INFLATION, THE DOLLAR AND HOME PRICES

[peterb]

If some fund just bought your mortgage at 5% face value, they could offer you a 50% discount and still make lots of money. Your mortgage was $400K, they paid $20K for it,and resell it to you for $200K. Thus avoiding tons of transactional fees. Oh, but wait a second….you still have to figure out where you’re gonna get that $200k??!!

[gandalf]

Need to inject a dose of realism here.

Ownership of a position in a security is not ownership of the underlying debt, or foreclosed asset should that arise. There is structure in between that governs the distribution of cash flows, including potential ownership positions in foreclosed assets. If assets are seized, they are generally sold by the servicer as REOs with any received sums allocated towards re-payment of the security with its scheduled interest.

Owners of the tranches or security positions going for 5 cents on the dollar are unlikely to see a cent from an under-performing security (or the resulting foreclosures). They are often second or third in line to collect.

[gandalf]

Need to inject a dose of realism here.

Ownership of a position in a security is not ownership of the underlying debt, or foreclosed asset should that arise. There is structure in between that governs the distribution of cash flows, including potential ownership positions in foreclosed assets. If assets are seized, they are generally sold by the servicer as REOs with any received sums allocated towards re-payment of the security with its scheduled interest.

Owners of the tranches or security positions going for 5 cents on the dollar are unlikely to see a cent from an under-performing security (or the resulting foreclosures). They are often second or third in line to collect.

[gandalf]

Need to inject a dose of realism here.

Ownership of a position in a security is not ownership of the underlying debt, or foreclosed asset should that arise. There is structure in between that governs the distribution of cash flows, including potential ownership positions in foreclosed assets. If assets are seized, they are generally sold by the servicer as REOs with any received sums allocated towards re-payment of the security with its scheduled interest.

Owners of the tranches or security positions going for 5 cents on the dollar are unlikely to see a cent from an under-performing security (or the resulting foreclosures). They are often second or third in line to collect.

[gandalf]

Need to inject a dose of realism here.

Ownership of a position in a security is not ownership of the underlying debt, or foreclosed asset should that arise. There is structure in between that governs the distribution of cash flows, including potential ownership positions in foreclosed assets. If assets are seized, they are generally sold by the servicer as REOs with any received sums allocated towards re-payment of the security with its scheduled interest.

Owners of the tranches or security positions going for 5 cents on the dollar are unlikely to see a cent from an under-performing security (or the resulting foreclosures). They are often second or third in line to collect.

[gandalf]

Need to inject a dose of realism here.

Ownership of a position in a security is not ownership of the underlying debt, or foreclosed asset should that arise. There is structure in between that governs the distribution of cash flows, including potential ownership positions in foreclosed assets. If assets are seized, they are generally sold by the servicer as REOs with any received sums allocated towards re-payment of the security with its scheduled interest.

Owners of the tranches or security positions going for 5 cents on the dollar are unlikely to see a cent from an under-performing security (or the resulting foreclosures). They are often second or third in line to collect.

[EconProf]

Conjectures about foreign money buying depressed U.S. real estate looked plausible until about a month ago. The dollar has since rallied, and oil has tumbled–a major factor that was eroding the dollar. There are now some real signs out there that oil & other commodities are headed down. Gold, a major dollar bugaboo, has dropped a full 10%.
A lot of dollar-weakening grenades could still go off, but right now the dollar is strengthening.

[EconProf]

Conjectures about foreign money buying depressed U.S. real estate looked plausible until about a month ago. The dollar has since rallied, and oil has tumbled–a major factor that was eroding the dollar. There are now some real signs out there that oil & other commodities are headed down. Gold, a major dollar bugaboo, has dropped a full 10%.
A lot of dollar-weakening grenades could still go off, but right now the dollar is strengthening.

[EconProf]

Conjectures about foreign money buying depressed U.S. real estate looked plausible until about a month ago. The dollar has since rallied, and oil has tumbled–a major factor that was eroding the dollar. There are now some real signs out there that oil & other commodities are headed down. Gold, a major dollar bugaboo, has dropped a full 10%.
A lot of dollar-weakening grenades could still go off, but right now the dollar is strengthening.

[EconProf]

Conjectures about foreign money buying depressed U.S. real estate looked plausible until about a month ago. The dollar has since rallied, and oil has tumbled–a major factor that was eroding the dollar. There are now some real signs out there that oil & other commodities are headed down. Gold, a major dollar bugaboo, has dropped a full 10%.
A lot of dollar-weakening grenades could still go off, but right now the dollar is strengthening.

[EconProf]

Conjectures about foreign money buying depressed U.S. real estate looked plausible until about a month ago. The dollar has since rallied, and oil has tumbled–a major factor that was eroding the dollar. There are now some real signs out there that oil & other commodities are headed down. Gold, a major dollar bugaboo, has dropped a full 10%.
A lot of dollar-weakening grenades could still go off, but right now the dollar is strengthening.

[stockstradr]

If the dollar continues its’ downward trend and real estate continues to be more appealing to the foreign investor what will stop an investment group from Europe or Middle East to work a deal out with multiple banks to buy…

I truncated your post after “buy” because I like most of what you wrote up to that word. You are on the right track in anticipating the action of foreign monies, but you are mistaken in thinking it will primarily be spent on housing – and you are mistaken in thinking the coming transfer of wealth and economic power (from USA to foreign nations) is a result of our housing downturn.

This is a complex topic and I suggest you read Anne Korin over at http://www.iags.org/

She’s covered the complexities of the topic far far better than I can.

Anne sees an inevitable and massive transfer of power and money to oil producing nations, unless we (USA) break our addition to oil.

Foreign money is not after our homes. Something far more sinister is in play.
Sovereign funds of wealthy oil producing nations are making strategic political and economic investments in America, and the goal is power and control.

Now they may occasionally spend some billions buying corporate buildings in premier locations in American cities, such as in Manhattan, but again that’s not their primary acquisition goal.

Instead, they are using this very recession as a great opportunity to buy powerful ownership positions in the key power institutions of America. These are opportunities that would normally be politically blocked for them were it not for a recession (and credit crunch) pushing key American institutions to bankruptcy. Who do you think sits on the board of Sovereign Funds in oil-producing nations? These are not private citizen businessmen, like we have on corporate boards here in the USA.

The reason I find this topic VERY interesting is that I try to study global trends like this and look for opportunities for investing by figuring out which way and where will the huge flows of money be moving five or ten years from now.

[stockstradr]

If the dollar continues its’ downward trend and real estate continues to be more appealing to the foreign investor what will stop an investment group from Europe or Middle East to work a deal out with multiple banks to buy…

I truncated your post after “buy” because I like most of what you wrote up to that word. You are on the right track in anticipating the action of foreign monies, but you are mistaken in thinking it will primarily be spent on housing – and you are mistaken in thinking the coming transfer of wealth and economic power (from USA to foreign nations) is a result of our housing downturn.

This is a complex topic and I suggest you read Anne Korin over at http://www.iags.org/

She’s covered the complexities of the topic far far better than I can.

Anne sees an inevitable and massive transfer of power and money to oil producing nations, unless we (USA) break our addition to oil.

Foreign money is not after our homes. Something far more sinister is in play.
Sovereign funds of wealthy oil producing nations are making strategic political and economic investments in America, and the goal is power and control.

Now they may occasionally spend some billions buying corporate buildings in premier locations in American cities, such as in Manhattan, but again that’s not their primary acquisition goal.

Instead, they are using this very recession as a great opportunity to buy powerful ownership positions in the key power institutions of America. These are opportunities that would normally be politically blocked for them were it not for a recession (and credit crunch) pushing key American institutions to bankruptcy. Who do you think sits on the board of Sovereign Funds in oil-producing nations? These are not private citizen businessmen, like we have on corporate boards here in the USA.

The reason I find this topic VERY interesting is that I try to study global trends like this and look for opportunities for investing by figuring out which way and where will the huge flows of money be moving five or ten years from now.

[stockstradr]

If the dollar continues its’ downward trend and real estate continues to be more appealing to the foreign investor what will stop an investment group from Europe or Middle East to work a deal out with multiple banks to buy…

I truncated your post after “buy” because I like most of what you wrote up to that word. You are on the right track in anticipating the action of foreign monies, but you are mistaken in thinking it will primarily be spent on housing – and you are mistaken in thinking the coming transfer of wealth and economic power (from USA to foreign nations) is a result of our housing downturn.

This is a complex topic and I suggest you read Anne Korin over at http://www.iags.org/

She’s covered the complexities of the topic far far better than I can.

Anne sees an inevitable and massive transfer of power and money to oil producing nations, unless we (USA) break our addition to oil.

Foreign money is not after our homes. Something far more sinister is in play.
Sovereign funds of wealthy oil producing nations are making strategic political and economic investments in America, and the goal is power and control.

Now they may occasionally spend some billions buying corporate buildings in premier locations in American cities, such as in Manhattan, but again that’s not their primary acquisition goal.

Instead, they are using this very recession as a great opportunity to buy powerful ownership positions in the key power institutions of America. These are opportunities that would normally be politically blocked for them were it not for a recession (and credit crunch) pushing key American institutions to bankruptcy. Who do you think sits on the board of Sovereign Funds in oil-producing nations? These are not private citizen businessmen, like we have on corporate boards here in the USA.

The reason I find this topic VERY interesting is that I try to study global trends like this and look for opportunities for investing by figuring out which way and where will the huge flows of money be moving five or ten years from now.

[stockstradr]

If the dollar continues its’ downward trend and real estate continues to be more appealing to the foreign investor what will stop an investment group from Europe or Middle East to work a deal out with multiple banks to buy…

I truncated your post after “buy” because I like most of what you wrote up to that word. You are on the right track in anticipating the action of foreign monies, but you are mistaken in thinking it will primarily be spent on housing – and you are mistaken in thinking the coming transfer of wealth and economic power (from USA to foreign nations) is a result of our housing downturn.

This is a complex topic and I suggest you read Anne Korin over at http://www.iags.org/

She’s covered the complexities of the topic far far better than I can.

Anne sees an inevitable and massive transfer of power and money to oil producing nations, unless we (USA) break our addition to oil.

Foreign money is not after our homes. Something far more sinister is in play.
Sovereign funds of wealthy oil producing nations are making strategic political and economic investments in America, and the goal is power and control.

Now they may occasionally spend some billions buying corporate buildings in premier locations in American cities, such as in Manhattan, but again that’s not their primary acquisition goal.

Instead, they are using this very recession as a great opportunity to buy powerful ownership positions in the key power institutions of America. These are opportunities that would normally be politically blocked for them were it not for a recession (and credit crunch) pushing key American institutions to bankruptcy. Who do you think sits on the board of Sovereign Funds in oil-producing nations? These are not private citizen businessmen, like we have on corporate boards here in the USA.

The reason I find this topic VERY interesting is that I try to study global trends like this and look for opportunities for investing by figuring out which way and where will the huge flows of money be moving five or ten years from now.

[Author]

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