August 7, 2013

People Have Realized You Can Lose A Lot Of Money

Some housing bubble news from the Washington Post. “President Obama came here shortly after his first inauguration 41 / 2 years ago, pledging to arrest a tide of home foreclosures and to stabilize the deeply wounded housing market. The next few years were a personal and political embarrassment for him: More people lost their homes, housing prices continued to sink, and economic growth was held back by the depressed real estate market. But late in Obama’s first term, after he had upended his policies several times, the housing market started to rebound — and Obama returned here Tuesday to celebrate that recovery and insist that more work needs to be done.”

“‘While it’s been a long, slow process that’s taken longer than any of us would like, we’ve helped millions of Americans,’ Obama said at a high school here. ‘Now we have to build on this progress.’”

“The president outlined a series of policies he said would continue to boost the housing market, including a long-ignored legislative proposal that would allow more Americans to refinance at current low mortgage rates. He also said he is taking executive action to widen the pool of borrowers eligible to receive loans from federally backed programs; many borrowers without the highest-quality credit have been locked out.”

“The president said any future housing system must preserve the 30-year fixed-rate mortgage, a linchpin of the American economy that requires the government to provide guarantees to the housing market because bankers are unlikely to offer such long-term loans on their own. Thirty-year mortgages are rare in other countries, where government plays a far smaller role in housing.”

From Fox News. “Community bankers and mortgage lenders across the country are viewing with skepticism President Obama’s call to do away with government-backed mortgage giants Fannie Mae and Freddie Mac, as the president unveiled his latest housing plan during a speech in Phoenix. ‘Removing them entirely would be devastating,’ Kelly Powers, VP for advocacy at the Arizona Mortgage Lenders Association, told FoxNews.com. Powers argues that there isn’t enough private capital to step in and take over, and the results on lending could be damaging.”

“‘It would make it much more difficult for people to borrow,’ she said. ‘There would be less liquidity and less players in the game. The requirements would go up and people won’t be able to qualify for loans.’”

The Daily Caller. “President Barack Obama today urged a revival of two devastating mortgage policies that helped inflate the real estate bubble before the economic crash of 2008. ‘Let’s make it easier for qualified buyers to buy homes they can,’ he said in a campaign-style speech in Phoenix, Arizona, today. ‘We should simplify overlapping regulations and cut red tape for responsible families who want to get a mortgage, but who keep getting rejected by banks,’ he said, echoing President George W. Bush’s support in 2002 for lower lending standards.”

From CBS 5. “Many of the students at Desert Vista High School know firsthand what happens when the economy tanks and the housing bubble bursts. ‘We had to leave California where we were from because we couldn’t afford our home anymore,’ said sophomore Pauline Poleyuptewa.”

“‘It’s hard to sell our house in Mesa because we’d lose a lot of money,’ said senior Nick Metzger.”

“Stories like these were common among the nearly 800 high school seniors on hand to witness the president of the United States speak Tuesday afternoon. ‘I think it’s great what he’s saying about renting and owning a home because I know my family would really like to own their own home,’ said Poleyuptewa.”

From AZ Family. “During a quick visit to the Valley Tuesday, President Barack Obama said he wanted to make it easier for qualified people to buy homes. Accomplishing that would make prospective home buyers happy. ‘Frustrating, very frustrating,’ said Melissa Miller, who has been trying to buy a home in Scottsdale for a year and a half. ‘I never thought this experience would take so long. I’m not someone who takes a long time to make a decision on a new home. I love being a homeowner, want to be one again… just waiting, that’s the frustration,’ explained Miller.”

“The frustrations, however, are signs of a healthier housing market in Phoenix and the surrounding suburbs. Home values have risen 20 percent over a year ago.”

“‘Things changed during the recession and what we’ve discovered is renting is the new buying. And people don’t necessarily rent an apartment while waiting to buy a home,’ said Tom Simplot, president of the Arizona Multihousing Association. ‘[People] have realized you can lose a lot of money buying a home.’”

News 4 Tucson. “Some Arizonans are upset with the state for not helping homeowners avoid foreclosure as much as they could. When the federal bailout was created, a portion of it was meant to help out hurting homeowners. However, some insist that the state hasn’t done enough to get that money out to the people. For 75-year-old Rodger Derton, foreclosure is reality. He lost his home last December but had been fighting foreclosure since 2009. He and his wife packed up their life and moved into a friend’s home.”

“‘I talked to them and told them, just knock my payment down,’ Derton told News 4 Tucson. ‘Leave me something to live on.’”

“Derton is upset that no one seemed willing to work with him to lower his payments, so he could stay in the home. ‘Some of them got their houses and property back, some of them got a large settlement to carry them through… that’s all I ask is… be fair,’ Derton said.”




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75 Comments »

Comment by Ben Jones
2013-08-07 07:49:09

‘We had to leave California where we were from because we couldn’t afford our home anymore’

You didn’t have to leave because of that, probably.

‘I’m not someone who takes a long time to make a decision on a new home’

I bet you’re not.

Comment by AmazingRuss
2013-08-07 08:52:54

Property tax on a huge house price + state income tax near 10% if you make enough to make those big house payments adds up to quite a bit.

Comment by 2banana
2013-08-07 10:33:17

Higher and higher taxes = more prosperity and a better middle class.

Progressives tell me this every day.

Comment by AmazingRuss
2013-08-07 10:54:09

Progressives visit you in your moms basement? Do they come knocking like mormons, or what?

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Comment by In Colorado
2013-08-07 10:57:05

And yet my Silly Valley colleagues refuse to move to lower cost flyover. Go figure.

If there really was an exodus out of California, house prices would be going down

Comment by AmazingRuss
2013-08-07 11:00:52

I think there is, at least of high earning people. A couple years in silly valley and the glitz wears off, you figure out you’re getting boned.

Took me longer than most (wife had started a graduate degree so we were stuck), but I got out, with my income intact even. I feel like daddy Warbucks out here.

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Comment by In Colorado
2013-08-07 12:50:40

Some people do leave. We did. And all our friends and acquaintances in San Diego asked us if we were crazy. Why in heaven’s name would we want to leave paradise and go live in chilly Colorado.

Some would come visit and they’d ooh and ah at our huge and “cheap” house. But not one followed us out of the Golden State, not a single one. They all stayed put.

 
Comment by Bill, just South of Irvine, CA
2013-08-07 19:20:02

I had a 13 year tax break by living in Arizona and working in California. Now the tax break is gone until I go back into contracting. I made enough fiat money. So I am happy to be working in the state where I was born, getting all my health/vision/dental paid for.

At some point when my returns on my assets really take off it would make sense for me to rent one place instead of renting two places. And To downsize even more. I am comfy in Phoenix. California would feel like home if it allowed me to keep my firearms, magazines, and ammo. But it does not.

 
Comment by ahansen
2013-08-08 00:22:48

Depends on where you live in California. ;-)

 
 
Comment by Taxpayers
2013-08-07 18:27:19

howmoneywalks.com find your state and county

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Comment by Rental Watch
2013-08-07 19:59:09

Except property taxes only can go up by 2% per year in CA. If you could ever afford the house, property taxes going up wouldn’t make it so that you couldn’t afford your house “anymore”.

Now, if you lost your job? Sure, you might lose the ability to pay the mortgage.
If you borrowed on an Option ARM and the rate went up? Yup. That too.

With a fixed rate loan, if you could ever afford the house in CA, it is highly likely that you could continue to afford it.

 
 
 
Comment by Housing Analyst
2013-08-07 08:01:45

“‘It’s hard to sell our house in Mesa because we’d lose a lot of money,’

Considering that housing has always been a loss historically, where exactly is this guy and other alike him coming from?

Comment by Blue Skye
2013-08-07 18:42:10

Some people have suffered a significant loss, but haven’t “realized” it. Ironic that it is called “real” estate.

Comment by Housing Analyst
2013-08-07 19:15:30

It’s a strange parallel world the media junkies live in.

 
 
 
Comment by Housing Analyst
2013-08-07 08:06:14

“People] have realized you can lose a lot of money buying a home.’”

As our good friend and blog contributor would say, if If you pay current grossly inflated prices for a house, you’re going to lose a lot of money. ALOT of money.

Both of them are right.

 
Comment by Whac-A-Bubble™
2013-08-07 08:10:58

Ignore the gloomsters and buy ten investment homes, then just wait. After just a couple of years of 20%+ annual home price increases, you will be a millionaire living on easy street.

Comment by Beer and Cigar Guy
2013-08-07 08:48:58

NOW your talkin’! Like me, it sounds like you’ve finally started listening to Biff (Jingle Male). “The only broken record these days is from people in denial that the housing recovery is real.” And, “Did you miss the posting a month ago, where I sold a house for $124,000 more than I paid in 2010?” All I need to do is be ignorant of fundamentals, buy an overpriced house and then find someone more gullible than I was- its simple! Now some might say that there is a huge difference between a housing real recovery and just having some limited success as a speculator- but not Biff!
Its nice of him to keep coming back here- despite his massive success- to “come back to the HBB from time to time to provide an important perspective.” Because you know, ‘neener-neener’ is a pretty “important perspective”. Yeah, just like that weird guy that comes to every high school reunion in a rented Corvette, gets really drunk and loudly mouths off about what a phenomenal success he is, Biff always finds time to stop in and give us an update. But if ‘Ol Biff doesn’t stop furiously rubbing his ego like that, its gonna’ get all chafed.

Comment by (Neo-) Jetfixr
2013-08-07 09:15:54

“…..furiously rubbing his ego…..

What’s the difference between “pink” and “purple”?

How tight the grip is.

 
Comment by Biggvs Richardvs
2013-08-07 10:16:28

He should stop doing that or he’ll go blind.

Comment by Jingle Male
2013-08-07 11:11:08

“There are none so blind as those who will not see…..the most deluded people are those who choose to ignore what the already know.” John Heywood, 1546 AD

The housing bubble is history…..get over it.

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Comment by AmazingRuss
2013-08-07 11:28:02

It’s a brand new housing bubble now, even better than before!

Until incomes rise to make those fat payments, it’s all hot air.

 
Comment by Housing Analyst
2013-08-07 12:09:04

The housing bubble is history…..get over it.

Let’s hear your explanation for grossly inflated prices.

Go on now. Explain.

 
Comment by Beer and Cigar Guy
2013-08-07 12:50:13

Biff!! You came back! Even though you’re so incredibly famous and successful- busy counting your money and building your empire and everything- you always come back to tell us how awesome you are! I mean, its good to see that even though you don’t believe there is a housing bubble, you still have an intense interest in the housing bubble. Its nice that the folks on this blog and their perceptions of you are still so very important to you that you keep coming back again and again and again. Its good to see you constantly coming back here, desperate to reassure yourself that you made the right call. Good to see you again, champ. Nice ‘Vette!

 
Comment by Jingle Male
2013-08-07 15:41:52

I cannot spend all day here, every day like you and Housing Analyst.

I’ll leave that to you BCG, while I go out and be productive.

If you can’t deal with the message, attack the messenger!

Good strategy.

 
Comment by CeeCee
2013-08-07 17:14:45

Spreading reality, even on a blog, is being productive.

 
Comment by Beer and Cigar Guy
2013-08-07 17:30:33

“Comment by Jingle Male

2013-08-07 15:41:52

I cannot spend all day here, every day like you and Housing Analyst.

I’ll leave that to you BCG, while I go out and be productive.

If you can’t deal with the message, attack the messenger!

Good strategy.”

Biiiiffffff!! I just KNEW you’d come back again- but so soon? Nice attempt at spin there too, taking the moral high ground and being to busy “being productive” to respond. When you get done taking your money-bath with Scrooge McDuck, we’ll still be here, watching house prices decline as reality reasserts itself. Say hello to Warren Buffet and Rich “Uncle” Pennybags for me when you see them at the club. I’m sure I’ll see you again real soon.

 
Comment by Housing Analyst
2013-08-07 18:02:54

Answer the question Jingle Balls….. You won’t be cause you can’t. You can’t because you’re a liar. You know it and so do we.

I’ll give you once more chance to answer…..

How do you explain current grossly inflated prices

Now ANSWER it.

 
Comment by Blue Skye
2013-08-07 18:51:45

“so incredibly famous and successful…”

Sure, that’s why he came here pretending to be one of our old posters. A pathological liar doesn’t tell simple lies, the must by nature be elaborate.

I bet he missed where I posted a month ago how I found a $100,000 bill just blowing down the sidewalk. Please do now show me some respect.

 
Comment by Rental Watch
2013-08-07 20:03:42

Hey Jingle (if you are still on):

At what point do you begin to get concerned about another bubble?

My biggest concern is that the Fed keeps rates too low for too long (especially for the CA housing market), and creates bubble 2.0 here (if not elsewhere as well).

My $0.02, is that I hope that we start seeing a reduction in the price increases within the next 3-6 months, or else I fear that we are going to replay a slightly smaller version of the last bubble (not as big because liar loans aren’t coming back this soon).

 
Comment by Ben Jones
2013-08-07 20:49:52

‘At what point do you begin to get concerned about another bubble’

That’s the real question. How about when the government pulled out all the stops to keep the market from functioning? Or maybe it was when people started camping out for $800k houses? Or when super rich hedge funds started buying smelly old houses instead of funding the latest technology? I could go on.

There’s this question; what made you think the bubble was over? When the government stopped backing 90% of loans? When the jobs picture improved and incomes rose? When structural problems in the economy were addressed, instead of a years long flood of stimulus and ridiculously low interest rates? And the easy one; when people could afford the dang houses?

 
Comment by Beer and Cigar Guy
2013-08-08 03:42:00

“Comment by Ben Jones

2013-08-07 20:49:52

‘At what point do you begin to get concerned about another bubble’…

There’s this question; what made you think the bubble was over? When the government stopped backing 90% of loans? When the jobs picture improved and incomes rose? When structural problems in the economy were addressed, instead of a years long flood of stimulus and ridiculously low interest rates? And the easy one; when people could afford the dang houses?”

We just can’t seem to comprehend it, but the bubble resolved BECAUSE he decided to buy. When he decided to jump back into the market, THATS when the bubble was at its nadir. He bought at EXACTLY the right time and since there is no more bubble, all of his gains are permanent, irreversible and can only increase from this point onward. For him and many people like him, ‘the bubble MUST be over, because I NEED it to be over! I’M all-in now!’ This is the essence of magical thinking.

 
 
 
 
Comment by 2banana
2013-08-07 10:35:44

And you can be the next Donald Trump.

Even have a show on TV…

 
Comment by Pete
2013-08-07 15:43:40

“Ignore the gloomsters and buy ten investment homes, then just wait. After just a couple of years of 20%+ annual home price increases, you will be a millionaire living on easy street.”

Time to repost this good stuff for those who missed it, it’s been a while:

http://thereisnohousingbubble.blogspot.com/2006_03_01_archive.html

Excerpt:
“Here’s the proof. Let’s say you buy that house for 675K and we’ll be very very conservative and assume only 10% yearly appreciation instead of the industry standard 20%. After 10 years you’ll have a little over 1 million in equity (even if you negatively amortize a few hundred thousand you’re still sitting on a mountain of cash). Now, let’s say you aggressively bid 750K on this Oakland charmer. After 10 years at ONLY 10% appreciation on the higher price you’ll have over 1.2 million in profit. That’s right, you made an extra $200,000 by “overpaying” for that house. As the math above proves you can not make a mistake of overpaying for a home. In fact the only mistake would be passing on that cute Oakland home.”

Comment by CeeCee
2013-08-07 17:12:06

I never saw that before. I wonder if they were foaming at the mouth while being that irrational.

 
 
 
Comment by Whac-A-Bubble™
2013-08-07 08:14:42

“He also said he is taking executive action to widen the pool of borrowers eligible to receive loans from federally backed programs; many borrowers without the highest-quality credit have been locked out.”

Hasn’t the FHA pretty much always handed out subprime loans like candy? What further weakening of lending standards are in store through executive order, and who are the targeted beneficiaries of the lower standards?

And does Congress have any say in passing executive orders, or is this pretty much an end run around any potential opposition?

Comment by Ben Jones
2013-08-07 08:33:48

‘an end run around any potential opposition’

No one in the media is bothering to keep track. Remember when a few reports came out about how the administration was telling bankers they wouldn’t be held accountable for loans going bad, and to lower lending standards? What law was that? And Holder tells congress, ‘gee whiz, some of these finance giants are too big to charge with crimes’. Not too big to fail, too big to even charge! This is a freaking banana republic.

Comment by 2banana
2013-08-07 10:37:39

We are worse than a banana republic.

And I lived in quite a few of them.

Fraud at this magnitude would find executives shot in the street.

And illegal immigrants keep pretty much to themselves.

Comment by Whac-A-Bubble™
2013-08-07 17:52:49

“Fraud at this magnitude would find executives shot in the street.”

In due time.

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Comment by Blue Skye
2013-08-07 18:56:21

“This is a freaking banana republic…”

Without the bananas.

Comment by Whac-A-Bubble™
2013-08-07 19:46:15

We got 2bananas!

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Comment by Whac-A-Bubble™
2013-08-07 08:17:35

“Powers argues that there isn’t enough private capital to step in and take over, and the results on lending could be damaging.”

This is true, at least at current massively inflated prices thanks to taxpayer-subsidized guarantees which are routinely slapped on GSE- and FHA-financed loans.

Comment by Oxide
2013-08-07 09:14:14

Powers is just whining that they may have to wait 5-7 years to realize profit on a loan instead of collecting juicy fees from Fannie up front. Does paying yourself a bonus out of the future labor of taxpayers qualify as being a “producer?”

 
 
Comment by Whac-A-Bubble™
2013-08-07 08:19:16

“…echoing President George W. Bush’s support in 2002 for lower lending standards.”

How did GWB’s move to lower lending standards work out for him?

Comment by In Colorado
2013-08-07 08:36:47

How did GWB’s move to lower lending standards work out for him?

Not bad, as his fans blame the housing debacle on Obama. Not that Obama hasn’t contributed to the mess, he certainly has. My Denver based coworkers are all very happy with their “appreciation” and are busy trading up.

Comment by AmazingRuss
2013-08-07 08:58:49

The only real difference between the two is a few shades of tan and a bunch of wingnut shrieking.

Comment by Beer and Cigar Guy
2013-08-07 09:26:58

“The only real difference between the two is a few shades of tan and a bunch of wingnut shrieking.”

^^ THIS ^^

Flip that coin all you want, but when you are finished it will STILL be the same old coin and it will STILL have the same two sides stamped upon it. There will be no real change until we start using a different coin.

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Comment by Biggvs Richardvs
2013-08-07 10:26:32

I feel a faint glimmer of hope in that the generation currently in their late teens and early twenties doesn’t seem nearly as freaked out about guns (one way or the other) or as emotional about abortion(one way or the other) as the previous ones.

This means that the tools used by the current establishment to produce the current false dichotomy(read: divide and conquer) and thus maintain control are becoming worn out and dull.

Combine that with the fact that they(the young’uns) are rightfully and extremely pissed at how they’ve been f*cked out of their future by a bunch of greedy-as-fluck short sided f*cktards, and we might just have a recipe for genuine political upheaval and change.

I only hope it involves a voting booth and internet campaigns instead of FEMA camps and martial law.

 
Comment by AmazingRuss
2013-08-07 10:56:23

They have to have somebody to vote for. While the current system maintains its stranglehold on what candidates are on offer, it doesn’t matter how engaged anybody is, or whether they vote.

I’ve actually started having crazy thoughts about getting into politics… but I have a bit of a potty mouth and am blunt to the point of rudeness. I don’t think I’d last long.

 
Comment by In Colorado
2013-08-07 11:10:30

I’ve actually started having crazy thoughts about getting into politics

Do you have good hair?

 
Comment by AmazingRuss
2013-08-07 11:32:32

I am starting to resemble Doc Brown from Back to the Future, but I could get a nice newscaster wig.

 
Comment by CeeCee
2013-08-07 17:07:52

The majority of people in their early 20’s I know are far more concerned with their employment prospects, which are awful. A lot of the ones in poverty seem to think they are hard working and everyone else on welfare is just lazy, even though a huge number of young people are in the same tough spot.

They are very angry, though. I have seen some people finally realize their anger needs to be redirected. It’s sad that they also seem to be embracing the “us vs them” attitude when over a third of my age group has no financial independence.

The good news is a lot of young people are afraid of taking on debt, so at least they seem less likely to end up like their parents who love to get involved in reckless spending.

The teenagers are the ones who, to me, seem less likely to have extreme views on abortion and gun control.

 
 
 
 
 
Comment by Oxide
2013-08-07 09:15:53

Rodger Derton, what did you do with the money?

Comment by Housing Analyst
2013-08-07 09:20:15

Post some more OxyMath……. Entertain us.

 
Comment by Biggvs Richardvs
2013-08-07 10:29:48

ARTHUR PUTEY……go in there and pull your finger out.

[bonus points for anyone who knows where that's from]

Comment by Beer and Cigar Guy
2013-08-07 11:11:22

The marriage counselor sketch, of course!

Comment by Biggvs Richardvs
2013-08-07 14:28:35

DING DING DING DING DING! We have a winner!

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Comment by cactus
2013-08-07 09:45:06

“Many of the students at Desert Vista High School know firsthand what happens when the economy tanks and the housing bubble bursts. ‘We had to leave California where we were from because we couldn’t afford our home anymore,’ said sophomore Pauline Poleyuptewa.”

I heard that story many times in Phoenix form ex Californians.

especially the ones who liked big big homes.

 
Comment by (Still) Waiting for the Fall
2013-08-07 10:06:59

Welcome to the Rogue Nation of America.
The best advice I’ve heard recently was at a truck stop where we’d filled up our tank and sat for a bite to eat. Two truckers were sitting at the counter within earshot and one remarked to the other, ‘ …political office should be just like jury duty: you serve for one term, you get a stipend for your trouble, and when you’re finished, you never get called to serve again. Anyone for starting the “One Term Party”?

Comment by AmazingRuss
2013-08-07 10:58:13

Makes sense in one way… but then again you’d end up with people spending most of their term figuring out how to do their job. Maybe give them 6 years, and stagger it so you don’t end up with an entire government full of newbies.

Comment by In Colorado
2013-08-07 12:36:35

Food for thought:

In Mexico there is no re-election. You cannot be re-elected to any public office. Every two years they elect an all new “Chamber of Deputies”. Mayors, council members, state legislators, governors, senators, the president (Mexico doesn’t have a VP) they all serve a single term.

It hasn’t done a thing to stem corruption.

 
 
 
Comment by Bubbabear
2013-08-07 10:50:23

If Housing Is Booming - Why The F**k Do We Need Another Fix

While the Federal Reserve and the current Administration have tried a litany of programs to jump start the housing market nothing has worked as well as the “REO to Rent” program. With Fannie Mae/Freddie Mac, and the banks loaded with delinquent and vacant properties, the idea was to sell huge blocks of properties to institutional investors to be put out as rentals. This has worked very well.

http://www.streettalklive.com/daily-x-change/1784-if-housing-is-booming-why-do-we-need-another-fix.html

 
Comment by Bubbabear
2013-08-07 11:25:55

Smart Money Is Telling Us The Housing Market Is About Crash Again
———————
Here’s an interesting observation: The Dow Jones U.S. Home Construction stock index is now down over 25% from its peak on May 14 - so how come the financial media is not broadcasting that housing stocks are now in a bear market? Every time gold drops 20%, which has occurred several times during the precious metals bull market that started in 2001, all we hear on CNBC and Bloomberg is that gold is now “in a bear market.” LOL

http://truthingold.blogspot.com/

 
Comment by Bubbabear
2013-08-07 13:26:34

Two Big Housing Risks-Ending Fed Stimulus & Speculation-Professor Robert Shiller

http://usawatchdog.com/two-big-housing-risks-ending-fed-stimulus-speculation-professor-robert-shiller/

 
Comment by Ben Jones
2013-08-07 13:38:02

‘Fox Business host Stuart Varney falsely claimed that policies outlined in President Obama’s housing speech will inflate a new housing bubble by “coercing” private banks to provide low interest rates and easy money to unfit borrowers, ultimately setting the stage for another financial collapse.’

http://mediamatters.org/blog/2013/08/07/fox-accuses-obama-of-rebuilding-housing-bubble/195274

‘We are seeing the housing market heat up far too quickly, driven by the Fed’s campaign to keep interest rates at rock bottom levels, speculative buying of massive tracts of homes and condos by investors and increasingly ridiculous barriers to new construction in Greater Boston and other high-priced, boutique markets. Of course, the Obama didn’t mention any of those factors - he is trying to sell his plan to disband Fannie Mae and Freddie Mac as a way of preventing a future bubble.’

‘Good luck with that - it’s a little late for prevention and disbanding the Washington-based housing giants will probably take years. If it’s gotten to the point where the president is starting to warn about the potential of a new bubble, we are probably already well along our way.’

http://www.boston.com/realestate/news/blogs/renow/2013/08/obamas_bubble_t.html

Comment by Whac-A-Bubble™
2013-08-07 18:05:01

‘Fox Business host Stuart Varney falsely claimed that policies outlined in President Obama’s housing speech will inflate a new housing bubble by “coercing” private banks to provide low interest rates and easy money to unfit borrowers, ultimately setting the stage for another financial collapse.’

I listened to the interview several times and I completely missed the alleged false claims; the part of Stuart Varney’s report that was on the video seemed to unequivocally address the facts and circumstances of the situation at hand.

Could anyone who has access to the part of the story which involves false claims please elaborate, as I feel a bit clueless to keep missing it after repeatedly listening to the report.

 
 
Comment by In Colorado
2013-08-07 15:00:51

People Have Realized You Can Lose A Lot Of Money

My coworkers sure haven’t. They’re busy trading up.

Comment by Beer and Cigar Guy
2013-08-07 17:37:04

Well, if you’ve tried to have an adult conversation with them and they are still delusional, then there is really nothing else that you can do except for make preparations to ignore their future plight. They have obviously made their choice and when this thing goes TU for the 2nd time, it will be fast and ugly. The world needs cannon fodder too.

 
 
Comment by Bubbabear
2013-08-07 17:52:59

The Case For Fed Tapering Sooner Rather Than Later

Better to engineer a mini-crisis while you’re still in control than let a crisis you can’t control run away from you

http://www.zerohedge.com/news/2013-08-06/guest-post-case-fed-tapering-sooner-rather-later

Comment by Whac-A-Bubble™
2013-08-07 18:09:21

Best part of the taper talk tantrums that Wall Street has thrown as of late: The more the Fed jawbones about future tapering without taking action, the more air they can let out of the QE3 bubble before actually making any moves. If successful, they will have let all the QE3 air out of the souffle before tapering. There may even be a taper-onset relief stock market rally if the market crashes far enough in dread anticipation. In the best possible case, the Fed may be able to point out how tapering was actually good for share prices!

Comment by Whac-A-Bubble™
2013-08-07 19:49:56

Tapering views emerge from Fed speeches
Photo: Bloomberg
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It is a crucial time for the Federal Reserve.

Officials at the U.S. central bank seem eager to pull back some of their extraordinary support for the economy, but are unsure whether the economy is strong enough to thrive without it.

And markets are watching the central bank hawks and doves closely.

The Fed expects the economy to improve markedly between now and the end of the year after a few fairly dismal quarters.

But so far the data has been mixed, leading to honest disagreements among economists and Fed officials over whether an expected pickup will materialize.

One key question is will the Fed start to pull back, or taper, its $85 billion-a-year asset purchase plan at the next policy meeting in September.

How each of the 19 top Fed officials views the outlook will be important to whether the central bank slows down the pace of its purchases next month or waits for subsequent meetings in October and December.

While it is fashionable on CNBC to complain about all the chatter, there is something to learn from every Fed speaker.

Here is what the central bankers have said about tapering over the last few days.

— Greg Robb

Comment by Ben Jones
2013-08-07 20:35:50

‘its $85 billion-a-year asset purchase plan’

That’s per month.

(Comments wont nest below this level)
 
 
Comment by Whac-A-Bubble™
2013-08-07 19:51:39

Your guide to Fedspeak: Part II
August 7, 2013, 2:51 PM

In our first installment on Fedspeak last week, we referred to this period in U.S. monetary and economic policy as “extraordinary”. (Hey, those were Bernanke’s words, not mine!)

 
Comment by Whac-A-Bubble™
2013-08-07 19:55:00

Aug. 7, 2013, 1:52 p.m. EDT
Fed’s Pianalto: Taper if job market stays strong
By Greg Robb

WASHINGTON (MarketWatch) - The Federal Reserve can scale back its $85 billion-a-month asset purchase program if the labor market holds the gains it has made recently, said Sandra Pianalto, the president of the Cleveland Fed Bank, on Wednesday. In a speech to The Center for Community Solutions in Cleveland, Pianalto said that there have been “clearer signs of a more sustained recovery” in the labor market in the last few months. “In light of this progress, and if the labor market remains on the stronger path that it has followed since last fall, then I would be prepared to scale back the monthly pace of asset purchases,” Pianalto said. She did not provide any timetable for Fed action. The Cleveland Fed president is seen as one of the pragmatists on the central bank and is often close to the majority opinion. She is not a voting member of the Fed’s policy-making committee this year.

 
 
 
Comment by Taxpayers
2013-08-07 18:22:11

what if?
the fed sold off 300 billion a year for 10 years and everything else was constant.
any opinions on bonds rates 10yr?

Comment by Whac-A-Bubble™
2013-08-07 19:47:25

Higher than now.

 
 
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