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-- Next stop: Recession
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The FHA bill isn't a bad thing. Lots of people facing foreclosure and rate hikes will be able to lock into 30yr fixed rates, fha rates are pretty much the same as conforming rates.

Is it like a full qual fha refi or are we talking streamlines? if it's streamlines im getting back into them, i used to fund about 15 streamlines a month back in 2003, such easy loans to do..

quote:

Originally posted by starboy The FHA bill isn't a bad thing. Lots of people facing foreclosure and rate hikes will be able to lock into 30yr fixed rates, fha rates are pretty much the same as conforming rates. Is it like a full qual fha refi or are we talking streamlines? if it's streamlines im getting back into them, i used to fund about 15 streamlines a month back in 2003, such easy loans to do..

The feds lowering rates is a necessary evil that must be done but I truly hope they don't drop them much further. Now everything else, the FHA bill, increasing GSE caps, and loosening requirements of fannie and freddie will be disastrous and make for a much worse recession.

I know there are a lot of people facing foreclosure but bailing them out only postpones the inevitable and will make for an economic depression like we've never seen.

I don't want to see 2 million peoples lose their homes but how does bankrupting the country and putting us into a depression just to bail them out benefit anyone? True they have to go rent a place that they can actually afford and no one wants to lose their home but I'm sorry most will have to face this reality. Most of them, not all, but most got caught up in the real estate hype assuming property would appreciate forever and got into payments and loans that they have no where NEAR the income to afford. That's their bad and there is no such thing as a no risk investment.

These bills and GSE proposed changes just keep them in their homes a little longer and the value overinflated longer. In the big picture we are still going into a recession and from that, once all the sectors are affected and the bailed out homeowners get laid off, get cut salaries, self-employed ones lose business, etc etc etc, they will get foreclosed on eventually. lets not forget the recession hasn't begun and the stock dove when the US labor department said that the previous quarter was supposed to increase about 70,000 jobs and in fact went into the red and lost 4,000 jobs. so make no mistake the recession will happen and making this credit bubble even bigger jeopardizes the whole country and can bankrupt our economic infrastructure.

The feds just need to ease the air out of the bubble at a slow responsible manner and we have to face a couple hard years due to over inflation. There is no easy way out, its simple economics. Bail outs just drag things out and make things worse in the long run. The only bill I'm relatively supporting, which is sort of a bail out but minor, is removing the debt forgiveness tax for those that short sale their home and would normally get taxed on the difference. It sucks to come to that but may be what it takes to make for just a recession and not a full economic depression.

About the only good thing he has done so far this year (from mortgageimplode.com):

Bernanke Says He Opposes Bigger Mortgages for Fannie, Freddie
(bloomberg.com)

2007-09-19

Good; but apparently he doesn't oppose interest-rate bailouts for bankers.

http://www.bloomberg.com/apps/news?..._pro&refer=home

Whats after depression...

WARRRRR!!!

seriously though...

quote:

Originally posted by 72hrpartyanimal Whats after depression... WARRRRR!!! seriously though...

it worked for the Great Depression & WWII.

quote:

Originally posted by djGT it worked for the Great Depression & WWII.

exactly!!

quote:

Originally posted by djGT it worked for the Great Depression & WWII.

quote:

Originally posted by 72hrpartyanimal exactly!!

2008 - recession
2009 - depression
2010 - declare war against iran
2011 - country rebounds due to war


well, i dunno about the above but like the previous post war does boost the economy like no other

quote:

Originally posted by ninetyninej 2008 - recession 2009 - depression 2010 - declare war against iran 2011 - country rebounds due to war well, i dunno about the above but like the previous post war does boost the economy like no other

and to keep this related to TA:

2012 - Tiesto voted #1 on DJMag again!

The legend lives on!

quote:

Originally posted by djGT and to keep this related to TA: 2012 - Tiesto voted #1 on DJMag again! The legend lives on!

hehe -- you know the Mayans predicted the world would end at the end of 2012 so that definitely coincides with Tiesto being voted #1

Yeah, keep lowering rates and destroy the dollar, fucking feds


Fears of dollar collapse as Saudis take fright

"The Fed's dramatic half point cut to 4.75pc yesterday has already caused a plunge in the world dollar index to a fifteen year low, touching with weakest level ever against the mighty euro at just under $1.40."

http://www.telegraph.co.uk/money/ma...bcnsaudi119.xml


China threatens 'nuclear option' of dollar sales

http://www.telegraph.co.uk/money/ma...cnchina107a.xml

quote:

Originally posted by ninetyninej China threatens 'nuclear option' of dollar sales http://www.telegraph.co.uk/money/ma...cnchina107a.xml

Fears of dollar collapse as Saudis take fright

quote:

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East. "This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas. "Saudi Arabia has $800bn (�400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said. The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg. As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.

Oh oh, the Saudis might pull the trigger first!

Fed Reserve hearing with Bernanke and Treasurer Paulson this morning was interesting and Senator Ron Paul bashing them was fun as well. I'm glad there is some opposition to raising caps with Fannie & Freddie. Oh, and Bernanke side stepping the fact that this mess' largest contributor was the fed reserve lowering rates to 1% in 2003 was appalling.



..in other news, the dollar keeps plummeting:

Dollar Falls to Record Low Against Euro on Fed's Rate Outlook

By Min Zeng
Enlarge Image/Details

Sept. 20 (Bloomberg.com)

Losses in the dollar accelerated after London's Daily Telegraph newspaper reported, citing analysts, that Saudi Arabia may drop its currency's link to the dollar. The nation is likely to keep the peg, an adviser to King Abdullah said. The euro rose above $1.40 for the first time since its introduction in 1999. The Canadian dollar earlier equaled its U.S. counterpart.

The U.S. currency fell 1 percent to $1.4093 per euro at 11:24 a.m. in New York and earlier reached $1.4094, the lowest since the European single currency's inception. The U.S. currency has lost 6.4 percent this year versus the euro.

The dollar also fell 1.5 percent to 114.38 yen, and 1.4 percent to 99.91 U.S. cents against the Canadian dollar. The Canadian dollar earlier equaled its U.S. counterpart for the first time since November 1976. The dollar declined 1.2 percent to 1.1696 versus the Swiss franc and earlier touched 1.1693, the weakest since March 2005.

http://www.bloomberg.com/apps/news?...HsLM&refer=home



djGT, i love the U.K.'s image of Bernanke and the feds affect on the dollar index in that article you posted about the dollar

http://www.economicsbriefing.com/20...ove-parity.html


Canadian Dollar Breaks Above Parity Versus the U. S. Dollar

The Canadian dollar has broken above parity with the United States dollar. In New York trading at 10:59 am EDT, it cost 1.0004 US dollars to buy one Canadian dollar.

In May 2004, it cost just 72 cents to buy one Canadian dollar

---------
The Dollar keeps losing value almost by the day it seems, spiralling downward unstoppable. As ninetynine said, this artificial manipulation by the Fed is only prolonging it's demise. Ron Paul and other economists have been saying that any fiat money system will eventually fail and collapse. You can't keep printing money at will and expect to maintain the economy forever.

Say goodbye to the US dollar and the American way of life and say hello to the Amero.

quote:

Originally posted by groovedaddy21 The Dollar keeps losing value almost by the day it seems, spiralling downward unstoppable. As ninetynine said, this artificial manipulation by the Fed is only prolonging it's demise. Ron Paul and other economists have been saying that any fiat money system will eventually fail and collapse. You can't keep printing money at will and expect to maintain the economy forever. Say goodbye to the US dollar and the American way of life and say hello to the Amero.

You damn right. Thank you for this post and the way our country and economy is going the Amero will inevitable!



In other news....

Dubai wants US regulators to approve buying 20% of the Nasdaq and Bush was asked this morning and didn't really say anything concrete only "we'll see if there are any national security implications."

Of course there are! We can't let the entire Globe OWN us just because we can't manage our economy! Fucking Feds better not allow this.

New America: owned and operated by China, Saudi Arabia, U.K., Dubai(UAE), EuroZone, Switzerland, and Japan!


http://www.bloomberg.com/apps/news?...id=a9mRsZSpE7V8

Nasdaq Expects Regulatory Approval for Dubai Deal (Update1)

By Edgar Ortega and Jesse Westbrook

Sept. 20 (Bloomberg) -- Nasdaq Stock Market Inc., the second-largest U.S. equity exchange, expects to gain U.S. regulatory approval this year for a deal that makes the state- controlled Borse Dubai its biggest shareholder.

Nasdaq announced an agreement today to sell a 19.9 percent stake to the United Arab Emirates' Borse Dubai. While exchange rules would limit Dubai's voting rights in Nasdaq to 5 percent, President George W. Bush and Congressional leaders said they will scrutinize the deal.

http://www.housingwire.com/2007/09/...ing-bankruptcy/


New Bill Would Repeal Home Mortgage Exception During Bankruptcy
(housingwire.com)

2007-09-22

"If you work in the mortgage industry, this bill should give you strong pause. "


Oh God, congress is a joke. The residential future is FUCKED. I don't even want to think about what lending and home owning will be like in 5 years.

Predatory borrowers
(boston.com)

2007-09-22

"Like inebriated bar patrons who blame the bartender for serving them too much, a segment of today's borrowers willfully chose to borrow beyond their means and are now blaming the lender." -- We have no pity for such borrowers... this is nothing like the unsophisticated young couple or fixed-income grandmother who were simply put into an ARM instead of a fixed!

"There is little question that truly predatory lenders, whose sole strategy was to dupe unsuspecting and often unsophisticated individuals into borrowing, should be punished. But for those borrowers who mortgaged a lifestyle they knew they could not sustain, the system should not come to their rescue."

http://www.boston.com/news/globe/ed...ail_to_a_friend



This is THE best article I've read on this subject in quite some time.

quote:

Originally posted by groovedaddy21 http://www.economicsbriefing.com/20...ove-parity.html Canadian Dollar Breaks Above Parity Versus the U. S. Dollar The Canadian dollar has broken above parity with the United States dollar. In New York trading at 10:59 am EDT, it cost 1.0004 US dollars to buy one Canadian dollar. In May 2004, it cost just 72 cents to buy one Canadian dollar --------- The Dollar keeps losing value almost by the day it seems, spiralling downward unstoppable. As ninetynine said, this artificial manipulation by the Fed is only prolonging it's demise. Ron Paul and other economists have been saying that any fiat money system will eventually fail and collapse. You can't keep printing money at will and expect to maintain the economy forever. Say goodbye to the US dollar and the American way of life and say hello to the Amero.

This is Scary, looks like the feds are really stuck. Really interested in seeing what the feds do next.

Miami, FL: Housing Crash 50% OFF Condos





California only has a measly 20-40% depreciation.

On this topic, this has to be my favorite and most entertaining site:

http://drhousingbubble.blogspot.com...homes-of-genius

September 22, 2007

Real Homes of Genius: Today we Salute you Bell. 551 Square feet for $349,999. No Bubble Here.






PS. Stockton stays at the coveted top spot for the highest foreclosure rate in the nation. 1 in 27 homes!

the new top 10, the list hasn't changed much since last quarter:

http://money.cnn.com/2007/08/14/rea...osure/index.htm

(San Diego and Fresno fell down some from the previous quarter so now its just 4 CA cities in the top 10, instead of 6!)

http://ml-implode.com/viewnews/2007...nUSHistory.html

Current Foreclosure Crisis Deemed the Worst in U.S. History
2007-09-25

"According to the most recent foreclosure numbers released by the Mortgage Bankers Association (MBA), the U.S. is embroiled in the worst foreclosure crisis in recorded history. More than 14 percent of subprime borrowers are defaulting, and prime borrowers are beginning to follow suit"

so the market is tanking today, ouch@!

oh yeah, the house we are renting from is being forclosed on, thanks a lot mr Bubble!

wow, the housing market is on fire in Cali!

i hope everyone is safe out there!

I have a case of the 'tuesdays' and thought some humor was in order:


Real Homes of Genius: Today we Salute you Hawthorne. $100,000 off Sale of the Millennium.



Today�s specimen is a 1,254 architectural masterpiece with 3 bedrooms 2 baths that was built in 1923. When we talk about the Great Depression, we are talking from experience here. This place is a REO, meaning the bank is now a �motivated seller.� And get this, the seller is actually willing to pay 3 percent toward closing costs! Talk about a different world. Last year, you were lucky if you got a free orange plastic cup for closing on a home. Again we are seeing a fascinating display in yellow, green, and dirt landscaping here. Why not Photoshop the grass green? A cheap intro marketing class or photography course at your local community college should be a prerequisite for future agents. I know you are itching for the price and have your phone on speed dial to schedule an appointment. This place is all your�s for the rock bottom price of $520,000. This is an absolute steal when we look at the sales data:

http://www.doctorhousingbubble.com/page/2/

FUCK ME.

They are my fav a-paper bank, best products, best turn around time, best rates, and best AE. :<

http://ml-implode.com/imploded/lend...2007-10-25.html

Bank of America - Wholesale Lending

2007-10-25

Numerous tips have come in regarding the apparent closure of the Whole Lending Division of Bank of America. Account Reps are already sending out farewell notices:

"It is with much sadness that I write to inform you that Bank of America has opted to close its Wholesale Channel effective December 31, 2007. This is a bank strategy to become number one in direct to consumer... I do not have much information at this time but it is my understanding that all loans in the pipeline will be honored and we will continue business as usual for an additional thirty days from the date of this announcement."

Big news across most major newspapers today, B of A announced it is laying off 3,000 employees, approximately 2 percent of their workforce. From Google News and the Associated Press:

"The job cuts, which the company said come "in light of market conditions and strategic imperatives," are throughout the bank, but the majority are in areas such as business lending, treasury services, and capital markets and advisory services, as well as support staff."

We will update this during the day. We are looking for hard copy on this, so please email us information as it becomes available. Thank you.



EDIT:

I hope this doesn't mean the rumors are true that wholesale lending will be gone by next year. Since banks/mortgage lenders are having an even harder time selling mortgage securities from the wholesale side since they are originated by brokers and have a higher fraud and default rate as opposed to retail/in-house originated loans.

fha's here i come weeeee

quote:

Originally posted by starboy fha's here i come weeeee

FHA will own all the mortgages ultimately -- time to get on the FHA bus.


FHA 585 minimum fico! no reserves! 97% LTV! ftw!

Merrill Posts Loss on $7.9B Write-Off

quote:

NEW YORK (Dow Jones) -- Merrill Lynch, the nation's largest broker, reported a loss Wednesday for the third quarter and said its write-downs for bad mortgage loans and related securities was almost $8 billion, well above the firm's own previous estimate from just a few weeks ago. Merrill (MER) shares fell 2.6% in early trading. "These losses are relatively larger than those reported previously by other broker dealers and universal banks that have already reported," DBRS analysts said in a report Wednesday. "Merrill appears to have been much more exposed in its securitization businesses." Merrill holds the leading position in CDO securitization. The company reported a loss of $2.24 billion, or $2.82 a share, compared with a year-earlier profit of $3.05 billion, or $3.17 a share. Losses from continuing operations were $2.85 a share. "It turned out our assessment of the potential risk and mitigation strategies were inadequate," Merrill CEO Stan O'Neal said on a conference call with analysts. The New York securities firm said total revenue dropped to $577 million from $9.83 billion.

quote:

Originally posted by djGT Merrill Posts Loss on $7.9B Write-Off

thats funny... our 401k switched from Merrill to American Funding...

interesting how shit works...

as someone mentioned before (too lazy to search):

recession > depression > WARRRR!!!

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