Doesitmatter's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/222991/comments http://seekingalpha.com/article/110919-alt-a-loans-spiraling-downward?source=feed#comment-332325 332325 Wed, 17 Dec 2008 14:40:19 -0500 http://seekingalpha.com/article/110919-alt-a-loans-spiraling-downward?source=feed#comment-332323 332323
Agreed on a monetary/nominal basis. However, looking at the oversupply and tightened lending standards, do you think the increase in the value of homes will keep pace with inflation to give you a real return, not just a nominal one?
]]> Wed, 17 Dec 2008 14:38:56 -0500
Agreed on a monetary/nominal basis. However, looking at the oversupply and tightened lending standards, do you think the increase in the value of homes will keep pace with inflation to give you a real return, not just a nominal one?
]]> http://seekingalpha.com/article/110919-alt-a-loans-spiraling-downward?source=feed#comment-332320 332320
Agreed on a monetary/nominal basis. However, looking at the oversupply and tightened lending standards, do you think the increase in the value of homes will keep pace with inflation to give you a real return, not just a nominal one?
]]> Wed, 17 Dec 2008 14:37:51 -0500
Agreed on a monetary/nominal basis. However, looking at the oversupply and tightened lending standards, do you think the increase in the value of homes will keep pace with inflation to give you a real return, not just a nominal one?
]]> http://seekingalpha.com/article/110919-alt-a-loans-spiraling-downward?source=feed#comment-332319 332319
Agreed on a monetary/nominal basis. However, looking at the oversupply and tightened lending standards, do you think the increase in the value of homes will keep pace with inflation to give you a real return, not just a nominal one?
]]> Wed, 17 Dec 2008 14:37:32 -0500
Agreed on a monetary/nominal basis. However, looking at the oversupply and tightened lending standards, do you think the increase in the value of homes will keep pace with inflation to give you a real return, not just a nominal one?
]]> http://seekingalpha.com/article/110919-alt-a-loans-spiraling-downward?source=feed#comment-331315 331315
Owners can throw in the keys and walk away and not take a multi-hundred thousand dollar loss and go and rent. Also, when you look at the number of foreclosures, I don't believe defaults or foreclosures on your credit ratings are going to mean all that much in the coming years because of the mass number of them. I don't see the US being a repeat of Japan and homeowners stretching mortgages to 100 years in order to stay in a home they can't afford.

It comes down to the fact that someone has to take the loss and the homeowners can simply walk away. The banks should have been bending over backwards to do loan-mods in order to keep the foreclosures that have been happening thus far from happening in order to get what money they could out of the current owners.

It comes down to the fact that their was a tremendous real estate bubble and the nominal values got way too high because of available credit. The credit is gone and so are the buyers. The truth is out and the supply and demand have to get back to equilibrium. This is going to cause a loss of principle someone will have to take. The important question now is to figure out how to most efficiently do this.


On Dec 16 01:30 PM cadoggy wrote:

> I've known for months that loan mods won't work without serious principal
> write-downs. Borrowers may have dived into this mess without checking
> the depth of the water but now that they're educating themselves
> real quick.
>
> It's just not smart to hold a loan of $400k and another of $70k on
> a home that won't be worth $470k within the next 5 years (or more).
>
>
> Take the credit hit... walk away. Save tens of thousands by renting
> instead of giving the irresponsible banks (who caused this mess)
> any more $$$.]]> Tue, 16 Dec 2008 15:34:58 -0500
Owners can throw in the keys and walk away and not take a multi-hundred thousand dollar loss and go and rent. Also, when you look at the number of foreclosures, I don't believe defaults or foreclosures on your credit ratings are going to mean all that much in the coming years because of the mass number of them. I don't see the US being a repeat of Japan and homeowners stretching mortgages to 100 years in order to stay in a home they can't afford.

It comes down to the fact that someone has to take the loss and the homeowners can simply walk away. The banks should have been bending over backwards to do loan-mods in order to keep the foreclosures that have been happening thus far from happening in order to get what money they could out of the current owners.

It comes down to the fact that their was a tremendous real estate bubble and the nominal values got way too high because of available credit. The credit is gone and so are the buyers. The truth is out and the supply and demand have to get back to equilibrium. This is going to cause a loss of principle someone will have to take. The important question now is to figure out how to most efficiently do this.


On Dec 16 01:30 PM cadoggy wrote:

> I've known for months that loan mods won't work without serious principal
> write-downs. Borrowers may have dived into this mess without checking
> the depth of the water but now that they're educating themselves
> real quick.
>
> It's just not smart to hold a loan of $400k and another of $70k on
> a home that won't be worth $470k within the next 5 years (or more).
>
>
> Take the credit hit... walk away. Save tens of thousands by renting
> instead of giving the irresponsible banks (who caused this mess)
> any more $$$.]]> http://seekingalpha.com/article/106381-the-fed-now-the-world-s-largest-private-bank?source=feed#comment-309225 309225
The FED is a private bank. It is owned by private entities that have never been disclosed. I believe the US Government owns less than 1/3 of it this has been since it was started. You want a great history on it being started etc. Check out a video on google video or whatever called 'Money Masters' some pretty wicked history there.]]> Tue, 18 Nov 2008 15:47:21 -0500
The FED is a private bank. It is owned by private entities that have never been disclosed. I believe the US Government owns less than 1/3 of it this has been since it was started. You want a great history on it being started etc. Check out a video on google video or whatever called 'Money Masters' some pretty wicked history there.]]>