Mortgage Foreclosure Tsunami...
Delayed and forestalled Double Dip will occur in 2011
http://www.youtube.com/watch?v=Ze9MyGB2tBc
Reference:
"Home Prices Are Still Too High" by Peter D. Schiff WSJ (subscription required) http://online.wsj.com/article/SB10001424052702304173704575578190261574342.html
"Dr. Doom Predicts Another $1 Trillion In Housing Losses" [Nouriel Roubini] NYT
http://dealbook.nytimes.com/2010/12/06/dr-doom-predicts-another-1-trillion-in-housing-losses/?ref=foreclosures
"US mortgage foreclosures rise sharply" FT.com (subscription required)
http://www.ft.com/cms/s/0/3825f4b8-1387-11e0-a367-00144feabdc0.html#axzz19iRnoxL6
Showing posts with label bank. Show all posts
Showing posts with label bank. Show all posts
12/2/10
You Can Quote Me On That
We're tinkering with the steering wheel when the engine needs repair...
All of the printing of money with Quantitative Easing, Treasury Bond purchasing, tax schemes and budget cutting, extending unemployment benefits, mortgage work-out plans, social programs, ad nauseam, cannot resolve our overall economic problems unless two underlying factors are realistically addressed:
1. High unemployment due to mismatch of the skills of many job-seekers and what employers need now and will need in the future. This requires people becoming cutting-edge skilled, free-agents and/or self-employed. Eight million jobs aren't coming back because they aren't needed any more, we should be preparing for what is and will be needed. The economy can only be stimulated with significant earned income
2. The foreclosure and indebtedness problem of individuals, organizations and government. How the lenders reconcile what people owe and how much houses are worth and deal with uncollateralized debt and collect it, is still an open question that must be resolved, in order for any across-the-board financial restructuring to occur. If a large segment of the population has no earned income due to unemployment, how do they repay the debt?
All of the printing of money with Quantitative Easing, Treasury Bond purchasing, tax schemes and budget cutting, extending unemployment benefits, mortgage work-out plans, social programs, ad nauseam, cannot resolve our overall economic problems unless two underlying factors are realistically addressed:
1. High unemployment due to mismatch of the skills of many job-seekers and what employers need now and will need in the future. This requires people becoming cutting-edge skilled, free-agents and/or self-employed. Eight million jobs aren't coming back because they aren't needed any more, we should be preparing for what is and will be needed. The economy can only be stimulated with significant earned income
2. The foreclosure and indebtedness problem of individuals, organizations and government. How the lenders reconcile what people owe and how much houses are worth and deal with uncollateralized debt and collect it, is still an open question that must be resolved, in order for any across-the-board financial restructuring to occur. If a large segment of the population has no earned income due to unemployment, how do they repay the debt?
10/22/10
Thinking Out Loud
Two fundamental points on mortgages and foreclosures...
Banks and mortgage lenders have essentially circumnavigated four centuries of property law and the concept of property rights in the United States, by treating legal documents as inconsequential papers. They need to rectify their past business practices to justify their mistakes.
Borrowers and mortgage holders, regardless of how the paperwork was processed, willingly and knowingly borrowed money with consequences for nonpayment. They are obligated to make an attempt to pay it back.
"Two wrongs don't make a right."
Banks and mortgage lenders have essentially circumnavigated four centuries of property law and the concept of property rights in the United States, by treating legal documents as inconsequential papers. They need to rectify their past business practices to justify their mistakes.
Borrowers and mortgage holders, regardless of how the paperwork was processed, willingly and knowingly borrowed money with consequences for nonpayment. They are obligated to make an attempt to pay it back.
"Two wrongs don't make a right."
10/11/10
Quote of the Day: Arizona Capitol Times
Arizona at the epicenter of the housing foreclosure crisis...
Now that the issues over faulty paperwork are coming to light, attorney Tom Ryan said he expects many Arizona homeowners who lost their homes to foreclosures to hire attorneys to determine whether banks made a mistake. And he expects many homeowners to find them.
"It's going to be worse in Arizona because Arizona sustained such a high, high growth rate," Ryan said.
"Foreclosure errors may be more prevalent in Arizona"
Arizona Capitol Times 10/08/10
Now that the issues over faulty paperwork are coming to light, attorney Tom Ryan said he expects many Arizona homeowners who lost their homes to foreclosures to hire attorneys to determine whether banks made a mistake. And he expects many homeowners to find them.
"It's going to be worse in Arizona because Arizona sustained such a high, high growth rate," Ryan said.
"Foreclosure errors may be more prevalent in Arizona"
Arizona Capitol Times 10/08/10
Deleveraging and Insolvency
The Real Estate and Mortgage Foreclosure problem is unresolved...
Unwinding will take years but we can rise above while resolution is occurring.
It seems to me that if the major banks and mortgage companies are placing moratoriums on foreclosures due to affidavit and auditing problems on tens of thousands of foreclosures already processed, the problem must be deeper than currently being admitted. Truth is bubbling to the surface. The banks and mortgage companies have been trying to get out of these loans as quickly as they got into them, without proper procedures, due diligence and documentation. Rationally, this situation will take years to unwind and cannot be sped up no matter how much financial institutions and the government try to force the process. The implications cannot be understated.
Essentially this quagmire throws the entire real estate industry into chaos and ultimately threatens the entire financial and banking system. The mortgage business as we know it will require an overhaul, at the very least. I don't think it is at all dramatic to state this, only time will tell exactly how it plays out. In the long term I'm not sure it's a bad thing, it is an opportunity to reshape these businesses back into more natural and free markets. There is plenty of blame to go around that can be affixed later, the important thing now is to fix the problem. The big players have been gambling on a fantasy accounting game for several years now, where everyone pretended that houses and commercial property were still worth in real life what was owed to the lenders on paper. The reality is that gap makes the lenders insolvent.
As the slang saying goes: "Da Nile isn't just a river in Egypt."
Now is truth telling time and recognition that there can be no further delay in dealing with the substantial readjustment of the value of what real estate, and subsequently other property and currency, is factually worth. This is a tough, difficult process that a lot of people are not prepared for but the longer it is delayed, the more pain there will be when it inevitably reaches a coda.
It is the end of the world as we knew it but not the end of the world, rather the beginning of a new one. History has many examples of such periods and humanity always rises to the occasion. I wouldn't paint a pretty picture on the heartache and burn this will cause a lot of people nor would I say that it will be impossible to work through it. How we face up to the situation as a people and endure while grappling with the problem will be a testament to our character as a country. I believe there are enough people with the mettle to forge a path for all of us to get through and rise above what difficulties may come.
Unwinding will take years but we can rise above while resolution is occurring.
It seems to me that if the major banks and mortgage companies are placing moratoriums on foreclosures due to affidavit and auditing problems on tens of thousands of foreclosures already processed, the problem must be deeper than currently being admitted. Truth is bubbling to the surface. The banks and mortgage companies have been trying to get out of these loans as quickly as they got into them, without proper procedures, due diligence and documentation. Rationally, this situation will take years to unwind and cannot be sped up no matter how much financial institutions and the government try to force the process. The implications cannot be understated.
Essentially this quagmire throws the entire real estate industry into chaos and ultimately threatens the entire financial and banking system. The mortgage business as we know it will require an overhaul, at the very least. I don't think it is at all dramatic to state this, only time will tell exactly how it plays out. In the long term I'm not sure it's a bad thing, it is an opportunity to reshape these businesses back into more natural and free markets. There is plenty of blame to go around that can be affixed later, the important thing now is to fix the problem. The big players have been gambling on a fantasy accounting game for several years now, where everyone pretended that houses and commercial property were still worth in real life what was owed to the lenders on paper. The reality is that gap makes the lenders insolvent.
As the slang saying goes: "Da Nile isn't just a river in Egypt."
Now is truth telling time and recognition that there can be no further delay in dealing with the substantial readjustment of the value of what real estate, and subsequently other property and currency, is factually worth. This is a tough, difficult process that a lot of people are not prepared for but the longer it is delayed, the more pain there will be when it inevitably reaches a coda.
It is the end of the world as we knew it but not the end of the world, rather the beginning of a new one. History has many examples of such periods and humanity always rises to the occasion. I wouldn't paint a pretty picture on the heartache and burn this will cause a lot of people nor would I say that it will be impossible to work through it. How we face up to the situation as a people and endure while grappling with the problem will be a testament to our character as a country. I believe there are enough people with the mettle to forge a path for all of us to get through and rise above what difficulties may come.
9/1/10
Real Estate Bubble Chart
We have not reached bottom...
Don't be fooled by the psychology of the market. People are clinging to the hope of a real estate recovery. We are not yet at the bottom.
from Irving House Blog
We are on the verge of a global currency crisis, stock market crash, bank failures, government insolvencies and it's not the bottom for real estate. The best way to face multiple crisis is to look straight at them with clarity and no fear. It is the only option for resolution, which will take effort, time and creative thinking.
Don't be fooled by the psychology of the market. People are clinging to the hope of a real estate recovery. We are not yet at the bottom.
We are on the verge of a global currency crisis, stock market crash, bank failures, government insolvencies and it's not the bottom for real estate. The best way to face multiple crisis is to look straight at them with clarity and no fear. It is the only option for resolution, which will take effort, time and creative thinking.
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