Real Estate Market / Inflation / Recession / Depression (2008 Edition) (El Paso, agent, debt)

[spilbo]

Originally Posted by baileyco

Here are some links I found along lines of previous posts:

A Formula for Decline: Lessons from Colorado for States Considering TABOR, 10/19/05 TABOR, education, and social services in CO
Child poverty rate jump of CO leads nation
La-la land: Los Angeles workers happiest - Mar. 19, 2004 Denver workforce dissatisfaction
Front Range debt (consumption?) (broken link)
Air quality
Denver History - Mile High Metropolis There's a bit about Denver metro having one of highest car ownerships in the world, per this link (scrolling down to "Automobility")
"Dangerously drunk"
2 Colorado Cities 'Fittest Cities' - Denver News Story - KMGH Denver This article seems to contradict some of the others ("air quality is good according to this, though among worst according to "scorecard"; Denver among "fittest" - though 20th - in country, versus "most dangerously drunken" according to Mens Health; etc.)
State's suicide rate eighth-highest - The Denver Post Suicide rate is 8th highest in CO
Climate Change Science: Impacts on the Colorado River Climate and water in CO
Colorado River Compact - In Focus (http://wwa.colorado.edu/resources/colorado_river/climate_change_in_the_colorado_river_basin.html - broken link) More climate and water in CO
Some links to RMN (Rock. Mntn. Nws.) articles concerning energy boom in CO/Western Slope) (http://www.rockymountainnews.com/special-reports/colorado-oil-gas/beyond-the-boom/ - broken link)

Seems like support of public programs has been weak in CO, with maybe some accompanying consequences, and that consumption runs high at least around Denver metro with maybe some ramifications concerning water resources and air quality (and of course, credit and economic implications). I also wonder about what happens if burnt hydrocarbon emissions impact the climate of snowpack and precipitation - water resources through the summer, for example. Seems some of what stokes the CO economy might hurt it at the same time (or in the future)?

Interesting articles. It almost seems like a society of people in serious denial about some things. It seems like people in the area like to "live life" in a very "outward" kind of way. Like wanting perpetually recreational lifestyles people cannot really afford to live or something in the area.

[Under the Bus Capitalist]

Here is some information you might find interesting. Some old but good to review due to its prophetic and remember, don't get thrown under the bus!

-The Bus Driver

Some fun stuff:

Under the Bus Capitalism
http://www.ireport.com/docs/DOC-33467

Bubble Economics
http://www.ireport.com/docs/DOC-45988

Half Full
http://www.ireport.com/docs/DOC-38996

Some sobering stuff:

Monthly Mortgage Interest Rate Resets
http://www.thetruthaboutmortgage.com/interest-rate-reset-chart/

Dynamic Maps of Nonprime Mortgage Conditions in the United States
http://www.newyorkfed.org/mortgagemaps/

Subprime In Sheep's Clothing
http://www.forbes.com/2008/05/08/alt-a-mortgage-markets-bonds-cx_md_0506markets32.html

'Liar loans' threaten to prolong mortgage crisis
http://finance.comcast.net:80/www/news.html?x=http://www.origin.comcast.akadns.net/data/news/2008/08/18/1037507.xml

Adjustable-rate mortgages due to reset could bring wave of foreclosures
http://www.tennessean.com/apps/pbcs.dll/article?AID=/20080420/BUSINESS02/804200366/1003/rss03[/url]

Foreclosures Expected to Rise after Mortgage Reset
http://www.personalhomeloanmortgages.com/articles_mortgage_reset.asp]Foreclosures expected to rise after Mortgage reset for higher rates.

http://www.azstarnet.com/sn/byauthor/134335]Foreclosures expected to rise as mortgages reset | www.azstarnet.com

Forbes ranks Denver among 10 riskiest real estate markets
http://www.bizjournals.com/denver/stories/2008/03/31/daily23.html

Worst Cities For Homeowner Debt
http://www.forbes.com/forbeslife/realestate/2008/04/17/debt-homeowner-cities-forbeslife-cx_mw_0417realestate.html]Worst Cities For Homeowner Debt - Forbes.com

AP Poll: Mortgage Payments Worry Many
http://www.wtop.com/?nid=104&sid=1386304

Mortgage delinquency on the rise
http://money.cnn.com/2008/05/12/real_estate/mortgage_delinquency/?postversion=2008051203

Rates on 30-year mortgages top 6%
http://www.usatoday.com/money/economy/housing/2008-04-24-mortgage-rates-rise_N.htm

Homes facing foreclosure more than doubled in 1Q from 2007
http://biz.yahoo.com/ap/080429/foreclosure_rates.html

Vacant homes for sale hit new record high
http://www.msnbc.msn.com/id/24352014/

American Housing Market Still Sliding
http://www.forbes.com/2008/04/29/foreclosures-case-schiller-markets-equity-cx_md_0429markets10.html

Fannie Mae gives dismal price outlook
http://www.gazette.com/articles/fannie_36060___article.html/home_prices.html

Growing majority avoid buying homes
http://www.msnbc.msn.com/id/24106617/

New fears of need for Fannie, Freddie bailout hit shares
http://money.cnn.com/2008/08/18/news/companies/fannie_freddie/index.htm

[Bob from down south]

Excellent summary of our economic situation on Prudent Bear.

The Great Consumer Crash of 2009

"Debt is dumb"

[Vision67]

No worries, the Real Estate crash is only in 4 states:

Real Estate Bubble Is Only in 4 States: CA, FL, NV, AZ

Real Estate Bubble Is Only in 4 States: CA, FL, NV, AZ - Seeking Alpha

[CosmicWizard]

Is this for real or just more spin from the NAR?

Existing home sales rose 3.1 percent in July

[Mike from back east]

Originally Posted by NewAgeRedneck

Is this for real or just more spin from the NAR?

Existing home sales rose 3.1 percent in July

Bargain hunters are out there and taking advantage of clobbered prices.

[Mike from back east]

FBI saw mortgage fraud when it started in 2004, saw the shady operators, notified people, then did nothing. Story at:
FBI saw threat of mortgage crisis - Los Angeles Times

Key excerpt: "Most observers have declared the mess a gross failure of regulation. To be sure, in the run-up to the crisis, market-oriented federal regulators bragged about their hands-off treatment of banks and other savings institutions and their executives. But it wasn't just regulators who were looking the other way. The FBI and its parent agency, the Justice Department, are supposed to act as the cops on the beat for potentially illegal activities by bankers and others. But they were focused on national security and other priorities, and paid scant attention to white-collar crimes that may have contributed to the lending and securities debacle."

In the 9-11 attacks, it was as much our fault as it was Al Queda's. Here's the failure chain for the 9-11 attacks:
1. Lax security that allowed box cutters and carpet knives to be taken aboard aircraft. Security was watered down over the years to appease a near bankrupt airline industry who didn't want to "inconvenience" customers.
2. Airline Security was contracted out to low bidders, from other nations.
3. There was only ONE Immigration officer manning the Maine border crossing where the attackers crossed into the USA, and our agent had very little in the way of data systems and tools to work with.
4. FBI HQs IGNORED reports from field agents that foreigners were taking lessons in flying large aircraft, but were only interested in how to do level flying while airborne, and not how to take off or land.

For the mortgage mess, the failure chain looks like this:
1. Bad actors and crooks are noted by the FBI, who does nothing.
2. Banks and lenders cheerfully issue mortgages without any proof of income or collateral - unheard of in most lending.
3. Investment firms package these up and sell them to hedge funds and other investors anxious to find ever higher profits.
4. Federal regulators are either asleep at the wheel or have no authority in the matter.

The key ingredient in both disasters is that just about ALL of the people who are supposed to be "smart" and have the job of protecting our nation from all sorts of abuses must be total idiots, incompetents, or crooks themselves.

We did it to ourselves. Twice in one decade, within 5 years of each other. We are the laughing stock of the world. Again.

[Bob from down south]

Originally Posted by NewAgeRedneck

Is this for real or just more spin from the NAR?

Existing home sales rose 3.1 percent in July

It's for real...but what the NAR doesn't say in the headline is that prices continue to free-fall.

And that foreclosure sales account for more than a third of total sales.

And the glutted inventory of homes for sale increased 3.9% to 4.67 million...now an 11.2 month supply.

[Bob from down south]

Originally Posted by Mike from back east

FBI saw mortgage fraud when it started in 2004, saw the shady operators, notified people, then did nothing. Story at:
FBI saw threat of mortgage crisis - Los Angeles Times

Key excerpt: "Most observers have declared the mess a gross failure of regulation. To be sure, in the run-up to the crisis, market-oriented federal regulators bragged about their hands-off treatment of banks and other savings institutions and their executives. But it wasn't just regulators who were looking the other way. The FBI and its parent agency, the Justice Department, are supposed to act as the cops on the beat for potentially illegal activities by bankers and others. But they were focused on national security and other priorities, and paid scant attention to white-collar crimes that may have contributed to the lending and securities debacle."

In the 9-11 attacks, it was as much our fault as it was Al Queda's. Here's the failure chain for the 9-11 attacks:
1. Lax security that allowed box cutters and carpet knives to be taken aboard aircraft. Security was watered down over the years to appease a near bankrupt airline industry who didn't want to "inconvenience" customers.
2. Airline Security was contracted out to low bidders, from other nations.
3. There was only ONE Immigration officer manning the Maine border crossing where the attackers crossed into the USA, and our agent had very little in the way of data systems and tools to work with.
4. FBI HQs IGNORED reports from field agents that foreigners were taking lessons in flying large aircraft, but were only interested in how to do level flying while airborne, and not how to take off or land.

For the mortgage mess, the failure chain looks like this:
1. Bad actors and crooks are noted by the FBI, who does nothing.
2. Banks and lenders cheerfully issue mortgages without any proof of income or collateral - unheard of in most lending.
3. Investment firms package these up and sell them to hedge funds and other investors anxious to find ever higher profits.
4. Federal regulators are either asleep at the wheel or have no authority in the matter.

The key ingredient in both disasters is that just about ALL of the people who are supposed to be "smart" and have the job of protecting our nation from all sorts of abuses must be total idiots, incompetents, or crooks themselves.

We did it to ourselves. Twice in one decade, within 5 years of each other. We are the laughing stock of the world. Again.

I agree, Mike. Apparently we will have to learn the hard way that national security...our economic security, that is...depends on the watchdogs actually doing their jobs. There are scads of clear cases of mortgage fraud still out there to be investigated and prosecuted, but nobody's home in law enforcement. I wish that part of every loan default was a referral for investigation to see if the borrower embellished his/her income on the loan application, or claimed the house as a principal residence when it remained empty as a flip gone bad etc.

The gross failure in governance that permitted this debacle to unfold and even now still continues to allow the miscreants to go unpunished will weigh heavily in the votes I cast in November, at the local, state, and federal level.

[Bideshi]

Originally Posted by Bob from down south

The gross failure in governance that permitted this debacle to unfold and even now still continues to allow the miscreants to go unpunished will weigh heavily in the votes I cast in November, at the local, state, and federal level.

I feel the same way, but the blame seems to go across the aisles, up and down and all around. Everyone seems to have somehow gotten in on the huge scam at the expense of the tax payer. Who can I punish with my vote?