Comments on: Friday free-for-all

By: duck

duck — Mon, 19 Mar 2007 15:42:00 +0000

Very few I think. Remember that these are the people who grew up during the Depression and fought WWII. And indeed some are still around - I know some personally.My sister and her husband bought a house with 5% down for $45,000 about 30-odd years ago. When she died, I thought the house was paid for and that her husband would be financially OK. Not true. Every time their mortgage came up for renewal, they upped the mortgage. They had very little additional equity after 30 years.

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By: patriotz

patriotz — Mon, 19 Mar 2007 12:35:00 +0000

Again, no sh*t, some of those houses were bought in 1948.I wonder how many of these have had big MEWs.Very few I think. Remember that these are the people who grew up during the Depression and fought WWII. And indeed some are still around - I know some personally.Boomers - that's another story.

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By: rentah

rentah — Mon, 19 Mar 2007 12:01:00 +0000

"As a whole, parapsychologists are nice, honest people, while the critics are cynical, nasty people" (Ray Hyman, skeptical scientist)For 'parapsychologist', substitute 'MSM-RE-commentator'.

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By: Freako

Freako — Mon, 19 Mar 2007 10:53:00 +0000

"freako: thanks for the analysis. "You mean vitriol?

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By: rentah

rentah — Mon, 19 Mar 2007 10:09:00 +0000

freako: thanks for the analysis.

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By: machoslob

machoslob — Mon, 19 Mar 2007 09:57:00 +0000

GREAT POST FREAKO!Deserves to be spread across RE blogs & forums everywhere.A breath of fresh air, compared to crap like "prices must be going up cause I saw tonz of traffic around an open hose"

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By: duck

duck — Mon, 19 Mar 2007 09:48:00 +0000

Still, more than 93 percent of the 32 million single-family residences' valuations and loans in the study had positive equityOr seven per cent or 1 in 15 homes (not mortgages!) has negative equity! Stunning. Defies belief. Whoever could have conceived of this five years ago?Worthy of being featured in Ripley's Believe It or Not in the Sunday comics.And how positive was the positive equity in the remaining homes ... e.g., how much of a market downswing would be required to double the 7% to 14%, or higher?Again, no sh*t, some of those houses were bought in 1948.I wonder how many of these have had big MEWs.

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By: Freako

Freako — Mon, 19 Mar 2007 09:11:00 +0000

"Isn't this the result of limited income capping what landlords can ask for rent? "Sorry I meant squeezed downwards. Getting too myopic for my own good.OT:If you want something to rant about, check out this article:http://www.msnbc.msn.com/id/17686807/"About 1.1 million additional home foreclosures are expected over the next six years as adjustable-rate mortgages"At least. But then we get:""It's less than we spend on alcohol. It's less than we spend on the lottery and gambling," said Christopher Cagan, director of research and analytics, and author of the report Mortgage Payment Reset, The Issue and the Impact."Why are we spinning so hard that you need to reach for such desperate comparatives, Mr Cagan? "That's what gets the attention," Cagan said. "The traffic report reports the accidents. It doesn't report the normal traffic."Give me a f*cking break Cagan. When your industry has done the equivalent of serving copious amounts of booze to rush hour motorists, no sh*t there are going to be accidents that SHOULD be reported. Unbelievable."The study forecasts that the defaults won't severely hurt the economy and will account for about 0.36 percent of U.S. Gross Domestic Product."Ah, what assumptions does the study make? Read on …"The report focused on single-family residences and reviewed only the impact of loans that will reset to new rates. It also assumed that prices will stay level with those at the end of 2006."Ah, I see some major flaws with your little study. Are you for real? Second, realize that there are feedback loops. Falling prices will multiply defaults exponentially. To boldly go out and proclaim the subprime news spotlight as ambulance chasing when your study uses rosy assumptions is disgusting."The U.S. mortgage industry loans about $2 trillion each year, so the loses from foreclosures may be less than one percent of total lending, the report said."Misleading. One percent is the spread for prime mortages, there go your profits or the year. And that is with your cherry picked outcome."The percentage of loans resetting with negative equity is expected to leap from 12.9 percent in 2007 to 24.4 percent in 2008. Still, more than 93 percent of the 32 million single-family residences' valuations and loans in the study had positive equity."Again, no sh*t, some of those houses were bought in 1948. I would hope they have positive equity. But what about impact at the margins, you spinning j*ckass. If lose 7% of my blood, are you going tell me that the glass is 93% full?They gotta give this spinmeisters a harder time.

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By: Boombust

Boombust — Mon, 19 Mar 2007 08:31:00 +0000

No, let the specuvestors head for the hills.

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By: rentah

rentah — Mon, 19 Mar 2007 08:22:00 +0000

blueskies: Vancouver has a 50 week growing seasonSome folks push that up to 52 weeks by going indoors and using the right equipment.

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