rm's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/195269/comments http://seekingalpha.com/article/174324-detroit-home-of-the-worst-unemployment-per-posting-rate-in-the-u-s?source=feed#comment-769774 769774
Adding insult to injury, our state legislators don't understand how to tighten their belts. They are absolutely mystified with the concept of CUTTING EXPENSES.

That said, much of the rest of the country has followed us (MI) down the tubes.

My contention is that MI has consistently bent over for the autos, while creating an environment that's absolutely HOSTILE to small business owners.

Is there any correlation whatsoever between unemployment and the states' pro- or anti-business sentiments?]]> Fri, 20 Nov 2009 18:29:28 -0500
Adding insult to injury, our state legislators don't understand how to tighten their belts. They are absolutely mystified with the concept of CUTTING EXPENSES.

That said, much of the rest of the country has followed us (MI) down the tubes.

My contention is that MI has consistently bent over for the autos, while creating an environment that's absolutely HOSTILE to small business owners.

Is there any correlation whatsoever between unemployment and the states' pro- or anti-business sentiments?]]> http://seekingalpha.com/article/174283-the-real-reason-the-fha-doesn-t-need-a-bailout?source=feed#comment-769766 769766 Fri, 20 Nov 2009 18:21:47 -0500 http://seekingalpha.com/article/174007-goldman-tries-to-combat-its-bad-image?source=feed#comment-765554 765554
Oh yeah, VC... that's where they take an arm and a leg and the first-born of the founders...

And this after sucking the profits out of everything they touch, while adding how much value?

Yeah, that'll help... all square now.]]> Wed, 18 Nov 2009 12:02:20 -0500
Oh yeah, VC... that's where they take an arm and a leg and the first-born of the founders...

And this after sucking the profits out of everything they touch, while adding how much value?

Yeah, that'll help... all square now.]]> http://seekingalpha.com/article/171108-barney-frank-name-names?source=feed#comment-744538 744538
Yeah, and that rule still applies.

To homeowners. ]]> Wed, 04 Nov 2009 12:43:42 -0500
Yeah, and that rule still applies.

To homeowners. ]]> http://seekingalpha.com/article/166928-housing-is-moving-towards-disaster?source=feed#comment-718568 718568
Don't assume anything. Insiders know that their "information" is often faulty and outdated.

[Employment picks up significantly over the next 6-9 months, starting now.]

Not gonna happen. 80% of big co. CEO's have no plans to hire in the next 6-12 months. And even small business owners in thriving industries are hesitant to add employees due to the unpredictability, insanity and incompetence of this administration, not to mention the preferential treatment given to big biz by this administration.

Oh yeah, I forgot to mention the specter of health insurance "surcharges" and increased costs due to cap and trade. ]]> Sat, 17 Oct 2009 12:14:01 -0400
Don't assume anything. Insiders know that their "information" is often faulty and outdated.

[Employment picks up significantly over the next 6-9 months, starting now.]

Not gonna happen. 80% of big co. CEO's have no plans to hire in the next 6-12 months. And even small business owners in thriving industries are hesitant to add employees due to the unpredictability, insanity and incompetence of this administration, not to mention the preferential treatment given to big biz by this administration.

Oh yeah, I forgot to mention the specter of health insurance "surcharges" and increased costs due to cap and trade. ]]> http://seekingalpha.com/article/149568-small-business-lending-why-the-programs-need-to-change?source=feed#comment-594293 594293
While it's popular to bash the evil middleman who "skims profits," most systems NEED middlemen in order to function effectively.

One of the fundamental flaws in government-run programs is that they try to eliminate middlemen, so decisions that would best be made in the field or on the ground are made by someone who's completely out of touch. The main criticism in this article more or less proves the point.

Like you, I used to be enamored by the idea of government "partnering" with business.

Now that I've seen how it works, a la Goldman Sachs and GE, I now realize that the only "partnering" that takes place is with the well-connected.

In addition, I have not one example of something that the federal government does well, other than obfuscate, confuse, major in minors, and expense magnification.

The less the federal government does, the better.

And yes, that includes small business lending. ]]> Sun, 19 Jul 2009 18:36:37 -0400
While it's popular to bash the evil middleman who "skims profits," most systems NEED middlemen in order to function effectively.

One of the fundamental flaws in government-run programs is that they try to eliminate middlemen, so decisions that would best be made in the field or on the ground are made by someone who's completely out of touch. The main criticism in this article more or less proves the point.

Like you, I used to be enamored by the idea of government "partnering" with business.

Now that I've seen how it works, a la Goldman Sachs and GE, I now realize that the only "partnering" that takes place is with the well-connected.

In addition, I have not one example of something that the federal government does well, other than obfuscate, confuse, major in minors, and expense magnification.

The less the federal government does, the better.

And yes, that includes small business lending. ]]> http://seekingalpha.com/article/149226-don-t-worry-the-government-will-pay-your-rent-or-mortgage?source=feed#comment-591679 591679
Don't be so sure. This is yet another ploy on the denial trail. They're going to eventually take back properties that have substantial deferred maintenance that's been neglected. And there is just no way those properties will see 2005 price levels in our lifetime. The game is to slow the flow of REO properties as much as possible. ]]> Fri, 17 Jul 2009 08:37:38 -0400
Don't be so sure. This is yet another ploy on the denial trail. They're going to eventually take back properties that have substantial deferred maintenance that's been neglected. And there is just no way those properties will see 2005 price levels in our lifetime. The game is to slow the flow of REO properties as much as possible. ]]> http://seekingalpha.com/article/148280-income-tax-not-wealth-tax-that-s-another-story?source=feed#comment-585801 585801
What, exactly, is unearned wealth?

SOMEBODY earned it. If they CHOSE to give it to someone else, that doesn't change the fact. ]]> Mon, 13 Jul 2009 11:20:37 -0400
What, exactly, is unearned wealth?

SOMEBODY earned it. If they CHOSE to give it to someone else, that doesn't change the fact. ]]> http://seekingalpha.com/article/148077-why-mortgage-modifications-have-failed?source=feed#comment-583560 583560
Have we? When? Every federal initiative has been presented as a means to "backstop" housing prices.

[“as housing goes, so goes the general economy.” ]

So you advocate propagating the fake, bubble economy at whatever costs?

[The FDIC plan, and subsequent industry efforts, was designed to formulate custom solutions to each homeowners situation.]

Again, wrong. The FDIC plan was designed to STREAMLINE the process. As was the latest "Obama plan." The best way to handle these files- if you're looking for sustainability- is to do so on a case-by-case basis. Nearly every action taken to address this situation, by both the servicers and the feds, has been to figure out a way to handle the onslaught without having to provide adequate capacity increases.

A "one size fits none" approach, whether your proposed flavor or someone else's, will not make things better.

You're proposing a 6% rate with no NPV analysis. So if we can't get a win/win, you've now filled a niche: the lose/lose solution to the housing crisis.

[My proposal on this matter is that lender REO sales, or lender managed/participated sales (short sales) need to be priced within the middle of the range of the subject neighborhood. ]

Are you saying that they're "giving these homes away" by offering them at prices below their market value? Are you kidding me?

Your basic premise seems to be that if we can support housing prices, that the economy will be fixed. You're wrong. Housing prices were pushed far too high due to a number of artificial influences.

I, for one, have had enough of the "If we manipulate the numbers enough, we can pretend that everything's peachy" approach.

Let's not pretend. Let's just face the fact that homes are no longer worth their 2004 prices and get on with a REAL recovery, as opposed to a fake, engineered one. ]]> Sat, 11 Jul 2009 11:46:48 -0400
Have we? When? Every federal initiative has been presented as a means to "backstop" housing prices.

[“as housing goes, so goes the general economy.” ]

So you advocate propagating the fake, bubble economy at whatever costs?

[The FDIC plan, and subsequent industry efforts, was designed to formulate custom solutions to each homeowners situation.]

Again, wrong. The FDIC plan was designed to STREAMLINE the process. As was the latest "Obama plan." The best way to handle these files- if you're looking for sustainability- is to do so on a case-by-case basis. Nearly every action taken to address this situation, by both the servicers and the feds, has been to figure out a way to handle the onslaught without having to provide adequate capacity increases.

A "one size fits none" approach, whether your proposed flavor or someone else's, will not make things better.

You're proposing a 6% rate with no NPV analysis. So if we can't get a win/win, you've now filled a niche: the lose/lose solution to the housing crisis.

[My proposal on this matter is that lender REO sales, or lender managed/participated sales (short sales) need to be priced within the middle of the range of the subject neighborhood. ]

Are you saying that they're "giving these homes away" by offering them at prices below their market value? Are you kidding me?

Your basic premise seems to be that if we can support housing prices, that the economy will be fixed. You're wrong. Housing prices were pushed far too high due to a number of artificial influences.

I, for one, have had enough of the "If we manipulate the numbers enough, we can pretend that everything's peachy" approach.

Let's not pretend. Let's just face the fact that homes are no longer worth their 2004 prices and get on with a REAL recovery, as opposed to a fake, engineered one. ]]> http://seekingalpha.com/article/147807-are-financiers-overpaid?source=feed#comment-580522 580522
Have we reached equlibrium yet?]]> Thu, 09 Jul 2009 10:31:09 -0400
Have we reached equlibrium yet?]]> http://seekingalpha.com/article/147818-mortgage-defaults-and-skin-in-the-game-why-this-correlation-is-wrong?source=feed#comment-580468 580468
All of the shouting about negative equity has been coming from people who are not in the trenches, like you and me.

Here is the reason why there is such a strong correlation between negative equity and foreclosure:

Historically, the vast majority of defaults occur within the first 24-36 months of the loan.

Because that still holds true, it's only natural that the majority of these borrowers are underwater- they bought at the top, were not required to pay (much of) a down payment, and housing prices have collapsed.

If you're doing a fair amount of volume of loan mods, the majority of the loans you're seeing are vintage 2005 and later... so OF COURSE most of those loans are underwater.

How much time and money was spent finding this out?

And what difference does it make?

If there's something USEFUL to be learned, it's what separates re-defaulters from those who stay current on their mods.

It will take the industry 3-5 years to figure out what we, on the front lines, already know.]]> Thu, 09 Jul 2009 10:08:46 -0400
All of the shouting about negative equity has been coming from people who are not in the trenches, like you and me.

Here is the reason why there is such a strong correlation between negative equity and foreclosure:

Historically, the vast majority of defaults occur within the first 24-36 months of the loan.

Because that still holds true, it's only natural that the majority of these borrowers are underwater- they bought at the top, were not required to pay (much of) a down payment, and housing prices have collapsed.

If you're doing a fair amount of volume of loan mods, the majority of the loans you're seeing are vintage 2005 and later... so OF COURSE most of those loans are underwater.

How much time and money was spent finding this out?

And what difference does it make?

If there's something USEFUL to be learned, it's what separates re-defaulters from those who stay current on their mods.

It will take the industry 3-5 years to figure out what we, on the front lines, already know.]]> http://seekingalpha.com/article/147590-are-stocks-always-best-for-the-long-run?source=feed#comment-578925 578925 Wed, 08 Jul 2009 11:29:37 -0400 http://seekingalpha.com/article/147367-the-real-cause-of-foreclosures-no-skin-in-the-game?source=feed#comment-578915 578915
Hasn't anyone had any statistics here?

Just because there's a strong correlation doesn't mean it's a cause.

Thus far, nobody's been able to document a significant number of borrowers who are able to make their payments that choose to walk away.

Probably because it's not happening on a large scale.

What *is* happening is that those who fall behind because they CANNOT afford the payments- whether due to a temporary or permanent change- ARE looking at the LTV before deciding what to do.

That's not the same thing... although it's a much less interesting story.
]]> Wed, 08 Jul 2009 11:23:14 -0400
Hasn't anyone had any statistics here?

Just because there's a strong correlation doesn't mean it's a cause.

Thus far, nobody's been able to document a significant number of borrowers who are able to make their payments that choose to walk away.

Probably because it's not happening on a large scale.

What *is* happening is that those who fall behind because they CANNOT afford the payments- whether due to a temporary or permanent change- ARE looking at the LTV before deciding what to do.

That's not the same thing... although it's a much less interesting story.
]]> http://seekingalpha.com/article/147601-increasing-taxes-in-the-u-s-accepting-the-inevitable?source=feed#comment-578868 578868
Who are "we?" Some of us did see this coming, did call and write our Congressman, while they did whatever they wanted.

[Rather it’s to admit to reality and try and shape something that will do the least damage and perhaps improve on the current system. ]

The current system sucks. It doesn't need fine-tuning, it needs a substantial overhaul. I think people are realizing it, which is why BO was so popular.

Problem is, he isn't delivering the kind of change that we need.

The first step: replacing our "leaders" with people who don't want to make a career out of being a politician.]]> Wed, 08 Jul 2009 10:58:37 -0400
Who are "we?" Some of us did see this coming, did call and write our Congressman, while they did whatever they wanted.

[Rather it’s to admit to reality and try and shape something that will do the least damage and perhaps improve on the current system. ]

The current system sucks. It doesn't need fine-tuning, it needs a substantial overhaul. I think people are realizing it, which is why BO was so popular.

Problem is, he isn't delivering the kind of change that we need.

The first step: replacing our "leaders" with people who don't want to make a career out of being a politician.]]> http://seekingalpha.com/article/147570-why-banks-prefer-foreclosures-over-mortgage-modifications?source=feed#comment-578840 578840
Loans to homeowners who don't have income... Hey, didn't we do that already?

["The problem is worse than we thought," Frank said. "The failure to do these modifications means the whole situation stays bad longer."]

He's got it exactly backwards. I cannot believe that someone who's in charge of regulating an industry has so little understanding of the subject matter.

Is he really that ignorant of how this industry works, or is he that far into someone's pocket that he can spout this nonsense with a straight face?

Either way, not good. ]]> Wed, 08 Jul 2009 10:45:34 -0400
Loans to homeowners who don't have income... Hey, didn't we do that already?

["The problem is worse than we thought," Frank said. "The failure to do these modifications means the whole situation stays bad longer."]

He's got it exactly backwards. I cannot believe that someone who's in charge of regulating an industry has so little understanding of the subject matter.

Is he really that ignorant of how this industry works, or is he that far into someone's pocket that he can spout this nonsense with a straight face?

Either way, not good. ]]> http://seekingalpha.com/article/147570-why-banks-prefer-foreclosures-over-mortgage-modifications?source=feed#comment-578828 578828
Once you do that, it fails the NPV test, making it better to foreclose.

You see, this game is more complicated than people think it is.

The loudest commentary seems to come from those who've done the least amount of homework, or have ignored the information contrary to their pre-determined viewpoint.]]> Wed, 08 Jul 2009 10:40:06 -0400
Once you do that, it fails the NPV test, making it better to foreclose.

You see, this game is more complicated than people think it is.

The loudest commentary seems to come from those who've done the least amount of homework, or have ignored the information contrary to their pre-determined viewpoint.]]> http://seekingalpha.com/article/147508-minimum-wage-increase-will-send-teenage-jobless-rate-to-a-record-high?source=feed#comment-578778 578778
There's plenty of work to be done, and a lot of it can be done off the books, and out of sight of the tax collector.

Perhaps this will lead to a generation of people who see the government for what it truly is.

Here's hoping. ]]> Wed, 08 Jul 2009 10:17:46 -0400
There's plenty of work to be done, and a lot of it can be done off the books, and out of sight of the tax collector.

Perhaps this will lead to a generation of people who see the government for what it truly is.

Here's hoping. ]]> http://seekingalpha.com/article/147604-boston-fed-we-don-t-understand-foreclosures?source=feed#comment-578744 578744
That's actually lower than the numbers reported from other sources. The OCC's report was 58%.

Re-default was less of a problem during the go-go days, as the property would likely be worth more with the passage of time.

Now, the reverse is true, compounding the losses on the fall-throughs.

There are solutions to the problem of re-default, but they take a substantial amount of time and effort. But rolling up the sleeves is not very popular, and it's a concept that's hard to sell.


]]> Wed, 08 Jul 2009 10:02:31 -0400
That's actually lower than the numbers reported from other sources. The OCC's report was 58%.

Re-default was less of a problem during the go-go days, as the property would likely be worth more with the passage of time.

Now, the reverse is true, compounding the losses on the fall-throughs.

There are solutions to the problem of re-default, but they take a substantial amount of time and effort. But rolling up the sleeves is not very popular, and it's a concept that's hard to sell.


]]> http://seekingalpha.com/news/market_currents/post/27259?source=feed#comment-574394 574394
Nobody's defaulting strictly because they had a sub-prime FICO score,

What a bunch of nonsense.]]> Sun, 05 Jul 2009 10:05:25 -0400
Nobody's defaulting strictly because they had a sub-prime FICO score,

What a bunch of nonsense.]]> http://seekingalpha.com/article/146657-more-reckless-home-lending-courtesy-of-fannie-and-freddie?source=feed#comment-573180 573180
In case you didn't know, it's in the Constitution that overencumbered homeowners are endowed by their Creator with the right to keep their homes at all costs, and that "no loss may befall a mortgage investor, should a quasi-governmental agency be able to prevent it."]]> Fri, 03 Jul 2009 11:34:59 -0400
In case you didn't know, it's in the Constitution that overencumbered homeowners are endowed by their Creator with the right to keep their homes at all costs, and that "no loss may befall a mortgage investor, should a quasi-governmental agency be able to prevent it."]]> http://seekingalpha.com/article/146375-let-s-get-the-facts-straight-on-anti-climate-bill-costs?source=feed#comment-569763 569763 Wed, 01 Jul 2009 09:33:15 -0400 http://seekingalpha.com/article/145859-another-mortgage-modification-proposal-why?source=feed#comment-566872 566872
Seems to me this is more a bailout of the investors than the homeowners. If you get your principal reduction now, you're still at risk for further price declines. Whereas, the investor gets all the money now.

Whether they deal with it now or later, they're going to take these losses. The funny thing I here regarding principal writedowns is, "Well, what if prices go up? Will the homeowner then be willing to renegotiate?"

Get a grip. Real estate prices are not going to "recover" for a long, long time. My gut feeling is that the longer investors wait to face the music, the greater the losses will be.

Eventually, homeowners will realize that they've been forced to follow the "Cider House Rules," while the master does whatever he wants.

Tthey'll walk in droves, and housing prices will be even lower then than they are now.]]> Mon, 29 Jun 2009 10:24:47 -0400
Seems to me this is more a bailout of the investors than the homeowners. If you get your principal reduction now, you're still at risk for further price declines. Whereas, the investor gets all the money now.

Whether they deal with it now or later, they're going to take these losses. The funny thing I here regarding principal writedowns is, "Well, what if prices go up? Will the homeowner then be willing to renegotiate?"

Get a grip. Real estate prices are not going to "recover" for a long, long time. My gut feeling is that the longer investors wait to face the music, the greater the losses will be.

Eventually, homeowners will realize that they've been forced to follow the "Cider House Rules," while the master does whatever he wants.

Tthey'll walk in droves, and housing prices will be even lower then than they are now.]]> http://seekingalpha.com/article/145845-is-there-a-problem-looming-with-fha-loans?source=feed#comment-566838 566838
In these cases, the servicers saw a borrower who was having difficulty, moved them into a refi hoping to reduce their rate a bit and buy them a payment holiday.

They were in the early stages of distress, and things haven't gotten better.

In addition, FHA and VA loans are not eligible for the Treasury mod program, so any borrower who's had a substantial income decrease is not going to get much in the way of payment relief.

Ben is correct that no safety net is a BIG problem. They're not going to address that issue any time soon, because then you'd REALLY see a decline in lending.
]]> Mon, 29 Jun 2009 10:08:57 -0400
In these cases, the servicers saw a borrower who was having difficulty, moved them into a refi hoping to reduce their rate a bit and buy them a payment holiday.

They were in the early stages of distress, and things haven't gotten better.

In addition, FHA and VA loans are not eligible for the Treasury mod program, so any borrower who's had a substantial income decrease is not going to get much in the way of payment relief.

Ben is correct that no safety net is a BIG problem. They're not going to address that issue any time soon, because then you'd REALLY see a decline in lending.
]]> http://seekingalpha.com/article/145422-home-sales-more-reasons-to-disbelieve-the-nar?source=feed#comment-563507 563507
Same advisory board, maybe.]]> Fri, 26 Jun 2009 10:22:32 -0400
Same advisory board, maybe.]]> http://seekingalpha.com/article/145358-the-assault-on-ethical-home-appraisals-part-deux?source=feed#comment-563487 563487
Well at least we know who to blame.

Why hasn't someone from the administration had a talk with these appraisers?

I suppose they could squeeze the appraisers out of the process somehow, like they've done with the foreclosure avoidance refis.

We'd all be better off if the government funded the loan, backed it, originated it, marketed the property, etc.

We've gotta make this process incorruptible. Only the federal government should be trusted with such important work. This is important, and we cannot tolerate any delay.]]> Fri, 26 Jun 2009 10:15:50 -0400
Well at least we know who to blame.

Why hasn't someone from the administration had a talk with these appraisers?

I suppose they could squeeze the appraisers out of the process somehow, like they've done with the foreclosure avoidance refis.

We'd all be better off if the government funded the loan, backed it, originated it, marketed the property, etc.

We've gotta make this process incorruptible. Only the federal government should be trusted with such important work. This is important, and we cannot tolerate any delay.]]> http://seekingalpha.com/article/145358-the-assault-on-ethical-home-appraisals-part-deux?source=feed#comment-563472 563472
I'm sorry... I wasn't aware that had ever gone out of style.]]> Fri, 26 Jun 2009 10:07:34 -0400
I'm sorry... I wasn't aware that had ever gone out of style.]]> http://seekingalpha.com/article/145349-home-buyers-conspicuously-missing-legislation?source=feed#comment-563404 563404
However, a price will have to be paid to accommodate this shift.

The average American has a small-to-negative savings rate.

What's the median home value now? 180,000?

180,000 * 5% = $9,000.

I look at people's personal financials all day long.

Most people don't have a month's worth of expenses saved up, never mind a 5% down payment.

If we're going to move in that direction overnight, then we're going to have to wait awhile for people to buy houses. ]]> Fri, 26 Jun 2009 09:29:01 -0400
However, a price will have to be paid to accommodate this shift.

The average American has a small-to-negative savings rate.

What's the median home value now? 180,000?

180,000 * 5% = $9,000.

I look at people's personal financials all day long.

Most people don't have a month's worth of expenses saved up, never mind a 5% down payment.

If we're going to move in that direction overnight, then we're going to have to wait awhile for people to buy houses. ]]> http://seekingalpha.com/article/144554-big-banks-in-trouble-huge-mortgage-write-downs-seem-inevitable?source=feed#comment-557379 557379
Maybe not... while they're current. But they take a KEEN interest in how much they owe once they do fall behind on payments. Don't think for a minute that people aren't doing the math to see if the LTV is within their tolerance level.

Many borrowers were stupid enough to take the loan they were given. But they're not stupid enough to keep it. ]]> Mon, 22 Jun 2009 10:46:24 -0400
Maybe not... while they're current. But they take a KEEN interest in how much they owe once they do fall behind on payments. Don't think for a minute that people aren't doing the math to see if the LTV is within their tolerance level.

Many borrowers were stupid enough to take the loan they were given. But they're not stupid enough to keep it. ]]> http://seekingalpha.com/article/144316-back-in-the-u-s-s-a?source=feed#comment-556081 556081
I hear this kind of statement frequently, and seems that the reasoning is to excuse our government for its stupidity, favoritism and incompetence.

And this excuse is usually offered to excuse yet another intrusion of the government into our lives... "It's a small price to pay."

I disagree with this premise TO MY CORE.

There is often little-to-no relationship- perhaps an INVERSE relationship between the stupidity, over-taxation and pointless regulation we endure and the benefits that we enjoy as a result of living here. ]]> Sun, 21 Jun 2009 10:57:05 -0400
I hear this kind of statement frequently, and seems that the reasoning is to excuse our government for its stupidity, favoritism and incompetence.

And this excuse is usually offered to excuse yet another intrusion of the government into our lives... "It's a small price to pay."

I disagree with this premise TO MY CORE.

There is often little-to-no relationship- perhaps an INVERSE relationship between the stupidity, over-taxation and pointless regulation we endure and the benefits that we enjoy as a result of living here. ]]> http://seekingalpha.com/article/144195-southern-california-home-prices-rise-beware-of-misleading-medians?source=feed#comment-553969 553969
Most realtors have mastered the art of "How to Lie with Statistics" without having ever read the book.

Most MLS's don't keep terribly good data, to begin with. The way they calculate average time on market is SEVERELY skewed, for example. So, most "conclusions" they reach "based on the "market data" are often overly optimistic.

Trusting a realtor's opinion on whether you should buy or not is similar to asking the mortgage broker whether or not you can afford the loan that you "qualify" for.

Do your own homework.

Or don't, and maybe Pappy Obama will come to your rescue, too.]]> Fri, 19 Jun 2009 12:09:56 -0400
Most realtors have mastered the art of "How to Lie with Statistics" without having ever read the book.

Most MLS's don't keep terribly good data, to begin with. The way they calculate average time on market is SEVERELY skewed, for example. So, most "conclusions" they reach "based on the "market data" are often overly optimistic.

Trusting a realtor's opinion on whether you should buy or not is similar to asking the mortgage broker whether or not you can afford the loan that you "qualify" for.

Do your own homework.

Or don't, and maybe Pappy Obama will come to your rescue, too.]]>