Housing Crisis 2021
Housing Crisis 2021
This video does a great job illustrating why it’s hard to believe everything you hear these days.
As a California real estate broker with over 30 years in residential real estate, I have NEVER seen the housing market as crazy as it is right now! I can’t see how this will end well to be honest… Read more
Large Wave of Home Foreclosures Still to Come
Yesterday, Freddie Mac chief executive, Charles Haldeman, warned of a “potential large wave of foreclosures” still to come.
Freddie Mac lost almost $26 billion last year. Freddie Mac, which has lost a total of almost $80 billion since the housing crisis started in 2007, is bracing for more pain. The company said a record 4 percent of its borrowers are at least three months behind on their payments and facing foreclosure.
Financial Crisis – Housing Bust – Just Another Trillion or Two
The financial/housing crisis is far worse than we are aware of as yet, and it will get worse than it is once all the bail-out and freshly printed money has been distributed. Too much cheap money that was not always fairly earned got us into this mess, and the solution of more of the same will not help us recover.
Now it's toxic debt, some unknowable evil, and we're going to own it. We need the geniuses that created it to stay on at fortune-sized payscales. Washington is really looking out for us. Quick, another trillion or two.
Since trillions are being conjured up regularly, let's do what they say we can't: Hand money to real people to pay off their bills and debts. We're creating debt to pay debt anyway.
Money is a token of useful production. Financial engineers adjust that real money in their attempts to deal with credit and produce products that enable us to save or borrow, as we wish. As long as the engineered money is proportional to the whole, fine: but the past years have seen a disproportionate amount being constructed into houses of straw, arid landscapes and other items of apparent but worthless value. Now we are having to account for it, and until we do, we can expect more financial pain. Let's use this time to return to a system where real values matter, and in doing so make the politicians and financiers aware that we expect them to contribute real value too. San Diego real estate
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It's ironic that excess spending (buying homes well beyond any realistic debt to income ratios, home equity loans exceeding 100% of value, etc.) got the economy into this mess and now many believe unbelievable excess spending will get us out of this depression.
But, far more ironic is the fact that the same politicians that were warned about just this situation, and chose to ignore the warnings, are the very people now still in power who are saying they have the right ideas on how to fix the problem.
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Government Bail-Out – Risk & Reward
Some folks took risks on buying homes 2-3 years ago with the thought that home prices would continue to increase and they would make off with a good ROI (sometimes with no money down at all). Others took the risk of not buying and possibly seeing the prices of housing running up to a level that those individuals could be priced out of the market forever (like the 1970's steep increases). Paulson/Bernanke are making it sound like they are alleviating risks took by investors -but this can only be done at the expense of others that took risks (and, should be rewarded accordingly when markets show favor to their strategy). Those that have saved money are being robbed through purposeful devaluation of the currency by those that believe that some folks risk taking is more important than others. This is not right -it can not even appear to be right. There is rhetoric which can be used to try & justify such events -but, even the rhetoric doesn't feel right.
So, when a neighbor doesn't pay his VISA card bill at the end of the month, we should all chip in? VISA factors in potential losses -if they do a bad job of this, they might go out of business and people with use AMEX or other companies will pop up instead. In fact, when folks don't pay their credit card bill, VISA (well, via the banks that actually hold the debt) sell that "bad debt" off to collection agencies. Check into it -there's a whole industry out there around bad debt collection. And, guess what, it doesn't involve the debt holder knocking on a few neighbors doors asking them to chip in. I hope that many adamantly oppose both the bailout bill and the whole theory around this anti-capitalistic crap -and specifically harass their elected officials until they get the idea.
What I do KNOW is that Bernanke said quite emphatically at his confirmation hearings that we were not in a housing bubble. How he could reach that conclusion, even in 2004 is a mystery. And he was clearly right on this wasn't he.
Fed to issue new rules to stop shady home-lending practices
The Federal Reserve will issue new rules next week aimed at protecting future homebuyers from dubious lending practices, its most sweeping response to a housing crisis that has propelled foreclosures to record highs. Sounds like closing the barn doors after the horse has run off.
Suze Orman On The Housing Crisis
Acclaimed financial expert, Suze Orman, gives her take on the housing crisis in a CNN interview with Eric Schurenberg. Orman answers the questions of "How did we get here?" and "How do we get out?"
San Diego downtown condos