[bsrsharma]

Also, a lot of “millionaires” based on (paper) house worth are now ex-millionaires (more like $417K’ers). Imagine what that will do to big-ticket spending. Looks like a socialist revolution!

[bsrsharma]

Also, a lot of “millionaires” based on (paper) house worth are now ex-millionaires (more like $417K’ers). Imagine what that will do to big-ticket spending. Looks like a socialist revolution!

[bsrsharma]

“$215/sqft”

Wow! That is already looking like a post-bubble price for a premium property. Now it looks like the post-bubble price may end up around $500K ($125/sqft). This is starting to resemble the S & L meltdown.

[bsrsharma]

“$215/sqft”

Wow! That is already looking like a post-bubble price for a premium property. Now it looks like the post-bubble price may end up around $500K ($125/sqft). This is starting to resemble the S & L meltdown.

[bsrsharma]

“$215/sqft”

Wow! That is already looking like a post-bubble price for a premium property. Now it looks like the post-bubble price may end up around $500K ($125/sqft). This is starting to resemble the S & L meltdown.

[bsrsharma]

I think it is just the realtor frustration showing at the slow pace of sales. With fewer sales, their motivation is suffering and they come up with this bribery scheme to gain some advantage.I think what she is suggesting may be illegal or unethical.

[bsrsharma]

I think it is just the realtor frustration showing at the slow pace of sales. With fewer sales, their motivation is suffering and they come up with this bribery scheme to gain some advantage.I think what she is suggesting may be illegal or unethical.

[bsrsharma]

I think it is just the realtor frustration showing at the slow pace of sales. With fewer sales, their motivation is suffering and they come up with this bribery scheme to gain some advantage.I think what she is suggesting may be illegal or unethical.

[bsrsharma]

Two articles in NYT on side effects of housing bust:
———————————————————-
Even Nonhousing Markets Feel Mortgage Fallout:

The day-to-day financial dealings of Oneida Limited, the dinnerware and flatware maker, are typically about as far removed from the mortgage loan business as they can be.
Yet, like the proverbial flapping of a butterfly’s wings that sets off a storm thousands of miles away, the turmoil in the home mortgage market this summer directly affected the fortunes of the company, based in upstate New York, when it was forced to withdraw a planned offering of $120 million in high-yield bonds to investors as the credit markets froze up seemingly overnight.

If the deal had been offered just a month earlier, said Andrew G. Church, Oneida’s chief financial officer, the company would have had no trouble raising the money. “But it happened so quickly,” he said. “We’ve never seen anything as quick as this.” …..

———————————————————-
Drywall Maker in Pain as Housing Suffers

Plenty of companies — the mortgage lender Countrywide Financial, the hardware giant Home Depot and the insulation maker Owens Corning among them — are absorbing the ill effects of the yearlong slump in housing construction and sales. But few have felt it as forcefully or as suddenly as the USG Corporation, the nation’s largest maker of drywall, the paper-wrapped plaster boards used to build walls in homes and offices….

———————————————————-

[bsrsharma]

Two articles in NYT on side effects of housing bust:
———————————————————-
Even Nonhousing Markets Feel Mortgage Fallout:

The day-to-day financial dealings of Oneida Limited, the dinnerware and flatware maker, are typically about as far removed from the mortgage loan business as they can be.
Yet, like the proverbial flapping of a butterfly’s wings that sets off a storm thousands of miles away, the turmoil in the home mortgage market this summer directly affected the fortunes of the company, based in upstate New York, when it was forced to withdraw a planned offering of $120 million in high-yield bonds to investors as the credit markets froze up seemingly overnight.

If the deal had been offered just a month earlier, said Andrew G. Church, Oneida’s chief financial officer, the company would have had no trouble raising the money. “But it happened so quickly,” he said. “We’ve never seen anything as quick as this.” …..

———————————————————-
Drywall Maker in Pain as Housing Suffers

Plenty of companies — the mortgage lender Countrywide Financial, the hardware giant Home Depot and the insulation maker Owens Corning among them — are absorbing the ill effects of the yearlong slump in housing construction and sales. But few have felt it as forcefully or as suddenly as the USG Corporation, the nation’s largest maker of drywall, the paper-wrapped plaster boards used to build walls in homes and offices….

———————————————————-

[bsrsharma]

Two articles in NYT on side effects of housing bust:
———————————————————-
Even Nonhousing Markets Feel Mortgage Fallout:

The day-to-day financial dealings of Oneida Limited, the dinnerware and flatware maker, are typically about as far removed from the mortgage loan business as they can be.
Yet, like the proverbial flapping of a butterfly’s wings that sets off a storm thousands of miles away, the turmoil in the home mortgage market this summer directly affected the fortunes of the company, based in upstate New York, when it was forced to withdraw a planned offering of $120 million in high-yield bonds to investors as the credit markets froze up seemingly overnight.

If the deal had been offered just a month earlier, said Andrew G. Church, Oneida’s chief financial officer, the company would have had no trouble raising the money. “But it happened so quickly,” he said. “We’ve never seen anything as quick as this.” …..

———————————————————-
Drywall Maker in Pain as Housing Suffers

Plenty of companies — the mortgage lender Countrywide Financial, the hardware giant Home Depot and the insulation maker Owens Corning among them — are absorbing the ill effects of the yearlong slump in housing construction and sales. But few have felt it as forcefully or as suddenly as the USG Corporation, the nation’s largest maker of drywall, the paper-wrapped plaster boards used to build walls in homes and offices….

———————————————————-

[bsrsharma]

rb_engineer,

Going by the Piggington thesis that all analysis be data driven, the basic data to support the collapse theory is the ARM reset schedule that has been much discussed at this site. If I remember, it is bimodal with the first wave resetting in 24 months (Jan 2007 reference) and the second one in 60 months. Accordingly, the first fallout should be around Jan 2009. By then about a million mortgages (conservatively) would have defaulted and foreclosure process would have started. Depending on the speed of foreclosure process, when the homes will become REO may vary. But once you have million plus homes in REO, the pressure on the financial institutions will be very great to liquidate and “clean up” their balance sheets. This is how I remember the Savings & Loan crisis unfolded. A temporary government agency called Resolution Trust Corporation (RTC) was formed to liquidate assets at whatever price. I have seen real estate liquidated by RTC at 20 cents on $. Strange thing is there were NO takers many times at 20 cents! You have to wait till 2009 for the eye of the (First) storm to pass through. What we are seeing are just the early showers.

[bsrsharma]

rb_engineer,

Going by the Piggington thesis that all analysis be data driven, the basic data to support the collapse theory is the ARM reset schedule that has been much discussed at this site. If I remember, it is bimodal with the first wave resetting in 24 months (Jan 2007 reference) and the second one in 60 months. Accordingly, the first fallout should be around Jan 2009. By then about a million mortgages (conservatively) would have defaulted and foreclosure process would have started. Depending on the speed of foreclosure process, when the homes will become REO may vary. But once you have million plus homes in REO, the pressure on the financial institutions will be very great to liquidate and “clean up” their balance sheets. This is how I remember the Savings & Loan crisis unfolded. A temporary government agency called Resolution Trust Corporation (RTC) was formed to liquidate assets at whatever price. I have seen real estate liquidated by RTC at 20 cents on $. Strange thing is there were NO takers many times at 20 cents! You have to wait till 2009 for the eye of the (First) storm to pass through. What we are seeing are just the early showers.

[bsrsharma]

rb_engineer,

Going by the Piggington thesis that all analysis be data driven, the basic data to support the collapse theory is the ARM reset schedule that has been much discussed at this site. If I remember, it is bimodal with the first wave resetting in 24 months (Jan 2007 reference) and the second one in 60 months. Accordingly, the first fallout should be around Jan 2009. By then about a million mortgages (conservatively) would have defaulted and foreclosure process would have started. Depending on the speed of foreclosure process, when the homes will become REO may vary. But once you have million plus homes in REO, the pressure on the financial institutions will be very great to liquidate and “clean up” their balance sheets. This is how I remember the Savings & Loan crisis unfolded. A temporary government agency called Resolution Trust Corporation (RTC) was formed to liquidate assets at whatever price. I have seen real estate liquidated by RTC at 20 cents on $. Strange thing is there were NO takers many times at 20 cents! You have to wait till 2009 for the eye of the (First) storm to pass through. What we are seeing are just the early showers.

[bsrsharma]

The first poster is some nut; but the second post makes sense. I have seen some realtors losing hope at lack of traffic and interest and forgetting to do simple things like refill the flier case (or fill with cheap black & white fliers for a half mil property) adjust bent/out of shape/broken signs, keep yard clean for absentee owners etc., Many seem to be going through the motions of attempting to sell till the frustrated owners lower the price to more competitive level. Definitely, this market needs better motivated agents not dispirited ones.

[Author]

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