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kev374
ParticipantThis cut may spawn a mini rally but the long term problems still exist, foreclosures are skyrocketing and I don’t see how this rate cut is going to help people stay in their homes. I also fail to see how this is going to do anything for the lack of credit availability in California because most properties require jumbo loans.
Those with HELOCs may see very slight relief but that doesn’t mean they are going to go out and spend when their home values are going down the toilet.
Bottom line is that consumption is still going to decline and that will spur a recession and there is nothing anyone can do about it. The Fed is not going to lower the interest rate to 1% again.
Participantwhat public transit? that doesn’t take you anywhere in LA.
Participanti’m not submitting lowball offers because the price I usually have in mind is 2000-2001 prices and that’s like 30-50% off the current price. Most sellers will not budge more than 3-5% off the price, many don’t think rationally in this regard and consider it an insult to their manhood!
For instance there is no valid reason the median price in Orange County should be anything more than $320-350k considering fundamentals, and that itself is EXPENSIVE!
ParticipantHow come prices have not dropped very fast?
With all the foreclosures I am amazed that prices are not falling either fast
Prices don’t fall that fast, foreclosure in California is a lengthy process that can take upto 6 months from the date of initial default. Even after that a few more months the property becomes REO and the bank will sit on it until their inventory baloons and they get desperate.
You have to be patient, the cycle has to run it’s course. Prices will drop like a rock but only after critical mass is reached 😉
There is a HUGE amount of resistence from sellers and lenders to do all they can to avoid taking a loss, only when they HAVE to will prices be slashed like no tommorow. This is also beginning to happen with the builders due to skyrocketing cancellation rates and severe lack of demand, they need to sell inventory to avoid holding costs and to recoup their cash.
September 8, 2007 at 1:20 PM in reply to: Countrywide announces possible layoff of additional 12,000 #83873ParticipantCountrywide has 61,000 employees, so 12,000 is 20% of their workforce. Still pretty drastic and there is more to come, probably 12-15,000 additional layoffs because if you think we’re having bad times now wait till 2008.. it’s going to be a total MESS!
ParticipantI believe THIS is the New York Times article he is referring to. There is no doubt in my mind that Countrywide fully participated in fraudulent activities to increase bottom line.
September 7, 2007 at 8:34 PM in reply to: Countrywide announces possible layoff of additional 12,000 #83828ParticipantI first thought it was a misprint and was 1200 jobs but nope, it’s 12k and i’ve heard there are more to come if conditions worsen and we all know what’s ahead of us…
all I can say at this point is WOW!
On a positive note, Countrywide is doing the right thing by aligning themselves to the market so at least they will not go out of business! I feel if they need to cut 60% of their workforce to reflect market conditions then they will!
Participantwhat I don’t understand is that if investors and lenders took risks and should suffer the consequences of that why not apply the same standards to individuals who were irresponsible and reckless to buy more home than they could afford, bid up prices and assume risky mortgages? Unless a homeowner was cheated in some way they are as guilty as the wall st. investors and should not be helped to keep their home.
August 30, 2007 at 10:04 AM in reply to: Freddie Mac agrees to accept some Alt-A loans = mini bail out = badnews #82572ParticipantAs a GSE, it is a privately-owned corporation authorized to make loans and loan guarantees. It is not backed or funded by the US Government, nor do the securities it issues benefit from any government guarantee or protection.
http://en.wikipedia.org/wiki/Freddie_Mac
Freddy Mac losses are not insured for by the US Government, so I don’t see how this is a taxpayer bailout. If they assume risky Alt-A mortgages then they are digging their own grave just like the other lenders that have perished.
ParticipantA valid point, though, is that tangible assets tend to appreciate significantly when currency declines. This includes precious metals, commodities and real estate.
Yes, but demand for Real Estate is local for the most part and local demand is support by currency that is earned locally. If the dollar declines in value against other currencies it doesn’t mean there is simultaneous wage inflation which is what supports RE purchase fundamentals.
Infact, even though the dollar has been declining, wages have been stagnant. This doesn’t support Real Estate appreciation, which is directly correlated with local wages.
ParticipantA valid point, though, is that tangible assets tend to appreciate significantly when currency declines. This includes precious metals, commodities and real estate.
Yes, but demand for Real Estate is local for the most part and local demand is support by currency that is earned locally. If the dollar declines in value against other currencies it doesn’t mean there is simultaneous wage inflation which is what supports RE purchase fundamentals.
Infact, even though the dollar has been declining, wages have been stagnant. This doesn’t support Real Estate appreciation, which is directly correlated with local wages.
ParticipantA valid point, though, is that tangible assets tend to appreciate significantly when currency declines. This includes precious metals, commodities and real estate.
Yes, but demand for Real Estate is local for the most part and local demand is support by currency that is earned locally. If the dollar declines in value against other currencies it doesn’t mean there is simultaneous wage inflation which is what supports RE purchase fundamentals.
Infact, even though the dollar has been declining, wages have been stagnant. This doesn’t support Real Estate appreciation, which is directly correlated with local wages.
ParticipantAuthor has lost his marbles, what baloney!
ParticipantAuthor has lost his marbles, what baloney!
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