BlueFire's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/122124/comments http://seekingalpha.com/article/134231-real-estate-rentals-and-sales-prices-out-of-sync?source=feed#comment-483754 483754 Thu, 30 Apr 2009 08:56:25 -0400 http://seekingalpha.com/article/130380-wall-street-continues-to-misunderstand-housing?source=feed#comment-458970 458970
All due respect, but are you out of your mind? Real estate is the easiest money making opportunity on the planet right now. We are able to generate a 30% return in six month's time right now. And the work on the buying side has become easier than ever since we can buy directly from the banks that are now finally bleeding enough to properly price their REOs.

All I can say is that the gloom that you guys keep spreading is awesome for me. Please don't get positive any time soon. The only problem right now is coming up with enough capital fast enough to take advantage. The capital is being scared off by the gloom with private loan investors waiting for things to get better before they buy in. Well, when they get better, you have missed the bottom!

People are buying properly priced houses. With an 8% tax credit from the feds, if you put a property on the market at 10% below current value, it sells. It is a great deal for a non-speculator first time home buyer. Glad to see the speculators too burned to get back in and bid prices up in a crazy fashion.

When you bought it from the bank for 60 cents on the dollar and sell it for 90 cents on the dollar... well it does not sound like waiting 10 years is a good investment plan to me. I'm buying.]]> Fri, 10 Apr 2009 11:54:43 -0400
All due respect, but are you out of your mind? Real estate is the easiest money making opportunity on the planet right now. We are able to generate a 30% return in six month's time right now. And the work on the buying side has become easier than ever since we can buy directly from the banks that are now finally bleeding enough to properly price their REOs.

All I can say is that the gloom that you guys keep spreading is awesome for me. Please don't get positive any time soon. The only problem right now is coming up with enough capital fast enough to take advantage. The capital is being scared off by the gloom with private loan investors waiting for things to get better before they buy in. Well, when they get better, you have missed the bottom!

People are buying properly priced houses. With an 8% tax credit from the feds, if you put a property on the market at 10% below current value, it sells. It is a great deal for a non-speculator first time home buyer. Glad to see the speculators too burned to get back in and bid prices up in a crazy fashion.

When you bought it from the bank for 60 cents on the dollar and sell it for 90 cents on the dollar... well it does not sound like waiting 10 years is a good investment plan to me. I'm buying.]]> http://seekingalpha.com/article/124736-obama-s-homeowner-stability-plan-how-helpful-will-it-be?source=feed#comment-419093 419093
Foreclose.

Use the government bailout to purchase the foreclosed properties at auction.

Evict everyone and move them into affordable rentals.

TEAR DOWN EVERY SINGLE VACANT PROPERTY. That is the jobs program. Train them in building trades as the reverse engineer each teardown.

Now we have vacant land in urban, suburban and exurban communities that can be redeveloped with appropriate oversite.

This is a fair solution. We don't need to bail out banks. The foreclosure system works just fine. Take the pain up front and on the chin and let's get on with an honest rebuilding of our housing system and our economy!]]> Mon, 09 Mar 2009 10:38:17 -0400
Foreclose.

Use the government bailout to purchase the foreclosed properties at auction.

Evict everyone and move them into affordable rentals.

TEAR DOWN EVERY SINGLE VACANT PROPERTY. That is the jobs program. Train them in building trades as the reverse engineer each teardown.

Now we have vacant land in urban, suburban and exurban communities that can be redeveloped with appropriate oversite.

This is a fair solution. We don't need to bail out banks. The foreclosure system works just fine. Take the pain up front and on the chin and let's get on with an honest rebuilding of our housing system and our economy!]]> http://seekingalpha.com/article/124000-niall-ferguson-dismisses-moral-hazard-of-fixing-housing-mess?source=feed#comment-412608 412608
If regulation and monitoring is put back into play, then Ferguson is right that this current version of moral hazard cannot repeat itself. If an institution has to hold the paper that it issues, you can be pretty certain that they would have no interest in no-doc trick interest payment loans. They have to make money off the paper instead of the sale of the paper to the next level up in a sick chain.

This crisis was caused by the flood of global capital that was seeking a good investment. The lack of oversight opened the flood gates to "creative" Wall Street types placing downward pressure on the front line mortgage origination industry to churn out as much crap as fast as possible. And no one cared because at each link of the chain, the crap had been pre-sold. Fiscal hot potato with everyone making sure that they would not be the last one holding the junk. And at each level a new layer of obfuscation and deception was added - so the end buyer of the CDO was left feeling that something too complicated to understand being sold by such a nice well dressed man from Wall Street who surely understands what he is doing must be a good investment. After all it says it is AAA rated and that it is a "structured security." Such nice words. That sounds pretty safe. Let me bet my entire nation's well being on it because it sure sounds like a good deal. Please, Sir, may I have another?

Thanks SEC. Thanks FTC. Thanks Greenspan. Who could hold you accountable for not wanting to speak truth to power? We don't need a police force because surely the citizenry will act in their own mutual best interests. What planet are you guys from?]]> Wed, 04 Mar 2009 10:26:05 -0500
If regulation and monitoring is put back into play, then Ferguson is right that this current version of moral hazard cannot repeat itself. If an institution has to hold the paper that it issues, you can be pretty certain that they would have no interest in no-doc trick interest payment loans. They have to make money off the paper instead of the sale of the paper to the next level up in a sick chain.

This crisis was caused by the flood of global capital that was seeking a good investment. The lack of oversight opened the flood gates to "creative" Wall Street types placing downward pressure on the front line mortgage origination industry to churn out as much crap as fast as possible. And no one cared because at each link of the chain, the crap had been pre-sold. Fiscal hot potato with everyone making sure that they would not be the last one holding the junk. And at each level a new layer of obfuscation and deception was added - so the end buyer of the CDO was left feeling that something too complicated to understand being sold by such a nice well dressed man from Wall Street who surely understands what he is doing must be a good investment. After all it says it is AAA rated and that it is a "structured security." Such nice words. That sounds pretty safe. Let me bet my entire nation's well being on it because it sure sounds like a good deal. Please, Sir, may I have another?

Thanks SEC. Thanks FTC. Thanks Greenspan. Who could hold you accountable for not wanting to speak truth to power? We don't need a police force because surely the citizenry will act in their own mutual best interests. What planet are you guys from?]]> http://seekingalpha.com/article/124027-denial-collective-housing-delusions?source=feed#comment-412544 412544
Stop all current bailout actions and replace with the following 2 steps:

1) Use bailout money to purchase all foreclosing properties at absolute rock bottom prices.

2) Create a public works program to hire the unemployed to tear down every single foreclosed property in the nation. Every single one, no exceptions.

Kill the cancer, and increase demand for housing by eliminating the supply. Suddenly there is open land to develop with more modern, energy efficient structures.

Those who gained experience on the public dollar learning how to tear down houses can now be hired by private developers to build new houses.

Oh, and all mortgages must be held by the secondary mortgage market with no securitization permitted.

All those who foolishly bought crap just because some idiot stamped AAA on it - well, that is what is meant by caveat emptor!]]> Wed, 04 Mar 2009 10:03:06 -0500
Stop all current bailout actions and replace with the following 2 steps:

1) Use bailout money to purchase all foreclosing properties at absolute rock bottom prices.

2) Create a public works program to hire the unemployed to tear down every single foreclosed property in the nation. Every single one, no exceptions.

Kill the cancer, and increase demand for housing by eliminating the supply. Suddenly there is open land to develop with more modern, energy efficient structures.

Those who gained experience on the public dollar learning how to tear down houses can now be hired by private developers to build new houses.

Oh, and all mortgages must be held by the secondary mortgage market with no securitization permitted.

All those who foolishly bought crap just because some idiot stamped AAA on it - well, that is what is meant by caveat emptor!]]> http://seekingalpha.com/article/103715-housing-data-shows-downturn-could-be-prolonged?source=feed#comment-297892 297892
Now the inventory that needs to clear is still huge. But, anyone willing to buy and hold for a minimum of 3-5 years is going to make a killing in real estate. When that inventory does clear, there will be a significant uptick in real estate values as real buyers start paying real prices.

Patience, people. Everyone thinks in quarters. It's time to be making five year plans here.]]> Tue, 04 Nov 2008 08:51:46 -0500
Now the inventory that needs to clear is still huge. But, anyone willing to buy and hold for a minimum of 3-5 years is going to make a killing in real estate. When that inventory does clear, there will be a significant uptick in real estate values as real buyers start paying real prices.

Patience, people. Everyone thinks in quarters. It's time to be making five year plans here.]]> http://seekingalpha.com/article/84975-examining-the-feds-new-mortgage-loan-rules?source=feed#comment-206157 206157 Tue, 15 Jul 2008 13:02:26 -0400 http://seekingalpha.com/article/71176-lender-abandoned-non-reo-foreclosures?source=feed#comment-136760 136760 Fri, 04 Apr 2008 18:13:19 -0400 http://seekingalpha.com/article/70654-bill-gross-if-housing-prices-decline-further-so-does-the-economy?source=feed#comment-134849 134849 Tue, 01 Apr 2008 19:11:42 -0400 http://seekingalpha.com/article/70734-housing-a-government-solution-is-likely-to-be-necessary?source=feed#comment-134837 134837 Tue, 01 Apr 2008 18:50:27 -0400 http://seekingalpha.com/article/70679-how-far-will-house-prices-fall-implications-from-the-latest-wsj-survey?source=feed#comment-134833 134833 Tue, 01 Apr 2008 18:42:51 -0400 http://seekingalpha.com/article/65769-injecting-accountability-into-the-credit-crisis?source=feed#comment-119187 119187 Tue, 26 Feb 2008 09:16:29 -0500