the state get the subsidy. If you adopt an infant via a private adoption, you don’t get any money.
Typical school teacher mentality. No concept of the real world. Probably believed Greenspan and Lareah. ‘Get an ARM and real estate only goes up’. Don’t feel sorry for them, just for the kids.
“‘What we are seeing in San Diego we are seeing across the Southern California region: an increased number of bank repossessions,’ he said.”
When and how will these come back onto the market?
I put an offer in on a Countrywide owned house a month ago. Lowballed 18% under asking. No counter, just a no thank you. Countrywide lists their REO with Realtors who brought them borrowers. The price is set by the collective wisdom of three other Realtors, not related to the listing. Countrywide does check back after 2-3 weeks if the property does not sale and typically lowers the price. The problem now is the market is falling faster than Countrywide can process a lower price. A similar model I offered on was foreclosed by GMAC and it sold for 12% under Countrywide’s price.
Remember, when banks compete, you win!
Only Bob Barker knows. Presumably, the Price Will Be Right.
They’ll start showing up on the market as soon as the first bankrupt lenders are forced to liquidate all assets by the court. Next spring probably.
Correction, they already are om the market for the most part, but at wishing prices. The fun begins when there is a court ordered forced sale at market price.
When regulators get (more) involved, the fun will really start.
“‘I think it’s about as efficient as an agent standing in the front yard waving a magic wand,’ says Marvelene A.J. Weyer, a veteran Elk Grove real estate agent. ‘I still think pricing property right will sell it rather than reverting to poor old Joseph.’”
I suggest standing out front and twirling a giant sign around, rather than relying on magic wands or St. Joseph statues.
Hey, you forgot CUPCAKES!
I agree! A couple of “CUPCAKES” twirling magic wands might generate some interest!
don’t forget balloons
I think that at this point, a couple of D cups will work better.
Sorry, I forgot. The wackos from PETA would sue you with free legal from the ACLU for molesting the deer. hehehehehehe
‘I still think pricing property right will sell it rather than reverting to poor old Joseph.’
You might also consider floating large red balloons overhead with the words “Homes Selling” or some such unconvincing nonsense emblazoned thereon.
I think people should start burying a statue of Elvis if they want to sell their house.
–
What happened to the statue of a certain saint that was in vogue during 2005? I haven’t read about it for a while.
Jas
–
OK, it was St. Joseph. It has been a while since I read this.
Jas
Forget St. Joseph.
They need St. Jude, patron saint of lost causes. (Not making this up.)
“Dont Be Cruel” to Elvis
It’s discriminatory. People should also bury a menorah, a crescent, a buddah and whatever represents the other major religions, all side by side.
An IED?
LOL!! Someone may actuctually have to stop at the house, after they lose a few limbs.
“‘This is a Wall Street interest rate cut, not a Main Street interest rate cut,’ he said.”
What did they expect?
http://www.businessweek.com/investor/content/sep2007/pi20070918_630235.htm?chan=search
“‘It’s in the tougher economic times that most of the wealth is accumulated and made,’ he said.”
He’s must be new, it’s not even close to being tough yet.
“Anguiano said yesterday that she wasn’t told how much her mortgage payments would rise when she refinanced her home loan and took out an equity line of credit in April 2006. She says that her payments have increased from $1,200 to $3,800 per month and that she now faces foreclosure.”
Here’s the thing, most would read this and think wow, her rate must have gone up 10%. No way. She had some ridiculously low teaser rate that she should of known better about, and now she’s adjusted to a relatively moderate rate, which hoses her. I bet the farm that if this Betty was able to refi at todays low 6% range, she’d still be looking at payments pushing 3K. Hosed, hosed, and more hosed, and there ain’t no rate cut that’s going to fix it.
“In March, Cagan projected that nearly one-third of teaser loans taken out in 2005 and 2006 will default. ‘For a lot of them, you could lower the rate a full point, and it wouldn’t stop the defaults,’ Cagan said.”
I’ll tell you what, Cagan, I’ll see your 1 point decrease and raise you another point decrease and still say it won’t make a damn bit of difference.
“‘I feel deceived,’ Anguiano said through an interpreter.”
I do believe that she probably couldn’t afford a refi, but the poor woman (I’m a softy) was NOT able to comrehend the terms of her loan, hence, interpreter. There are some victems, maybe not as many as MSM wants us to believe, but this appears ligit.
Think she regrets spending the equity in her home via the HELOC?
er…victims.
Well, she says NOW that she needs an interpreter to speak, but that’s a common ploy used by immigrants/foreigners who don’t want to take responsibility for their failed attempts at the universal rip-off. I’ve run into plenty of people who have tried to take me that way.
Besides, the story doesn’t mention whether the contract was made in English or Spanish, whether the woman signed a disclosure in Spanish stating that she understood the terms of the loan, etc. Furthermore, if she didn’t even understand the language in which the contract was written, but she signed it anyway, then she demonstrated irreverance toward civil law resulting in her loss to the right to sue.
Big V
bang on assessment!
people will lie about a few dollars, so up the ante to tens or hundreds of thousands of losses and most people’s integrity is pretty doubtful these days!
Anyone who buys a 400K house (I’m guessing, but I bet I’m close) and then is told her payment is going to be $1200 a month and doesn’t think something is up has got it coming to ‘em Joshua tree style, as far as I’m concerned.
I remember about a year and a half ago a good friend called me and proceeds to tell me she got this letter from her lender saying that she could have a $850 payment on her 380K loan balance if she refied. She asked if it was real and what I thought, and I hung up on her. No lie. I saw her that weekend and when asked why I hung up, I simply replied I wasn’t in the mood to answer stupid questions. (Yeah, she was a close friend so I could get away with it, but still…..)
Was being so rude so necessary? Even if you are a close friend…that is a sure way to lose them. Even the smartest of people are unaware of this stuff. Give her a break.
WOW…was I ever wrong. Hit the link on the article, and in the comments section they are creaming her!!
Apparently I do not know the culture of that area well enough to stick foot in mouth…LOL…appologies.
Now I agree with the creaming, that is deserved. Empathy, no. Creaming, yes.
if you dont comprende what you are signing, THEN DONT sign the damn papers. pure common sense, has no relation to what language you speak.
Math is math, numbers are numbers. What, were the docs in Roman numerals?
“‘I feel deceived,’ Anguiano said through an interpreter.”
Did she read her mortgage docs through an interpreter, too? Folks like this are a royal pain in the patootie.
Angiiano ,what did you do with the money you pulled out when you refinanced ? If this women has a $3,800 mortgage ,you are talking about a expensive high loan amount, and I would like to see where her income justified this sort of expense. But , it doesn’t surprise me that the REIC conspired to commit fraud and put a bunch of stupid people into loans like this telling them they had fixed payments which were really teaser rates .
Wiz — the press almost never seems to ask where all that withdrawn money went. Probably because it was entitled.
No- The Mtg. brokers/RE agents/notaries/appraisers really DID lie to people, wouldn’t let them read the docs, wouldn’t give them the docs, forged their names on grant deeds, etc. How many of you who purchased properties actually read the 3-4 inch thick docs presented to you at closing? If you say you did I say you’re lying. You rely on what the broker said. Plain and simple. You can blame them (us?) for not reading it but the professionals have a fiduciary duty to do the right thing. I’m in the process of going after some of these guys. Problem is, they conned so many people and believed in the “real estate always goes up” argument that they have leveraged themselves to the hilt by buying properties and have no money. I know I’m gonna get flamed for this but blaming the borrower is like saying it’s the patient’s fault the doctor cut off the wrong leg. . . And yes, to the people who have questioned whether I am a lawyer (a couple who are active in this thread), I really am. (and I have the cereal boxtop diploma to prove it. . . )
BKlawyer,
Agree 100% with what you said. We are in the process of selling a house right now (estate stuff) and the docs just on that end (much less paper than borrowing) are redundant, excessive & can be confusing.
Lenders make loans every single day, and are familiar with all the forms and standard ops. J6 hasn’t a clue — and forms and requirements can change over time, making it even more difficult.
I’ve personally been lied to by mortgage brokers & told, “just sign it and we’ll fix it later.”
Too many stories to tell, but suffice it to say the brokers are definitely guilty of fraud, IMHO.
“How many of you who purchased properties actually read the 3-4 inch thick docs presented to you at closing? If you say you did I say you’re lying.”
Then go ahead and say I’m lying, because I have always read those documents, BEFORE closing. In fact I once had a RE agent explode at me for reading the HOA documents, the one time I purchased in a HOA, because I was holding up the closing. “Nobody reads those” I was told. Yep, I’m nobody. Oh, I agree, all that paperwork is a misery to read, and I have a legal dictionary handy when I read them, and make notes of questions for my attorney if I don’t understand something. That’s what attorneys are for and I say people should have at least hired an attorney to go over the documents and explain the pitfalls to them. And if they couldn’t afford that, they shouldn’t have been buying property anyway.
Having said that, however, I have not purchased any property since 2000 and sold my property in 2005. Even then my own attorney tried to shyster me, so I realize there were a lot of shenanigans going on that I probably never experienced and the documents probably got more complicated and just beyond the comprehension of most people. And I agree with you that people were lied to, so I am on your side in going after the brokers, RE agents, notaries, appraisers et al.
Hi All:
I haven’t even read Ben’s post yet. I just want to say first off that I am in a bad mood since Bernanke’s input yesterday, and I’m looking for other miserable people to join in. If you are cranky too, please post here and that will help make me feel better.
“Don’t be greedy.”
-Big V
Hey V,
I said more curse words than a drunken sailor on leave! The shock is still reverbrating around the globe! Dang, I think I’m going to pop a cold one…cheers, you’re in good company.
Leigh
It depends on why you’re in a bad mood. If it’s because Bernanke’s move means you’ll soon be paying 10 bucks for a gallon of milk, then I lament with you my friend. But if your worried that this somehow stems the HB deflation, cheer up and read the post.
How soon until the Emigrant Directs cut their interest rates though ?
Bendover Ben just gave us savers a boot in the rear.
Oh yea, and ING already cut their rate from 4.5% to 4.3%
Unfortunately, the full impact of what the Federal Reserve board did in abandoning the dollar will not be felt for 6 months. Prices will be higher this winter, but they will be ridiculously high in the spring. Based on the past history of the Federal Reserve there are no surprises. Bail out the banks and Wall Street at the first opportunity. This happened with the S&L crisis and in many firms it involves the same people getting bailed out again.
The only difference is that President Bush’s brothers are not running any Hedge Funds or banks as they were in the 1980’s. But for many of the S&P500 companies being bailed out, the same crew members are in the same positions of power that they held during the Resolution Trust debacle.
Given three things that can happen to the dollar, (go up, stay the same or go down), why would you even wish to keep anything tied to the dollar? Chairman Bernanke has declared a war on savers.
and lest you forget the Bush family enterprise in banking:
BUSINESS
Archives
Wall Street widens Bush connection
By STEPHANIE MURPHY
Daily News Business and Real Estate Writer
Sunday, September 16, 2007
Jeb Bush. Former governor joins Lehman Brothers.
Marvin Bush. Co-manager of hedge fund in partnership with Brown Brothers Harriman.
Lehman Brothers recently retained former Gov. Jeb Bush, the younger brother of President George W. Bush, as a private equity adviser. His cousin, George Walker, joined Lehman Brothers last year to head its asset management business.
The first brother, who will continue to live in Miami and focus on the firm’s Florida business, has already visited Lehman Brothers on Royal Palm Way.
Investment banking is a Bush family tradition.
The Bush brothers’ paternal grandfather was the late U.S. Sen. Prescott Bush (R-Conn.). Before serving two terms in the Senate, he worked on Wall Street as a partner at Brown Brothers Harriman.
Their father, former President George H.W. Bush, was a senior adviser to The Carlyle Group, Asia Advisory Board, from 1998 to 2003. The Washington, D.C.-based private equity firm has more than $75 billion under management.
Venture capitalist Marvin Bush, the 50-year-old baby brother of Jeb and George W., is co-founder, managing partner and portfolio manager at Winston Capital Management LLC in McLean, Va.
When Marvin visited Palm Beach in November 2001, it was to launch a partnership between his firm and Brown Brothers Harriman to offer hedge funds to a broader level of investors….”
http://tinyurl.com/2cp6mr
And somebody thinks its to protect the American people. LOL
“Investment banking is a Bush family tradition.”
That one sentence is ever so insightful.
So, who do we vote for, Hoz? What can we do?
I’ve written, called, etc. as many politicians (Fed down to local), newspapers, etc. begging them not to destroy the dollar and bail out speculators — from hedge funds to flippers. Nothing matters. What can we do????
Very depressing times, indeed. :*(
That’s the kind of stuff which really keeps me up at night should I think about it too much. The American people are an afterthought to our own government. What a shame. Without serious campaign finance reform, the American people are doomed. The quality of life in this country is deteriorating at a staggering rate. Regardless of how ignorant or greedy many homebuyers were, the lenders should have NEVER been able to exploit them the way they did. And for the government to run to their rescue is a crime. Sick times. Rant off.
I stay out of politics unless I can reach across the bar to throw a punch.
Vote your heart, not your wallet - there will be a lot more desperate people in a year.
Hey, don’t forget Silverado Neil!
A fine banking tradition, indeed.
I say we vote for the TAZERED student. He knew how to get emotional when things got bad, you know where you stand with a guy like that.
The tasered student, Andrew Meyer, could also tell you all about how Marvin Bush and his cousin Wirt Walker III were running the WTC security on 9/11.
Ever read about the investment Geroge Washington made in New York State and why it was called the Empire State? It is a long tradition.
“I say we vote for the TAZERED student.”
ah, Tin Foil Hat moment:
I noticed he was tazered after he asked if Kerry was a member of Skull and Bones.
Listen we are all going to be “sulking skull & bone” the way things are going.
I am depressed because I feel our best days are behind us and because casualties will also be lots of innocent bystanders - like the 401(k) savers who will take a dive. And the $5.00/gal heating oil and $10 tomatoes.
Got ‘off the grid’ capability?
me being a left-lib, Ron Paul rubs me the wrong way on several issues, but seeing the Dems lining up to screw me over yesterday with these BS FB bailouts, consider me a bunker-dwelling big-L Libertarian for the foreseeable future.
“I say we vote for the TAZERED student.”
ah, Tin Foil Hat moment:
I noticed he was tazered after he asked if Kerry was a member of Skull and Bones.
——————-
Some things to ponder (yes, tin-foil hat stuff):
Fact: Ten of the signers of the Articles, nine signers of the Declaration, and thirteen signers of the Constitution — and only this number — were, or would become, Freemasons. Even so, this is an excellent percentage of the participants. It should be noted that Edmund Randolph, governor and Grand Master of Virginia, although an important participant in the Constitutional Convention, didn’t sign the document. He did, however, fight for its ratification. It should also be noted that four Presidents of the Continental Congresses were Freemasons: Peyton Randolph of Virginia, John Hancock of Massachusetts, Henry Laurens of South Carolina, and Arthur St. Clair of Pennsylvania. (For further study see Masonic Membership of the Founding Fathers, The Masonic Service Association).
AND
Fact: Washington never was a Grand Master. At the instigation of American Union Lodge he was suggested for the office of Grand Master of a National Grand Lodge — a non-existent body. The Grand Lodge of Pennsylvania and some others agreed, but too many others disagreed with the concept of a National Grand Lodge. Washington was appointed Master of Alexandria Lodge No. 22 in Virginia by Grand Master Edmund Randolph when that Pennsylvania Lodge requested a charter from the Grand Lodge of Virginia. The following year he was elected Master, but there is no record of his installation into this office, nor is there any record of him presiding over this Lodge. To keep the record straight, there is much evidence of his respect, and perhaps even love for Freemasonry. Proof? He was buried with Masonic rites
http://tinyurl.com/2lx43x
———————
Just interesting to study the possible limks between freemasonry, banking, “Skull and Bones” and the government (VERY tin-foil hat, admittedly)…
Magic Kat — while Kerry’s membership in S&B may be well worthy of dissection, the protester seemed to me to be more intent on getting himself tased in order to sue. The video clearly shows him resisting attempts to cuff him. I’m a freedom of speech advocate, though I think everyone should be free to speak without the sort of interruption that makes their speech impossible to hear/comprehend — as in, reasonably civil manners. As for the cuffing, I think that it is precisely, possibly solely, what kid wanted to happen. Since he did not appear to be promoting a particular political agenda, I conclude that his motive was totally self centered.
I never liked tomotoes anyway. I’ll have a good excuse not to eat them. As for heating oil, global warming should help out.
V,
A TV columnist for the SF Chronicle wears his “cranky pants” when he is in a foul mood about bad TV shows.
Cranky pants rule!!!
Big V, pissed as well. But I at least took the opportunity to short a few stocks.
Oh, and another thing. Since BB’s rate cut blogging has become fun again!!! I’m revitalized. I was becoming bored and lethargic, thus the need to take to shoving Joshua trees up the deserving stinker for a little excitement. But now I’m rising like a Phoenix from the ashes. LET’S BLOG BABY!
You crack me up and always have.
I agree…t’was getting pretty dang redundant…the stories about jackasses crying about how they couldn’t “understand” the docs, the 500K houses for landscapers, the Tan One propped up in a suit, blah, blah, blah…
now we got bigger fish to fry….
It’s already fun.
LMAO!!!
Yesterday I was posting on AZRepublic sight…. I was PO-ed.
Someone says, Darrell you seem pretty upset. Yeah, and Everest is a pretty big hill.
it depends. do Chinese rooster testicles taste better if they’re marinated in turtle urine?
Bwwwaaahhhaaa
Next question, do Chinese rooster testicles taste like chicken?
They taste like rattlesnake.
tmi!
Rattlesnake is damn good, so is alligator tail. Don’t knock a reptile until you’ve ate one.
Do they call them “Chinese mountain oysters?”
Go read Calculated Risk.
China is threatening nuclear option liquidation of dollar reserves. Saudi Arabia same thing.
Heli Ben should wear dark colored pants to cover his loss of sphincter control.
Big V
I feel your pain brother and so does my savings account. I was very p.o.’d until I contemplated the fact that virtually every government sponsored or directed widescale policy is so incompetently executed that they generally end up doing or causing the opposite of the desired outcome. Therefore, buck up, the false hope this POS BB is giving the sheeple right now and his further fumbling as his ‘economic models’ fail him time and time again will only delay and WORSEN the ultimate penalty the FB’s and all extreme debtors will have to pay.
VERY cranky. I almost wrote an emo mass email to my European friends telling them I’m glad I got to visit last year because you won’t be seeing me for a good long time.
I’m thinking about panicking, pulling my money out of the bank and brokerage (I have a lot sitting around in cash because there isn’t much good to invest it) and buying gold coins or rocks.
I figure rocks are easier to hide and easier to sneak out of the country than gold, actually. The only problem is that rocks have been dropping in value faster than gold in the last 200 years, with a few exceptions.
I picked up some books from the library today. Looks like Japanese pearls might be a good store of value … easier to appraise, easier to pick out fakes. (At least for an experienced jeweler.) Rubies/Sapphires suck because low value ones looks like high value ones without a lab test, and that means high spread and LOW fungibility for truly valuable ones. Diamonds are a joke, not going there …
I’m also looking for a reputable coin dealer in Gainesville/Jacksonville/St. Aug/Orlando/Tampa(puke)/Daytona/Valdosta … basically anywhere within 2 hours of UF. Any recommendations?
Gas Carbon Deposition technology will make natural rocks worthless. Look into everbank for moving into non US denominated CD’s. If your looking for portability, think about having it outside to begin with. Perth Mint or BullionVault.com offer PM’s stored in safe places. Other choices out there also.
Not shilling for these places just found them to be the quickest means of exit, not necessarily the most cost effective.
All the problems were caused by cheap money. Now they are doing the same mistake … try to fight these problems with cheap money … things will only get worse !
“PORTLAND, Ore.–(BUSINESS WIRE)–A swoon in U.S. home construction reduced Western lumber production in 2006, the first decline in five years, according to final production figures prepared by Western Wood Products Association.
With housing starts decreasing by nearly 13 percent during the year, Western lumber production slipped to 17.98 billion board feet, down 7 percent from the previous year. The estimated wholesale value of the lumber was $6.8 billion, compared to $7.7 billion in 2005.
WWPA compiled the final industry totals for 2006 following its annual survey of more than 210 mills operating in the continental West and Alaska.
Oregon remained the largest lumber producing state in the country and fared better than other Western states. Sawmills in Oregon produced 7.03 billion board feet of lumber valued at $2.5 billion. The volume was down 5.4 percent from the previous year.
After reaching a 76-year high in 2005, lumber production in Washington declined 10.5 percent to 5.13 billion board feet – the steepest drop for all Western states. The estimated wholesale value of the state’s production was $1.88 billion.
Mills in California produced 2.59 billion board feet valued at $1.19 billion in 2006, a 3.6 percent decrease from the year earlier.
Together, the three states comprised 82 percent of the region’s lumber production….”
Businesswire Sept 19
http://tinyurl.com/2sqb9z
The more telling feature is that production was down 7%, but wholesale lumber prices were down 11.5%.
WWPA compiled the final industry totals for 2006
Can’t wait for the 2007 totals, should be out by this time next year.
Hoz,
Telling indeed…this is for you and your insightful posts.
Leigh
http://www.historylink.org/essays/output.cfm?file_id=2030
I wouldn’t worry for the lumber folks. As the dollar tanks and other building materials predominate outside the US & Canada rise in costs (Metal, Concrete) they will have a booming business filling giant ships with lumber. Earthquakes happen everywhere, termites don’t. Cheap American and Canadian lumber will make home construction in emerging earthquake prone countries explode.
“Paul Ward, a broker associate in Danville, said that although many buyers are waiting for the market to hit bottom, others are already pouncing on foreclosed properties.”
Definately a case of premature pouncing. Seek help immediately!
Exactly, I tried to post the same thing but it disappeared in comment purgatory.
I wonder if we’ll see a new trend emerge, multiple foreclosures on the same houses as the market marches downward ?
I wouldn’t think so, now that credit has tightened. Anyone with skin to put in the game, will probably be real careful as to where they put their money. At least you would think…Also there’s the affordability issue with the funny money gone and what’s left a victim of bad press, I personally don’t see it happening.
Then why the premature pouncing ? If I were to invest it sure wouldn’t be any time soon since you still can’t get positive cash flow.
huh?
prematurely pouncing Paul
“premature pouncing?”
Are we still talking real estate?
Probably not if ex-nnvmtgbrkr typed it…
If your pounce lasts longer than four hours, seek medical attention.
–
(Prices peaked at different times in various counties and cities)
CA Declines From The Peak
Merced County -26.3%
Yolo County -23.7%
Sacramento County -19.5%
Stanislaus County -18.8%
San Joaquin County -18.6%
Nevada County -17.0%
Madera County -16.9%
Placer County -16.8%
San Benito County -16.0%
Tulare County -15.1%
Santa Barbara County -13.7%
El Dorado County -12.7%
Solano County -12.6%
Sonoma County -12.1%
Fresno County -12.0%
Kern County -11.8%
Napa County -11.1%
San Luis Obispo County -10.8%
San Diego County -9.5%
Riverside County -9.2%
Ventura County -8.7%
Santa Cruz County -7.7%
Marin County -6.3%
Monterey County -5.6%
San Bernardino County -5.3%
Contra Costa County -5.0%
San Francisco County -3.0%
Orange County -1.7%
San Mateo County -1.4%
Santa Clara County -0.7%
Alameda County 0.0%
Los Angeles County 0.0%
Cities:
FRESNO -11.8%
SACRAMENTO -15.4%
STOCKTON -23.4%
Just wondering why every listed with california counties always skips Kings county. I know there isn’t much here but the prices are still high. Everywhere I look locally prices are still holding strong. Of course what im reading are local papers. They are still hiring RE agents here in Hanford and Lemoore. Im starting to wonder if the prices here will go down or if the incomes from Navy base will keep everything over priced.
Hey, I ‘d still be hiring LO’s if I was still in the biz. Who gives a crap when you pay commission only. In fact, it becomes a numbers game. The thinking is if you hire one hundred agents, then one of them has to find a deal to pay the bills for you.
I think Kings County is often skipped because it’s such a hell hole.
They never have Humboldt county either, and that is a favorite among Socal equity locust.
your declines should not be expressed with a minus sign, that would be increases.
California real estate always goes down.
Please excuse if this has already been posted.
Current Foreclosure Crisis Deemed the Worst in U.S. History.
http://homeguide123.com/articles/Current_Foreclosure_Crisis_Deemed_the_Worst_in_U.S._History.html
“… More than 14 percent of subprime borrowers are defaulting, and prime borrowers are beginning to follow suit…”
I guess the Alt/A and Prime paper wasn’t as contained as some thought.
Did you catch this little gem at the end of the article?
“Another shocker: 90.3 percent of the homes were bought or refinanced in 2005 and 2006.”
No worries — the MBA records only date back to 1953, which excludes the Great Depression.
MBA Report Summary
* The foreclosure rate recorded in the last quarter has increased beyond the highest point seen in the history of the MBA survey, which dates back to 1953.
“‘I feel deceived,’ Anguiano said through an interpreter. ‘I feel guilty for not being more knowledgeable, but this is not just something that is happening to me. I want to see justice and people protected from this happening in the future.’”
Well get a lawyer and go after these “nice amigos” that got you into the loan. O wait, you lied on the application, and a lawsuit would expose your complicity in this fraud!
Why do we need a home owner bail out when we have a legal system that goes after people who have been unduly wronged. Ever heard of a class action lawsuit? O unless you are complicit/accessory to the crime?
And let us not forget that she refied and took some of her equity out - her bad. Everyone had a choice - we were looking for no doc in 2005. SO was managing family investments so we needed no doc. We had loan broker suggest we get friends to write letters saying he was a handyman and had done work for them and was paid $X/mo. We were on our way out when I suggested that it was fraudulent, she became irate and said to get out - she wouldn’t do business with stupid people. Tried to report her to state, but they said we had no written proof.
Hey Neil,
When’s that get-together at the South Bay Cheesecake Factory again? This Sunday I thought.
I have it on my calendar for the 30th.
Time?
6pm
Above times are correct. Do note, I’m organizing it myself. So please click on my blog for information.
Oh, well, I guess I should be polite then and also mention that Big V + husband met an HBBer by the name of NorCal (who really never posts, but lurks) last Saturday.
Didn’t mean to be rude. I wish luck to Neil as well.
The social news from New York is:
az_lender and NYCityBoy lunched at Gente near Grand Central Station today, September 19th, along with NYCB’s wife and a couple of his banking colleagues. This was the first time either NYCityBoy or az_lender had a face-to-face meeting with any other HBB personality. Popcorn was not on the menu, but we send our regards to Neil and his companions and hope their party is as much fun as ours was.
You people are going to be a threat to ‘E Harmony’. Don’t get too close.
Glad to hear of HBB’ers getting together. Would love to go to Neil’s, but DH has to work that night.
It’s late to post this, but we need to get a San Diego group together.
YIKES…Saudis may break with dollar, even before Chinese. Hey Bernanke, did you plan on this little scenario? Man of man, we’re cooked without foreign cash….
Fears of dollar collapse as Saudis take fright
Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.
* China threatens `nuclear option’ of dollar sales
“This is a very dangerous situation for the dollar,” said Hans Redeker, currency chief at BNP Paribas.
“Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States,” he said.
The Saudi central bank said today that it would take “appropriate measures” to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.
As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml
But, but, but, I thought the Saudis are our best friends.
They are…they scratch behind our ears and throw sticks for us to fetch don’t they?
Woof woof
Yeah, they really are our good buddies. So, exactly how many of the 9/11 hijackers weren’t Saudis?
“Money changes everything”
Cindi Lauper-1984
but, but, but…
but, but, but…
but, but, but…
Doesn’t Islmic Law prohibit the charging of interest. What are they doing even thinking about what interest rates might or might not be, since they would never feign to actually earn dirty interest off their money.
They, like other Muslim countries have a special “bond” system that “complies” with their religious laws. Wiki link escapes me.
You can’t charge a believer interest but a heathen is fair game.
PS. check any list of foreign holders of US MBS, you won’t find many Arab oil states left holding the bag. They have no serious losses to realize from our mortgage implosion, so they have very little incentive to prop it up.
Got Oil?
All right, I know how all of this foolishness came about, but damn!! Story after story screams hey look at what a dumb a$$ I am. A retired school teacher with 4 adopted kids (I’m sure tax money subsidizes them) a $5200.00 a month mortgage… Just throw in the keys and get a section 8 shack. We screwed tax payers will foot the bill, as we always do.
“The couple refinanced two years ago to consolidate bills, she said.”
“They intended to refinance again before the mortgage would adjust to a higher interest rate. But in August when their rate soared from 6.7 percent to 9.7 percent and their payment from $4,200 to $5,800, they learned falling values left them too little equity to refinance.”
“Making matters more difficult, she said, the couple two years ago bought a larger house to have space for their four adopted children. Then they rented out their first home for $2,000 less than the mortgage payment.”
“Rubi said that she and her husband, a retired schoolteacher, can no longer afford both mortgages.”
Clearly this couple is an example of what our govt qualifies as “worthy borrowers” — those who are automatically put on the receiving end of bailouts paid for by those of us who are “unworthy.”
Dang them ,Dang them
They ought to take a rope and hang them
High from the higest treeeeeeeeeee
Women would you weep for me dup do da dupe de da
Forgot who wrote that song or I would give it credit .
Roger Miller.
what the hell is someone doing in the orangecrest area of riverside doing with a $4,200 monthly loan payment that’s increasing to $5,800 per month. isn’t orangecrest just across the 215 freeway from Moreno Valley which is the armpit Riverside County???? and how did a retired teacher and state employee qualify for such a payment to begin with????
What is this qualify you speak of?
Those “stated” loans are sure going to cause quite the hangover.
Got popcorn?
Neil
$1120/month SSI per “adopted” foster kid. Plus MediCal, special ed, ESL tutors, etc. Had a family of meth/heroin fanciers up here who were pulling in around 100K a year for their family of four. Nice work if you can get it.
This idiot taught our kids! Think about it.
When could they afford it? Let em rot.
They can’t hold the tax payers liable for this - with all the off shoring and illegal alien hiring, tax payers simply are not earning like they use to!
There are simply no one’s backs to jump on anymore.
Excuse me. Do you know the details about their adoption? They adopted four kids. MY GUESS is that they were considered “unadoptable”. Nobody adopts four infants! I have friends who could not conceive their own child. They decided to adopt. At first, they wanted one infant. For various reasons, decided to adopt three kids. A 6,4,and 2 year old. Now, in the adoption world, people want infants. They don’t want six year olds. My friends did. The adopted them (after over a year of red tape). They get a subsidy of roughly $500 each. Yup, thats over $1,500 a month. Now would they have adopted these kids without the subsidy? ABSOLUTELY! However from a state point of view, it is cheaper on the tax payers (in this case Oregon tax payers) to ship the kids to Ohio (where my friends live) than stuff the kids in an orphanage until they are 18. Also, because these kids have have parents now, they are less likely to comit crime, be on welfare when they are adults, etc.
I think it is fantastic that states give subsidies to parents who adopt “unwanted” kids! Heck, the federal government gives money to parents of all kids, even biological ones of millionaires. How many people on this board with kids reject the child deduction and other deduction and credits based on their kids? None. I bet even the Ron Paul libertarian ones.
I am glad you spoke up. Those who adopt kids are very special. Heck, I adopted rescued dogs…I know that is not the same but I find it very fullfilling. I think it’s cool they chose non babies. It makes me ill how there is so much adoration for puppies and babies but once those animals and kids grow up, they lose interest. For this reason, I always adopted adult dogs because they are the ones who get the raft.
I just went on Zillow to check on my old landlord. Turns out he sold the property I was renting in Jan 2006, after having bought it in 2004. From personal conversations with him, I know that he borrowed a total of $550,000 for the property, and that $50,000 was supposed to go to improvements. I think he spent a few hundred dollars on improvements, then blew the rest on trips to Disneyland with the kids, a new SUV and monster truck, nice new clothes for the wifey and budding daughter, nothing too good for that family. Of course, after we moved in, we made him actually FIX all the stuff that was broken, so that just came out of the rent we paid.
But I digress …
My point is that he sold the place for the spectactular sum of $525,000! After deducting the cost of selling, looks like he took about a $60,000 loss on the deal. That’s more than what they gave him in cash to fix up the property! Well, I hope he’s learned now that there’s no free lunch. If he would have been a decent landlord, I might feel sorry for him.
I’m just amazed at the thought of people that stupid having kids - and then finding willing idiots to bail them out. Where the hell is their Darwin Award?
I’m amazed that he got 50K on a cash back deal to do fix ups and the lenders didnt catch the fraudulent appraisal .
other than gold and oil- what to buy ?
turtles and coffee. lots and lots of coffee.
coffee and wine.
Booze and bullets…lots and lots of both.
Throw in a cord of finely tuned Joshua tree shafts and I think you got it.
On way ticket to Canada
Sorry, meant ONE way
Actually, either might apply.
Yen (FXY), Canadian dollars (FXC), Aussie dollars (FXA) or go with commodities (DBA, MOO) Yes, MOO is the symbol for an ag ETF.
AUD did rise vs USD today; so did BRL, NZD, ISK. What I like about there (in contrast to Yen) is a healthy interest rate on their govt bonds. Govt bond Ratings: AUD AAA, BRL BB, NZD AAA, ISK AAA. Yields on 5-10 yr bonds: AUD 5.7, BRL 9.5, NZD 6, ISK 9.5 (sorry if these have changed since I last checked). All four currencies are slightly below their highs (vs USD) of July 26 2007. BRL is closest to new high, but the Federal Republic of Brazil requires that you buy $130K(US) of their bonds if you buy any at all. The other three countries you can probably buy in increments of $5000AUD, $5000NZD, maybe 100000ISK (about $1600USD).
Cigarettes darnit! I don’t care what’s healthy today. If this thing blows up health will be last thing on the mind of many - but plenty will part with an appendage for a good drag.
Think prison economy - only larger and with no gaurds.
I was away from the desk yesterday when I saw the new DQ numbers. find them at: http://www.dqnews.com/ZIPLAT.shtm
My favorite zipcode in Palmdale, 93552 took a 17.8% haircut YOY. That means that the median homeowner in that zipcode has paid $53,400 in phantom equity over the past year for the privledge of a 93552 address. (chuckle)
Moreover, months of inventory is up over 20% MOM to 19.8 months.
The westside zip, 93551 (usually considered more pricy) was down 13.1% YOY for an annual equity loss of $50,384 for the median bagholder. Months of inventory is up just 3% to only 22.2 months.
Buy now! Surely this must be the bottom! Ignore those 30,000 units being built out in Ritter ranch.
These days the news cycle is sweet nectar to my bearish soul.
And the unknown data…those sales are of houses bought when?
I would guess 5+ years ago, as the equity involved still allows for some serious cuts in wish prices, but leaves sufficient bucks for a decent bankroll. I’m waiting for the real bloody stuff, when the banks finally move their REO’s at get-rid-of-’em prices. Then the unsold swimmers will really be in low tide.
I absolutely agree. The REOs are the as yet unfelt factor in this, and when they start to roll it will shake the earth like the mighty San Andreas fault.
Speaking of which, what do y’all think the effect of another big shaker hitting Cal as the RE market wavers? Loma Prieta ‘89 and Northridge ‘94 didn’t seem to help California’s image, or financial solvency.
Heck, just have the cops beat up some thug and set off another riot. We can play Back To The Nineties.
I can tell you that for me personally the Northridge quake was a tremendous blessing. My house wasn’t damaged, and I went overnight from an out of work field tech to a drywall crew supervisor with all the overtime I could work.
Funny, I just took another look at the numbers for my area (San Jose). We have already noted that there are just a few zip codes holding up the median for each “greater area”. Well, one of the zip codes near me (in Los Gatos) is supposedly up 600%. Do you think that’s a mistake? I don’t. They just probably figured out they’d have to err by that much to keep the numbers up for the city. Most people won’t notice.
Another ‘mistake’: This year’s sales numbers for those cities or towns that didn’t have a sale a year ago (few in number, true, but the impact is big) are folded into the current mix - and can bounce DQ’s stat’s by 3 to 4% easy. Has a big, big effect on Central Valley numbers.
OT other than craigslist.com do you know any decent bb for renters?
tia
With the Fed willing to screw foreign investors, by killing the dollar, there is little incentive to foreigners by debt from the U.S.. Considering the huge dependence on foreigners buying U.S. debt, the FED maybe cutting off credit even more with their rate cut. Rate cuts may have a severe unintended consequence of even tighter credit availability. Why would a foreign investor want to buy the debt of a country whose currency is in free fall and whose government is doing nothing to defend it’s currency?
“…there is little incentive to foreigners by debt from the U.S.”
You don’t subscribe to the Donald Trump ‘too big to cut off’ school of borrowing.
Bingo. Posted above that the Saudis may be walking away from the dollar. We need a couple billlion of foreign money every freaking day to keep going. So, what happens next, Ben Bernanke?
Interesting point. I noticed that the yield on long term treasuries was up sharply higher today. So, the inverted yield curve is a thing of the past. I can see Bernanke cutting short term rates to 0% in a dire attempt to bolster housing prices, but then the 10-year note rises to 8 or 9% because other countries who buy our bonds demand greater return from a bankrupt nation such as ours. Maybe the FED will allow all homebuyers from 2002-2006 to get 30 year fixed rates tied directly to the Federal Funds Rate? Don’t laugh…this could happen.
double dog bingo: Foreign purchase of US debt has been treding water for the last year. 75 Billion a month, that barely covers our running account deficit. If it doesn’t change that means the other central bankers are keeping us on life support and they decide if we drown. I don’t remeber voting for any of these central bankers. Do you?
In all seriousness, why doesn’t the Fed just cut rates to 0%? That’s pretty much an act of war, but can’t yesterday’s cut be interpreted as an “act of aggression?” Last time I checked, this country IS at war already (whether or not you agree with its execution,) the rest of the world is leveraged to the hilt just as badly as we are - why not make the first strike?
Japan nearly cut their rates to zero during their real estate bubble back in the late 80’s early 90’s. Didn’t help. 20 years later, they are finally at the norm.
Fed Cuts or not, this real estate bust is at full speed folks. and nothing is going to stop it.
And, by “at the norm” you mean .5% interest and shrinking economy?
For the last 20 years Japan has had stuff to sell the rest of the world wants to buy.
What does America have to offer the world? A Cheavy.
If we went to 0%, you might as well hang a giant “YARD SLAE” sign on the US. Foreigners with real money would pick our bones clean of everything worth having.
Airbus could buy Boeing outright. Komatsu would grab Caterpillar and John Deere at our blue light special two for one fire sale blow out spectacular.
“I’m Crazy Bernakian, I stake them deep and sell them cheap”
Look, look, IBM free with purchase of Microsoft.
Chilidogg:
In the US, only Congress can declare war. In the situation between the US and Iraq, Congress declined to do so. What they chose was to authorize a conflict. By doing so, they denied the President access to those emergency powers ceded to a President during times of war. Strangely, he’s been taking them anyway, and no one is stopping him!
The Fed can do anything it wants, but the foreign lenders who are keeping the US running to the tune of almost $3 billion/day are not going to give the US free loans. Quite the contrary - the more the Fed moves to trash the USD, the higher interest they will demand. As we are seeing already.
Oh, they’ll invest in American bonds and treasury notes…..can’t wait to see what the interest on those bad boys are going to be. 10%+?
From the last article:
Well, if you’re going to get into (statue) torture, you might as well go all the way. I expect to start hearing stories about St Joseph statues with Voodoo pins.
Or, how about some leather and related S&M hardware?
“If the bank agrees to the short price, we’ll remove the nipple clamps”
LOL!
Dang them ,Dang them
They ought to take a rope and hang them .
High from the highest treeeeeeeeeeeee
Women would you weep for me …dodah de da dupduda
Author unknown .
Well, if you’re going to get into (statue) torture, you might as well go all the way.
ROTFLMAO. So a bunch of people are perverting their religion to torture a saint? Now what about the idiots who abandon St. Joseph in misery? Does he come and hunt you down once he frees himself? Does he go from a good angel to a dark angel? Some serious bad ju-ju could happen if St. Joe isn’t liberated from his hole…
Got popcorn?
Neil
No shite…hey, I’m all for any saint (Saint Franscis), but WT hey? Gawd, talk about money for nothing (pray and the gods will deliver).
And the chicks for free…uhoh…fell into time warp…showing my age. Toooooooooo funny.
Jeez. Giggling like a teenager…LOL…Leigh.
As previously told by me, we refied in 2002 (only $15K, used it to put dual panes throughout plus new roof, from a 30 to 15 year fixed loan) with an ‘amigo’ that specialized in the Hispanic community.
He not only tried to screw us once, but twice. He would tell us and qoute us a rate, and then change that rate in the paperwork that we were about to sign. Only my wife’s trained eye caught it, again, not once, but twice. He did it just to increase his commission.
So, yeah, I could totally see how these people could get easily screwed, as no one goes thru the experience of buying a home too many times.
I think this was one way that brokers would screw their customers: qoute one rate and loan, change the terms on the paperwork, and cross their fingers when their customers signed away their lives.
Saw an article on Yahoo that showed how mortgage lenders/brokers/servicers got ZERO repeat business. How they had to spend ever increasing amount on ads to bring in new clients because they couldn’t keep their current clients.
az_lender’s 14-year advertising budget = $0.000
Many of the points made in this article have been expressed by this blog. An interesting read, although a day late:
U.S. Banks Brace for Storm Surge as Dollar and Credit System Reel
A more powerful tsunami is about to descend on the United States where many of the banks have been engaged in the same practices and are using the same business model as Northern Rock. Investors are no longer buying CDOs, MBSs, or anything else related to real estate. No one wants them, whether they’re subprime or not. That means that US banks will soon undergo the same type of economic gale that is battering the U.K right now. The only difference is that the U.S. economy is already listing from the downturn in housing and an increasingly jittery stock market. That’s why Treasury Secretary Henry Paulson rushed off to England yesterday to see if he could figure out a way to keep the contagion from spreading.
Rate cuts won’t help to rekindle the spending spree in the housing market either. That charade is over. The banks have already tightened lending standards and inventory is larger than anytime since they began keeping records. The slowdown in housing is irreversible as is the steady decline in real estate prices. Trillions in market capitalization will be wiped out. Home equity is already shrinking as is consumer spending connected to home-equity withdrawals.
http://tinyurl.com/2×297a
I just wonder if this dollar crash will be a slow burn or a nuclear moment.
Bizzaroworld, your link is directed to Amazon.com.
Try this link. It sent me to the right place: http://tinyurl.com/2×297a
Something funky going on with the links, which keep going to Amazon. Try this: http://www.smirkingchimp.com/author/mike_whitney
Umm, according to my president it’s “nu-cular”
I see a mushroom cloud on the horizon and it is approaching quickly.
Difference between USA & Europe they don’t have skewed tax policy while being at war. Therefore, they don’t have huge deficits. The European currencies aren’t collapsing.
They have options which we clearly don’t, the one option we had we used. The other option is declare victory negate surge, reduce military presence in IRAK and be fiscally responsible.
Ya’all think Gee Wiz gets it. I hope his legacy is “MOST EXTREME” president.
Since WW2, we have defended Europe so they don’t have to have a military so they have “extra” bucks to spend. We stop that, we have the extra bucks. But also, the Euro-weenies now have armies and well did that work in the past? Best bet thoughht is still ole washington and his stay out of foreign entanglements. Pretty smart advice for a dead, white guy.
We have 3 carrier groups in the Persian Gulf. I have family on one of them. We are all in. See what that does to a financial model.
IMHO, a slow burn 10% drop this next three months, then a further 40% over the next three years. The reason for the slower drop over the next three years is that Japan will try to support the dollar as long as possible. (It is possible that Japan has been the country selling US Treasuries and thus has the ability to buy the dollar back to prevent massive appreciation of the Yen. Japan manipulates the Yen more than China manipulates the Yuan.) Japan is a US export based economy slowly shifting to APEC oriented and a rapid appreciation of the Yen would throw the country into a deep recession. China can now afford to let the Yuan appreciate since most of China’s exports are to the EU and the dollar is collapsing against the Euro.
Well thought out, Hoz. Seems like you have quite a bit of experience in these matters. I hope your scenario is accurate since a slow burn allows some time for planning.
You have to also consider that the Chinese have a vested interest in making sure their coming out party, a.k.a. (the olympics) go off without a hitch. That also includes keeping the global markets from going bonkers. I call the treading water trend to end the day after the closing ceremonies. After that, all bets are off.
Mark-to-fantasy, meet mark-to-market.
Nothing to worry about, congress just allows Fannie and Freddie
to buy more subprime MBS from WallStreet and banks…
Tax payers will pay for the defaults.
Or Bernanke just print some more extra dollars.
Another reason why I think that the government wants to refinance all these FB loans is because on a legal level they are voidable anyway because of the fraud ,but it would also mean that they would need to lock up alot of borrowers/agents . The court system would be so bogged down by a massive amount of cases . You already see lawyers bringing up the legal point of voidable contract regarding people trying to get out of builder contracts .
I really believe that the government does not want this puppy to get into the legal system because of how massive it is .
Really , the normal recourse for a FB or lender who was screwed is the legal system . Since when does a government step in and offer a bail out for private parties to a contract ,such as a mortgage ?
Banks have been bailed out after they go under ,but bailing out borrowers on a mass level is rather strange ,especially when they committed fraud to begin with on their loan application in alot of cases . I would love to see the courts test these cases rather than see the government decide that homeowners need a bail out loan they don’t deserve that taxes end up paying for .
The real truth is that the world of lending in recent years was so corrupt and unlawful (and this includes the borrowers ),that so many parties would be vunerable to criminal violations that it isn’t funny .When you have lending crimes/perjury/fraud this massive and widespread ,it is to big to deal with regarding normal recourses . I find bail outs to be a violation of the constitutional rights of tax payers to get Justice for known crimes committed .What about the fact that known lending crimes , faulty appraisals ,cash back deals ,and fraud raised property taxes in countless areas .
I have said it many times , because the value of property is what sets the price of property taxes and insurance charges in neighborhoods ,it is a area in which there is no room for fraud regarding appraisals or lending .I guess Congress and the Senate have already decided to give the industry and the FB’s a mania defense without a trial and bail them out .
because the value of property is what sets the price of property taxes and insurance charges in neighborhoods
Insurance charges have very little to do with property values. Most property value fluctuations are in the land value. The insurers are concerned with the cost of rebuilding the structure from fire, wind damage etc, and this cost is far less variable.
Or to put it another way: is an insurer going to charge someone in Upstate NY, where house prices might be 1/4 those in Metro NYC, 1/4 as much for insurance? No way.
The GSE’s are already the main buyers of subprime MBS and have been since 2004. The Fed has already monetized $240 billion of toxic CDO’s.
–“University of San Diego economist Alan Gin said weak loan-underwriting standards are a major reason for the spike in foreclosures. Many adjustable mortgages issued in recent years required little or no down payment, making homeowners more likely to walk away when the going got tough.”
OK, here’s my problem with this whole scenario; we’re CONSISTANTLY being told by people in positions of authority and power that they simply “didn’t know about this” or that they “didn’t see it coming”. Be it the housing bubble, the war in Iraq, hurricane-relief efforts or what have you, our leaders and representatives tell us over and over that they had no knowledge of whatever the f@ck-up was while WE -regular people- seem more capable of predicting these disasterous outcomes with much greater efficiency & precision.
On this blog, we’ve been discussing and predicting the present ’surreal-estate’ fiasco for YEARS now. We also knew & commented beforehand on the ridiculously lax lending practices that continued to fuel the market WAY beyond its natural breaking point.
On other blogs, citizens have asked why we were going into Iraq when the guy we were looking for was in the mountains of Afganistan/Pakistan. To no avail. 6 years later here we are, we STILL haven’t found him and continue mired meanwhile in a new, stupid version of Vietnam ..in Arabic. A war by the way that Greenspan has recently admitted is “mostly about the oil”. Gee, I knew that 5 minutes after Herr Bush announced it …can I be made minister of something?.
Anyone who has lived in any so-called Third World country knows that this type of behavior on behalf of its leadership is precisely what DEFINES a 3rd World nation.
And I offer to you ladies & gentlemen that the U.S. is now a THIRD WORLD nation too.
Congrats to all.
You say you want a revolution
Well you know
We all want to change the world
She says that her payments have increased from $1,200 to $3,800 per month and that she now faces foreclosure.”
“‘I feel deceived,’ Anguiano said through an interpreter. ‘I feel guilty for not being more knowledgeable, but this is not just something that is happening to me. I want to see justice and people protected from this happening in the future.’”
Patricia, if you had shelled out $25 for a Pre-paid Legal account, you could have had an attorney review your documents and tell you this simple fact. In fact, I bet you could have found it yourself if you had bothered to take an hour and read papers where you were signing to borrow hundreds of thousands. Didn’t it ever dawn on you that whatever amount (at least $500K) you got and a $1200 payment didn’t add up. It was intuitively obvious to an 11 year old I told a similiar story to last weekend. A child said that is not affordable. I am sure the publicity from all of the folks similiar to you that are now claiming ignorance (and I am not saying you are a bad person, or stupid, just made a very bad decision without thinking) will prevent this from happening for most people for several years. I wish you luck.
Sorry if this has already been posted:
“Paulson Considering Mortgage Change
By THE ASSOCIATED PRESS
Published: September 19, 2007
Filed at 8:34 p.m. ET
WASHINGTON (AP) — Shifting course, Treasury Secretary Henry Paulson planned to tell Congress that the Bush administration would consider allowing the big mortgage companies Fannie Mae and Freddie Mac to temporarily buy, bundle and sell as securities loans exceeding $417,000.
This change, which the Bush administration opposed in the summer, is portrayed as a way to inject liquidity into the stretched mortgage market.
Paulson said the change involving jumbo loans could occur only in tandem with tighter oversight of the two government-sponsored mortgage companies, according to a person familiar with the secretary’s testimony prepared for a House hearing Thursday.
The person spoke on condition of anonymity because Paulson’s testimony before the House Financial Services Committee had not been made public.
Paulson planned to tell lawmakers ”there’s little question” that allowing the companies to buy the large loan ”would give a short-term lift” to the mortgage market.”
http://www.nytimes.com/aponline/us/AP-Paulson-Mortgages.html
I’m going to take a shot at translating Nimrod to English…
“Nancy Rubi said an unaffordable mortgage and falling home prices in her Orangecrest neighborhood forced her and her husband to try to sell their house even if it means getting less than they owe their lender.”
Translation: Someone’s going to have to take it in the shorts, and we’re doing everything possible to make sure that it will be the bank.
“The couple refinanced two years ago to consolidate bills, she said.”
Translation: The couple had maxed out all their credit cards by purchasing worthless crap that they couldn’t afford and saw the refi as a way to get into a lower minimum payment.
“They intended to refinance again before the mortgage would adjust to a higher interest rate…
Translation: They never had any intention of paying off the debt, but figured that they’d find another foolish lender to give them another two-year fix so that they could maintain the illusion that they weren’t broke, worthless parasites.
But in August when their rate soared from 6.7 percent to 9.7 percent and their payment from $4,200 to $5,800, they learned falling values left them too little equity to refinance.”
Translation: Once some level of lending standards were re-introduced, they got hit with the high interest rate that their poor credit and work ethic warranted.
“Making matters more difficult, she said, the couple two years ago bought a larger house to have space for their four adopted children…
Translation: A good chunk of their monthly income is likely coming from the state DHS in the form of a foster parent stipend.
Then they rented out their first home for $2,000 less than the mortgage payment.”
Translation: These people can’t do basic math and figure out that they were no where close to being able to afford the bigger house.
“Rubi said that she and her husband, a retired schoolteacher, can no longer afford both mortgages.”
Translation: Hubby’s too lazy to get off the couch and work for a living–quite possibly so he can stay home and molest the foster kids.
“Although her husband held an open house seven days a week since July 20, Rubi said they couldn’t get the $685,000 price they need to repay their mortgage.
Translation: Proving that only the insane (or incredibly stupid) continue the same failed strategy in the hopes of seeing a different result, they decided that it would be swell idea to have an Open House everyday. In addition, because they are real estate geniuses, they decided that the best way to price their house was to base it on what the owed rather than any actual market factors.
Their next step, she said, is to try to persuade their lender to accept less than the mortgage.”
Translation: When the stink of desperation failed to lure any interest, they decided that there was no alternative but to expect their bank to bend over and take the full hit.
“Because the couple is 30 days behind on their mortgage payments, she figures they have six to nine months to find a buyer before the house goes to foreclosure.
Translation: Those worthless, broke idiots are banking on a prolonged foreclosure process to allow them to live rent free for the better part of a year.
‘We never, ever thought it would end up like this,’ she said.”
Translation: In case you missed it before, this dumb little b-tch with a capital “c” can’t do math.
So does that about cover it?
Thank goodness bad things are still happening in Bubbleland!
We had a double whammy of bad news with the fed and O.j.
Its nice to know foreclosures are still rising and home prices still have a chance to go down. Fingers crossed for the fallout.
We have seen the figure of “2.2m total foreclosures” tossed around a gazillion times in the MSM, thanks to some schmo’s back-of-the-envelope calculation to estimate the anticipated extent of the foreclosure crisis.
But the numbers in the Union Tribune foreclosure article tell quite a more dire story. If the U.S. national foreclosure rate in August 2007 was 243,947 and rising, then the current annualized rate of foreclosures is 2.9m and rising ( 243 947 * 12 = 2,927,364). With 114m U.S. households, the current annualized foreclosure rate is one per every 39 U.S. households — a number that I missed if any MSM outlets reported it.
Even if we have hit a semi-permanently high plateau in the foreclosure rate and stay here for a while, it looks like an eventual total number of foreclosures well in excess of 2.2m is in the bag. Of course, this is rather unlikely to occur given Ivy Zelman’s rather convincing evidence that resets on Alt-A and Prime mortgages won’t peak until 2010 or so.
Also noteworthy: The August credit crunch precipitated a major trend break to the upside in the foreclosure rate, at the local (SD) level, state (CA) level and national (U.S.A.) level. There is no need to conduct any formal hypothesis test to check this, as the graphs speak for themselves.
“‘I feel deceived,’ Anguiano said through an interpreter. ‘I feel guilty for not being more knowledgeable, but this is not just something that is happening to me. I want to see justice and people protected from this happening in the future.’”
Next time, instead of blindly trusting a fellow member of La Raza, maybe you should deal with an Anglo real estate attorney. Heresy, I know.
The FED will probably give all those that bought subprime from 2002-2006 a refund of $100,000. Never mind that they all lied on their loan docs and were out just to flip to the next greater fool. They were VICTIMS! And they’ll sue until they get their home paid off in full. Maybe the FED can direct deposit $100,000 into their accounts as part of the Victimized Homeowner’s Relief Act of 2007.
Let’s see, being irresponsible and stupid is beneficial:
1. Get to live in a house well above your means for several years without foreclosure.
2. Get to live in said house without making mortgage payments for at least a year.
3. Get Congress to provide hundreds of millions of dollars for non-profit homedebtor services.
4. Get Congress to raise conforming loan limits from $400K to over $700K so that FBs can enjoy 2% lower rates.
Don’t be surprised if the Government comes up with an order to the credit bureaus to block any adverse information on credit reports resulting from foreclosures. And, they will probably create a fund to subsidize FBs new long term, fixed loans so that they are tied directly to the Federal Funds Rates rather than the open market. That way, they can drop them all the way to 0%.
Sorry, but you guys are giving me a headache with all this “extreme bailout” stuff tonight. Mind you, I’m likely on of the biggest cynics/worriers/pessimists of the lot - but what you suggest is just too darn complicated and huge to pull off. At some point the powers to be will realize it is much better to allow the FBs to founder - than totally kill off the geese that lay the golden eggs (productive/economically viable folks). FBs are just not worth saving.
The good news is that the FB’s will be able to stay in their houses.
The bad news is that they won’t be able to afford to drive to work.
Zimbabwe.
Victimized Homeowners Relieft Act? YES! Bring it on! My wife and I bought in 2006. Bought her parents house (they moved out of state) for about 25% less than exact same homes on the street were sold for.
Besides paying 25% less than comps, paid about 1.25 times our combined income. Fast forward a year and a half and we now have a baby. Wife and I decided she would be a stay at home Mom. We can still afford our mortgage on my sole income. Not only that, can still afford gas and four new tires (on sale last week) for my paid off 2002 Hyundai Accent two door hatchback with manual transmission (cheaper!).
With this $100,000 windfall because I bought in 2006, I’ll be able to get a car with FOUR doors and automatic tranny. After all, I am an American and need to learn that we Americans are too lazy to change gears ourselves! Woo-Hoo! USA! USA! USA!
Dang them ,Dang them
They ought to take a rope and hang them
High from the highest treeeeeeeeeeeeeee
Women would you weep for me do dah doo dah dodee do
Author unknown
Roger Miller would be proud, HW. And how apropriate is this Miller classic for the current housing situation?
Trailer for sale or rent, room to let 50 cents
No phone, no pool, no pets, I ain’t got no cigarettes…..
Thanks bizarroworld ,I just couldn’t remember who wrote it or sang it . Now that I think about it ,I talked to someone one time who knew Roger Miller and said he was a really nice guy .
test
As one said earlier, the purgatory gawds are having too much fun with me!! My test paste, but the good (so I think) stuff is sacrificed.
Dang…happy Thursday friends!
Leigh
Thanks to the current inane financial policies of the US, I’d compare the our economy to the EU’s by saying the US is like a boxer that’s teetering 3 punches from the brink of a KO and Europe is like a boxer that can still go a few more rounds despite the blows.
Paulson Considering Mortgage Change
WASHINGTON (AP) — Shifting course, Treasury Secretary Henry Paulson planned to tell Congress that the Bush administration would consider allowing the big mortgage companies Fannie Mae and Freddie Mac to temporarily buy, bundle and sell as securities loans exceeding $417,000.
http://www.nytimes.com/aponline/us/AP-Paulson-Mortgages.html
First Hovnanian, now any turdbag fb can be like ara : “mega-auction hype in FL” http://www.orlandosentinel.com/business/orl-biznews-auction091907,0,5123448.story
Yep, and where are the Americans going to get all this money to spend spend spend and avoid a recession in this Country with the money tree from real estate gone ? Inflation will just take away more buying power if the wages aren’t keeping up . It’s not enough that the cheerleaders say that global markets are strong (whatever that means ).
On a related note, I’d still love to hear a compelling reason for wage inflation this time around. The dollar’s been tanking for years now - but where are the raises? This is not exactly the 1970s all over again - it might be worse.
In the seventies we (US of A) had a manufacturing base.
Rah Rah Shish Ghum Bah…today we have…?
-white collar (wall street)
-health care
-skilled labor (mechanics; techs)
-hourly wage (janitors; childcare; service…not the same, but comp wages)
-whatever else I forgot to mention
I destest myself…I was part of the privatization movement; outsource guru…did not know the consequences. Sigh.
Now I live by: If you’re not part of the solution, you’re part of the problem philosophy . Hope I’m not tooooooooooo late.
Ya can’t even make this stuff up.
You forgot about teachers. Decent wages (great for 2007!), fabulous healthcare benefits. Kick-ass defined benefit pension! Summers off.
Hey, it’s either teach or work at Wal-Mart (if you are not smart enough to make millions on Wall Street).
What do you all think about the mega-auctions… Any comments, ideas, experiences? Or do we continue to wait for prices to drop lower?