[DWCAP]

I guess the answer lies in what “shadow inventory” is. If you only consider it to be houses that have been taken back by the bank, but are not for sale on the MLS, then there would be a question of ‘why sell anything?’ Why not just withhold inventory until prices reach par with the loan?

If you think of shadow inventory as all the houses that are in serious default, but not already REO on the market, then you realize that many many houses may be caught up in a limbo where banks are unable to process them in a timly manor, and as such only a certain number of them reach the market at any given time. That number is the amount the banks are able to process, both functionally and politically. The rest just live in limbo for another day/week/month/year.

Remember banks are not in the property management buisness. They are in the loan buisness. They dont want your property, they dont want to have to resell houses. They want your monthly payment, and only resort to taking the house when they have to try to get something of the cash they loaned you back.

[DWCAP]

I guess the answer lies in what “shadow inventory” is. If you only consider it to be houses that have been taken back by the bank, but are not for sale on the MLS, then there would be a question of ‘why sell anything?’ Why not just withhold inventory until prices reach par with the loan?

If you think of shadow inventory as all the houses that are in serious default, but not already REO on the market, then you realize that many many houses may be caught up in a limbo where banks are unable to process them in a timly manor, and as such only a certain number of them reach the market at any given time. That number is the amount the banks are able to process, both functionally and politically. The rest just live in limbo for another day/week/month/year.

Remember banks are not in the property management buisness. They are in the loan buisness. They dont want your property, they dont want to have to resell houses. They want your monthly payment, and only resort to taking the house when they have to try to get something of the cash they loaned you back.

[DWCAP]

[quote=Eugene][quote=EconProf]Eugene: You are so wrong.
Google State Spending Per Capita.
You will find CA spent $6417 per capita in 2007, while Texas spent $3831.[/quote]

How could CA spend 6417 per capita in 2007, if its budget was never larger than 110m (130m including special funds), and it’s down to 95m now, divided over 36 million people?

Texas has 24 million and it spends ~160 mil every 2 years.

Perhaps you’re including federal Medicare/Medicaid spending (for every dollar the state spends on Medicaid, DC spends something like $4).[/quote]

According to the link above, in 2007 CA spending was 180 million. I guess it all depends on what numbers are included, and which ones are excluded.

[DWCAP]

[quote=Eugene][quote=EconProf]Eugene: You are so wrong.
Google State Spending Per Capita.
You will find CA spent $6417 per capita in 2007, while Texas spent $3831.[/quote]

How could CA spend 6417 per capita in 2007, if its budget was never larger than 110m (130m including special funds), and it’s down to 95m now, divided over 36 million people?

Texas has 24 million and it spends ~160 mil every 2 years.

Perhaps you’re including federal Medicare/Medicaid spending (for every dollar the state spends on Medicaid, DC spends something like $4).[/quote]

According to the link above, in 2007 CA spending was 180 million. I guess it all depends on what numbers are included, and which ones are excluded.

[DWCAP]

[quote=Eugene][quote=EconProf]Eugene: You are so wrong.
Google State Spending Per Capita.
You will find CA spent $6417 per capita in 2007, while Texas spent $3831.[/quote]

How could CA spend 6417 per capita in 2007, if its budget was never larger than 110m (130m including special funds), and it’s down to 95m now, divided over 36 million people?

Texas has 24 million and it spends ~160 mil every 2 years.

Perhaps you’re including federal Medicare/Medicaid spending (for every dollar the state spends on Medicaid, DC spends something like $4).[/quote]

According to the link above, in 2007 CA spending was 180 million. I guess it all depends on what numbers are included, and which ones are excluded.

[DWCAP]

[quote=Eugene][quote=EconProf]Eugene: You are so wrong.
Google State Spending Per Capita.
You will find CA spent $6417 per capita in 2007, while Texas spent $3831.[/quote]

How could CA spend 6417 per capita in 2007, if its budget was never larger than 110m (130m including special funds), and it’s down to 95m now, divided over 36 million people?

Texas has 24 million and it spends ~160 mil every 2 years.

Perhaps you’re including federal Medicare/Medicaid spending (for every dollar the state spends on Medicaid, DC spends something like $4).[/quote]

According to the link above, in 2007 CA spending was 180 million. I guess it all depends on what numbers are included, and which ones are excluded.

[DWCAP]

[quote=Eugene][quote=EconProf]Eugene: You are so wrong.
Google State Spending Per Capita.
You will find CA spent $6417 per capita in 2007, while Texas spent $3831.[/quote]

How could CA spend 6417 per capita in 2007, if its budget was never larger than 110m (130m including special funds), and it’s down to 95m now, divided over 36 million people?

Texas has 24 million and it spends ~160 mil every 2 years.

Perhaps you’re including federal Medicare/Medicaid spending (for every dollar the state spends on Medicaid, DC spends something like $4).[/quote]

According to the link above, in 2007 CA spending was 180 million. I guess it all depends on what numbers are included, and which ones are excluded.

[DWCAP]

I am guessing a zillow employee or family member of a zillow employee just bought a house……

[DWCAP]

I am guessing a zillow employee or family member of a zillow employee just bought a house……

[DWCAP]

I am guessing a zillow employee or family member of a zillow employee just bought a house……

[DWCAP]

I am guessing a zillow employee or family member of a zillow employee just bought a house……

[DWCAP]

I am guessing a zillow employee or family member of a zillow employee just bought a house……

[DWCAP]

Not to mention that the BRIC countries are still living on an “export to the USA” economic model right now. Considering that US consumers arnt in a buying mood right now, that isnt the best economic model to have.
Not saying they cant get off it, but itll take some adjustments. If you are investing in these countries, watch out for a very much needed and expected switch to domestic consumption vs export.

[DWCAP]

Not to mention that the BRIC countries are still living on an “export to the USA” economic model right now. Considering that US consumers arnt in a buying mood right now, that isnt the best economic model to have.
Not saying they cant get off it, but itll take some adjustments. If you are investing in these countries, watch out for a very much needed and expected switch to domestic consumption vs export.

[DWCAP]

Not to mention that the BRIC countries are still living on an “export to the USA” economic model right now. Considering that US consumers arnt in a buying mood right now, that isnt the best economic model to have.
Not saying they cant get off it, but itll take some adjustments. If you are investing in these countries, watch out for a very much needed and expected switch to domestic consumption vs export.

[Author]

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