CNN Money - Foreclosures up 75% in 2007

[brewer12345]

Yes, the world is going to end! Dogs and cats will be living together in sin! We'll all be eating dog food because nobody will be able to refinance! Panic! Panic!! Panic!!!

You sound like a gold salesman or short seller: accepting no facts counter to your worldview of a smoldering dustheap. Good luck with that.

As for there being no refi boom, take a look at the stock price of any publicly traded title insurer over the last two weeks.

 

[al_bundy]

Interesting Countrywide article ... looks like some real fire sales coming over the next couple years!

I view BOA purchase of Countrywide like American's purchase of TWA. Seemed like a good idea ... CEO gets a quick feather for his cap. But long term it's a mistake. Pieces of the company could have been bought for PENNIES on the dollar after bankruptcy.

BAC got countrywide for free pretty much, but even $4 billion is too much to pay.

they are buying a bunch of people that can leave anytime they want and some assets whose value is around $0 at what BAC paid for them. not like they are getting any patents or something else no one can replicate

 

[FinanceDude]

BAC got countrywide for free pretty much, but even $4 billion is too much to pay.

they are buying a bunch of people that can leave anytime they want and some assets whose value is around $0 at what BAC paid for them. not like they are getting any patents or something else no one can replicate

They bought a list of clients that need to be weeded out, and a distribution network. If they can restructure it at all, they will have a MUCH larger capacity to meet demand in the future.

$4 billion is NOT a lot of money for a large bank.......

 

[Wags]

CNN Money article - New $20B subprime bailout on the table Senator Chris Dodd proposes setting up a fund that would buy defaulting subprime mortgages and restructure loans for borrowers

New subprime bailout on the table - Jan. 31, 2008

It looks like a possible government bailout.

GOD BLESS US ALL

 

[tryan]

...interesting, it's the Resolution Trust Corp. allll over again.

Seems to me, throwing $20B at this is like peeing into the ocean.

 

[FinanceDude]

...interesting, it the Resolution Trust Corp. allll over again.

Seems to me, throwing $20B at this is like peeing into the ocean.

I wonder if New Orleans could use an extra $20 billion these days..........

 

[W2R]

I wonder if New Orleans could use an extra $20 billion these days..........

Yes, but I'm not holding my breath and neither is anyone else down here. The country's intention for our future has been made quite clear. Nevertheless, we will continue, just out of spite if nothing else.

 

[barbarus]

The US doesn't HAVE a spare $20,000,000,000. We'd have to print it up.

Oh Oh, Looks like the Fed is doing just that as we speak!

 

[barbarus]

By the way, the Brewmeister is right.
The country is not economically collapsing.
Just 99% of the population is.

Brew and I will be OK.

 

[Wags]

CBS News article - U.S. Economy Suffers Another Body Blow -Employers Cut 17,000 Jobs In January - First Such Reduction In More Than 4 Years
http://www.cbsnews.com/stories/2008/02/01/national/main3778228.shtml

Hopefully this will not be the last body blow to put the U.S into a recession and then throws the U>S into a depression.

GOD BLESS US ALL

 

[Lakedog]

Of course, the unemployment rate is still less than 5%, very low by historical standards.

 

[Notmuchlonger]

Of course, the unemployment rate is still less than 5%, very low by historical standards.

Ya, but now just wait for the " OH MY THOSE ARENT GOOD JOBS THOUGH" retort.

 

[Marquette]

Of course, the unemployment rate is still less than 5%, very low by historical standards.

We're in the middle of outsourcing a significant chunk of our IT department to an outsource / offshore vendor. I've asked for the package but, like the last company I was at, I'm sure I'll be denied. 9 months pay just to go find a new job would be a-ok with me.

 

[Wags]

Excellent article in the Christian Science Monitor - Fed's main task: Save the banks
Aggressive moves to cut interest rates by America's central bank are intended to stave off a financial meltdown.

Fed's main task: Save the banks | csmonitor.com

One can only hope.

GOD BLESS US ALL

 

[Retire Soon]

Excellent article in the Christian Science Monitor - Fed's main task: Save the banks
Aggressive moves to cut interest rates by America's central bank are intended to stave off a financial meltdown.

Fed's main task: Save the banks | csmonitor.com

One can only hope.

GOD BLESS US ALL[/quot

The last paragraph of this very interesting and true article states, "...America needs to consider how to avoid repeats of this situation in which the banking industry goes through cycles of taking on excessive risks, and the whole economy suffers as a result." In other words, banks need to get their act together.

 

[Wags]

CNN Money article - Why job market is even worse than you think

Long-term unemployment sign of economic weakness - Feb. 1, 2008

Excerpts from the article

If the economy does enter a recession, the problem of long-term unemployment could reach levels not seen since the early 1980's, according to Baker.
A report from the Congressional Budget Office last October confirmed that the long-term unemployment problem is a growing one, suggesting there could be a fundamental shift in the labor markets.

End of excerpts.

It appears that the economy is suffering body blow after body blow. Let's see there are 75% more foreclosures, the subprime mortgage fisaco in which banks and the homeowners are suffering big time and now there is the unemployment problems.

When will it end?

GOD BLESS US ALL

 

[Marquette]

Wags,

I'm probably a better doom-n-gloomer / tinfoil wearer than just about anyone here.

At this point, the economy has not cooled down all that much. At the same time, I think a recession isn't such a bad thing. Sure, unemployment will go up, house prices will go down, we'll have a ripple through the economy as builders slow down / disappear. However, there might be some good in this... people will stop being so fanatical with driving house prices up and assuming they can treat their mcmansion like an atm with unlimited funds.

We'll see. At the very least, if we go down, we're all going down together. I couldn't be in better company... so break out the champagne and life vests.

 

[Wags]

Wags,

I'm probably a better doom-n-gloomer / tinfoil wearer than just about anyone here.

At this point, the economy has not cooled down all that much. At the same time, I think a recession isn't such a bad thing. Sure, unemployment will go up, house prices will go down, we'll have a ripple through the economy as builders slow down / disappear. However, there might be some good in this... people will stop being so fanatical with driving house prices up and assuming they can treat their mcmansion like an atm with unlimited funds.

We'll see. At the very least, if we go down, we're all going down together. I couldn't be in better company... so break out the champagne and life vests.

Marquette,

You are so right on the money.

As for the champagne, would a Dr. Pepper be OK. While we are waiting for the dust to settle we can listen to MOE BANDY & JOE STAMPLEY / JUST GOOD OL' BOYS and the GREAT DAVID ALLEN COE - You Never Even Called Me By My Name!
YouTube - MOE BANDY & JOE STAMPLEY / JUST GOOD OL' BOYS
YouTube - You Never Even Called Me By My Name!

Music will help us pass the time.

GOD BLESS US ALL

 

[clifp]

My experience is that a large proportion of the people involved in making the non-conventional loans, encouraged the borrowers to lie on the application. How far up the chain the knowledge of the lying went I don't know, but by all accounts it was quite common.

When I bought this house with my ex-girlfriend the mortgage broker told me to lie and say that I was giving me girlfriend a $100K. It told him hell no the application says that I am subject to perjury if I lie on the applications. This was crazy because we were putting 70% down for the house, and the loan payment was less than 30% of my girlfriends salary and she had good credit. It was obvious to me that mortgage broker just wanted to make everything as easy as possible for the underwriter to approve the loan, and the truth was of no consquence. I've listen to plenty of Real Estate brokers tell clients how to fudge things for me to believe that this is isolated.

 

[Wags]

An interesting article on CNN Money/Fortune 'It's going to be much worse'

Jim Rogers: 'It's going to be much worse' - Jan. 31, 2008

Excerpt from the article

Conceivably we could have just had recession, hard times, sliding dollar, inflation, etc., but I'm afraid it's going to be much worse," he says. "Bernanke is printing huge amounts of money. He's out of control and the Fed is out of control. We are probably going to have one of the worst recessions we've had since the Second World War. It's not a good scene."

End of excerpt.

GOD BLESS US ALL

 

[Wags]

CNN Money - Foreclosures: 100 worst hit zip codes

Foreclosures: Worst hit zip codes - Feb. 5, 2008

The Nevada area has seven of the top ten zip codes hardest hit by the housing meltdown. Las Vegas appears to be hit the hardest.

GOD BLESS US ALL


http://money.cnn.com/2008/02/05/real_estate/zip_code_foreclosures/index.htm?postversion=2008020515

 

[waltwill8]

My impression is that some people are over reacting (my house is paid for)

The media gets paid to scare you.

The link on the original post (...forclosures increase 75%) would not have been as exciting if the headline was 1% in forclosure (or 99% not in forclosure) as mentioned down in the article.

I agree anyone who abandons their dog, would walk away from their other responsibilities too. Why is this news?

But, that said, whenever there is blood in the streets, thin though it may be,(and you have cash to invest) get ready to buy!

 

[dumpster56]

I am not so sure that its the media trying to scare us. We live in an upscale new development in the desirable Raleigh NC area and prices are now down about 15% since the summer of 06 and in a development of 100 sold homes we now have 3 forclosed homes, the third went yesterday. These were people that seemed to have enough money these were homes purchased in the 300K range. In an area that I keep hearing is an area that is NOT having high foreclosures. well 3 of 100 is 3%, sorry but that is high inn my book.

 

[al_bundy]

I am not so sure that its the media trying to scare us. We live in an upscale new development in the desirable Raleigh NC area and prices are now down about 15% since the summer of 06 and in a development of 100 sold homes we now have 3 forclosed homes, the third went yesterday. These were people that seemed to have enough money these were homes purchased in the 300K range. In an area that I keep hearing is an area that is NOT having high foreclosures. well 3 of 100 is 3%, sorry but that is high inn my book.

isn't it always the people that you think are rich really aren't?

 

[dumpster56]

isn't it always the people that you think are rich really aren't?

That is just it you look at a 300 K home and think 20% down and a 240K mortgage, at 6% that is 1,440 a month add taxes here of another 300 a month then heating and cooling, water and sewer you are well over 2000 dollars a month to just pay for living in the house. Most americans do not make more than 35K a year. Home prices are still too high.