[bsrsharma]

Not so fast! There was a pretty high degree of fraud at all levels by all sorts of “Professionals”. I think at least some of the borderline, barely literate, immigrants may be excused for believing that they are dealing in a “developed” country (unlike their native kleptocracies) with good consumer protection laws and some degree of honor and integrity among the white collar “professionals”. That the “developed country” that they came for better life is also a kleptocracy is hitting them like a ton of bricks.

Obviously I have no sympathies for fraudulent buyers, but no sense in hating those who are victims of fraud.

[bsrsharma]

destroying the dollar would be a bad idea

Just like flying a bunch of hot nukes from North Dakota to Louisiana!

[bsrsharma]

Can you finish the basement and eventually make that space habitable?

Can't help wondering – 3500 sqft seems plenty for Dave & his wife. 5000 sqft living space? They will have to use GPS to get around.

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It's overvalued everywhere

Not true! I read about some nice homes at affordable prices in northern suburbs of Indianapolis (Hamilton county). Around $100/sq ft SFRs (my idea of fair price for a nicer neighborhood – not ghetto stuff). Same with many nicer places in Ohio and Atlanta too. For cash buyers, there are many places where you can live nicely for $100/sqft.

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Hmm, no one mentioned it. So easy to “Go Abroad”; The Joys of TJ/Baja/Mexico!

[bsrsharma]

This seems to be the first legislation being proposed in the Senate post Bust. Seems fairly innoccuous with no taxpayer impact. I am for it since it seems to put a little anti-fraud provisions into law.

http://news.yahoo.com/s/nm/20070905/pl_nm/economy_subprime_dodd_dc

[bsrsharma]

Real quote from a leading national magazine:

The demand for mortgage brokers in Las Vegas was so strong that "every stripper, waiter and bartender on the Strip had a broker's license," says Boyd Nyborg, a former mortgage broker who now tends bar at the Tao Las Vegas.

http://www.msnbc.msn.com/id/20546324/site/newsweek/page/0/

 

[bsrsharma]

Do as I say, not as I do.

Golden words in your case! That $127 right away puts your $420K purchase at around $312K ballpark. That is a $100K decrease in first (or second) innings.

[bsrsharma]

Prudent Piggingtonians may like to read this money saving tip.

http://finance.yahoo.com/loans/article/103446/drive-your-car-to-death-save-31,000

Drive Your Car to Death, Save $31,000
Saturday, September 1, 2007

By keeping your car for 15 years, or 225,000 miles of driving, you could save nearly $31,000, according to Consumer Reports magazine. That’s compared to the cost of buying an identical model every five years, which is roughly the rate at which most car owners trade in their vehicles.

In its annual national auto survey, the magazine found 6,769 readers who had logged more than 200,000 miles on their cars. Their cars included a 1990 Lexus LS400 with 332,000 miles and a 1994 Ford Ranger pick-up that had gone 488,000 miles.

Calculating the costs involved in buying a new Honda Civic EX every five years for 15 years – including depreciation, taxes, fees and insurance – the magazine estimated it would cost $20,500 more than it would have cost to simply maintain one car for the same period.

Added to that, the magazine factored in $10,300 in interest that could have been earned on that money, assuming a five percent interest rate and a three percent inflation rate, over that time.

The magazine found similar savings with other models.

To have much hope of making it to 200,000 miles, a car has to be well maintained, of course. The magazine recommends several steps to help your car see it through.

Follow the maintenance guide in your owner’s manual and make needed repairs promptly.
Use only the recommended types of fluids, including oil and transmission fluids.
Check under the hood regularly. Listen for strange sounds, sniff for odd smells and look for fraying or bulges in pipes or belts. Also, get a vehicle service manual. They’re available at most auto parts stores or your dealership.
Clean the car carefully inside and out. This not only helps the car’s appearance but can prevent premature rust. Vacuuming the inside also prevents premature carpet wear from sand and grit.
Buy a safe, reliable car. Buying a car with the latest safety equipment makes it more likely you’ll feel as safe in your aging car as a newer model.

The magazine recommends several cars that have the best shot at reaching the 200,000 mile mark and a few that, according to its data, aren’t likely to make it.

All the cars in the magazine’s “Good bets” list are manufactured by Honda and Toyota. (One extreme example was not enough to get the Ford Ranger onto the list.) The “Bad bets” are a mixture of European models and two Nissans.

Consumer Reports’ “Good bets” for making 200,000 miles: Honda Civic, Honda CR-V, Honda Element, Lexus ES, Lexus LS, Toyota 4Runner, Toyota Highlander, Toyota Land Cruiser, Toyota Prius, Toyota RAV4

Consumer Reports’ “Bad bets” for making 200,000 miles: BMW 7-series, Infiniti QX56, Jaguar X-type, V8-powered Mercedes-Benz M-class, Mercedes-Benz SL, Nissan Armada, Nissan Titan, Volkswagen Touareg, V6-powered Volvo XC90.

Copyrighted, CNNMoney. All Rights Reserved.

[bsrsharma]

$127 sq/ft! Not too bad.

Are these really nice homes or bare bones shacks needing a lot of "upgrades" before you can live there?

If you see these in SD area, that should be time to jump in.

[bsrsharma]

LIBOR Rocketing up

Further bad news to borrowers. In spite of FED’s liquidity injections, LIBOR is shooting up. (Many loans use LIBOR as the index for adjusting)

http://online.wsj.com/article/SB118891774435316875.html

[bsrsharma]

There is a major subliminal story here. The Big Capital markets are probably not sucking up the (somewhat implied) "full faith & Credit of US Government" story line for GSE paper. They are also thrashing the "Too big to fail" theory. Looks like the world might have just changed. GSEs may have to follow the normal laws of capitalism.

There was another story in FT (see Credit Market & Liquidity crunch) that London & Euro interbank credit markets are almost completely choked up. Looks like we may be seeing a major international credibility crisis. If so, that is a big problem; If liquidity is lost, that can be replaced, but from where will you inject trust among market participants. Reminds me of the old saying “If wealth is lost, nothing is lost. If health is lost, something is lost. But, if character is lost, everything is lost.” We may be seeing case 3 rather than 1.

[bsrsharma]

Yes; but the idea is from an old Candid Camera show where a bank teller prints out fresh currency, (saying it is the latest technology) to a dumbstruck customer.

[bsrsharma]

hyperinflation makes its way into your paycheck?

I have a solution! FED should design a proprietary laser printer and sell it for a low price. Insert your paycheck and it will print out n times that much currency. n is of course carefully controlled by FED and is sent to your printer on a secure encrypted link!

[bsrsharma]

If Freddie Mac’s problems persist (and extend to Fannie too), we are seeing another inflexion – markets are not trusting GSEs and probably governments that sponsor them. If FED lowers rates next time and $ promptly drops, we know we have reached that point. Next papers to be watched carefully may be – treasuries!

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