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I just read a Financial Times article about his issue.
There’s no market for some the assets the banks hold so it’s difficult to value the assets, much less trade them. The Fed migh relax the rules and go easy on the banks.

Remember BNP Paribas? They could not value their funds so froze them temporarily.

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Good job, OCrenter.
I love your blog!

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A bailout is fine if it benefits all citizens.

If the Fed or government bail out private companies, they should demand that existing shareholders give up an equity stake in the enterprise. That’s only fair.

When BofA invested in Countrywide, they got 20% of the company. Government money belongs to all citizens, not just shareholders. Capitalism doesn’t mean that shareholders get to make all the money, then when they lose money, the government steps in to make them whole. That’s called a scam.

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Better safe than sorry.

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If I remember well, Greenspan believed in the new paradigm. He thought that info-tech and new financial products would allow the financial leaders to “fine tune” the economy just like a car computer adjusts the air-fuel mixture for optimal driving. From then on, we would only have minor recessions. The “check engine” light would turn on before major damage is done. The next few years will be the true test of the Greenspan doctrine.

CEOs generally bought into this mentality as well. Remember the frictionless business model managed by computers? Data mining would allow businesses to “instantly” react to changing business environment.

Dell built all those assembly and distribution plants to “instantly” serve customers. But now their model is antiquated as laptops are shipped directly from China via DHL. Dell is weighted down by stateside costs whereas HP concentrates on design then ships directly from China.

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Wow, 100k loss on a 2/2 condo!! Those suckers must be kicking themselves.

Are these condos on the 92037 La Jolla side, or on the University side?

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Ask your trusted Realtor (if there is such person) to poke around and find out:
1. how much he owes on that property you want to rent;
2. if he owns other properties in the county;
3. how much he owes on the other properties he might own.

It’s all public data and the title companies have that info.

If you have time, you can go to the County Recorder’s office to poke around yourself.

I think that a subscription to realtytrac.com might give you the data you need, but I’ve not tried it.

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Can you tell us what condo building you live in?

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ocrenter, you write one of the most intelligent real estate blogs out there.

I like the way you give specific examples of idiocy and/or fraud.

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They own Pardee.

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The undisclosed reserve shows that this auction is a gimmick. Buyers should stay away.

$200k for a 1bd is still overpriced. $100k is more like it.

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If I had a good deal lined up, i’d keep it on the DL. Don’t want anyone else to snatch it from under me. So I wouldn’t post it either.

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I agree with Cardiff.
The foreclosures have to be resold so someone. To find buyers, prices have to drop.
I have a relative who lives in the Columbus, Ohio area. They live near the best private school in Gahanna and prices only nominally moved up during the boom. Now the whole region is being hit with foreclosures. Guess where prices are headed?

The whole country is affected by the mortgage mess. The places such as California and Florida that overheated the most will experience the most pain. But “affordable” TX, OH, IN will be affected as well.

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I think there truth to that.
The stats do indicate that were are much more mobile society and that households move on average once every 5 years. Jobs are no longer guaranteed and people often need to move for professional reasons.

Buyers who buy in a down market need to consider their future job prospects before buying. If they sell as the market continues to decline, they’ll loose a huge amount because of depreciation and transactions costs (plus all the years of ownership premium they paid and won’t recover. That premium is real money since it’s savings they would otherwise have).

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” Given the price of land and the cost to develop the land, some of these homes are coming in at about cost to build in some developments”

Nor-La-Temcu-SD-GUY, please not the same tired industry argument. Land prices drop when no one buys. Builders will just have to cut their profit margins on their work. Tough for them, but that’s how it works.

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