Housing Bubble Bursting?

[Mike Garrett RAA]

Yep...stock brokers will be jumping out windows. Mortgage brokers will be given the option of prison or service in Iraq. George W Bush will be arrested and charged with high crimes including treason. America will become a ghost nation with millions on the dole. CCC will be reenacted and millions of Americans will go to work for the Mexican government after it annexes Texas, New Mexico, Arizona, and California.

Gasoline will be $12 a gallon and rationed at 3 gallons per vehicle per week. China will purchase the entire east coast of the United States. The United Arab nation will buy central Europe and the former Soviet Union.

We will be forced to speak a form of spanglish with a chinese accent. Children will be required to enter the work force at the age of 10. Life must be terminated by age 60 and there will be euthanasia centers in every community. People will be turned into fertilizer and used in the catfish ponds which feeds those still living in the swamp formally known as Florida.

Hillary Clinton , declared Queen in 2012, orders execution of Ted Kennedy, John Kerry, and the last 12 surviving democrats. The new single party government, called "the government" is abolished in favor of the United Nations.

Or....

This too shall pass and the United States of America will continue to be the best and strongest country in the world!
The DOW passes through 20,000. Anwar provides enough crude oil to bring oil prices down to $25 a barrel. 100 nuclear power plants are brought on line and 20 new oil refineries are built and in service by 2015.

 

[Randolph Kinney]

I say no bail outs. A big part of the solution is to roll back the enabling legislation and regulation that cripples marketplace correction mechanisms.

I am with you Mentor, a free market discipline rule. It would be just and fair for some of these players to suffer the consequences and go out of business taking the greedy with them.

Lets face it, the rating agencies, the investment banks, the investors all knew that the base composition were mortgages that have a very high probability of default. Three flaws developed: 1) the notion of bundling crap from multiple sources reduces risk 2) the notion of a first claim on cash flow for a high risk tranche from higher risk tranches reduces risk - IE claim on cash flow from second mortgage tranches by first mortgage tranches 3) 80% LTV reduces risk. The basic risk never changed, just the way it was packaged and sold.

Sure, some will complain about underwriter standards that were abandoned and lack of due diligence on the lender's part. Some will complain about appraisers not acting independently but favoring the position of the lender. Let all this be sorted out by market forces.

As for Enron stype accounting, FASB 157 was suppose fix the problem of disclosure and valuation of these securities. Surprise! Lots of banks and Wall Street investment banks along with hedge funds are holding these securities. Insurance companies, pension funds and money market funds also have exposure. Wonder if the politicians will allow it to take effect?

 

[Randolph Kinney]

Where Were The Realtors?

Good question and article Moh.

The dirty little secret that was not told is that Realtors steer buyers to loan officers and mortgage brokers. The steer the buyer to the home inspector and other services.

 

[Workbox]

Good question and article Moh.

The dirty little secret that was not told is that Realtors steer buyers to loan officers and mortgage brokers. The steer the buyer to the home inspector and other services.

But it's always about the per square foot. How can we get it wrong? ........They knew what they were doing.

 

[Randolph Kinney]

But it's always about the per square foot. How can we get it wrong? ........They knew what they were doing.

Yes, the Realtors knew what was going on with financing, commissions, loan charges, appraisals, inspections, concessions, kick-backs, side deals, etc. They steered the buyer to those people working with them to bring in the value and make the deal work.

Too bad the dirty little secret is not published to buyers before they buy.

 

[Couch Potato]

Yep...stock brokers will be jumping out windows. Mortgage brokers will be given the option of prison or service in Iraq. George W Bush will be arrested and charged with high crimes including treason. America will become a ghost nation with millions on the dole. CCC will be reenacted and millions of Americans will go to work for the Mexican government after it annexes Texas, New Mexico, Arizona, and California.

Gasoline will be $12 a gallon and rationed at 3 gallons per vehicle per week. China will purchase the entire east coast of the United States. The United Arab nation will buy central Europe and the former Soviet Union.

We will be forced to speak a form of spanglish with a chinese accent. Children will be required to enter the work force at the age of 10. Life must be terminated by age 60 and there will be euthanasia centers in every community. People will be turned into fertilizer and used in the catfish ponds which feeds those still living in the swamp formally known as Florida.

Hillary Clinton , declared Queen in 2012, orders execution of Ted Kennedy, John Kerry, and the last 12 surviving democrats. The new single party government, called "the government" is abolished in favor of the United Nations.

Or....

This too shall pass and the United States of America will continue to be the best and strongest country in the world!
The DOW passes through 20,000. Anwar provides enough crude oil to bring oil prices down to $25 a barrel. 100 nuclear power plants are brought on line and 20 new oil refineries are built and in service by 2015.

The unfortunate reality is that the former is more likely than the latter.:new_all_coholic:

 

[moh malekpour]

Yep...stock brokers will be jumping out windows. Mortgage brokers will be given the option of prison or service in Iraq. George W Bush will be arrested and charged with high crimes including treason. America will become a ghost nation with millions on the dole. CCC will be reenacted and millions of Americans will go to work for the Mexican government after it annexes Texas, New Mexico, Arizona, and California.

Gasoline will be $12 a gallon and rationed at 3 gallons per vehicle per week. China will purchase the entire east coast of the United States. The United Arab nation will buy central Europe and the former Soviet Union.

We will be forced to speak a form of spanglish with a chinese accent. Children will be required to enter the work force at the age of 10. Life must be terminated by age 60 and there will be euthanasia centers in every community. People will be turned into fertilizer and used in the catfish ponds which feeds those still living in the swamp formally known as Florida.

Hillary Clinton , declared Queen in 2012, orders execution of Ted Kennedy, John Kerry, and the last 12 surviving democrats. The new single party government, called "the government" is abolished in favor of the United Nations.

Or....

This too shall pass and the United States of America will continue to be the best and strongest country in the world!
The DOW passes through 20,000. Anwar provides enough crude oil to bring oil prices down to $25 a barrel. 100 nuclear power plants are brought on line and 20 new oil refineries are built and in service by 2015.

Very profound market analysis. Send it to wall street journal

 

[Blue1]

I only gave him partial credit for the grain of truth about the people. In reference to the drug pusher analogy, the addictions most worrisome to me include the need for a "fix" in the form of additional laws and regulations.

I say no bail outs. A big part of the solution is to roll back the enabling legislation and regulation that cripples marketplace correction mechanisms.

Regulation in the form of licensing schemes, etc, slowly lobotomizes the population by providing the illusion that their interests are better protected by complex government schemes than by their own individual due diligence and market based protections such as Underwriter's Laboratories, Consumer's Union, etc.

Maybe its time for the lenders to step up to the plate and start cutting their borrower's monthly payments for a period of time....before Japan and China own most of our land. Just a thought....After all it is a 'World Economy' right?

 

[Greg Bell]

Yep...stock brokers will be jumping out windows. Mortgage brokers will be given the option of prison or service in Iraq. George W Bush will be arrested and charged with high crimes including treason. America will become a ghost nation with millions on the dole. CCC will be reenacted and millions of Americans will go to work for the Mexican government after it annexes Texas, New Mexico, Arizona, and California.

Gasoline will be $12 a gallon and rationed at 3 gallons per vehicle per week. China will purchase the entire east coast of the United States. The United Arab nation will buy central Europe and the former Soviet Union.

We will be forced to speak a form of spanglish with a chinese accent. Children will be required to enter the work force at the age of 10. Life must be terminated by age 60 and there will be euthanasia centers in every community. People will be turned into fertilizer and used in the catfish ponds which feeds those still living in the swamp formally known as Florida.

Hillary Clinton , declared Queen in 2012, orders execution of Ted Kennedy, John Kerry, and the last 12 surviving democrats. The new single party government, called "the government" is abolished in favor of the United Nations.

Or....

This too shall pass and the United States of America will continue to be the best and strongest country in the world!
The DOW passes through 20,000. Anwar provides enough crude oil to bring oil prices down to $25 a barrel. 100 nuclear power plants are brought on line and 20 new oil refineries are built and in service by 2015.

Sorry ..."Or" ain't gonna happen.9 Trillion in debt and Social security broke in a few years.Dow passing 20K , maybe because the dollar will have parity with the peso.Recession for sure , Depression maybe in 2009.I may change my avatar to Chicken Little if it gets really bad..

 

[Couch Potato]

Sorry ..."Or" ain't gonna happen.9 Trillion in debt and Social security broke in a few years.Dow passing 20K , maybe because the dollar will have parity with the peso.Recession for sure , Depression maybe in 2009.I may change my avatar to Chicken Little if it gets really bad..

Let's hope it stays that high. :new_smile-l: