" . . . "
ping
Unless they're in California, and the value of their home increases dramatically over the course of a few years, and when they sell they can pay off their negatively-amortized mortgage and take a profit to boot.
I believe that we are rapidly heading for another savings and loan bailout.......and that the entity ripples within this particular scam are very enron-like in that the SPE’s (special purpose entities) within it have covered their tracks and money trail pretty well by this time.....
Same article, different day.
Another source of the mortgage crisis is the ITIN loans issued to illegal aliens based on the government issued TIN numbers, not social security numbers. The government allowed banks to make these risky loans starting in 2003. Now that Homeland Security is now rounding up illegals and deporting them, the loans are becoming defaulted and the homes foreclosed.
In equal measures.
"Now, we've got a problem here in America that we have to address. Too many American families, too many minorities do not own a home. There is a home ownership gap in America. The difference between Anglo America and African American and Hispanic home ownership is too big."
" First, the single greatest barrier to first time homeownership is a high downpayment. It is really hard for many, many, low income families to make the high downpayment. And so that's why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers' money to help a qualified, low income buyer make a downpayment. And that's important."
"This means they will purchase more loans made by banks after Americans, Hispanics and other minorities, which will encourage homeownership. Freddie Mac will launch 25 initiatives to eliminate homeownership barriers. Under one of these, consumers with poor credit will be able to get a mortgage with an interest rate that automatically goes down after a period of consistent payments."
Don’t worry. We’ll just print more money!
The greed cycle has passed to the fear cycle, with people begging real estate investors to take those properties off their hands, quickly. Kinda like today's stock markets...
" . . . "
Excerpt:
The mood in financial markets edged towards panic as investors continued to dump risky assets such as equities and high-yielding currencies in favour of the relative safety of government bonds on Thursday.Source: Financial Times.comThe Morgan Stanley Capital International World share index saw its decline from July's record high extend to 11 per cent - marking an official correction in global equities.
The high-yielding Australian and New Zealand dollars suffered their biggest one-day falls against the Japanese yen for two decades, while short-dated US government bond yields hit their lowest levels since October 2005.
"What we are witnessing is a rapid unwinding of risk on a global scale,"
"Even traditional havens such as gold are deemed too risky in this climate," said Martin Slaney at GFT Global Markets. * * *
In other words, the PPT rushed in and dumped hundreds of millions or even billions today trying to keep the stock markets afloat. A day of reckoning is coming soon, or, 'sooner rather than later.' We all witnessed financial folly on a rather epic scale today. But wait until tomorrow. No big deal anyway. But what do I know, anyway Whatever will be will be.
PHLX Gold Silver Index XAU 8/16/2007
4:05:48 PM 125.64 -6.81 -5.14%
Gold has been hammered even worse this past few weeks and this week.
In fact the risks were so low that anybody that could fog a mirror was given one of them.
The housing market ballooned in 2005.
You bought in 2004. Now, that adjustable rate on that 2nd trust is ballooning or adjusting and while you were planning on a simple refinance into a single product fixed 30 year loan, you're unable to even refinance with a similar product because the product no longer exists, or your house dropping market value has you 'upside down'...owing more on the property than you could sell it for.
The government will have to step in and guarantee these loans in exchange for the mortgagor re-structuring the existing mortgage.
I don't see any other way other than letting the sh*t hit the fan.
And as a free marketer, maybe that's what needs to happen.
My advice is to get liquid and be ready to jump in when the bell sounds.
> Greed and stupdity are my guesses.
On the parts of both banker and buyer, indeed.
Like this analysis is even needed.
Any time the housing market is reduced to having financial deer drives through apartment complexes and trailer parks to keep momentum going, the bubble has arrived, and it will pop shortly thereafter. It has happened time and time and time again, yet everyone acts shocked, SHOCKED! that history had the gall to repeat itself.