bgamall's profile - StumbleUpon

Last login: 2 hours agoBgamall: Gary Anderson is a 58 year old married guy from Nevada, USA.; Likes 1,365 pages, 24 videos, 67 photos • 105 fans • Received 22 reviews; Member since May 11, 2007

Favorites » His Blog

Display:
List
• Grid

Home prices continue sharp descent: Financial News - Yahoo!Finance: 7:56am 1 review finance, housing-crash, house-bubble
http://biz.yahoo.com/cnnm/080513/051208_q12008_home_prices.html; The RE crisis is just gaining steam. Watch out below.

California man losing nine homes in mortgage mess| Reuters: May 12, 7:45pm 1 review real-estate, finance, housing-crash, house-bubble
http://www.reuters.com/article/wtMostRead/idUSN0952458820080511; He took a chance and got burned. That's life. Walk away:

"A California man who has defaulted on nine homes and expects banks to foreclose on all of them, forcing him into bankruptcy, says he now considers it a mistake to have invested in the real estate market.

Shawn Forgaard, a 37-year-old software company project manager, bought one home for his family to live in and nine more as investments. He stands to lose all the investment houses in the mortgage meltdown but says he has come away wiser from the experience."

Mortgage crisis seeps to prime loans - USATODAY.com: May 12, 2:59pm 1 review real-estate, finance, housing-crash, house-bubble
http://www.usatoday.com/money/2008-05-08-prime-mortgage-delinquencies_N.htm; This article previews the inevitable, that prime loans will go south. This will happen because prime borrowers also bought more house than they could afford, believing lying Lereah's contention that RE always goes up. Prime borrowers will be underwater en masse fairly soon, and since many used alt a and option arm loans, those should hit hardest in 2009-2011. So don't think this RE crisis is over. It isn't.

From the site: "The first concrete evidence that delinquencies on mortgage bills have spread well beyond those with subpar credit shows that even prime borrowers have increasingly fallen behind on their house payments.
The figures remain relatively small so far. But if they rise further, delinquencies on prime loans -- given only to those with good credit -- could prolong the housing crisis."

Housing: Why the bubble popped - Isthmus | The Daily Page: May 12, 2:52pm 1 review real-estate, finance, housing-crash, house-bubble
http://www.thedailypage.com/isthmus/article.php?article=22572; "We have encouraged people to buy homes because they would earn a rate of return above inflation. How long did we think that would work? Who is supposed to pay for those homes when most of us don't have incomes rising faster than inflation?

Indeed, encouraging people to think about their homes as a mechanism to build wealth is a centerpiece of American popular culture. Only a couple of generations ago, families chose a home and neighborhood because they would be nice places to live.

When we started thinking about home ownership as a capital investment, "trading up" became more important than liking our homes or our neighbors. Indeed, we protect our investment by making sure that people who live in smaller homes or apartments don't live near us.

The median size of new homes grew from 1,560 square feet in 1974 to 2,248 square feet in 2006. Did the size of the average household grow that much? No, it shrank. Did incomes go up that much? No.

But as new homes got bigger and more expensive, we all wanted to sell our "used" home for more money so we could take the next step up.

There's nothing wrong with home ownership. What's wrong is persuading people they can buy homes they can't really afford. What's wrong is protecting that illusion by ignoring the basic rules of economics. What's wrong is trying to create value by creating debt.

That's what's really behind the foreclosure crisis."

Retailers likely to post grim 1st-quarter results: Financial News - Yahoo!Financ…: May 11, 4:37pm 1 review finance, cost-of-living, housing-crash, house-bubble
http://biz.yahoo.com/ap/080511/retailers_outlook.html; People in America used to live paycheck to paycheck. Even that is getting more difficult.

From Walmart officials this comment: Wal-Mart, the world's largest retailer, reported a better-than-expected sales gain for April but said that the "economy continues to get tougher" and customers are increasingly unable to stretch their dollars to the next payday"

Mr. Mortgage's Guide to the TRUTH! & MERRILL LEVEL 3 ASSETS SURGE NEARLY 70…: May 6, 7:25pm 1 review finance, housing-crash, house-bubble
http://mrmortgage.ml-implode.com/2008/05/06/merrill-level-3-assets-surge-near...; PAY ATTENTION TO THIS!!! This is why helicopter Ben is scared Sh**less. In order to print our way out of this mess the dollar would become a peso. Not that I have anything against the peso, but we will be riding bicycles to work. After the fed uses up the remaining 400 billion on their books they will have to print more money to bail these loser banks out! An example of the level 2 disaster is JP Morgan (JPM), who has over a TRILLION dollars of level 2!! From the site:

"Level 3 `assets' among the many of the nations largest US banks (listed below - thanks Ninja & TF) add up to nearly $500 BILLION! That is more than the Fed has left! ". If you look over to column 5, you see the level 3 assets as a percentage of equity (column 6). For example, Morgan Stanley (MS) has Level 3 assets (column 4) that total 235% (column 5) of equity (column 6)...oops. Columns, 2, 3, and 4 are total Level 1, 2 and 3 assets respectively.

But wait a minute. What the heck are those Level 2 assets?' Finding a bid for those in this market is likely as to close to impossible as a Level 3 `asset' bid. BUT THOSE ASSETS ADD UP TO NEARLY $5.5 TRILLION! That makes the Fed's $400 Billion or so they have left look miniscule."

Mishs Global Economic Trend Analysis: WaMu Alt-A Pool Deteriorates Further: May 6, 4:52pm 1 review real-estate, finance, housing-crash, house-bubble
http://globaleconomicanalysis.blogspot.com/2008/04/wa-mu-alt-pool-deteriorate...; From the site:
"January Pool Stats

19.3% 60 day delinquent or worse
13.15% Foreclosure
1.83% REO
February Pool Stats

22.69% 60 day delinquent or worse
11.62% Foreclosure
3.56% REO
March Pool Stats

25.3% 60 day delinquent or worse
13.35% Foreclosure
4.44% REO
Note the above progression. This cesspool from May of 2007, was 92.6% originally rated AAA, even though loans had full doc only 11% of the time. In less than one year, the pool was 25.3% 60-day delinquent or worse. Of that 25.3%, 13.35% is in foreclosure and 4.44% is bank owned real estate.
The problem should be clear. In no way shape or form, should any package of liar loans been rated AAA"

Calculated Risk: Orange County, CA Prices: From Front Page to Short Sale: May 4, 9:13pm 1 review real-estate, finance, housing-crash, house-bubble
http://calculatedrisk.blogspot.com/2008/05/orange-county-ca-prices-from-front...; Update from Calculated Risk: The price of the house graphed below has been slashed to 439k from 603k. Keeping that in mind here is info from Calculated Risk about the graph:

This graph shows the nominal prices for Orange County using the prices for the Traverse Drive house in 1994 as a reference.
It appears the price for the Traverse Drive house followed the Case-Shiller index pretty closely. It is now being offered as a short sale for $559 thousand, well above the $475 thousand that the Case-Shiller index would suggest for February 2008.
The dashed line shows the inflation adjusted prices, based on the Sept 1994 sales price. To reach the inflation adjusted price, the Traverse Drive house price would have to decline to $246 thousand - almost another 50% from the current Case-Shiller indicated price!

Piggingtons Econo-Almanac Southern California Housing Bubble News and Analysis: May 3, 5:30pm 1 review economics, real-estate, finance, housing-crash
http://piggington.com/; Fun chart showing San Diego's housing price drop percentages for each price class

http://www.housingwire.com/wp-content/uploads/2008/03/infront_altaresets.gif: May 3, 5:28pm 1 review real-estate, finance, housing-crash, house-bubble
http://www.housingwire.com/wp-content/uploads/2008/03/infront_altaresets.gif; The Alt A poop has not hit the fan yet. Look at late 2009-2010. 1. So then we have jumbos tanking now and it is possible that 550k houses in Socal could drop below 200k. That would be a bank disaster. 2. THEN we have Alt A hitting. 3. Then we have Option Arms hitting in 2010-2011. The happy talk that says this is all over is just sucker talk, and it is very likely that the sucker rally of financials is just a way to take the money off the uninformed. I am not a stock guru and I don't give advice, but clearly these mortgages mean more pain for the financial system.

Please login or join to view older archives

StumbleUpon

Favorites » His Blog

Recent visitors

People he is a fan of

Show pages he liked about