[Allan from Fallbrook]

AK: At some point, the lenders will have to come clean regarding their portfolio of non- and sub-perfoming assets, and then the bottom will really fall out.

At present, all of the major players involved, whether banks (Citi), investment banks (Bear, Merrill) or lenders (Countrywide) have done a really good job of hiding their off book investment exposures (SIVs, CDOs, CDSs, etc) from view. The potential catastrophic losses these investments might suffer is the reason that the government and the FED are scrambling right now to inject liquidity into the market, create bailout programs for both homeowners and banks/lenders and employing interest rate cuts in hope of stimulating the market.

It is simply delaying the inevitable. The inevitable being that this entire rotten house of cards collapses. And then you’re gonna see some real price drops!

[Allan from Fallbrook]

AK: At some point, the lenders will have to come clean regarding their portfolio of non- and sub-perfoming assets, and then the bottom will really fall out.

At present, all of the major players involved, whether banks (Citi), investment banks (Bear, Merrill) or lenders (Countrywide) have done a really good job of hiding their off book investment exposures (SIVs, CDOs, CDSs, etc) from view. The potential catastrophic losses these investments might suffer is the reason that the government and the FED are scrambling right now to inject liquidity into the market, create bailout programs for both homeowners and banks/lenders and employing interest rate cuts in hope of stimulating the market.

It is simply delaying the inevitable. The inevitable being that this entire rotten house of cards collapses. And then you’re gonna see some real price drops!

[Allan from Fallbrook]

AK: At some point, the lenders will have to come clean regarding their portfolio of non- and sub-perfoming assets, and then the bottom will really fall out.

At present, all of the major players involved, whether banks (Citi), investment banks (Bear, Merrill) or lenders (Countrywide) have done a really good job of hiding their off book investment exposures (SIVs, CDOs, CDSs, etc) from view. The potential catastrophic losses these investments might suffer is the reason that the government and the FED are scrambling right now to inject liquidity into the market, create bailout programs for both homeowners and banks/lenders and employing interest rate cuts in hope of stimulating the market.

It is simply delaying the inevitable. The inevitable being that this entire rotten house of cards collapses. And then you’re gonna see some real price drops!

[Allan from Fallbrook]

AK: At some point, the lenders will have to come clean regarding their portfolio of non- and sub-perfoming assets, and then the bottom will really fall out.

At present, all of the major players involved, whether banks (Citi), investment banks (Bear, Merrill) or lenders (Countrywide) have done a really good job of hiding their off book investment exposures (SIVs, CDOs, CDSs, etc) from view. The potential catastrophic losses these investments might suffer is the reason that the government and the FED are scrambling right now to inject liquidity into the market, create bailout programs for both homeowners and banks/lenders and employing interest rate cuts in hope of stimulating the market.

It is simply delaying the inevitable. The inevitable being that this entire rotten house of cards collapses. And then you’re gonna see some real price drops!

[Allan from Fallbrook]

Conned by Crooks: What about asking simple questions? I understand and don’t disagree with your point regarding a general lack of education in real estate, but what about basic math?

Not to sound like a smarta** here, but why weren’t you and the other participants asking questions about the “deal”, and how this whole scheme worked?

There are Harvard MBAs working on Wall Street that don’t have the expectation of financial independence in three to five years. I would think buying into a get-rich scheme piloted by the likes of Duncan and Montecastro, two individuals with little to no experience as financiers, would have drawn at least some suspicion when it came to their claims. Because it didn’t, I have to fall back on the belief that this was nothing other than simple greed. All the education in the world doesn’t help when greed overwhelms your common sense.

“No warning can save a people determined to grow suddenly rich”. Lord Overstone

[Allan from Fallbrook]

Conned by Crooks: What about asking simple questions? I understand and don’t disagree with your point regarding a general lack of education in real estate, but what about basic math?

Not to sound like a smarta** here, but why weren’t you and the other participants asking questions about the “deal”, and how this whole scheme worked?

There are Harvard MBAs working on Wall Street that don’t have the expectation of financial independence in three to five years. I would think buying into a get-rich scheme piloted by the likes of Duncan and Montecastro, two individuals with little to no experience as financiers, would have drawn at least some suspicion when it came to their claims. Because it didn’t, I have to fall back on the belief that this was nothing other than simple greed. All the education in the world doesn’t help when greed overwhelms your common sense.

“No warning can save a people determined to grow suddenly rich”. Lord Overstone

[Allan from Fallbrook]

Conned by Crooks: What about asking simple questions? I understand and don’t disagree with your point regarding a general lack of education in real estate, but what about basic math?

Not to sound like a smarta** here, but why weren’t you and the other participants asking questions about the “deal”, and how this whole scheme worked?

There are Harvard MBAs working on Wall Street that don’t have the expectation of financial independence in three to five years. I would think buying into a get-rich scheme piloted by the likes of Duncan and Montecastro, two individuals with little to no experience as financiers, would have drawn at least some suspicion when it came to their claims. Because it didn’t, I have to fall back on the belief that this was nothing other than simple greed. All the education in the world doesn’t help when greed overwhelms your common sense.

“No warning can save a people determined to grow suddenly rich”. Lord Overstone

[Allan from Fallbrook]

Conned by Crooks: What about asking simple questions? I understand and don’t disagree with your point regarding a general lack of education in real estate, but what about basic math?

Not to sound like a smarta** here, but why weren’t you and the other participants asking questions about the “deal”, and how this whole scheme worked?

There are Harvard MBAs working on Wall Street that don’t have the expectation of financial independence in three to five years. I would think buying into a get-rich scheme piloted by the likes of Duncan and Montecastro, two individuals with little to no experience as financiers, would have drawn at least some suspicion when it came to their claims. Because it didn’t, I have to fall back on the belief that this was nothing other than simple greed. All the education in the world doesn’t help when greed overwhelms your common sense.

“No warning can save a people determined to grow suddenly rich”. Lord Overstone

[Allan from Fallbrook]

Conned by Crooks: What about asking simple questions? I understand and don’t disagree with your point regarding a general lack of education in real estate, but what about basic math?

Not to sound like a smarta** here, but why weren’t you and the other participants asking questions about the “deal”, and how this whole scheme worked?

There are Harvard MBAs working on Wall Street that don’t have the expectation of financial independence in three to five years. I would think buying into a get-rich scheme piloted by the likes of Duncan and Montecastro, two individuals with little to no experience as financiers, would have drawn at least some suspicion when it came to their claims. Because it didn’t, I have to fall back on the belief that this was nothing other than simple greed. All the education in the world doesn’t help when greed overwhelms your common sense.

“No warning can save a people determined to grow suddenly rich”. Lord Overstone

[Allan from Fallbrook]

TG: I realize that we are discussing the Temecula/Murrieta scam here, but doesn’t this apply to the California RE market as a whole? Between home builders, realtors, mortgage brokers and institutions, this whole market was one gigantic Ponzi scheme, and now it is collapsing.

While I can certainly understand the anger and humiliation of the Core “victims”, they aren’t any different from the other so-called “victims” of Countrywide, or Century 21, or First American Title.

Buying a home is a huge financial commitment; probably the largest one you will ever make. To not do basic diligence and ask a fairly simple set of questions smacks of nothing other than shame-faced greed.

As the old man used to say, “If it sounds to good to be true, it is.” Or better yet, “If it walks like a duck, looks like a duck, and quacks like a duck: It’s a duck.”.

[Allan from Fallbrook]

TG: I realize that we are discussing the Temecula/Murrieta scam here, but doesn’t this apply to the California RE market as a whole? Between home builders, realtors, mortgage brokers and institutions, this whole market was one gigantic Ponzi scheme, and now it is collapsing.

While I can certainly understand the anger and humiliation of the Core “victims”, they aren’t any different from the other so-called “victims” of Countrywide, or Century 21, or First American Title.

Buying a home is a huge financial commitment; probably the largest one you will ever make. To not do basic diligence and ask a fairly simple set of questions smacks of nothing other than shame-faced greed.

As the old man used to say, “If it sounds to good to be true, it is.” Or better yet, “If it walks like a duck, looks like a duck, and quacks like a duck: It’s a duck.”.

[Allan from Fallbrook]

TG: I realize that we are discussing the Temecula/Murrieta scam here, but doesn’t this apply to the California RE market as a whole? Between home builders, realtors, mortgage brokers and institutions, this whole market was one gigantic Ponzi scheme, and now it is collapsing.

While I can certainly understand the anger and humiliation of the Core “victims”, they aren’t any different from the other so-called “victims” of Countrywide, or Century 21, or First American Title.

Buying a home is a huge financial commitment; probably the largest one you will ever make. To not do basic diligence and ask a fairly simple set of questions smacks of nothing other than shame-faced greed.

As the old man used to say, “If it sounds to good to be true, it is.” Or better yet, “If it walks like a duck, looks like a duck, and quacks like a duck: It’s a duck.”.

[Allan from Fallbrook]

TG: I realize that we are discussing the Temecula/Murrieta scam here, but doesn’t this apply to the California RE market as a whole? Between home builders, realtors, mortgage brokers and institutions, this whole market was one gigantic Ponzi scheme, and now it is collapsing.

While I can certainly understand the anger and humiliation of the Core “victims”, they aren’t any different from the other so-called “victims” of Countrywide, or Century 21, or First American Title.

Buying a home is a huge financial commitment; probably the largest one you will ever make. To not do basic diligence and ask a fairly simple set of questions smacks of nothing other than shame-faced greed.

As the old man used to say, “If it sounds to good to be true, it is.” Or better yet, “If it walks like a duck, looks like a duck, and quacks like a duck: It’s a duck.”.

[Allan from Fallbrook]

TG: I realize that we are discussing the Temecula/Murrieta scam here, but doesn’t this apply to the California RE market as a whole? Between home builders, realtors, mortgage brokers and institutions, this whole market was one gigantic Ponzi scheme, and now it is collapsing.

While I can certainly understand the anger and humiliation of the Core “victims”, they aren’t any different from the other so-called “victims” of Countrywide, or Century 21, or First American Title.

Buying a home is a huge financial commitment; probably the largest one you will ever make. To not do basic diligence and ask a fairly simple set of questions smacks of nothing other than shame-faced greed.

As the old man used to say, “If it sounds to good to be true, it is.” Or better yet, “If it walks like a duck, looks like a duck, and quacks like a duck: It’s a duck.”.

[Allan from Fallbrook]

Alex_angel: I coach the son of a UT Sports writer. He covers the Chargers for the Trib.

[Author]

Posts