[PerryChase]

For one thing, without cash flow, the lenders will soon close their doors. Looks at an Option ARM. The borrower pays the minimum but the bank books the whole amount of interest (a big chunk not paid) as income. How long do you think the lender will last with accrual income but no cash flow?

The loans don’t reset then income cannot be booked, or huge write downs must be taken. Lender goes out of business and the executives don’t get big bonuses.

[PerryChase]

SD Realtor, you provide great insight into what the market is today.

As the professor wrote in a previous article, homeowners gambled on price appreciation. They did not buy homes they can afford, but they gambled on holding for a short period of time to use the equity to climb up the property ladder. Now that the loans are resetting and values are dropping, the homeowners are out of wherewithal. It’s happening at all levels of income.

You can be sure that people are turning in at lot more luxury car leases than toyota leases. My brother just bought a 911 from a seller in the Bay Area who had to sell immediately. He even delivered the car to San Diego. There’s plenty of money floating around in the Bay Area but not enough for the seller to sell right now, even at a greatly discounted price.

I watch the housing market and my brother watches the automobile market. The two are tied at the hip. The luxury car goes first, then it’s the luxury home — even in La Jolla. If someone sells a luxury vehicle, but does not get a replacement car, you can be pretty sure that his house is for sale.

[PerryChase]

SD Realtor, you provide great insight into what the market is today.

As the professor wrote in a previous article, homeowners gambled on price appreciation. They did not buy homes they can afford, but they gambled on holding for a short period of time to use the equity to climb up the property ladder. Now that the loans are resetting and values are dropping, the homeowners are out of wherewithal. It’s happening at all levels of income.

You can be sure that people are turning in at lot more luxury car leases than toyota leases. My brother just bought a 911 from a seller in the Bay Area who had to sell immediately. He even delivered the car to San Diego. There’s plenty of money floating around in the Bay Area but not enough for the seller to sell right now, even at a greatly discounted price.

I watch the housing market and my brother watches the automobile market. The two are tied at the hip. The luxury car goes first, then it’s the luxury home — even in La Jolla. If someone sells a luxury vehicle, but does not get a replacement car, you can be pretty sure that his house is for sale.

[PerryChase]

SD Realtor, you provide great insight into what the market is today.

As the professor wrote in a previous article, homeowners gambled on price appreciation. They did not buy homes they can afford, but they gambled on holding for a short period of time to use the equity to climb up the property ladder. Now that the loans are resetting and values are dropping, the homeowners are out of wherewithal. It’s happening at all levels of income.

You can be sure that people are turning in at lot more luxury car leases than toyota leases. My brother just bought a 911 from a seller in the Bay Area who had to sell immediately. He even delivered the car to San Diego. There’s plenty of money floating around in the Bay Area but not enough for the seller to sell right now, even at a greatly discounted price.

I watch the housing market and my brother watches the automobile market. The two are tied at the hip. The luxury car goes first, then it’s the luxury home — even in La Jolla. If someone sells a luxury vehicle, but does not get a replacement car, you can be pretty sure that his house is for sale.

[PerryChase]

The best that public figures can do is warn us. They have to be circumspect as not to cause general panic and “a self fulfilling prophecy.” They need to keep the public feeling positive and working hard.

The last time, prices did not return to 1989 nominal levels until 1997. This time, I don’t think that prices will return to 2005 nominal level until 2017. Time will tell.

[PerryChase]

The best that public figures can do is warn us. They have to be circumspect as not to cause general panic and “a self fulfilling prophecy.” They need to keep the public feeling positive and working hard.

The last time, prices did not return to 1989 nominal levels until 1997. This time, I don’t think that prices will return to 2005 nominal level until 2017. Time will tell.

[PerryChase]

The best that public figures can do is warn us. They have to be circumspect as not to cause general panic and “a self fulfilling prophecy.” They need to keep the public feeling positive and working hard.

The last time, prices did not return to 1989 nominal levels until 1997. This time, I don’t think that prices will return to 2005 nominal level until 2017. Time will tell.

[PerryChase]

Not surprising. I expected that.

Remember we’re still at the BEGINNING of the downturn (at least as far as the press and the general public are concerned). Like they say “the snow ball is only 20% down the hill.”

[PerryChase]

Not surprising. I expected that.

Remember we’re still at the BEGINNING of the downturn (at least as far as the press and the general public are concerned). Like they say “the snow ball is only 20% down the hill.”

[PerryChase]

Not surprising. I expected that.

Remember we’re still at the BEGINNING of the downturn (at least as far as the press and the general public are concerned). Like they say “the snow ball is only 20% down the hill.”

[PerryChase]

Of course, intelligence and beauty together is best.

But if had to choose, I’d go for beauty since I think I have enough smarts for two, ha.ha.

Well-educated, know it all girls are hard-driving and boring. Nice and charming girls are more pleasant to be around. I hate to say it, but there’s a reason middle-aged professional women can’t find husbands.

Upper middle class American women are demanding and a nag. Plus they are not that well-learned. Russian and Chinese women have PhDs and are much more pleasant; plus they can play the violin and cook.

*** I’m only 1/2 serious/kidding but there’s some truth to this.

[PerryChase]

Of course, intelligence and beauty together is best.

But if had to choose, I’d go for beauty since I think I have enough smarts for two, ha.ha.

Well-educated, know it all girls are hard-driving and boring. Nice and charming girls are more pleasant to be around. I hate to say it, but there’s a reason middle-aged professional women can’t find husbands.

Upper middle class American women are demanding and a nag. Plus they are not that well-learned. Russian and Chinese women have PhDs and are much more pleasant; plus they can play the violin and cook.

*** I’m only 1/2 serious/kidding but there’s some truth to this.

[PerryChase]

Of course, intelligence and beauty together is best.

But if had to choose, I’d go for beauty since I think I have enough smarts for two, ha.ha.

Well-educated, know it all girls are hard-driving and boring. Nice and charming girls are more pleasant to be around. I hate to say it, but there’s a reason middle-aged professional women can’t find husbands.

Upper middle class American women are demanding and a nag. Plus they are not that well-learned. Russian and Chinese women have PhDs and are much more pleasant; plus they can play the violin and cook.

*** I’m only 1/2 serious/kidding but there’s some truth to this.

[PerryChase]

Another thing. I think that housing will track Iraq.

Whatever the percentage housing decline is, we won’t see a bottom until we’re out of iraq.

Also, there won’t be a bottom until we experience a recession. We’re now due for a recession, and I don’t believe that the Fed will, want to, or are capable, of engineering a safe landing of the general economy.

I’m not buying until:
1) recession hits (job losses will kill the new areas),
2) some Iraq resolution is worked out (so energy costs and risks are stabilized).

[PerryChase]

Another thing. I think that housing will track Iraq.

Whatever the percentage housing decline is, we won’t see a bottom until we’re out of iraq.

Also, there won’t be a bottom until we experience a recession. We’re now due for a recession, and I don’t believe that the Fed will, want to, or are capable, of engineering a safe landing of the general economy.

I’m not buying until:
1) recession hits (job losses will kill the new areas),
2) some Iraq resolution is worked out (so energy costs and risks are stabilized).

[Author]

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