by bob711 — published on October 10th, 2008
From a Moody's Economy.com report it shows that 12 million households, or 16%, owe more than their homes are worth. Moody's chief economist, Mark Zandi, said: "it is very possible that there will ultimately be more homeowners under water in this period than (at) anytime in our history."
An estimate by real-estate Web site Zillow.com shows that among people who bought within the past five years, about 29% are under water on their mortgages. San Diego California real estate agents
by bob711 — published on October 8th, 2008
The vote Friday by which the House approved a $700 billion government bailout bill: Voting yes were 172 Democrats and 91 Republicans. Voting no were 63 Democrats and 108 Republicans.
The following statement was presented on the floor of The House of Representatives after Congressman Kucinich voted against the Wall Street bail out plan, H.R. 1424, the Emergency Economic Stabilization Act of 2008: The public is being led to believe that Congress has reconsidered its position because we have before us a better bill than we had a few days ago. I
t is the same bill plus hundreds of new pages for hundreds of millions of tax breaks. What does this have to do with the troubles of Wall Street? Driven by fear we are moving quickly to pass a bill, which may produce a temporary uptick for the market, but nothing for millions of homeowners whose misfortunes are at the center of our economic woes. People do not have money to pay their mortgages. After this passes, they will still not have money to pay their mortgages. People will still lose their homes while Wall Street is bailed out. San Diego Realtors
by bob711 — published on October 7th, 2008
Wall street voices its opinion of the Government bailout. First it was the Government cash taxpayer rebate. Then we had a Government housing bailout effective October 1, 2008. Then, in a third step, the Government bailout program known as the "rescue bill," signed into law on October 5, 2008.
During the three business days after the latest bailout bill was voted on, Wall Street & all other world marketssaw huge declines. Note the Dow Jones Index chart shown below:
Now, Obama is already proposing another bailout plan. I would suggest that just like the Rocky movies, we name these new bills, bailout #1, bailout #2, bailout #3 … It would be much easier to reference these different bills if each was numbered.
I venture to say that somewhere around bailout #4 or #5 (the P.C. name of the next bill will most likely be "The neighborhood village revitalization Act") we will finally see the Government's real end-game: Behind on your home payments? Not to worry, we will rewrite your loan to the new depreciated value of your home and reduce your interest rate to today's rate. Plus, we will extend the 30 year term to 60 years to lower your monthly payments. If you cannot make your new drastically reduced payments, just pay what you can and we'll make up the difference by again extending your payback period beyond the sixty year term. Did I hear anyone say 100-year home mortgages?
Naturally, you can keep the new speedboat and SUV you purchased with your original home equity loan.
San Diego home listings
by bob711 — published on October 7th, 2008
The Doom & Gloom scenarios seem almost universal - indicating that perhaps the worst has already been discounted. Don't expect any 'instant' clearly defined bottom. It's going to take months, many months, before a real bottom is established.
So for now, "hold on" for more volatility until the dust settles and buyers and investors begin looking past the devastation to the inevitable economic and San Diego housing market recovery.
San Diego real estate agentsby bob711 — published on October 6th, 2008
This morning on The Today Show, Jim Cramer said if you own stocks and will need cash from those investments within the next five years, you should sell those investments this week! Why say this on national TV? Obviously, he expects stocks to fall an additional 20% from today's level.
Keep in mind that as of Friday's close, 80% of stocks in the Russell 3,000 are down year-to-date, and a whopping 17% are down more than 50%. Jim Cramer is the host of CNBC's "Mad Money" and co-founder of TheStreet.com.
A few prior posts on stocks & the economy:
