Is it just me?

[jpinpb]

[quote=patientrenter]I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.[/quote]

Forgive my lack of knowledge here. The PPIP needs to do something w/the properties, wouldn’t they? Are they going to rent them all? If they attempt to sell and can’t get an inflated price, they can sell for less, b/c aren’t the taxpayers footing the bill if they have a loss?

I thought the PPIP also has little skin in the game. Aren’t we just pretty much still just playing hot potato. Tag! the PPIP are it and not the banks. Now they get to deal w/it and if they make money, cool. If not, the taxpayers got you covered.

And in this market, w/tightening credit still in effect, they might be a little challenged selling high. They may have to take a loss, b/c it won’t really be a loss b/c aren’t they covered?

Maybe I have it all wrong. It’s a little complicated for me to understand it all. Trying to make sense of it.

[patientrenter]

[quote=jpinpb][quote=patientrenter]I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.[/quote]

Forgive my lack of knowledge here. The PPIP needs to do something w/the properties, wouldn’t they? Are they going to rent them all? If they attempt to sell and can’t get an inflated price, they can sell for less, b/c aren’t the taxpayers footing the bill if they have a loss?

I thought the PPIP also has little skin in the game. Aren’t we just pretty much still just playing hot potato. Tag! the PPIP are it and not the banks. Now they get to deal w/it and if they make money, cool. If not, the taxpayers got you covered.

And in this market, w/tightening credit still in effect, they might be a little challenged selling high. They may have to take a loss, b/c it won’t really be a loss b/c aren’t they covered?

Maybe I have it all wrong. It’s a little complicated for me to understand it all. Trying to make sense of it.
[/quote]

jpnpb, the PPIP introduced govt subsidies for buyers of mortgage-backed securities, to help boost their prices. It doesn’t apply to the underlying real estate, just the loans. It was done in a way that allowed the general public to be led into believing that it was almost a fair market transaction.

All I’m saying is that if the banks experience too much pain from having to sell REOs at a loss, then Tim and Ben will create a similar program that covers REOs. So investors will “buy” REOs from banks at inflated prices, backed by govt money and guarantees.

For those who think it’s not possible to inflate entire markets merely by offering unlimited amounts of cheap and easy borrowed money for overpriced purchases… Oh, right, that was the bubble… it did happen… it can happen again

[patientrenter]

[quote=jpinpb][quote=patientrenter]I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.[/quote]

Forgive my lack of knowledge here. The PPIP needs to do something w/the properties, wouldn’t they? Are they going to rent them all? If they attempt to sell and can’t get an inflated price, they can sell for less, b/c aren’t the taxpayers footing the bill if they have a loss?

I thought the PPIP also has little skin in the game. Aren’t we just pretty much still just playing hot potato. Tag! the PPIP are it and not the banks. Now they get to deal w/it and if they make money, cool. If not, the taxpayers got you covered.

And in this market, w/tightening credit still in effect, they might be a little challenged selling high. They may have to take a loss, b/c it won’t really be a loss b/c aren’t they covered?

Maybe I have it all wrong. It’s a little complicated for me to understand it all. Trying to make sense of it.
[/quote]

jpnpb, the PPIP introduced govt subsidies for buyers of mortgage-backed securities, to help boost their prices. It doesn’t apply to the underlying real estate, just the loans. It was done in a way that allowed the general public to be led into believing that it was almost a fair market transaction.

All I’m saying is that if the banks experience too much pain from having to sell REOs at a loss, then Tim and Ben will create a similar program that covers REOs. So investors will “buy” REOs from banks at inflated prices, backed by govt money and guarantees.

For those who think it’s not possible to inflate entire markets merely by offering unlimited amounts of cheap and easy borrowed money for overpriced purchases… Oh, right, that was the bubble… it did happen… it can happen again

[patientrenter]

[quote=jpinpb][quote=patientrenter]I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.[/quote]

Forgive my lack of knowledge here. The PPIP needs to do something w/the properties, wouldn’t they? Are they going to rent them all? If they attempt to sell and can’t get an inflated price, they can sell for less, b/c aren’t the taxpayers footing the bill if they have a loss?

I thought the PPIP also has little skin in the game. Aren’t we just pretty much still just playing hot potato. Tag! the PPIP are it and not the banks. Now they get to deal w/it and if they make money, cool. If not, the taxpayers got you covered.

And in this market, w/tightening credit still in effect, they might be a little challenged selling high. They may have to take a loss, b/c it won’t really be a loss b/c aren’t they covered?

Maybe I have it all wrong. It’s a little complicated for me to understand it all. Trying to make sense of it.
[/quote]

jpnpb, the PPIP introduced govt subsidies for buyers of mortgage-backed securities, to help boost their prices. It doesn’t apply to the underlying real estate, just the loans. It was done in a way that allowed the general public to be led into believing that it was almost a fair market transaction.

All I’m saying is that if the banks experience too much pain from having to sell REOs at a loss, then Tim and Ben will create a similar program that covers REOs. So investors will “buy” REOs from banks at inflated prices, backed by govt money and guarantees.

For those who think it’s not possible to inflate entire markets merely by offering unlimited amounts of cheap and easy borrowed money for overpriced purchases… Oh, right, that was the bubble… it did happen… it can happen again

[patientrenter]

[quote=jpinpb][quote=patientrenter]I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.[/quote]

Forgive my lack of knowledge here. The PPIP needs to do something w/the properties, wouldn’t they? Are they going to rent them all? If they attempt to sell and can’t get an inflated price, they can sell for less, b/c aren’t the taxpayers footing the bill if they have a loss?

I thought the PPIP also has little skin in the game. Aren’t we just pretty much still just playing hot potato. Tag! the PPIP are it and not the banks. Now they get to deal w/it and if they make money, cool. If not, the taxpayers got you covered.

And in this market, w/tightening credit still in effect, they might be a little challenged selling high. They may have to take a loss, b/c it won’t really be a loss b/c aren’t they covered?

Maybe I have it all wrong. It’s a little complicated for me to understand it all. Trying to make sense of it.
[/quote]

jpnpb, the PPIP introduced govt subsidies for buyers of mortgage-backed securities, to help boost their prices. It doesn’t apply to the underlying real estate, just the loans. It was done in a way that allowed the general public to be led into believing that it was almost a fair market transaction.

All I’m saying is that if the banks experience too much pain from having to sell REOs at a loss, then Tim and Ben will create a similar program that covers REOs. So investors will “buy” REOs from banks at inflated prices, backed by govt money and guarantees.

For those who think it’s not possible to inflate entire markets merely by offering unlimited amounts of cheap and easy borrowed money for overpriced purchases… Oh, right, that was the bubble… it did happen… it can happen again

[patientrenter]

[quote=jpinpb][quote=patientrenter]I won’t attempt to steal SDR’s thunder, but I think PPIP is a taste of what’s to come. If banks can’t sell REOs at inflated prices on the open market, then govt subsidies will be created to allow them to sell to some investors at inflated prices. It’s the PPIP model for MBSs translated to REOs.[/quote]

Forgive my lack of knowledge here. The PPIP needs to do something w/the properties, wouldn’t they? Are they going to rent them all? If they attempt to sell and can’t get an inflated price, they can sell for less, b/c aren’t the taxpayers footing the bill if they have a loss?

I thought the PPIP also has little skin in the game. Aren’t we just pretty much still just playing hot potato. Tag! the PPIP are it and not the banks. Now they get to deal w/it and if they make money, cool. If not, the taxpayers got you covered.

And in this market, w/tightening credit still in effect, they might be a little challenged selling high. They may have to take a loss, b/c it won’t really be a loss b/c aren’t they covered?

Maybe I have it all wrong. It’s a little complicated for me to understand it all. Trying to make sense of it.
[/quote]

jpnpb, the PPIP introduced govt subsidies for buyers of mortgage-backed securities, to help boost their prices. It doesn’t apply to the underlying real estate, just the loans. It was done in a way that allowed the general public to be led into believing that it was almost a fair market transaction.

All I’m saying is that if the banks experience too much pain from having to sell REOs at a loss, then Tim and Ben will create a similar program that covers REOs. So investors will “buy” REOs from banks at inflated prices, backed by govt money and guarantees.

For those who think it’s not possible to inflate entire markets merely by offering unlimited amounts of cheap and easy borrowed money for overpriced purchases… Oh, right, that was the bubble… it did happen… it can happen again

[jpinpb]

PR – I understand investors will “buy” overinflated houses from banks. Then what?

[jpinpb]

PR – I understand investors will “buy” overinflated houses from banks. Then what?

[jpinpb]

PR – I understand investors will “buy” overinflated houses from banks. Then what?

[jpinpb]

PR – I understand investors will “buy” overinflated houses from banks. Then what?

[jpinpb]

PR – I understand investors will “buy” overinflated houses from banks. Then what?

[SD Realtor]

jp the biggest problem is indeed and then what. These investors can do whatever they want. They are not under the same pressures that lenders are under. They do not have the same accounting requirements as institutions. Don’t you see? It is a free for all, the investors have hardly any skin in the game at all. I forgot the amount of money the investors have to bring to the table but it is ridiculous.

That is the big problem. With the institutions holding all these bad assets the credit market clogs up. Now once these books are relieved, the credit markets open up. Is the crap still out there? Yes of course. Does the government care what happens to it? Maybe but before that investor made the purchase they made damn sure that they would not lose money no matter how it turns out.

So yeah logically one would think, well it would be stupid for these investors not to dump all the properties on the market wouldn’t it? Well yeah and maybe no. Look say some investor is gonna purchase 100B of crap from Citi… Do they put up 100B? No way. They put up a small fraction of that. Do they need to dump all the properties? Probably not. Whose to say that there are not some backroom deals in place so that maybe an investor is incentivized to NOT DUMP them all at once.

I don’t know. Doesn’t the whole thing seem kind of… rigged to you? It does to me. I sincerely hope we see them all come flooding into the market. Just not so sure we will. There are a hell of alot of them out there though.

[SD Realtor]

jp the biggest problem is indeed and then what. These investors can do whatever they want. They are not under the same pressures that lenders are under. They do not have the same accounting requirements as institutions. Don’t you see? It is a free for all, the investors have hardly any skin in the game at all. I forgot the amount of money the investors have to bring to the table but it is ridiculous.

That is the big problem. With the institutions holding all these bad assets the credit market clogs up. Now once these books are relieved, the credit markets open up. Is the crap still out there? Yes of course. Does the government care what happens to it? Maybe but before that investor made the purchase they made damn sure that they would not lose money no matter how it turns out.

So yeah logically one would think, well it would be stupid for these investors not to dump all the properties on the market wouldn’t it? Well yeah and maybe no. Look say some investor is gonna purchase 100B of crap from Citi… Do they put up 100B? No way. They put up a small fraction of that. Do they need to dump all the properties? Probably not. Whose to say that there are not some backroom deals in place so that maybe an investor is incentivized to NOT DUMP them all at once.

I don’t know. Doesn’t the whole thing seem kind of… rigged to you? It does to me. I sincerely hope we see them all come flooding into the market. Just not so sure we will. There are a hell of alot of them out there though.

[SD Realtor]

jp the biggest problem is indeed and then what. These investors can do whatever they want. They are not under the same pressures that lenders are under. They do not have the same accounting requirements as institutions. Don’t you see? It is a free for all, the investors have hardly any skin in the game at all. I forgot the amount of money the investors have to bring to the table but it is ridiculous.

That is the big problem. With the institutions holding all these bad assets the credit market clogs up. Now once these books are relieved, the credit markets open up. Is the crap still out there? Yes of course. Does the government care what happens to it? Maybe but before that investor made the purchase they made damn sure that they would not lose money no matter how it turns out.

So yeah logically one would think, well it would be stupid for these investors not to dump all the properties on the market wouldn’t it? Well yeah and maybe no. Look say some investor is gonna purchase 100B of crap from Citi… Do they put up 100B? No way. They put up a small fraction of that. Do they need to dump all the properties? Probably not. Whose to say that there are not some backroom deals in place so that maybe an investor is incentivized to NOT DUMP them all at once.

I don’t know. Doesn’t the whole thing seem kind of… rigged to you? It does to me. I sincerely hope we see them all come flooding into the market. Just not so sure we will. There are a hell of alot of them out there though.

[SD Realtor]

jp the biggest problem is indeed and then what. These investors can do whatever they want. They are not under the same pressures that lenders are under. They do not have the same accounting requirements as institutions. Don’t you see? It is a free for all, the investors have hardly any skin in the game at all. I forgot the amount of money the investors have to bring to the table but it is ridiculous.

That is the big problem. With the institutions holding all these bad assets the credit market clogs up. Now once these books are relieved, the credit markets open up. Is the crap still out there? Yes of course. Does the government care what happens to it? Maybe but before that investor made the purchase they made damn sure that they would not lose money no matter how it turns out.

So yeah logically one would think, well it would be stupid for these investors not to dump all the properties on the market wouldn’t it? Well yeah and maybe no. Look say some investor is gonna purchase 100B of crap from Citi… Do they put up 100B? No way. They put up a small fraction of that. Do they need to dump all the properties? Probably not. Whose to say that there are not some backroom deals in place so that maybe an investor is incentivized to NOT DUMP them all at once.

I don’t know. Doesn’t the whole thing seem kind of… rigged to you? It does to me. I sincerely hope we see them all come flooding into the market. Just not so sure we will. There are a hell of alot of them out there though.

[Author]

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