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April 10, 2010 at 10:58 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538196April 10, 2010 at 10:58 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538664
Rich ToscanoKeymasterYes MostlyLurk, you’ve pretty much nailed it — you have to do something with the capital with a rate of return that exceeds the mortgage rate. But my point is that that is exceedingly easy in a time of serious currency debasement. If there’s enough of that even the rate of return in a bank account could exceed the mortgage rate over that time period.
Rich
April 10, 2010 at 10:58 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538760Rich ToscanoKeymasterYes MostlyLurk, you’ve pretty much nailed it — you have to do something with the capital with a rate of return that exceeds the mortgage rate. But my point is that that is exceedingly easy in a time of serious currency debasement. If there’s enough of that even the rate of return in a bank account could exceed the mortgage rate over that time period.
Rich
April 10, 2010 at 10:58 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #539026Rich ToscanoKeymasterYes MostlyLurk, you’ve pretty much nailed it — you have to do something with the capital with a rate of return that exceeds the mortgage rate. But my point is that that is exceedingly easy in a time of serious currency debasement. If there’s enough of that even the rate of return in a bank account could exceed the mortgage rate over that time period.
Rich
April 10, 2010 at 4:36 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #537894Rich ToscanoKeymaster“Not one of them ever regrets paying the home off.”
Ask again in ten years… my guess is that by that time, they will see that they could have “paid off” a huge chunk of the loan via currency debasement, rather than by saving and sacrificing as they did.
Rich
April 10, 2010 at 4:36 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538016Rich ToscanoKeymaster“Not one of them ever regrets paying the home off.”
Ask again in ten years… my guess is that by that time, they will see that they could have “paid off” a huge chunk of the loan via currency debasement, rather than by saving and sacrificing as they did.
Rich
April 10, 2010 at 4:36 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538483Rich ToscanoKeymaster“Not one of them ever regrets paying the home off.”
Ask again in ten years… my guess is that by that time, they will see that they could have “paid off” a huge chunk of the loan via currency debasement, rather than by saving and sacrificing as they did.
Rich
April 10, 2010 at 4:36 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538579Rich ToscanoKeymaster“Not one of them ever regrets paying the home off.”
Ask again in ten years… my guess is that by that time, they will see that they could have “paid off” a huge chunk of the loan via currency debasement, rather than by saving and sacrificing as they did.
Rich
April 10, 2010 at 4:36 PM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538846Rich ToscanoKeymaster“Not one of them ever regrets paying the home off.”
Ask again in ten years… my guess is that by that time, they will see that they could have “paid off” a huge chunk of the loan via currency debasement, rather than by saving and sacrificing as they did.
Rich
April 8, 2010 at 8:02 AM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #537172Rich ToscanoKeymasterDan, I didn’t write the article, so the above questions should be directed to Diana Olick. I think TG has her number.
But my take on them is:
1. Many of the short sales will presumably those in the process of foreclosure (ie with nod’s on them). Anyway, it’s nitpicking on terminology and beside the point. The point is that she is alleging that some of the oft-discussed “shadow inventory” could finally start hitting the market, whatever label you want to use.
2. Clearing out that inventory will surely make for a healthier market eventually, but between here and there increased inventory (especially must-sell inventory) would likely put downward pressure on prices — or at least reduce upward pressure on prices. So I’d certainly agree that it’s bearish in the near term.
Rich
April 8, 2010 at 8:02 AM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #537298Rich ToscanoKeymasterDan, I didn’t write the article, so the above questions should be directed to Diana Olick. I think TG has her number.
But my take on them is:
1. Many of the short sales will presumably those in the process of foreclosure (ie with nod’s on them). Anyway, it’s nitpicking on terminology and beside the point. The point is that she is alleging that some of the oft-discussed “shadow inventory” could finally start hitting the market, whatever label you want to use.
2. Clearing out that inventory will surely make for a healthier market eventually, but between here and there increased inventory (especially must-sell inventory) would likely put downward pressure on prices — or at least reduce upward pressure on prices. So I’d certainly agree that it’s bearish in the near term.
Rich
April 8, 2010 at 8:02 AM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #537759Rich ToscanoKeymasterDan, I didn’t write the article, so the above questions should be directed to Diana Olick. I think TG has her number.
But my take on them is:
1. Many of the short sales will presumably those in the process of foreclosure (ie with nod’s on them). Anyway, it’s nitpicking on terminology and beside the point. The point is that she is alleging that some of the oft-discussed “shadow inventory” could finally start hitting the market, whatever label you want to use.
2. Clearing out that inventory will surely make for a healthier market eventually, but between here and there increased inventory (especially must-sell inventory) would likely put downward pressure on prices — or at least reduce upward pressure on prices. So I’d certainly agree that it’s bearish in the near term.
Rich
April 8, 2010 at 8:02 AM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #537857Rich ToscanoKeymasterDan, I didn’t write the article, so the above questions should be directed to Diana Olick. I think TG has her number.
But my take on them is:
1. Many of the short sales will presumably those in the process of foreclosure (ie with nod’s on them). Anyway, it’s nitpicking on terminology and beside the point. The point is that she is alleging that some of the oft-discussed “shadow inventory” could finally start hitting the market, whatever label you want to use.
2. Clearing out that inventory will surely make for a healthier market eventually, but between here and there increased inventory (especially must-sell inventory) would likely put downward pressure on prices — or at least reduce upward pressure on prices. So I’d certainly agree that it’s bearish in the near term.
Rich
April 8, 2010 at 8:02 AM in reply to: foreclosure wave about to hit — again! — and with a thunderous roar no less (per TG’s ladyfriend) #538123Rich ToscanoKeymasterDan, I didn’t write the article, so the above questions should be directed to Diana Olick. I think TG has her number.
But my take on them is:
1. Many of the short sales will presumably those in the process of foreclosure (ie with nod’s on them). Anyway, it’s nitpicking on terminology and beside the point. The point is that she is alleging that some of the oft-discussed “shadow inventory” could finally start hitting the market, whatever label you want to use.
2. Clearing out that inventory will surely make for a healthier market eventually, but between here and there increased inventory (especially must-sell inventory) would likely put downward pressure on prices — or at least reduce upward pressure on prices. So I’d certainly agree that it’s bearish in the near term.
Rich
Rich ToscanoKeymasterEven better! 😉
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