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SD Realtor
Participant“Oh and that depreciation deduction is huge.”
Yes it is… however it is recaptured by the IRS, (whether you take it or not)
Participant250 million just released to Egypt.
I guess we really didn’t need that money.
ParticipantI understand it is no fun.
Working in the private sector for AMCC I got no raise for 2 years before our group was entirely laid off. For 3 years before that I was an engineer at another start up before our entire group got laid off. In between I worked for IDT before our group got laid off. Also at IDT we had no raises and our vacation was reduced while I was there.
In 2009 I had a contract working for Rockwell Collins and the contract was terminated because the company was told the govt would not be funding that project.
While it is unfortunate for your husband it is a matter of fact that people in the private sector face transition like he is facing all of the time. It is hard but I dealt with it and I would presume he can as well.
Meanwhile while Americans lose work we just decided to fund the Syrian rebels with 60 million and we continue to send billions in “foreign aid” to other countries. Also thankfully we will stop stupid things like “flyovers” when military aircraft fly over sporting events. What is scary to me is that this is a very very small fraction of spending that is being reduced.
Again, it is unfortunate for you guys personally. However my personal experience has been that when I work for an entity that cannot borrow endless sums of money, they terminate mt employment. It was harsh. I apologize if I was callous.
ParticipantCAR agreed about not making all investors whole. However there were alot of county and state pensions that held investments as well. So yes I would have advocated a pick and choose.
ParticipantSK as you know my feelings are much different with regards to the policies that were implemented. The intended goals were met, however I feel they were met at a tremendous cost to the public. I believe that the following should have happened.
Let the foreclosure process run unfettered. No moratoriums, no slowdowns, no HARP, no HAMP, no loan modifications. Nothing. Granted that the delays in servicing were huge and caused by lack of foresight by the servicing entities to deal with the wave of short sales and foreclosures. However I also believe that if the servicing organizations were not pressed by the investors, they can act as slow as they want. If the investors were bailed out, then how much impetus do they have to press the servicers to foreclose or complete a short sale?
No bailouts should have been granted and tax revenues should not have been used to bailout the institutions that held the debt. I understand the magnitude of that statement and that many of the entities that had investments in that debt were mainstays of society. However I would have been okay with the govt keeping those investments above water directly.
I believe we would have had a much more robust recovery. I believe that housing prices would have dropped further to a much more affordable level. This would have enabled many people who were well behaved savers to take advantage and purchase property. This would have also enabled many middle class people who were financially stable to purchase rental properties. We would have formed local price bases in various cities in a much more natural manner. Yes it would have been a harder fall at first but it would have resulted in a firm price level and all of underlying assets attached to the bad debt would have been washed away. The holders of that bad debt would have an asset attached to it that was much less valuable. The govt would refund the difference in the principal to the investor directly.
I believe this would have accomplished several things. First off wash away all those who were underwater and simply could not afford to stay in a home they could not afford. They would move and rent and live within their means. There would be no more bad debt at the investment level. Finally I believe this would have been much more affordable then the trillions used for bailouts. Lastly base price levels would have been reached due to a glut of inventory. That inventory would slowly be sucked away. Now maybe we have inventory shortages but only because of organic reasons, no more of this, if you cannot afford the home, you get to stay anyways.
So yes, I agree with you that the goals of the policy implemented by the govt along with the snail like movement of the investors and servicers, and a few trillion of tax money worked. The market is more or less stable.
I simply believe we could have gotten better results for alot less money.
ParticipantNobody else seems to read ambiguity into my response, even the person who I was responding to. Guess you will have to figure it out.
ParticipantSo funny…
Here is what I wrote
Conditions are not favorable throughout the county compared to the past few years. Not for investment grade, not for owner occupancy grade. . . .
Here is what was commented on.
I disagree that the long-term owner occupier buyer can’t find a decent house
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I think it is awesome to make up things to disagree with. Kind of like playing chess against yourself!
ParticipantYou have to be more specific Josh. The short answer is no. Conditions are not favorable throughout the county compared to the past few years. Not for investment grade, not for owner occupancy grade. It also goes without saying I am talking about low or middle price tiers, not the 7 figure tiers.
Second, the low rates form a double whammy because investors have nowhere to put money. Do they choose an overbought stock market or an overbought real estate market? So now you have lots of investors buying, some seasoned, many not seasoned with regard to San Diego county and that is a bad recipe to create “favorable” conditions. I saw another home purchased at trustee sale for the same sales price as it was sold on the retail market back in 05. Prices will reach an equilibrium in the short term, maybe by the end of summer maybe the end of next summer, and then return to a much more subdued appreciation rate. Right now it is legging up fast and not a good place for buyers.
ParticipantThis is all pretty much to be expected isn’t it?
We did not let the market correct properly. Instead of letting the foreclosure process run a natural course, our government said no. Sacks of money were given to banks. A large number of homes did not hit the market that should have. No inventory glut occurred. Interest rates have been pushed WAY LOWER then the bubble interest rates ever were. Many people who should have lost their home did not. Loans were modified, and in some cases reduced.
Presto we have created conditions that were even WORSE then the original conditions that led to the bubble. It perpetuates itself. Those who were underwater soon will not be as the market marches higher.
Showed a home in Scripps yesterday. After 2 days on the market it has over 20 offers.
If you are a buyer looking for a deal in the I15 corridor or Carlsbad, my advice is to either come in very strong or go rent for awhile. Conditions like this may cool down some at the end of summer, but if people are predicting a reversal of the trend, well they are flat wrong. The trend will not reverse until rates rise substantially.
ParticipantI agree about the day of reckoning. Make no mistake, it will come. Hard to say if it will be a high speed wipeout, like a full on collapse of the bond market, or a slow painful squeeze of the monetary supply contracting and rates rising over a 5 or 10 year span. Where I disagree with the doomsday sentiment is when. I do believe that we can kick the can down the road for many years. Maybe 2, maybe 5, maybe 20. If the world keeps wanting to play then there is no problem.
ParticipantEconprof very good points. What is astounding to me is that if all of the “sky is going to fall” predictions due to the sequester are even remotely true, and that the sequester is such a miniscule fractional amount of the overall budget, then we are TOTALLY screwed and in no way will we ever, ever, ever be able to balance a budget again.
ParticipantI know it does suck. So alot fo the scams u see are short sale middlemen and such. One thing that is key for the short sale lender to approve the sale is that they always ask for a printout of the MLS listing. So the listing agent will put it on there simply to prove to the short sale processor that indeed the property was on the MLS.
Pretty much of a joke.
If the short sale lenders wanted to, they could eliminate all of this really easy. They can literally demand that short sale listing agents keep the property listed as active for a minimum of say a week or two. Similarly the short sale lenders can demand from each MLS that agents representing buyers can contact them if they had written a higher offer then what was actually accepted. That way they can bust listing agents that do this stuff.
But… that is not in the cards…. pretty sad.
ParticipantSo is 3.55% yoy typical for say the past 50 years?
ParticipantSo after the explosion it was flat compared to the explosion or flat compared to pre explosion spending?
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