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Reminds of that RBS commercial where the guy who took a positive thinking course thinks his positive thoughts rescued them from death.

What they should do is go around to all the people they put in homes they couldn’t afford and restructure their loans to fit something they can afford, and take huge losses in the process.

It’s that or take the losses later on when they sell one of their 319 REO’s in AZ, 367 in CO, 545 in NV, 660 in OH, 773 in FL, 1550 in MI, or 2847 REO’s in CA. And those are just the states I looked at.

http://www.countrywide.com/purchase/f_reo.asp

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That’s the point kewp. Will there be a point where banks/businesses realize burying families and their future generations in debt only hurts their own business in the long run?

I see days like today and think the stock market is completely disconnected from the consumers. Maybe it’s been that way all along and I just now noticed.

I’m going to guess at the end of the week if the job numbers are down we will see any equally large drop, but what do I know…

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Countrywide and similar poorly managed Mortgage Banks are the S&L’s of the 21st century IMO. Many are already gone, I expect Countrywide to follow. If I’m wrong, I missed a great buy opp, but I’m sure I’ll get over it.

Mozilo sold his XXmillion shares at $28/pc.

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Days like this make me wonder.

Where does this value in the stock market really come from? Yes globalization, emerging markets, world trade, serivce and tech industry growth have added to this. But at the end of the day, it all ultimately relies on consumers spending money. The only true abillity of that, income, has not grown this much. Can world consumption have grown this much since 1980 or 1990?

Look at this 80+ history of the DOW.
[img_assist|nid=4993|title=Dow|desc=|link=node|align=left|width=466|height=198]

Stocks go up primarily due to EPS, which is the result of good company performance. Credit availbility has increased consumption, but that’s the point. How much of the stock market growth is based on debt, and at what point will people no longer be able to spend money they don’t have?

Seeing this chart I can’t help but wonder, are we right in the middle of one massive speculative stock bubble? Maybe not to the level of the late 20’s, but what is this “growth” really based on? Is it realistic, and more importantly is it sustainable?

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Is this the bull’s last hurrah?

The market jumps, so is the FED still going to cut rates?

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This guy is clearly a tool and I am glad I am not in range of his radio nervous breakdowns. But to those of you who do listen to him, farbet posted the transcript that had his email.

[email protected]

Eamil him and tell him the truth. Here are some inspriational comments:

…In concert with much of the national and local media, they (us) have been able to artificially construct something that has never —- I repeat, never —- been done before: drive down housing prices at a time when unemployment is low, the economy is booming and consumer confidence is approaching record highs.

There is little land left for development, and that will indeed create a crisis in housing availability.

Owning a home is still the American dream and, since 97.4 percent of homeowners pay their mortgages on time, the dream seems to be working out pretty well.

This guy doesn’t deserve the time of day on these forums, and although I believe posted here once, I’d say email him directly and call him out rather than ripping on him here where we all know he’s an idiot.

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I think both parties are at fault for thinking anything has the ability to appreciate at 100% a year indefinately.

People are most emotional in the one facet of life that should be the handled with more common sense and logic than any other – money.

Countrywide is the poster child of bad mortgage banking and I won’t be surprised to see them go under.

If you can prove that your broker, unbeknownst to you, falsified documents to get you into a house you can’t afford then get a lawyet.

Otherwise laissez faire and let them learn.

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I just skimmed the article, but I’d guess the unspoken reason they expect things to get worse is because of the Disney themes.

Save the money and give people a “rebate.”

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To all those who think LA is insulated from any downturn in housing:

2838 Hermosa Ave Glendale CA 91214
3 beds, 2.0 baths, 1,112 sq ft;

04/04/2007: $626,028
12/05/2003: $420,000
02/23/1995: $185,000

Now offered at $559,900
Courtesy of Wells Fargo Forclosure Listing

11% drop in less than 6 months, and still not selling.

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Here is a sign of things to come.

Nice place – Zillow says 1.8M, but I’m in LA so no interest for me. Anyone near Poway interested? It goes up for auction a week from Tuesday.

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There’s only so much debt you can take on before even your minimum payment exceeds your monthly income.

It’s that or people die in debt. Then who pays for it?

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There is a big difference between not wanting to sell at a loss, and being forced to sell at whatever you can get.

I believe we will see more of the latter as ARM’s continue to adjust for 3-4 more years, and people sell at market value or face foreclosure. With prices declining there will be little choice for those that once thought their house would make them rich.

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ucodegen –

That was good, I actually laughed at that because I just picture him with a vein about to pop in his head.

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If these people didn’t want to sell at a loss then they shouldn’t have:

1. Bought during a speculative real estate boom
2. Paid more for a house than they could ever hope to afford
3. Take a loan out that requires them to sell the house when payments adjust
4. Been greedy and tried to double their money on an already over-valued asset

Go ahead, don’t sell at a loss. Keep digging a hole of negative equity until you declare bankruptcy and give it back to the bank. People are as irrational out of the bubble as they were into it.

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I’d have to say it’s been better than I expected, though I must say I expected my area, LA to see at least 10% drops, and it’s been at the most that much.

Then I step back and think, it took 5 years of reckless buying and lending to get here, it’s going to take at least that to get it right, particularly when Congress and the FED step in the try and smooth things over.

However all that does is delay and worsen the inevitable in my opinion.

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