When will this stop?

[eagleeye]

Thanks for the insight HLS. Let me clarify what I mean by complete confidence in NFCU:

“Navy Federal—Strong, Safe and Secure

With 3 million members and $3 billion in reserves, Navy Federal is in sound financial condition, even as we expand our branch and ATM network to serve our growing membership.

Our soundness is based on our exemplary business practices:

We have never engaged in sub-prime mortgage lending
We adhere to sound financial underwriting practices
We provide members with professional guidance, which matches them with the right loan product option
We are regularly audited by PricewaterhouseCoopers LLP, an independent auditing firm

And members can enjoy added peace of mind knowing that their savings are federally insured through the National Credit Union Administration, a U.S. Government Agency. For more about savings insurance, see details at “Your Insured Funds.” (388kb)

Founded in 1933 during the Great Depression to provide its members with an economic safety net, Navy Federal remains a resource members can count on. Surplus funds resulting from our sound lending practices are returned to member-owners through higher dividends, reduced loan rates and service enhancements.”

Maybe I’m naive but that’s good enough for me.

[HLS]

I have absolutely no expectation that NCFU or any other credit union is going to fold.

FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.

Having account insurance coverage costs the borrower nothing, not a penny.

The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.

According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”

At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.

Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.

In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.

11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.

These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.

These are just facts. If you want to have uninsured deposits, that is your choice.

[HLS]

I have absolutely no expectation that NCFU or any other credit union is going to fold.

FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.

Having account insurance coverage costs the borrower nothing, not a penny.

The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.

According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”

At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.

Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.

In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.

11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.

These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.

These are just facts. If you want to have uninsured deposits, that is your choice.

[HLS]

I have absolutely no expectation that NCFU or any other credit union is going to fold.

FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.

Having account insurance coverage costs the borrower nothing, not a penny.

The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.

According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”

At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.

Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.

In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.

11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.

These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.

These are just facts. If you want to have uninsured deposits, that is your choice.

[HLS]

I have absolutely no expectation that NCFU or any other credit union is going to fold.

FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.

Having account insurance coverage costs the borrower nothing, not a penny.

The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.

According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”

At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.

Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.

In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.

11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.

These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.

These are just facts. If you want to have uninsured deposits, that is your choice.

[HLS]

I have absolutely no expectation that NCFU or any other credit union is going to fold.

FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.

Having account insurance coverage costs the borrower nothing, not a penny.

The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.

According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”

At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.

Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.

In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.

11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.

These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.

These are just facts. If you want to have uninsured deposits, that is your choice.

[Multiplepropertyowner]

Real Estate is always a good investment.
Just kidding everyone. Settle down.

[Multiplepropertyowner]

Real Estate is always a good investment.
Just kidding everyone. Settle down.

[Multiplepropertyowner]

Real Estate is always a good investment.
Just kidding everyone. Settle down.

[Multiplepropertyowner]

Real Estate is always a good investment.
Just kidding everyone. Settle down.

[Multiplepropertyowner]

Real Estate is always a good investment.
Just kidding everyone. Settle down.

[HLS]

I agree with you, I would just say most of the time, (not always)and in the right markets.
(Or at least it has been in the past, which isn’t a guarantee of future returns)

When the property pencils out from day one, there is still risk, but it’s a safer bet than when you need some crazy appreciation to have the “investment” make sense.

There are about 40 states today that have properties that can be bought that will pencil out TODAY as a reasonable investment, based on ROI.

Absentee ownership isn’t for everyone, having property managers and being charged for little things that you cannot drive over and do drives some people nuts.

There are plenty of markets that had no bubble and even areas that have $100,000 +/- houses ALWAYS have renters looking to rent.

With mortgage rates historically low, and 25% down if you qualify, Buying a house for $135,000 that rents for $900-$1000 a month isn’t difficult at all. And the P&I payment on $100K is $616. Even with T&I, and a management fee, (you start off by paying $100 a month in principal) it’s not so crazy.

Don’t forget the lost opportunity value of your down payment (which isn’t much today)

You get a much larger (% of purchase price) tax deduction for depreciation in most other states where land is cheaper.

There is super opportunity and many OUT OF STATE areas probably have hit bottom, and will just be flat for awhile. Rentals in So Cal make no sense to me any more.

When I was kid, it was a simple theory. If you can at least break even PITI from day one, and get the depreciation, just take any appreciation as a bonus and let the tenants pay off your mortgage. Never EXPECT appreciation.

Slow and steady. Turtle & the hare etc..

I talked to a guy today who is out of pocket $5,000 a month on his rentals, and he has negative equity.
He foolishly took 15 YR mortgages on rental properties so has huge payments. Not something that I recommend.

His RE “expert” told him TODAY that the local market is only going down another 5%. I said UH-HUH.

Plenty of opportunity out there for those with the stomach.
YEP, It’s a great time to buy,,,, just not around here.

[HLS]

I agree with you, I would just say most of the time, (not always)and in the right markets.
(Or at least it has been in the past, which isn’t a guarantee of future returns)

When the property pencils out from day one, there is still risk, but it’s a safer bet than when you need some crazy appreciation to have the “investment” make sense.

There are about 40 states today that have properties that can be bought that will pencil out TODAY as a reasonable investment, based on ROI.

Absentee ownership isn’t for everyone, having property managers and being charged for little things that you cannot drive over and do drives some people nuts.

There are plenty of markets that had no bubble and even areas that have $100,000 +/- houses ALWAYS have renters looking to rent.

With mortgage rates historically low, and 25% down if you qualify, Buying a house for $135,000 that rents for $900-$1000 a month isn’t difficult at all. And the P&I payment on $100K is $616. Even with T&I, and a management fee, (you start off by paying $100 a month in principal) it’s not so crazy.

Don’t forget the lost opportunity value of your down payment (which isn’t much today)

You get a much larger (% of purchase price) tax deduction for depreciation in most other states where land is cheaper.

There is super opportunity and many OUT OF STATE areas probably have hit bottom, and will just be flat for awhile. Rentals in So Cal make no sense to me any more.

When I was kid, it was a simple theory. If you can at least break even PITI from day one, and get the depreciation, just take any appreciation as a bonus and let the tenants pay off your mortgage. Never EXPECT appreciation.

Slow and steady. Turtle & the hare etc..

I talked to a guy today who is out of pocket $5,000 a month on his rentals, and he has negative equity.
He foolishly took 15 YR mortgages on rental properties so has huge payments. Not something that I recommend.

His RE “expert” told him TODAY that the local market is only going down another 5%. I said UH-HUH.

Plenty of opportunity out there for those with the stomach.
YEP, It’s a great time to buy,,,, just not around here.

[HLS]

I agree with you, I would just say most of the time, (not always)and in the right markets.
(Or at least it has been in the past, which isn’t a guarantee of future returns)

When the property pencils out from day one, there is still risk, but it’s a safer bet than when you need some crazy appreciation to have the “investment” make sense.

There are about 40 states today that have properties that can be bought that will pencil out TODAY as a reasonable investment, based on ROI.

Absentee ownership isn’t for everyone, having property managers and being charged for little things that you cannot drive over and do drives some people nuts.

There are plenty of markets that had no bubble and even areas that have $100,000 +/- houses ALWAYS have renters looking to rent.

With mortgage rates historically low, and 25% down if you qualify, Buying a house for $135,000 that rents for $900-$1000 a month isn’t difficult at all. And the P&I payment on $100K is $616. Even with T&I, and a management fee, (you start off by paying $100 a month in principal) it’s not so crazy.

Don’t forget the lost opportunity value of your down payment (which isn’t much today)

You get a much larger (% of purchase price) tax deduction for depreciation in most other states where land is cheaper.

There is super opportunity and many OUT OF STATE areas probably have hit bottom, and will just be flat for awhile. Rentals in So Cal make no sense to me any more.

When I was kid, it was a simple theory. If you can at least break even PITI from day one, and get the depreciation, just take any appreciation as a bonus and let the tenants pay off your mortgage. Never EXPECT appreciation.

Slow and steady. Turtle & the hare etc..

I talked to a guy today who is out of pocket $5,000 a month on his rentals, and he has negative equity.
He foolishly took 15 YR mortgages on rental properties so has huge payments. Not something that I recommend.

His RE “expert” told him TODAY that the local market is only going down another 5%. I said UH-HUH.

Plenty of opportunity out there for those with the stomach.
YEP, It’s a great time to buy,,,, just not around here.

[HLS]

I agree with you, I would just say most of the time, (not always)and in the right markets.
(Or at least it has been in the past, which isn’t a guarantee of future returns)

When the property pencils out from day one, there is still risk, but it’s a safer bet than when you need some crazy appreciation to have the “investment” make sense.

There are about 40 states today that have properties that can be bought that will pencil out TODAY as a reasonable investment, based on ROI.

Absentee ownership isn’t for everyone, having property managers and being charged for little things that you cannot drive over and do drives some people nuts.

There are plenty of markets that had no bubble and even areas that have $100,000 +/- houses ALWAYS have renters looking to rent.

With mortgage rates historically low, and 25% down if you qualify, Buying a house for $135,000 that rents for $900-$1000 a month isn’t difficult at all. And the P&I payment on $100K is $616. Even with T&I, and a management fee, (you start off by paying $100 a month in principal) it’s not so crazy.

Don’t forget the lost opportunity value of your down payment (which isn’t much today)

You get a much larger (% of purchase price) tax deduction for depreciation in most other states where land is cheaper.

There is super opportunity and many OUT OF STATE areas probably have hit bottom, and will just be flat for awhile. Rentals in So Cal make no sense to me any more.

When I was kid, it was a simple theory. If you can at least break even PITI from day one, and get the depreciation, just take any appreciation as a bonus and let the tenants pay off your mortgage. Never EXPECT appreciation.

Slow and steady. Turtle & the hare etc..

I talked to a guy today who is out of pocket $5,000 a month on his rentals, and he has negative equity.
He foolishly took 15 YR mortgages on rental properties so has huge payments. Not something that I recommend.

His RE “expert” told him TODAY that the local market is only going down another 5%. I said UH-HUH.

Plenty of opportunity out there for those with the stomach.
YEP, It’s a great time to buy,,,, just not around here.

[Author]

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