Forum Replies Created
-
AuthorPosts
-
privatebanker
ParticipantI posted this on another thread but I think it’s appropriate for this one as well.
“The current crisis is the result of the normal ebb and flows of
credit cycles, and the free market will amply handle the correction
that is already happening. Calls for Federal Reserve intervention or
for other governmental involvement — including an increase of the
Fannie Mae/Freddie Mac lending limits — must be rejected.In the free market, those that made bad credit decisions must be
allowed to pay the price, and only by paying dearly can lessons truly
be learned. Borrowers who were unwitting and took on too much debt
must learn that there are consequences for their actions. Homebuilders
that built too many homes or overpaid for land need to face the
consequences. Wall Street firms that provided credit to all of these
activities with too much laxity must also pay a price. This is all
part of a healthy correction.All of these players reaped benefits during the housing boom that
preceded the current crisis. Certain homeowners were able to
temporarily live above their means. Homebuilder and bank profits have
been exorbitant, and shareholders and executives of these companies
have profited mightily in the boom. To not permit losses now would be
a direct violation of the free-market ideals at the foundation of our
economy.”September 1, 2007 at 9:16 AM in reply to: cannot wait anymore, buying a condo now instead of a house at 4S Ranch, and wait to buy a bigger house later? #82931ParticipantNot sure if anyone commented on this already but another issue that draws my eyes to this plan is the mortgage piece. 0% down @ 6.25%? Is that correct?! What are the particulars here? For 0% down, are you just doing 1 loan or are there 2 loans? With 0% down and 1 loan, you would definitely be paying PMI.. Also, is this an adjustable mortgage? Sure the payment is $2,200 now but what about after it adjusts? This is a sure loser strategy. Your liabilities begin to rise while your home value decreases not allowing for a refinance into a fixed mortgage. Just a thought…
ParticipantThis is only helping the banks stay a float… I don’t view this as a positive. If anything, it further confirms that things are getting really bad.
“The current crisis is the result of the normal ebb and flows of
credit cycles, and the free market will amply handle the correction
that is already happening. Calls for Federal Reserve intervention or
for other governmental involvement — including an increase of the
Fannie Mae/Freddie Mac lending limits — must be rejected.In the free market, those that made bad credit decisions must be
allowed to pay the price, and only by paying dearly can lessons truly
be learned. Borrowers who were unwitting and took on too much debt
must learn that there are consequences for their actions. Homebuilders
that built too many homes or overpaid for land need to face the
consequences. Wall Street firms that provided credit to all of these
activities with too much laxity must also pay a price. This is all
part of a healthy correction.All of these players reaped benefits during the housing boom that
preceded the current crisis. Certain homeowners were able to
temporarily live above their means. Homebuilder and bank profits have
been exorbitant, and shareholders and executives of these companies
have profited mightily in the boom. To not permit losses now would be
a direct violation of the free-market ideals at the foundation of our
economy.”ParticipantThis is only helping the banks stay a float… I don’t view this as a positive. If anything, it further confirms that things are getting really bad.
“The current crisis is the result of the normal ebb and flows of
credit cycles, and the free market will amply handle the correction
that is already happening. Calls for Federal Reserve intervention or
for other governmental involvement — including an increase of the
Fannie Mae/Freddie Mac lending limits — must be rejected.In the free market, those that made bad credit decisions must be
allowed to pay the price, and only by paying dearly can lessons truly
be learned. Borrowers who were unwitting and took on too much debt
must learn that there are consequences for their actions. Homebuilders
that built too many homes or overpaid for land need to face the
consequences. Wall Street firms that provided credit to all of these
activities with too much laxity must also pay a price. This is all
part of a healthy correction.All of these players reaped benefits during the housing boom that
preceded the current crisis. Certain homeowners were able to
temporarily live above their means. Homebuilder and bank profits have
been exorbitant, and shareholders and executives of these companies
have profited mightily in the boom. To not permit losses now would be
a direct violation of the free-market ideals at the foundation of our
economy.”ParticipantThis is only helping the banks stay a float… I don’t view this as a positive. If anything, it further confirms that things are getting really bad.
“The current crisis is the result of the normal ebb and flows of
credit cycles, and the free market will amply handle the correction
that is already happening. Calls for Federal Reserve intervention or
for other governmental involvement — including an increase of the
Fannie Mae/Freddie Mac lending limits — must be rejected.In the free market, those that made bad credit decisions must be
allowed to pay the price, and only by paying dearly can lessons truly
be learned. Borrowers who were unwitting and took on too much debt
must learn that there are consequences for their actions. Homebuilders
that built too many homes or overpaid for land need to face the
consequences. Wall Street firms that provided credit to all of these
activities with too much laxity must also pay a price. This is all
part of a healthy correction.All of these players reaped benefits during the housing boom that
preceded the current crisis. Certain homeowners were able to
temporarily live above their means. Homebuilder and bank profits have
been exorbitant, and shareholders and executives of these companies
have profited mightily in the boom. To not permit losses now would be
a direct violation of the free-market ideals at the foundation of our
economy.”ParticipantPowayseller is an absolute joke. I remember how naive she was when this site first came out. All of a sudden, she is a real estate expert (self-proclaimed).
History of PowaySeller:
– Starts out asking naive questions about RE/Economy
– Is on the site from morning till night with nothing better to do. I recall seeing her posts time stamped at 2 am on a number of occasions.
– From time to time, she would post a comment about her local observations
– As her confidence grew, she would copy and paste news stories from other sites
– With a growing ego, she begins questioning other people’s comments
– Ego still growing, she starts commenting on her own RE & economic views and simultaneously becomes an expert in all investments. Openly giving amateur investment advice to people she does not know.
– Regularly attacks other people’s posts and gets attacked in return
– Proclaims that she will never post on site again
– Some people say hey miss her comments (what were they thinking)
– She comes back (what a shock!) and begins being a typical idiot posting bird brain comments
– She successfully pisses off Rich et al
– Begins her own website providing the world with her “expert” views on the economy, investments and real estate.Like I said, she is an absolute joke.
ParticipantThis announcement was hilarious. This pending sales report only includes 20% of all signed contracts. How can you make an accurate assumption of what’s going on out there with such a small specimen of information. How was this good news when the Y-O-Y numbers show the index down 8.5%? THe NAR is trying to pull out all the stops aren’t they.
ParticipantI agree. We’re not comparing apples to apples here. We have just went through possibly the biggest credit bubble this country has ever seen. It’s starting to fizzle more and more. There are an enormous amount of ARMs resetting in the next few months. Many of these homeowners are scrambling to refi and appraisals are coming back well short. The no money down buyers are getting creamed right now. This enormous credit bubble has created several by-products. The largest being the housing bubble. The ’90s didn’t have the run up in values like we had the last few years. Many homes have appreciated over 300%. How is this a fundamental factor? Many homes in La Jolla on Soledad were selling between $300k – $500k just a few years ago. They are now selling for $1MM+. Typically, when an asset class deviates far out of it’s standard rate of return it eventually overcorrects before arriving back to it’s mean rate of return. I am a firm believer that prices will drop by a large margin over the next few years.
ParticipantWhat this woman was trying to tell you is that the credit union conducts a “Chex Systems” check on all depositors. If this was indeed what they were referring to, it’s not a full scale credit check and does not appear on your credit report. Some banks however do a “soft check” which allows them to inform you that you are preapproved for one of their credit cards, etc.
ParticipantLereah is just a talking head. His words are inserted in the back of his head by the RE tough guys that are on his back. David Lereah is the equal to Mary Meeker, the tech analyst for Morgan Stanley that so famously pushed the tech co’s that had no earnings/fundamentals in ’99.
By the way, what happened to our buddy Alan Gin? I haven’t heard anything from him in a while.
ParticipantThe last I heard, Blackhorse is a leasehold from UCSD I believe. La Jolla is a great story. There were countless sales in the ’90s for around $300k – $500k. Since then, these properties have inflated into the $ millions. I think it’s important to look at RE from a fundamental value perspective and ignore the hype and speculation. Here’s an example, in 1997 “a home” in La Jolla Farms overlooking the ocean sold for around $1.5MM. Today it’s for sale around $9MM. Does that make sense? Or is this pure hot air? I think the later of the two. Just remember every asset class is cyclical and the RE market is due for a huge return to the mean or an overcorrection. I am confident that La Jolla, Del Mar, RSF and other high end markets will not be immune to the downturn. Cielo in RSF for instance, it’s so far out there. I question that area being a true RSF address I think it’s more Escondido. Any way, there are a lot of homes for sale up there and have been sitting for a very long time with price reductions.
I think it gets worse from here. Be smart with your money, be creative. There are certain investments that stand to do well in an economic downturn. Do your homework but I would say gold could be one. If you have the money for the required minimums, certain hedge funds strategies are going to flourish.
ParticipantAs discussed previously, the Del Sur development is a ghost town in the making. Mello Roos + property taxes = around 1.8% annually. Not a pretty picture. Not to mention an HOA that is being partially paid by the developers. Not sure what the HOA fee will be when the developers are done. A lot higher is my guess.
February 12, 2007 at 8:02 AM in reply to: California housing bubble caused by yuppie surfers? #45135ParticipantI agree, anyone pitching business in the line up is out there for the wrong reasons. They deserve to be dropped in on.
ParticipantOne of the best summaries of the current situation that I’ve read in a long time. Good find!
-
AuthorPosts
