San Diego Housing Bubble News and Analysis

WOW!! So all along it was immigration that was the problem and subprime loans/teaser rates at what, like 3%, that had nothing to do w/this whole mess. Lenders will get sloppy again?

That would be like me riding my motorcycle off a cliff, breaking a leg and then getting back on and doing it again.

Banks - just like Evel Knievel.

Common misconception in Americans again, when they are talking about immigration, they are trying to mix legal and illegal immigrants together. I doubt how many illegal immigrants can actually buy houses in the US.

How very interesting! Citizens and legal folks are leaving CA in droves due to unaffordable house prices and illegals will rush in to buy all the half-million $ homes using incomes from landscaping, agriculture, restuarant & domestic help and general unskilled labor? Is he also banking on no-doc zero down Jumbo loans too?

"because lending will get sloppy again..."

He sometimes gets carried away and his mouth starts to move faster than his brain. Obviously they aren't going to go back to giving $700k liar loans to strawberry pickers. And if certain housing markets do move within reach of very low income people, and they legitimately qualify to buy, so what? As long as they pay their property taxes.

"I expect a tidal wave of Latin American immigration under any of the candidates. Our schools and health care system are just too good to resist, and our housing too cheap to ignore."

He may be right about the tidal wave. All three of the candidates are for open borders, and none have an immigration reform plan that doesn't involve amnesty. Unfortunately.

At some point I will almost guarantee we will do what Vancouver did; fast-track immigration for anyone that buys a property and signs a contract to hold it for a minimum of five years.

How are you going to force them to hold it five years? The two-year flippers are walking now. Once you don't have the money to make the payments, you can't get blood out of a turnip

"buys a property and signs a contract to hold it for a minimum of five years."

Is there any link to this? How could Vancouver get this law enacted from Immigration Canada? (i.e. limit it to Vancouver)?

How are you going to force them to hold it five years?

Deport anyone that doesn't.

So if life happens, say, they lose their job, or get in an accident and can't work or whatever, and then can't make the payments, they then, to add insult to injury, get deported. And then, what, the bank gets the house, or the gov.?

It's clear to me Mexican Nationals added to the problem 2002-2006. The smart/rich ones want the hell out of TJ and bought (lol 0% down no doc loans) house up here and reverse commute. I can't blame them, but it would be nice if they could fix their messed up country.

if the US is in big housing trouble, it's because of those stupid foreigners.

In fact, whenever the US is in any trouble, it's because of those stupid foreigners. sounds familar?

Of course immigrants caused the housing bubble and the credit crunch that threatens to destroy our economy. The MSM won't print this, but it is well known that immigrants are the sole cause of:

-Expensive gasoline
-Global warming and melting glaciers
-Earthquakes and tornadoes
-The Enron and Worldcom fiascos
-School shootings
-9/11
-Preschool bullying
-Long lines at Costco

Those stains you see on the moon surface on a clear night? You guessed it! Caused by immigrants. Was it too cold (or too hot) today? Those filthy immigrants are responsible!

What's the point in going for the reductio ad absurdum argument? It is undeniable that illegal immigration has had a dramatic effect on almost every aspect of our lives here in San Diego. Mexico is a bastion of organized crime masquerading as a nation. We have the luxury of keeping most vice south of the border. The blowback on that is that its byproducts drift north; e.g. drug money looking for a safe haven, and one can not ignore the tsunami of crime and criminals.

Mexico is a bastion of organized crime masquerading as a nation.

That was along the lines of immigrants causing increased sun spot activity and moon craters, right?

The fast track immigration was for all of Canada and they still do it for foreigners with some wealth:

http://www.canreach.com/permanent_invest...

Canada had faced a similar national downturn before they enacted the program and supposedly it propped up prices in about a year. I heard this from Dennis Gartman who is an investment analyst and appears on CNBC pretty regularly. I like the idea of the government taking $500k from the foreigner and returning it in 5 years interest free. Reminds me of a hedge fund I invested in.

sheilawellington, did you get the "holes in the ozone layer" in your list?

Yes, they are caused by these damn immigrants too.

I have it from very reliable sources that these immigrants had something to do with the burst of X-ray and plasma jets out of v4641 quasar a few years ago.

bastion of organized crime masquerading as a nation.

Almost sounds like our current administration in Washington D.C.

Here's a sad read:

http://www.azcentral.com/news/articles/2...

I just wished they could be like canada..or even spain. Mexico is weather than spain, but the rich Mexican fat cats invest in other countries; the money never stays in mexico.

Do you mean to say Mexico is wealthier than Spain?

Not even close. Spain is a modern European country.

Spain:

GDP - per capita (PPP):
$33,700 (2007 est.)

Mexico:

GDP - per capita (PPP):
$12,500 (2007 est.)

comparison:

France:

GDP - per capita (PPP):
$33,800 (2007 est.)

Mexico is a bastion of organized crime masquerading as a nation.

That was along the lines of immigrants causing increased sun spot activity and moon craters, right?

Actually he's not far off. The link above is just the tip of the iceberg - corruption in Mexico runs so deep that their government is essentially powerless. I don't mean powerless to stop the corruption, I mean the government doesn't hold the real power - a very few, extremely wealthy individuals do, along with organized crime. They are backed by the equally corrupt military.

That is the reason for the huge disparity between the rich and the poor, and I don't think it will change in our lifetimes without a major revolution. I don't blame the immigrants for wanting to come here, I just want it done right:

1. STRICT enforcement of employment laws prevents businesses from hiring illegals. Without work, they're forced to leave. (The existing laws have never been enforced, so no one can say that it's been tried.)
2. EFFICIENT (and probably much larger) immigration system that will allow many of those same people back in legally, to work the same jobs, but this time forced to pay income taxes like everyone else.

Unfortunately, the next administration is more interested in winning the latino vote by granting amnesty than they are in a permanent solution like this.

I think Jim Cramer is to financial news --what Richard Simmons is to Fitness ---but Simmons is more credible.

There is so much loud mouthed hysteria in Cramer's presentation.

How exactly will lending get sloppy again? Where is all the free money going to come from now? Lots of banks and investors were burned.

SHILOH - that was my original point. I just don't see banks being so foolish, at least not so quickly. They will first have to forget the pain to repeat this disaster.

DrChaos, I mean as of the end of 2007 Mexico is the 12th largest GDP in the world ahead of Spain, and Canada.

PPP You are right. They need to get the birth rate down down down.

The money isn't going to the people it's going to the 12 families that own/rule Mexico.

On the original topic, the point is the same, Mexican Nationals taking out the same 0% down/ no doc loans as the US dumb-dumbs were taking out caused a HUGE demand for houses in southern california from 2002-2006. That's just one of the reasons our bubble was bigger than everyone else's.

It's clear to me Mexican Nationals added to the problem 2002-2006. The smart/rich ones want the hell out of TJ and bought (lol 0% down no doc loans) house up here and reverse commute. I can't blame them, but it would be nice if they could fix their messed up country.

PadreBrian, aren't most of these mexican folk also dual nationals?

i.e. they are both mexican and US nationals.