Nice to know that I'm in the company of Warren Buffet when it comes to not seeing any worthwhile investments out there right now, but it's a real pain in the *ss tripping over all these billions of dollars I've got laying around here.
:lol: :lol: :lol:
The stock market downslide over the last few years has costs investors world wide some 6 trillion dollars--according to Ron Inosano of CNBC News. Many of those investors blame rampant corporate fraud for looses, and some have lost their entire life savings. With so many losing so much to so few it may take quite some time to lure investors (who now believe the game is fixed) back to the stock market. Consequently, many people have been put out of work and they're finding it very difficult to obtain jobs offering incomes similar to the ones they'd become accustomed to.
To further exasperate the problem--just like the S&L Bailout of the '80's'--precious little is being done to bring those accountable to justice. Oh sure, they'll give us Martha Stewart as a sacrificial lamb (wrongly thinking this would satisfy everyone), but many responsible for this latest fiasco are going unpunished, deals are being cut and others have managed to escape the spotlight entirely.
Here's yet another correlation to the S&L Bailout of the '80's'--LETS BLAME THE ACCOUNTANTS (it was the commercial appraiser in the case of the S&L nightmare). Rather than place the blame at the doorstep of the actual perpetrators of these frauds a scapegoat is offered.
All this sounds eeirly familiar to what so many of us are complaining about in the residential appraising industry currently (lender & real estate agent pressure). Can anyone imagine what would happen to the American lifestyle if one more debacle is heaped atop the 500 billion dollar S&L Bailout (w/taxpayer responsibility estimated to continue through 2030), or the 6 trillion dollar rip off of investors (costing many their entire life savings)?
Call me simple, but there is no way a rationale thinking person could expect an industry permitted to choose their form of checks and balances to function free of significant fraud. In this situation the watchdog will either toe the line or be replaced. Something needs to be done to protect the unbiased-educated-licensed-experienced appraiser, and the answer is not AVM's (God help us).
In all fairness, while paying above market does put a lot of people in jeopardy, if the economy goes in the tank as it may well do, many people that paid at market or below could also be in trouble. If the buyer over pays for a home, they just have to wait longer B4 they're no longer upside down or at least be in a position to minimize their loss. There are also cases where people pay above market but with a large down payment, they may lose money but not the whole farm. One of the major problems I see in over paying for a home, is that once a property sells, it becomes the new market for most realtors. Even if the sale price is thousands above market, the realtors I deal with always hold the highest sale out as the market rather than an anomaly.
When a homeowner allows/forces the mortgagee (lender) to foreclose on their home for whatever reason, and assuming the homeowner is upside down in their mortgage, one of two things (possible three if both happen simultaneously) is going to happen.
1) The mortgagee will come after the appraiser, or/and more likely...
2) The mortgagee will go to the government (taxpayers) if it's a federally insured loan to make up the difference.
This issue is currently a hot topic and has been discussed in major newspapers across the country, on the radio and even television. With the Fed apparently worried about deflation, and further job losses this has a potential to grow into real trouble (let's hope not).