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LA_Renter
ParticipantI agree with esmith on this one.
Here is what AG said according to Reuters
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“Greenspan said real estate prices will stabilize only when the overhang of unsold new-construction homes begins to ease, and estimated that financial losses could be in the range of $200 billion to $400 billion as securities tied to failing subprime mortgages lose value.
He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely.” Offering cash to stricken homeowners instead would cause less long-term damage, he said.
“It’s only when the markets are perceived to have exhausted themselves on the downside that they turn,” he said. “Trying to prevent them from going down just merely prolongs the agony.”
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If you ask me AG got us into this mess, and he could have done something about it earlier but chose not to contrary to what he says. History will not be kind to his reign. With that said lets take a look at what he is saying, because I think many posters here would agree at some level.
“He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely”
The thing being bandied about among Wall Street is the “whole enchilada” bailout. Thats when Govt steps up and takes on all the bad loans at taxpayers expense along with deep cuts in the Fed Funds rate. They want a total and complete bailout of the banks. AG is saying that is a very bad idea and I agree. IMO what AG is advocating, once you get past the stinch of the handing out Govt money part, is a…….Home Price Correction. He is advocating capitulation which is the normal functioning of the market after a bubble. Any efforts to avoid that capitulation and attempts to artificially prop up home prices will in his words “drag this process out indefinitely”. The video of Greenspan’s interview is on this link http://tinyurl.com/2h79uc. Listen carefully to what he is saying, he has been known to speak in code. If there was an either / or choice between the CNBC Ron Insana “whole enchilada” option and what AG is proposing I would choose AG’s. This is as close to defending AG as I will get. It wasn’t easy but I got through it.
ParticipantI agree with esmith on this one.
Here is what AG said according to Reuters
__
“Greenspan said real estate prices will stabilize only when the overhang of unsold new-construction homes begins to ease, and estimated that financial losses could be in the range of $200 billion to $400 billion as securities tied to failing subprime mortgages lose value.
He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely.” Offering cash to stricken homeowners instead would cause less long-term damage, he said.
“It’s only when the markets are perceived to have exhausted themselves on the downside that they turn,” he said. “Trying to prevent them from going down just merely prolongs the agony.”
__
If you ask me AG got us into this mess, and he could have done something about it earlier but chose not to contrary to what he says. History will not be kind to his reign. With that said lets take a look at what he is saying, because I think many posters here would agree at some level.
“He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely”
The thing being bandied about among Wall Street is the “whole enchilada” bailout. Thats when Govt steps up and takes on all the bad loans at taxpayers expense along with deep cuts in the Fed Funds rate. They want a total and complete bailout of the banks. AG is saying that is a very bad idea and I agree. IMO what AG is advocating, once you get past the stinch of the handing out Govt money part, is a…….Home Price Correction. He is advocating capitulation which is the normal functioning of the market after a bubble. Any efforts to avoid that capitulation and attempts to artificially prop up home prices will in his words “drag this process out indefinitely”. The video of Greenspan’s interview is on this link http://tinyurl.com/2h79uc. Listen carefully to what he is saying, he has been known to speak in code. If there was an either / or choice between the CNBC Ron Insana “whole enchilada” option and what AG is proposing I would choose AG’s. This is as close to defending AG as I will get. It wasn’t easy but I got through it.
ParticipantI agree with esmith on this one.
Here is what AG said according to Reuters
__
“Greenspan said real estate prices will stabilize only when the overhang of unsold new-construction homes begins to ease, and estimated that financial losses could be in the range of $200 billion to $400 billion as securities tied to failing subprime mortgages lose value.
He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely.” Offering cash to stricken homeowners instead would cause less long-term damage, he said.
“It’s only when the markets are perceived to have exhausted themselves on the downside that they turn,” he said. “Trying to prevent them from going down just merely prolongs the agony.”
__
If you ask me AG got us into this mess, and he could have done something about it earlier but chose not to contrary to what he says. History will not be kind to his reign. With that said lets take a look at what he is saying, because I think many posters here would agree at some level.
“He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely”
The thing being bandied about among Wall Street is the “whole enchilada” bailout. Thats when Govt steps up and takes on all the bad loans at taxpayers expense along with deep cuts in the Fed Funds rate. They want a total and complete bailout of the banks. AG is saying that is a very bad idea and I agree. IMO what AG is advocating, once you get past the stinch of the handing out Govt money part, is a…….Home Price Correction. He is advocating capitulation which is the normal functioning of the market after a bubble. Any efforts to avoid that capitulation and attempts to artificially prop up home prices will in his words “drag this process out indefinitely”. The video of Greenspan’s interview is on this link http://tinyurl.com/2h79uc. Listen carefully to what he is saying, he has been known to speak in code. If there was an either / or choice between the CNBC Ron Insana “whole enchilada” option and what AG is proposing I would choose AG’s. This is as close to defending AG as I will get. It wasn’t easy but I got through it.
ParticipantI agree with esmith on this one.
Here is what AG said according to Reuters
__
“Greenspan said real estate prices will stabilize only when the overhang of unsold new-construction homes begins to ease, and estimated that financial losses could be in the range of $200 billion to $400 billion as securities tied to failing subprime mortgages lose value.
He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely.” Offering cash to stricken homeowners instead would cause less long-term damage, he said.
“It’s only when the markets are perceived to have exhausted themselves on the downside that they turn,” he said. “Trying to prevent them from going down just merely prolongs the agony.”
__
If you ask me AG got us into this mess, and he could have done something about it earlier but chose not to contrary to what he says. History will not be kind to his reign. With that said lets take a look at what he is saying, because I think many posters here would agree at some level.
“He warned against any sort of government bailout plan for homeowners that interfered with the normal functioning of markets for home prices or interest rates, saying it would “drag this process out indefinitely”
The thing being bandied about among Wall Street is the “whole enchilada” bailout. Thats when Govt steps up and takes on all the bad loans at taxpayers expense along with deep cuts in the Fed Funds rate. They want a total and complete bailout of the banks. AG is saying that is a very bad idea and I agree. IMO what AG is advocating, once you get past the stinch of the handing out Govt money part, is a…….Home Price Correction. He is advocating capitulation which is the normal functioning of the market after a bubble. Any efforts to avoid that capitulation and attempts to artificially prop up home prices will in his words “drag this process out indefinitely”. The video of Greenspan’s interview is on this link http://tinyurl.com/2h79uc. Listen carefully to what he is saying, he has been known to speak in code. If there was an either / or choice between the CNBC Ron Insana “whole enchilada” option and what AG is proposing I would choose AG’s. This is as close to defending AG as I will get. It wasn’t easy but I got through it.
ParticipantThe demand building on the sidelines is nothing compared to the demand that we experienced at the height of the exotic loans and the most lax point in underwriting. Currently home prices are falling, we are getting into some nasty resets in Prime Option Arms, so the default / foreclosure story is still intact. The return to easy loans is way way way down the line and I doubt we see that type of phenomena again at least in Mortgage Backed Securities. Are there qualified and…..Confident…..buyers that will jump in this Spring, yes. There is just not that many of them. Also a recent poll just came out that most Americans now believe we are in a recession. People don’t buy into shaky RE markets when they have the thought of recession in the back of their head (we did not have that in the Spring of 07). In order to move the glut of inventory that now permeates most of the California market there will have to be a bid that is perceived to be under market value. That is how you return to equilibrium.
ParticipantThe demand building on the sidelines is nothing compared to the demand that we experienced at the height of the exotic loans and the most lax point in underwriting. Currently home prices are falling, we are getting into some nasty resets in Prime Option Arms, so the default / foreclosure story is still intact. The return to easy loans is way way way down the line and I doubt we see that type of phenomena again at least in Mortgage Backed Securities. Are there qualified and…..Confident…..buyers that will jump in this Spring, yes. There is just not that many of them. Also a recent poll just came out that most Americans now believe we are in a recession. People don’t buy into shaky RE markets when they have the thought of recession in the back of their head (we did not have that in the Spring of 07). In order to move the glut of inventory that now permeates most of the California market there will have to be a bid that is perceived to be under market value. That is how you return to equilibrium.
ParticipantThe demand building on the sidelines is nothing compared to the demand that we experienced at the height of the exotic loans and the most lax point in underwriting. Currently home prices are falling, we are getting into some nasty resets in Prime Option Arms, so the default / foreclosure story is still intact. The return to easy loans is way way way down the line and I doubt we see that type of phenomena again at least in Mortgage Backed Securities. Are there qualified and…..Confident…..buyers that will jump in this Spring, yes. There is just not that many of them. Also a recent poll just came out that most Americans now believe we are in a recession. People don’t buy into shaky RE markets when they have the thought of recession in the back of their head (we did not have that in the Spring of 07). In order to move the glut of inventory that now permeates most of the California market there will have to be a bid that is perceived to be under market value. That is how you return to equilibrium.
ParticipantThe demand building on the sidelines is nothing compared to the demand that we experienced at the height of the exotic loans and the most lax point in underwriting. Currently home prices are falling, we are getting into some nasty resets in Prime Option Arms, so the default / foreclosure story is still intact. The return to easy loans is way way way down the line and I doubt we see that type of phenomena again at least in Mortgage Backed Securities. Are there qualified and…..Confident…..buyers that will jump in this Spring, yes. There is just not that many of them. Also a recent poll just came out that most Americans now believe we are in a recession. People don’t buy into shaky RE markets when they have the thought of recession in the back of their head (we did not have that in the Spring of 07). In order to move the glut of inventory that now permeates most of the California market there will have to be a bid that is perceived to be under market value. That is how you return to equilibrium.
ParticipantThe demand building on the sidelines is nothing compared to the demand that we experienced at the height of the exotic loans and the most lax point in underwriting. Currently home prices are falling, we are getting into some nasty resets in Prime Option Arms, so the default / foreclosure story is still intact. The return to easy loans is way way way down the line and I doubt we see that type of phenomena again at least in Mortgage Backed Securities. Are there qualified and…..Confident…..buyers that will jump in this Spring, yes. There is just not that many of them. Also a recent poll just came out that most Americans now believe we are in a recession. People don’t buy into shaky RE markets when they have the thought of recession in the back of their head (we did not have that in the Spring of 07). In order to move the glut of inventory that now permeates most of the California market there will have to be a bid that is perceived to be under market value. That is how you return to equilibrium.
ParticipantFor me its not about missing the boat, if people made money on this boom then all the power to them, congratulations. I am not against people making money. I owned a property in Kirkland WA from 1993 o 2004 so I got on the boat, smaller boat, but a boat none the less. Here is what makes me angry and dare say bitter. It’s the disruption of the market place in an asset that is so essential to one’s life and lifestyle. As we are now going into the full blown portion of the correction one can see how this misallocation of credit was nothing more than an unnecessary obstacle for somebody to lay down roots on move along in their lives without risking financial armageddon. Other than the few who sold at the top nothing good came from this financially, socially and economically.
On a more serious note here is something to ponder. I think about this often. The threat of terrorism unfortunately is very real. Right now as a direct consequence of this credit/housing bubble we are looking down the barrel of a financial crisis not seen since the Depression, that is not hyperbole and that does not mean a depression is guaranteed to happen. Point being the U.S. is very vulnerable right now to any type of financial shock. Ask yourself what would be the impact of a 9/11 type event NOW?? If you were a terrorist, some of these people are very educated in regards to all elements of our society and economy, when would you make your next hit?? I don’t mean to be an alarmist but those are real questions. We just simply cannot afford to put ourselves in these predicaments.
ParticipantFor me its not about missing the boat, if people made money on this boom then all the power to them, congratulations. I am not against people making money. I owned a property in Kirkland WA from 1993 o 2004 so I got on the boat, smaller boat, but a boat none the less. Here is what makes me angry and dare say bitter. It’s the disruption of the market place in an asset that is so essential to one’s life and lifestyle. As we are now going into the full blown portion of the correction one can see how this misallocation of credit was nothing more than an unnecessary obstacle for somebody to lay down roots on move along in their lives without risking financial armageddon. Other than the few who sold at the top nothing good came from this financially, socially and economically.
On a more serious note here is something to ponder. I think about this often. The threat of terrorism unfortunately is very real. Right now as a direct consequence of this credit/housing bubble we are looking down the barrel of a financial crisis not seen since the Depression, that is not hyperbole and that does not mean a depression is guaranteed to happen. Point being the U.S. is very vulnerable right now to any type of financial shock. Ask yourself what would be the impact of a 9/11 type event NOW?? If you were a terrorist, some of these people are very educated in regards to all elements of our society and economy, when would you make your next hit?? I don’t mean to be an alarmist but those are real questions. We just simply cannot afford to put ourselves in these predicaments.
ParticipantFor me its not about missing the boat, if people made money on this boom then all the power to them, congratulations. I am not against people making money. I owned a property in Kirkland WA from 1993 o 2004 so I got on the boat, smaller boat, but a boat none the less. Here is what makes me angry and dare say bitter. It’s the disruption of the market place in an asset that is so essential to one’s life and lifestyle. As we are now going into the full blown portion of the correction one can see how this misallocation of credit was nothing more than an unnecessary obstacle for somebody to lay down roots on move along in their lives without risking financial armageddon. Other than the few who sold at the top nothing good came from this financially, socially and economically.
On a more serious note here is something to ponder. I think about this often. The threat of terrorism unfortunately is very real. Right now as a direct consequence of this credit/housing bubble we are looking down the barrel of a financial crisis not seen since the Depression, that is not hyperbole and that does not mean a depression is guaranteed to happen. Point being the U.S. is very vulnerable right now to any type of financial shock. Ask yourself what would be the impact of a 9/11 type event NOW?? If you were a terrorist, some of these people are very educated in regards to all elements of our society and economy, when would you make your next hit?? I don’t mean to be an alarmist but those are real questions. We just simply cannot afford to put ourselves in these predicaments.
ParticipantFor me its not about missing the boat, if people made money on this boom then all the power to them, congratulations. I am not against people making money. I owned a property in Kirkland WA from 1993 o 2004 so I got on the boat, smaller boat, but a boat none the less. Here is what makes me angry and dare say bitter. It’s the disruption of the market place in an asset that is so essential to one’s life and lifestyle. As we are now going into the full blown portion of the correction one can see how this misallocation of credit was nothing more than an unnecessary obstacle for somebody to lay down roots on move along in their lives without risking financial armageddon. Other than the few who sold at the top nothing good came from this financially, socially and economically.
On a more serious note here is something to ponder. I think about this often. The threat of terrorism unfortunately is very real. Right now as a direct consequence of this credit/housing bubble we are looking down the barrel of a financial crisis not seen since the Depression, that is not hyperbole and that does not mean a depression is guaranteed to happen. Point being the U.S. is very vulnerable right now to any type of financial shock. Ask yourself what would be the impact of a 9/11 type event NOW?? If you were a terrorist, some of these people are very educated in regards to all elements of our society and economy, when would you make your next hit?? I don’t mean to be an alarmist but those are real questions. We just simply cannot afford to put ourselves in these predicaments.
ParticipantFor me its not about missing the boat, if people made money on this boom then all the power to them, congratulations. I am not against people making money. I owned a property in Kirkland WA from 1993 o 2004 so I got on the boat, smaller boat, but a boat none the less. Here is what makes me angry and dare say bitter. It’s the disruption of the market place in an asset that is so essential to one’s life and lifestyle. As we are now going into the full blown portion of the correction one can see how this misallocation of credit was nothing more than an unnecessary obstacle for somebody to lay down roots on move along in their lives without risking financial armageddon. Other than the few who sold at the top nothing good came from this financially, socially and economically.
On a more serious note here is something to ponder. I think about this often. The threat of terrorism unfortunately is very real. Right now as a direct consequence of this credit/housing bubble we are looking down the barrel of a financial crisis not seen since the Depression, that is not hyperbole and that does not mean a depression is guaranteed to happen. Point being the U.S. is very vulnerable right now to any type of financial shock. Ask yourself what would be the impact of a 9/11 type event NOW?? If you were a terrorist, some of these people are very educated in regards to all elements of our society and economy, when would you make your next hit?? I don’t mean to be an alarmist but those are real questions. We just simply cannot afford to put ourselves in these predicaments.
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