Housing Bubble Bursting?

[Greg Bell]

Recession 3rd quarter.any bets??

 

[Randolph Kinney]

Subprime lending guidelines

http://www.marketwatch.com/news/sto...x?guid={BA701EFF-EFC4-4BE7-AA08-6D09E1AD3B5A}

WASHINGTON (MarketWatch) -- Banking regulators may release guidelines about subprime loans as soon as Friday, according to a person familiar with the matter, in a move designed to address growing concerns about that segment of the mortgage market.

 

[hastalavista]

http://www.marketwatch.com/news/story/subprime-lending-guidelines-expected-early-friday/story.aspx?guid=%7BBA701EFF%2DEFC4%2D4BE7%2DAA08%2D6D09E1AD3B5A%7D

WASHINGTON (MarketWatch) -- Banking regulators may release guidelines about subprime loans as soon as Friday, according to a person familiar with the matter, in a move designed to address growing concerns about that segment of the mortgage market.

I'm not too comfortable with a rushed regulatory policy.
Seems like the market is adjusting now to the issue (better late than never). So what's a knee-jerk regulation going to do to change sub-prime lending policies that the market hasn't already done?

Better to let the market continue to react and spend some more time making some thoughtful policy decisions, IMO.

 

[Randolph Kinney]

I'm not too comfortable with a rushed regulatory policy.
Seems like the market is adjusting now to the issue (better late than never). So what's a knee-jerk regulation going to do to change sub-prime lending policies that the market hasn't already done?

Better to let the market continue to react and spend some more time making some thoughtful policy decisions, IMO.

The government is famous for passing laws and regulation after the damage has been done. No one was concerned about lending standards when house prices were rising and defaults were low. Now that house prices are flat to declining and defaults are rising exponentially, investors, lenders, borrowers and politicians are worried.

The idea of the public trust has been violated and therefore government needs to regulate, again.

 

[Greg Bell]

Got soup?????

Just read this recent column by Mike Whitney. The whole damn thing.

And get ready.

The greatest housing crash in American history is underway. This is one for the history books.

The Second Great Depression

This week's data on the sagging real estate market leaves no doubt that the housing bubble is quickly crashing to earth and that hard times are on the way.

The bottom line is that inventories are up, sales are down, profits are eroding, and the building industry is facing a steady downturn well into the foreseeable future.

The ripple effects of the housing crash will be felt throughout the overall economy; shrinking GDP, slowing consumer spending and putting more workers in the growing unemployment lines.


Congress is now looking into the shabby lending practices that shoehorned millions of people into homes that they clearly cannot afford.

There's no doubt now, that Fed chairman Alan Greenspan's plan to pump zillions of dollars into the system via "low interest rates" has created the biggest monster-bubble of all time and set the stage for a deep economic retrenchment.

The meltdown in housing will soon be felt in the stock market which appears to be lagging the real estate market by about 6 months. Soon, reality will set in on Wall Street just as it has in the housing sector and the "loose money" that Greenspan generated with his mighty printing press will flee to foreign shores.

It looks as though this may already be happening even though the stock market is still flying high. On Friday, the government reported that net capital inflows reversed from the requisite $70 billion to AN OUTFLOW OF $11 BILLION!

It's all bad news. The global liquidity bubble is limping towards the reef and when it hits it'll send shock-waves through the global economic system.

Greenspan successfully piloted the nation into virtual insolvency. In fact, the parallels between our present situation and the period preceding the Great Depression are striking.

Now, 77 years later, Greenspan has led us sheep-like to the same precipice. The economic dilemma we're facing could have been avoided if the expansion of personal credit had been curtailed by prudent monetary policy at the Federal Reserve and if wealth was more evenly distributed as it was in the '60s and '70s. But that's not the case; so we're headed for hard times.

 

[Terrel L. Shields]

That's a pretty grime assessment, and far worse than I expect. But I do expect hard times for all. The Appraisers will be under even greater pressue to maintain the merry go round. The banks are sweating not only sub-prime but low doc and no doc loans where credit scores were higher..With fewer building jobs, I cannot see how that it won't ripple down the economy along with the auto sector [anyone want to recall who else suffered during the 1970's besides housing?].....we'll see what we see.

 

[moh malekpour]

The only way that they can fix the lending problem is get rid of commission base loan agents and brokers. hire them, pay them wage or salary and make them do honest work. If they know they get paid, they don't cheat, lie or engage fraud. If they don't work hard ,fire them and replace them with those who are willing to work hard but not to lie or cheat. It can work if they do it for all but not for some.If they do, It would be good for appraisers, for borrowers and for lending industry.

 

[Alison Swain]

The only way that they can fix the lending problem is get rid of commission base loan agents and brokers. hire them, pay them wage or salary and make them do honest work. If they know they get paid, they don't cheat, lie or engage fraud. If they don't work hard ,fire them and replace them with those who are willing to work hard but not to lie or cheat. It can work if they do it for all but not for some.If they do, It would be good for appraisers, for borrowers and for lending industry.

There's the answer ---- but will it ever happen?

 

[MARK JOLLIFF]

Look all I want to know is after 2418 postings IS IT BURSTING OR NOT????

 

[Couch Potato]

Look all I want to know is after 2418 postings IS IT BURSTING OR NOT????

YES IT IS!