[patientrenter]

I couldn’t give a rat’s ass about the political tripe that gets debated on various blogs, but hearing McCain sound a note of caution, limits, and personal responsibility on the housing bubble problems was so refreshing and unusual that I have decided who would get my vote this year.

Patient renter in OC

[patientrenter]

I couldn’t give a rat’s ass about the political tripe that gets debated on various blogs, but hearing McCain sound a note of caution, limits, and personal responsibility on the housing bubble problems was so refreshing and unusual that I have decided who would get my vote this year.

Patient renter in OC

[patientrenter]

I couldn’t give a rat’s ass about the political tripe that gets debated on various blogs, but hearing McCain sound a note of caution, limits, and personal responsibility on the housing bubble problems was so refreshing and unusual that I have decided who would get my vote this year.

Patient renter in OC

[patientrenter]

I couldn’t give a rat’s ass about the political tripe that gets debated on various blogs, but hearing McCain sound a note of caution, limits, and personal responsibility on the housing bubble problems was so refreshing and unusual that I have decided who would get my vote this year.

Patient renter in OC

[patientrenter]

California is a so-called non-recourse state: Debt incurred to purchase a home can be discharged by handing over the home. The lender has no recourse to any other assets of the borrower. If money was borrowed after the home was purchased, such as in a home equity line of credit withdrawal, or in a refinancing of the original purchase loan, then the lender can go after the borrower for any deficiency in the home’s value versus the debt.

Patient renter in OC

[patientrenter]

California is a so-called non-recourse state: Debt incurred to purchase a home can be discharged by handing over the home. The lender has no recourse to any other assets of the borrower. If money was borrowed after the home was purchased, such as in a home equity line of credit withdrawal, or in a refinancing of the original purchase loan, then the lender can go after the borrower for any deficiency in the home’s value versus the debt.

Patient renter in OC

[patientrenter]

California is a so-called non-recourse state: Debt incurred to purchase a home can be discharged by handing over the home. The lender has no recourse to any other assets of the borrower. If money was borrowed after the home was purchased, such as in a home equity line of credit withdrawal, or in a refinancing of the original purchase loan, then the lender can go after the borrower for any deficiency in the home’s value versus the debt.

Patient renter in OC

[patientrenter]

California is a so-called non-recourse state: Debt incurred to purchase a home can be discharged by handing over the home. The lender has no recourse to any other assets of the borrower. If money was borrowed after the home was purchased, such as in a home equity line of credit withdrawal, or in a refinancing of the original purchase loan, then the lender can go after the borrower for any deficiency in the home’s value versus the debt.

Patient renter in OC

[patientrenter]

California is a so-called non-recourse state: Debt incurred to purchase a home can be discharged by handing over the home. The lender has no recourse to any other assets of the borrower. If money was borrowed after the home was purchased, such as in a home equity line of credit withdrawal, or in a refinancing of the original purchase loan, then the lender can go after the borrower for any deficiency in the home’s value versus the debt.

Patient renter in OC

[patientrenter]

“This is one of those self-fulfilling prophesy type things, isn’t it?

The other question is who, if anyone will pick up the $2 Trillion in lending opportunity that the big boys turn away?”

The way you phrase your questions betrays what you think the answers are. Saying that something is a “self-fulfilling prophesy” makes it sound as if it is caused by irrational psychology, not rational fundamentals.

I do not think that the downturn in prices in CA, and other states that saw price increases above the rate of wage increases, is caused by irrational psychology. I think this downturn is a return to rational fundamentals. It was the prior massive house price inflation that was the irrational self-fulfilling prophesy: “Buy now or…”.

Calling a possible action an “opportunity” makes it sound like the smart thing to do. I wouldn’t call applying a sharp serrated knife to my fingers an “opportunity”. I’d argue that banks have been lending $2 trillion a year that doesn’t make sense, to fraudulent borrowers putting down no money of their own, on houses appraised well over their value. Now the banks are stopping because they are getting called on the nonsense. That’s what that $2 trillion “opportunity” looks like. Anyone who wants to step in and continue the fraud-ridden and completely noneconomic lending that went into that $ 2 trillion can do so, but I wouldn’t call it an opportunity.

Patient renter in OC

[patientrenter]

“This is one of those self-fulfilling prophesy type things, isn’t it?

The other question is who, if anyone will pick up the $2 Trillion in lending opportunity that the big boys turn away?”

The way you phrase your questions betrays what you think the answers are. Saying that something is a “self-fulfilling prophesy” makes it sound as if it is caused by irrational psychology, not rational fundamentals.

I do not think that the downturn in prices in CA, and other states that saw price increases above the rate of wage increases, is caused by irrational psychology. I think this downturn is a return to rational fundamentals. It was the prior massive house price inflation that was the irrational self-fulfilling prophesy: “Buy now or…”.

Calling a possible action an “opportunity” makes it sound like the smart thing to do. I wouldn’t call applying a sharp serrated knife to my fingers an “opportunity”. I’d argue that banks have been lending $2 trillion a year that doesn’t make sense, to fraudulent borrowers putting down no money of their own, on houses appraised well over their value. Now the banks are stopping because they are getting called on the nonsense. That’s what that $2 trillion “opportunity” looks like. Anyone who wants to step in and continue the fraud-ridden and completely noneconomic lending that went into that $ 2 trillion can do so, but I wouldn’t call it an opportunity.

Patient renter in OC

[patientrenter]

“This is one of those self-fulfilling prophesy type things, isn’t it?

The other question is who, if anyone will pick up the $2 Trillion in lending opportunity that the big boys turn away?”

The way you phrase your questions betrays what you think the answers are. Saying that something is a “self-fulfilling prophesy” makes it sound as if it is caused by irrational psychology, not rational fundamentals.

I do not think that the downturn in prices in CA, and other states that saw price increases above the rate of wage increases, is caused by irrational psychology. I think this downturn is a return to rational fundamentals. It was the prior massive house price inflation that was the irrational self-fulfilling prophesy: “Buy now or…”.

Calling a possible action an “opportunity” makes it sound like the smart thing to do. I wouldn’t call applying a sharp serrated knife to my fingers an “opportunity”. I’d argue that banks have been lending $2 trillion a year that doesn’t make sense, to fraudulent borrowers putting down no money of their own, on houses appraised well over their value. Now the banks are stopping because they are getting called on the nonsense. That’s what that $2 trillion “opportunity” looks like. Anyone who wants to step in and continue the fraud-ridden and completely noneconomic lending that went into that $ 2 trillion can do so, but I wouldn’t call it an opportunity.

Patient renter in OC

[patientrenter]

“This is one of those self-fulfilling prophesy type things, isn’t it?

The other question is who, if anyone will pick up the $2 Trillion in lending opportunity that the big boys turn away?”

The way you phrase your questions betrays what you think the answers are. Saying that something is a “self-fulfilling prophesy” makes it sound as if it is caused by irrational psychology, not rational fundamentals.

I do not think that the downturn in prices in CA, and other states that saw price increases above the rate of wage increases, is caused by irrational psychology. I think this downturn is a return to rational fundamentals. It was the prior massive house price inflation that was the irrational self-fulfilling prophesy: “Buy now or…”.

Calling a possible action an “opportunity” makes it sound like the smart thing to do. I wouldn’t call applying a sharp serrated knife to my fingers an “opportunity”. I’d argue that banks have been lending $2 trillion a year that doesn’t make sense, to fraudulent borrowers putting down no money of their own, on houses appraised well over their value. Now the banks are stopping because they are getting called on the nonsense. That’s what that $2 trillion “opportunity” looks like. Anyone who wants to step in and continue the fraud-ridden and completely noneconomic lending that went into that $ 2 trillion can do so, but I wouldn’t call it an opportunity.

Patient renter in OC

[patientrenter]

“This is one of those self-fulfilling prophesy type things, isn’t it?

The other question is who, if anyone will pick up the $2 Trillion in lending opportunity that the big boys turn away?”

The way you phrase your questions betrays what you think the answers are. Saying that something is a “self-fulfilling prophesy” makes it sound as if it is caused by irrational psychology, not rational fundamentals.

I do not think that the downturn in prices in CA, and other states that saw price increases above the rate of wage increases, is caused by irrational psychology. I think this downturn is a return to rational fundamentals. It was the prior massive house price inflation that was the irrational self-fulfilling prophesy: “Buy now or…”.

Calling a possible action an “opportunity” makes it sound like the smart thing to do. I wouldn’t call applying a sharp serrated knife to my fingers an “opportunity”. I’d argue that banks have been lending $2 trillion a year that doesn’t make sense, to fraudulent borrowers putting down no money of their own, on houses appraised well over their value. Now the banks are stopping because they are getting called on the nonsense. That’s what that $2 trillion “opportunity” looks like. Anyone who wants to step in and continue the fraud-ridden and completely noneconomic lending that went into that $ 2 trillion can do so, but I wouldn’t call it an opportunity.

Patient renter in OC

[patientrenter]

Deal Hunter, how did you conclude that the most likely outcome of all this is a massive victory for hard-core Republican political goals? I don’t care about the politics, but I can see that the Republican party’s agenda is near-dead. In November, no one thinks that either the House or Senate will go Republican. The only question is whether the character of the Republican candidate can overcome the political groundswell in favor of the Democrat agenda.

The long-term outcome of this still-emerging massive bail-out will be the same as for every other temporary expansion of government in the last 100 years – a permament expansion. From now on, home prices will be determined directly by the Federal govt’s finger on the money spigots. When next prices go down after this little event, they will have lots of new spigots to open.

Patient renter in OC

[Author]

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