[DaCounselor]

I’m not sure what Pirrong is trying to say. At the end of the day, the global market sets the price. If investors move the market, they have a hand in setting the price. Bidding up futures contracts will have that effect, regardless of how truly sound or unsound market underpinnings are at the time.

[DaCounselor]

I’m not sure what Pirrong is trying to say. At the end of the day, the global market sets the price. If investors move the market, they have a hand in setting the price. Bidding up futures contracts will have that effect, regardless of how truly sound or unsound market underpinnings are at the time.

[DaCounselor]

Crude is a huge commodity play. It’s a high profile commodity with lots of news to provide traction and momentum. Hedgies and major traders are carrying prices. I don’t think anyone disputes that a significant % of price moves are due to speculation. I suspect we’re not far off a short-driven move down.

[DaCounselor]

Crude is a huge commodity play. It’s a high profile commodity with lots of news to provide traction and momentum. Hedgies and major traders are carrying prices. I don’t think anyone disputes that a significant % of price moves are due to speculation. I suspect we’re not far off a short-driven move down.

[DaCounselor]

Crude is a huge commodity play. It’s a high profile commodity with lots of news to provide traction and momentum. Hedgies and major traders are carrying prices. I don’t think anyone disputes that a significant % of price moves are due to speculation. I suspect we’re not far off a short-driven move down.

[DaCounselor]

“The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.”
____________________________

???????

How about interest earned at or near the prevailing local rate?

[DaCounselor]

“The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.”
____________________________

???????

How about interest earned at or near the prevailing local rate?

[DaCounselor]

“The problem with ETF’s is that they only protect against the declining dollar – you do not actually make any return.”
____________________________

???????

How about interest earned at or near the prevailing local rate?

[DaCounselor]

These fires are definitely linked to the real estate bubble. The fact that we are in the middle of a drought, have excessive fuel built up, are experiencing a Santa Ana with severe winds and downed power lines are media cover-ups of the real causes – disgruntled homeowners and builders. Of course people are torching their homes, especially in Malibu, the epicenter of subprime mortgages.

I could go on and on about this, and also the 2003 fires, which were definitely set by disgruntled renters who were tired of seeing property values rise beyond their reach. Unfortunately, I have to go now as I am late for a meeting with Santa Claus to discuss the Tooth Fairy’s new pay rate and the Kennedy assassination.

[DaCounselor]

These fires are definitely linked to the real estate bubble. The fact that we are in the middle of a drought, have excessive fuel built up, are experiencing a Santa Ana with severe winds and downed power lines are media cover-ups of the real causes – disgruntled homeowners and builders. Of course people are torching their homes, especially in Malibu, the epicenter of subprime mortgages.

I could go on and on about this, and also the 2003 fires, which were definitely set by disgruntled renters who were tired of seeing property values rise beyond their reach. Unfortunately, I have to go now as I am late for a meeting with Santa Claus to discuss the Tooth Fairy’s new pay rate and the Kennedy assassination.

[DaCounselor]

These fires are definitely linked to the real estate bubble. The fact that we are in the middle of a drought, have excessive fuel built up, are experiencing a Santa Ana with severe winds and downed power lines are media cover-ups of the real causes – disgruntled homeowners and builders. Of course people are torching their homes, especially in Malibu, the epicenter of subprime mortgages.

I could go on and on about this, and also the 2003 fires, which were definitely set by disgruntled renters who were tired of seeing property values rise beyond their reach. Unfortunately, I have to go now as I am late for a meeting with Santa Claus to discuss the Tooth Fairy’s new pay rate and the Kennedy assassination.

[DaCounselor]

“2. If I’m not mistaken, zero down loans are usually constructed out of a 20% down first mortgage and a second mortgage/HELOC to cover the down payment. It’s done this way because 20% down waives the PMI requirement, interest on the second mortgage is tax deductible, and PMI is not.

In this situation, first mortgage is non-recourse, but second mortgage isn’t. Who lent you 100k to cover your down payment will try to sue you and collect his money.”
________________________________

You are mistaken as to the characterization of the 20% second mortgage as a recourse loan. It is not. It is purchase money and by CA law it is non-recourse. The lender has no recourse if you default other than seizure of the collateral. Doesn’t matter if the 2nd is called a HELOC or a Whozeewhatsit. It’s non-recourse.

[DaCounselor]

“2. If I’m not mistaken, zero down loans are usually constructed out of a 20% down first mortgage and a second mortgage/HELOC to cover the down payment. It’s done this way because 20% down waives the PMI requirement, interest on the second mortgage is tax deductible, and PMI is not.

In this situation, first mortgage is non-recourse, but second mortgage isn’t. Who lent you 100k to cover your down payment will try to sue you and collect his money.”
________________________________

You are mistaken as to the characterization of the 20% second mortgage as a recourse loan. It is not. It is purchase money and by CA law it is non-recourse. The lender has no recourse if you default other than seizure of the collateral. Doesn’t matter if the 2nd is called a HELOC or a Whozeewhatsit. It’s non-recourse.

[DaCounselor]

I don’t think there is anything dirty or crooked about someone allowing their home to go into foreclosure, even if they can afford the payments, because the value has dropped dramatically. It’s probably not a good strategy for someone who re-fied, but for someone with 80/20 non-recourse purchase money it may make sense. The mortgage contract is pretty simple – the buyer agrees to make payments as described, and if they don’t the lender(s) take the collateral. That was the deal. If the poor 2nd gets wiped out, oh well, that’s show business. That’s what you risk when you go 100% ltv as a lender. You don’t want the risk, don’t lend the money.

Forging rental agreements and fake escrows are a whole different story. Such activity is dirty and crooked and fraudulent, and there is probably going to be plenty of it.
But what can you expect when there are potentially hundreds of thousands of dollars at stake? The way I see it, if otherwise straight people were inclined to fib on the stated income deals that got them into trouble in the first place, they will probably be willing to do the same again to get out of the old deal and into a new one.

[DaCounselor]

I don’t think there is anything dirty or crooked about someone allowing their home to go into foreclosure, even if they can afford the payments, because the value has dropped dramatically. It’s probably not a good strategy for someone who re-fied, but for someone with 80/20 non-recourse purchase money it may make sense. The mortgage contract is pretty simple – the buyer agrees to make payments as described, and if they don’t the lender(s) take the collateral. That was the deal. If the poor 2nd gets wiped out, oh well, that’s show business. That’s what you risk when you go 100% ltv as a lender. You don’t want the risk, don’t lend the money.

Forging rental agreements and fake escrows are a whole different story. Such activity is dirty and crooked and fraudulent, and there is probably going to be plenty of it.
But what can you expect when there are potentially hundreds of thousands of dollars at stake? The way I see it, if otherwise straight people were inclined to fib on the stated income deals that got them into trouble in the first place, they will probably be willing to do the same again to get out of the old deal and into a new one.

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