Foreclosures Are The Solution
74Credit Crisis Links
- Bank-Abuse.com
Banks have abused people from time to time in history. Banks generally are to be trusted to lend, underwrite and profit in a fair manner. However, that has not always been the case. The agrarian movem - It Is More Important to Shop than to Pay Off Credit Cards!!!
Wow, this doesn't sound like one of those live-frugal-debt-advice websites that frankly, wants me to gag on a spoon. Just kidding, I ain't no stinkin' Valley Girl. But I digress. Just think about it.... - The Abuse of the Middle Class by the World Elite
Clearly, the economy of the world appears to be fettered to the spending habits of Americans. But the abuse of that very middle class by the Bush administration for eight years and by the banks during that... - The Last Word on Strategic Defaults
I'm tired of the repeated bull-crap from the media and various carny barkers about "moral obligations" to meet your payments on underwater property. Why is it that you have a moral or ethical obligation to BANKS to do this, when THOSE VERY SAME DAMN - If I Were A Bank
I am not speaking for the banks officially. Think of me as a make believe bank as you read on. While this blurb is humor it is also deadly serious. Pay attentiion, you hear? If I were a bank, I would not lend... - George Bush Legacy
Never has a president of the United States been engaged in as many outright, verifiable lies that have taken down our country in economic power, prestige, honor, and morality as the younger George Bush. So... - Op-Ed Columnist - Reagan Did It - NYTimes.com
The change in Americas financial rules was Ronald Reagans biggest legacy and the gift that keeps on taking. - Is America a Fascist State?
Franklin Roosevelt defined fascism as government being owned by a private individual, group or organization. It is my view that under the authority of George W. Bush, the oil companies of the United States... - Class Warfare
Before I get into the subject I warn you now, do NOT buy a house. I repeat, do not buy a house. Artificially low interest rates are a TRAP. If interest rates increase in the future which often happens when... - What Goes Around Comes Back Around
Let's face it folks, NYC screwed California. First it was little things, like the Enron California power lawsuit information contained in WTC7. That tower was not hit by a plane, but since Ken Lay, may his... - Jobs Recession and Depression
I have accumulated job and career and skill hubpages for your benefit in these trying times. I hope you will take time to study these learned people's work here for you. Certainly we are hoping against a full...
Housing Industry Looks Like This Earthquake
Foreclosures and Lower House Prices are Needed.
Update: Jim Cramer must be in on this. The banks are withholding inventory and foreclosures will peak, but ONLY TEMPORARILY. The banks are manipulating the market to sucker more stupid investors into the market. Housing is not turning, and investors are flipping a lower inventory of foreclosures. That is the market. Also be wary of foreclosure fraud, by governments themselves who don't list foreclosure prices!
Here are recent shadow Inventory Numbers. 1.7 Million held off the market by the banksters.
Update: Reported today is information that shows the percentage of people who have mortgages in the US currently behind in their payments. The percent is a whopping 12%! This is going to get worse because more alt a,option arms, and pay option arms will reset all the way through 2013!
This is a financial disaster waiting to happen. CNBC reported this as well as reporting that there is a 40, that's right, a 40 month supply of houses priced over the conforming limit of $417,000. Just remember that Jim Cramer said that housing will bottom in June, 2009. Remember those words and remember that I don't believe Cramer has a clue.
It is time to HUNKER DOWN.
While I agonize over people losing their homes, what needs to be understood is that the federal government of the United States created a vast, easy money, loose lending ponzi scheme that threatens to spiral into a severe recession or major deflation leading to a depression.
Now we need to understand that the banks should be saved and the auto companies should be saved if labor and management can reduce their own salaries. These jobs are too important. Actually because of the deflation that is occuring due to the credit crisis, all companies and governments should seek reduced wages rather than layoffs. Massive unemployment must be avoided.
So as you can see I am not adverse to government assistance where needed. And as I have pointed out in my article, If I Were A Bank, the banks are rightfully afraid to lend due to their understanding that house prices in bubble areas are still too expensive. I urge you to read that article carefully.
But, the help that should not be offered by the government is an attempt to stop foreclosures and put a floor under housing problems. The reason that this is a mistake is because house prices must come down. They are historically out of balance based upon wages and rents. Historically house prices have not exceeded three times yearly income. You can see that in bubble areas the prices far exceed the 3x rule and are still 5x and 6x yearly income! See also California Tax IOU for more on how this impacts state governments such as California.
The unintended consequence of stopping foreclosures is a freezing of the housing market. I repeat: the unintended consequence of limiting foreclosures on a massive scale will freeze the housing market and place a great gulf between the price the sellers wish to sell for and the price the buyers want to purchase the house for.
The factor that government does not realize is that we cannot go back to easy loans, easy credit, or artificial escalation of housing prices. Affordability must be restored. Making the economy more productive by controlling health care and by unwinding excess credit is something that the government can do. But living according to our means is essential. That ideal was unthinkable with Bush administration policy which allowed homeless people to buy multiple houses with no money down. What faith in the financial system or accurate appraisal of house values will that sort of behavior create? No faith in the system is the result.
Update: As you can see from the comment below, the banks are benefiting by the loan modifications. Help for borrowers is incidental as the big banks get the best deal as usual:
"Loan modifications are "a multi-hundred-billion dollar wealth transfer from pension funds and IRAs and 401(k)s to large banks," Frey says. "This is a backdoor bailout of the banks."Managing directors and principles at several multibillion-dollar money management firms privately expressed concerns about safe harbor during interviews in recent weeks. These investors insisted on anonymity in order to avoid being cast as advocates of foreclosures." http://www.forbes.com/2009/05/22/mortgages-foreclosures-business-wall-street-safe-harbor.html?partner=yahootix
Asset Bubbles Are All Breaking.
Make no mistake, cars are still too expensive for Americans to purchase. At California Tax IOU, I have a little poll, and in that poll I ask if Americans could afford to purchase the cars they now own. 70 percent of the respondents say that they could not afford to repurchase the same car today!
While confidence in the financial system is very important, that alone is not the answer. Money can be available for loans, but people are facing an affordability problem that threatens our way of life! Demand for loans to purchase an inflated asset is just not there. People are wising up. They know that the no money down ponzi scheme was just that, a scheme that falsely manipulated the prices for housing upward. The unintended consequence of foreclosure mitigation could create the freezing of the housing market that will take years to solve. It is better to get the prices down to affordable levels now, and quickly. And autos need to be introduced into the United States that are simply less expensive! These are hard choices that the government of the United States needs to make. Just trying to put Humpty Dumpty back together again will not work and cannot work! We not only have a crisis of confidence, but the government doesn't get it that we have a crisis of AFFORDABILITY in many asset classes!
Mr Mortgage on CNBC
Important PDF link:
- More Mortgage Meltdown
Pay particular attention to Mark Hanson's comments as you scroll down this link. He is saying that the foreclosure sharks will soon be underwater, something that I have worried about for some time. That puts big banks at risk.
Foreclosure Information and Survival on Amazon
Loans on Amazon
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Calculated Industries 3430 Qualifier Plus IIIFX Real Estate Finance Calculator
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No Loan Again Naturally
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Forgotten Noir 2 (Loan Shark / Arson Inc)
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Credit Crisis on Amazon
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Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis
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Charlie Rose - Henry Paulson (October 21, 2008)
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Crisis in Credit System
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Credit and Credibility
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Crisis in Credit System
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The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means
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The Origin of Financial Crises: Central Banks, Credit Bubbles, and the Efficient Market Fallacy (Vintage)
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The Two Trillion Dollar Meltdown: Easy Money, High Rollers, and the Great Credit Crash
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Charlie Rose (October 9, 2008)
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Bailout: What the Rescue of Bear Stearns and the Credit Crisis Mean for Your Investments
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Deflation on Amazon
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Deflation: Why it's coming, whether it's good or bad, and how it will affect your investments, business, and personal affairs
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Numis Exchange
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CBS Saturday Evening News (May 10, 2003)
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Deflation: What Happens When Prices Fall
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Speedseeker by Sportsstuff - 2 Rider Capacity
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Foreclosures are the solution in the News
- Holiday cheer: Citigroup suspends foreclosures for 30 daysMinnPost17 hours ago
NEW YORK — From a public-relations perspective, it looks ugly: On the day before Christmas a family, facing foreclosure, is thrown out on the street by its lender. So what’s a bank to do? This holiday season, some are planning to hold off on the foreclosures and evictions.
- Holiday cheer: Citigroup suspends foreclosures for 30 daysThe Christian Science Monitor32 hours ago
Citigroup is holding off on foreclosures and evictions for 4,000 homeowners. Fannie Mae and Freddie Mac are expected to make a similar announcement, and other financial institutions are expected to follow suit.
- Citigroup suspends foreclosures for 30 daysMalaysiaNews.net31 hours ago
Citigroup is holding off on foreclosures and evictions for 4,000 homeowners. Fannie Mae and Freddie Mac are expected to make a similar announcement, and other financial institutions are expected to fo...
- Foreclosures continue to rise in areaThe News-Herald26 hours ago
As the economy lags in 2009, foreclosures continue to rise in Lake and Geauga counties.
- Homeowners often rejected under Obama's loan planMcClatchy Washington Bureau14 hours ago
WASHINGTON — Ten months after the Obama administration began pressing lenders to do more to prevent foreclosures, many struggling homeowners are holding up their end of the bargain but still find themselves rejected, and some are even having their homes sold out from under them without notice.
- Homeowners Often Rejected Under Obama's Loan PlanCommonDreams.org18 hours ago
by Kevin G. Hall WASHINGTON - Ten months after the Obama administration began pressing lenders to do more to prevent foreclosures, many struggling homeowners are holding up their end of the bargain but still find themselves rejected, and some are even having their homes sold out from under them without notice. These borrowers, rich and poor, completed trial modifications of their distressed ...
- Why I Got Into SilverGoldSeek.com14 hours ago
Since 1995, news.GoldSeek.com publishes the leading gold news commentaries, gold market updates and reports providing gold investors with the most updated gold and silver prices, news & precious metals information!
- Helping Hands in need of help nowThe Fairview Observer10 hours ago
When so many of us are thinking about what tasty dishes will be on our Thanksgiving table, volunteer organizers with Fairview’s Helping Hands Food Pantry are thinking about how they will pay the rent and keep their doors open to service the community with basic food and clothing needs during the holidays.
Foreclosures on Hubpages
- Sample Hardship Letter
With the current economic climate, more and more families are finding themselves having difficulty making ends meet. As a result, many are facing foreclosure, one way to avoid foreclosure is a home... - 9 months ago
- How to start a business cleaning out foreclosures
Start a professional cleaning service, what you need You will need a business plan and an outline of what your objectives will be for foreclosure cleaning. You must be able to answer the question of why you... - 11 months ago
- Indy Mac Bank locks me out of my house and I still own it!
My home went into foreclosure February of 2008, at all times Indy Mac bank knew where I was and had a phone number to reach me. Indy Mac Bank did not want to talk to me ever about any help or modification. ... - 2 weeks ago
- Field Reps Wanted: Foreclosure inspection Jobs for Field Inspectors
Field Reps Wanted Ads and jobs for Field Inspectors Jobs for field inspectors, you will be able to get work, field rep wanted opportunities, with help wanted ads from legitimate companies hiring field... - 11 months ago
- Home Mortgage Refinancing and Loan Modification
The world has suffered badly at the hands of the financiers in high office, there is a lot of talk about subprime loans and toxic debt being so bad that it is said to have brought countries to their knees and... - 5 months ago
- My personal hell known as loan modification.
I am sitting here, stunned and with a huge knot in my stomach. It's the kind of knot that is down low in your abdomen and it makes you catch your breath. It comes when you finally acknowledge and accept the... - 2 months ago
- Congress denies help to struggling families and takes special interest money
Congress denies help to struggling families and takes special interest money--Congress takes special interest money and then suspiciously changes votes on foreclosure bankruptcy law - 2 days ago
- Is foreclosure cleaning business a scam?
Many are asking if cleaning foreclosures is a scam, if you are wondering this to then you must read this before you start a business cleaning banked owned properties. To get started in this business one must... - 9 months ago
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Do You Have Any Questions About My Article?
I am sorry Patricia for your loss. Unfortunately the housing has dropped from a 500k average to 350k and is still too high. The government apparently does not understand this and is calling for economic recovery in 2010. Ain't gonna happen unless the housing industry can be bypassed somewhat. And the experts are saying it can't be bypassed so we will see how it plays out. Late 2009 and 2010 will be the peak of foreclosures. No one knows how it will look on the other side of this meltdown.





jewelsofawe says:
11 months ago
Houses are too high in CA. Our house which we lost was a $500,000 home.