[TheBreeze]

So during the last real estate crash, lenders became landlords? Were mortgages sold on the secondary market back then? I wonder if some of the mortgage holders today could become landlords if they wanted to. Take a pension fund that holds some MBSs for example, are they allowed to hold rental property? Would they even want to?

I also wouldn’t read too much into HLS’s statements. The tightening of the mortgage market has just begun. Sure some people can still get loans. But, there’s fewer people that can get loans this month than there were last month and there will be even fewer people who can get loans next month. The bubble took time to expand and it will take time to deflate. The stock market bubble of 2000 didn’t fully deflate until 2003, and we all know stocks are much more liquid than homes.

I don’t think we’re going to see a political bailout either. It does not appear that Bush is going to raise Freddie’s and Fannie’s conforming limits. So the Congress can pass all the bills they want, but if Bush won’t sign them, the limits won’t be raised.

[TheBreeze]

So during the last real estate crash, lenders became landlords? Were mortgages sold on the secondary market back then? I wonder if some of the mortgage holders today could become landlords if they wanted to. Take a pension fund that holds some MBSs for example, are they allowed to hold rental property? Would they even want to?

I also wouldn’t read too much into HLS’s statements. The tightening of the mortgage market has just begun. Sure some people can still get loans. But, there’s fewer people that can get loans this month than there were last month and there will be even fewer people who can get loans next month. The bubble took time to expand and it will take time to deflate. The stock market bubble of 2000 didn’t fully deflate until 2003, and we all know stocks are much more liquid than homes.

I don’t think we’re going to see a political bailout either. It does not appear that Bush is going to raise Freddie’s and Fannie’s conforming limits. So the Congress can pass all the bills they want, but if Bush won’t sign them, the limits won’t be raised.

[TheBreeze]

“Considering the antagonism some men have toward women, I’m surprised that those men are married to women. It seems like they would be happier as homosexuals, mated with their own kind.”

If I’m not mistaken, PC has admitted to a special affection for the brown eye.

[TheBreeze]

“Considering the antagonism some men have toward women, I’m surprised that those men are married to women. It seems like they would be happier as homosexuals, mated with their own kind.”

If I’m not mistaken, PC has admitted to a special affection for the brown eye.

[TheBreeze]

“Considering the antagonism some men have toward women, I’m surprised that those men are married to women. It seems like they would be happier as homosexuals, mated with their own kind.”

If I’m not mistaken, PC has admitted to a special affection for the brown eye.

[TheBreeze]

My 401(k) money market is 75% repurchase agreements and 25% MBS. And that’s the safest option in my 401(k). I’d like to punch my money market manager in the face.

[TheBreeze]

My 401(k) money market is 75% repurchase agreements and 25% MBS. And that’s the safest option in my 401(k). I’d like to punch my money market manager in the face.

[TheBreeze]

My 401(k) money market is 75% repurchase agreements and 25% MBS. And that’s the safest option in my 401(k). I’d like to punch my money market manager in the face.

[TheBreeze]

These predictions aren’t being pulled out of thin air. Piggingtonians are using the available data to make predictions — number of ARM resets, income levels, current interest rate and what have you. Is anyone going to be able to predict the exact bottom? Probably not many, but it looks like a good bet that the market is going to be lower next year than it is this year.

All one can really do is use the data to make estimates based on probabilities. If you think the time to buy is now and that prices will soon shoot up again then go for it. You can come back in laugh in all our faces next year after your house has doubled in value.

[TheBreeze]

These predictions aren’t being pulled out of thin air. Piggingtonians are using the available data to make predictions — number of ARM resets, income levels, current interest rate and what have you. Is anyone going to be able to predict the exact bottom? Probably not many, but it looks like a good bet that the market is going to be lower next year than it is this year.

All one can really do is use the data to make estimates based on probabilities. If you think the time to buy is now and that prices will soon shoot up again then go for it. You can come back in laugh in all our faces next year after your house has doubled in value.

[TheBreeze]

These predictions aren’t being pulled out of thin air. Piggingtonians are using the available data to make predictions — number of ARM resets, income levels, current interest rate and what have you. Is anyone going to be able to predict the exact bottom? Probably not many, but it looks like a good bet that the market is going to be lower next year than it is this year.

All one can really do is use the data to make estimates based on probabilities. If you think the time to buy is now and that prices will soon shoot up again then go for it. You can come back in laugh in all our faces next year after your house has doubled in value.

[TheBreeze]

If the Fed doesn’t ease and truly allows the market to fix itself, I think the dollar is done going down. A credit crunch is a deflationary monetary event. I believe the dollar has already started rallying against foreign currencies. Home prices, as well as the prices of other assets, will come down if the Fed doesn’t ease here. I hope Bernanke has the balls to stick to his guns.

And not everything is FDIC insured. There is nothing I can move my 401(k) money into that is FDIC insured. I’ve put my money in the Fidelity money market associated with my 401(k), but, as near as I can tell, up to 25% of that money market can be invested in the MBS market. I think it is restricted to investing only in Fannie- and Freddie-backed securities, but there’s no federal guarantee on Fannie and Freddie either.

My brokerage account is also not FDIC insured. There is something called the SIPC that protects that account, but I don’t believe that is a federal government entity.

The amount of exposure I have personally to this disaster actually caught me off guard. Potentially, my 401(k) money market account and my brokerage account could be wiped out. It really sucks that, although I’ve been very responsible with my money, I could still lose money based on what idiot bankers and brokers have done.

[TheBreeze]

If the Fed doesn’t ease and truly allows the market to fix itself, I think the dollar is done going down. A credit crunch is a deflationary monetary event. I believe the dollar has already started rallying against foreign currencies. Home prices, as well as the prices of other assets, will come down if the Fed doesn’t ease here. I hope Bernanke has the balls to stick to his guns.

And not everything is FDIC insured. There is nothing I can move my 401(k) money into that is FDIC insured. I’ve put my money in the Fidelity money market associated with my 401(k), but, as near as I can tell, up to 25% of that money market can be invested in the MBS market. I think it is restricted to investing only in Fannie- and Freddie-backed securities, but there’s no federal guarantee on Fannie and Freddie either.

My brokerage account is also not FDIC insured. There is something called the SIPC that protects that account, but I don’t believe that is a federal government entity.

The amount of exposure I have personally to this disaster actually caught me off guard. Potentially, my 401(k) money market account and my brokerage account could be wiped out. It really sucks that, although I’ve been very responsible with my money, I could still lose money based on what idiot bankers and brokers have done.

[TheBreeze]

If the Fed doesn’t ease and truly allows the market to fix itself, I think the dollar is done going down. A credit crunch is a deflationary monetary event. I believe the dollar has already started rallying against foreign currencies. Home prices, as well as the prices of other assets, will come down if the Fed doesn’t ease here. I hope Bernanke has the balls to stick to his guns.

And not everything is FDIC insured. There is nothing I can move my 401(k) money into that is FDIC insured. I’ve put my money in the Fidelity money market associated with my 401(k), but, as near as I can tell, up to 25% of that money market can be invested in the MBS market. I think it is restricted to investing only in Fannie- and Freddie-backed securities, but there’s no federal guarantee on Fannie and Freddie either.

My brokerage account is also not FDIC insured. There is something called the SIPC that protects that account, but I don’t believe that is a federal government entity.

The amount of exposure I have personally to this disaster actually caught me off guard. Potentially, my 401(k) money market account and my brokerage account could be wiped out. It really sucks that, although I’ve been very responsible with my money, I could still lose money based on what idiot bankers and brokers have done.

[TheBreeze]

One of the problems with trying to sell now is that you are very likely to have to price your home below the current ‘market’ price to get it to move. That’s not an easy thing for most people to do — especially when you will be selling voluntarily. It’s much easier psychologically to sell on the way up as you can price your home at the current market and then sell at an above market price.

You’re in a tough situation. The housing market could still drop 40% from here. However, you may have to price your house 10% below market to get it to sell. I’m not sure what I would do in your spot. Probably stay put.

[Author]

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