brokerbila

10 Stupid Moves That Created This Mess

OK dIdin't read the other 693 comments,but what about the central banking cartel as a cause of this catastrophe.


On Jan 01 08:16 AM john s. gordon wrote:

> right on.

Stay Clear of Traditional Asset Classes

This link seems to be working fine. Was it off the web momentarily on March 1,2008? economicindicators.gov/

Fast and Easy Fannie

As far as who is most resposible for this giant disaster, it must be the bankers who with hundreds if not a thousand years of data and experience relaxed time tested lending rules. Simply, they knew that they didn't have to stand behind the loans they made, because they were going to sell them. Shame on them. They knew what they were doing. The loan agent on the street was in lemming like fashion just following the leaders of the industry off the cliff, thinking all the while that the leaders in the industry knew what they were doing. There is some measure of culpability for nearly everyone, but the industry leaders certainly took the cake.


Why won't the GSE's fail? If the fed won't let Bear Sterns fail, it seems implausable that they would let freddie-fannie fail. But wait ...what if the treasury couldn't raise enough money.

Option ARMs and the Next Wave of Foreclosures - Housing Tracker

The author...She's legit.

The sea has no sympathy for the unprepared and little respect for certificates.

Batten down mates... the storm is still brewing.

Shiller at BAAS: Housing Will Continue to Fall

"Unlike other assets, however, it was nearly impossible to hedge against a drop in value. But he has helped develop financial derivatives linked to the Case-Shiller indexes that allow home owners to do just that. " In reference to this part of the artilce...

Why not have fannie mae , freddie mac mandate that borrowers pay for this hedge insurance referenced to the Shiller index. Borrowers must currently protect the lender with PMI private mortgage insurance, why not have them protect themselves aagainst a fall in prices too. This could help put in a bottom in the housing market and create stability for the future. Buyers could begin to buy with confidence knowing that their value was protected against decline.

A Government Rental Agency to Mop Up the Foreclosures

I agree with Vikram in that I would like to see markets reach equilibrium soon for everyones sake. The problem has grown way beyond subprime. Some peolple who put $150k down are walking awaynow and if job losses increase many more will follow. My first preference is not for government, but for a private and for profit insurance company to step in to stop the overshoot of the decline. Think of all the people who might like to buy home price protection insurance. This could be a real growth industry. Maybe we could put some of the people who have lost jobs in the real estate industry back to work? It's really a very capitalistic idea. Hedgeing a bet on spending a half a million dollars on purchasing a home is probably sounding like a pretty good idea to a whole lot of people right now. It just makes sense. It's something most skillful investors do.

Housing Bust Blame Game

oops! Correction to the date in the above from Brokerbila: The Community Reinvestment Act Congress was passed by congress in the 1990s.

Housing Bust Blame Game

Published in American Banker ( a trade paper), Vernon Hill fromer CEO of Commerce Bank Corp Inc. blames the Community Reinvestment Act Congress passed in the 1900s and then the agressive enforcement of this law, forcing lenders to make loans to subprime borrowers. He claims that this law made the regulators force banks to make lenders lend regardless of credit. He says its just "Another flawed government program run amok."

A Government Rental Agency to Mop Up the Foreclosures

How to Fix the Housing Dilema:

As buyers keep waiting to buy, due to dropping prices, the problem continues to grow. If we can help put a floor under values we can stop this costly spiral meltdown. When prices stop dropping, forclosures will stop increasing.

Lets create an FDIC sticker for a home like the one on the window at the bank. It basically insures that if you put money in youll get money back later. Lenders currently protect themselves with PMI (Private mortgage insurance). We should make this available to home buyers, that if they agree to hold the home for a least X number of years that the value will be insured if they have to sell after that time. The owners could make a small payment per month to pay for the insurance. Buyers would not wait any longer to start buying again and this would put a floor of confidence under the market.

At some point in the future a smart insurance company who is already recognizing a bottom in the market anyway could step and make a lot of money at low risk. Government could encourage the insurance industry to create an FDIC like insurance that would stop this spiral down dead in its tracks.

The Mortgage Crisis: Time for Real Solutions

From a Real Estate Brokerage Owner in CA
How to Fix the Housing Dilema: As buyers keep waiting to buy, due to falling prices, the problem continues to grow. Now even peolple who bought with $150k of their own money down are begining to walk away from their homes. If we can help put a floor under values we can stop this costly spiral meltdown. Benanke's idea to forgive principal is good, but the following idea is an easier and less costly way for the government to make people want to stay in their homes. Lets create an FDIC sticker for a home like the one on the window at the bank. It basically insures that if you put money in youll get money back later. Lenders currently protect themselves with PMI (Private mortgage insurance). We should make this available to home buyers, that if they agree to
hold the home for a least X number of years that the value will be
insured if they have to sell after that time. The owners could make a small payment per month to pay for the insurance. Buyers would not wait any longer to start buying again and this would put a floor of confidence under the market. At some point in the future a smart insurance company who is already recognizing a bottom in the market anyway could step and make a lot of money at low risk. Government could encourage the insurance industry to create an FDIC like insurance that would stop this spiral down dead in its tracks. Sophisticated investors don't leverage 10:1 without some kind of investment protection insurance, why should the average guy own a home without it.

A Solution to the Mortgage Mess?

How to Fix the Housing Dilema:

The problem continues growing because home values are going down. If we can stop values from continuing to decline we can stop this costly spiral meltdown.

Lets create an FDIC sticker for a home like the one on the window at the bank. It basically insures that if you put money in youll get money back later. Lenders currently protect themselves with PMI (Private mortgage insurance). We should make this available to home buyers, that if they agree to hold the home for a least X number of years that the value will be insured if they have to sell after that time. The owners could make a small payment per month to pay for the insurance. Buyers would not wait any longer to start buying again and this would put a floor of confidence under the market.

At some point in the future a smart insurance company who is already recognizing a bottom in the market anyway could step and make a lot of money at low risk. Government could encourage the insurance industry to create an FDIC like insurance that would stop this spiral down dead in its tracks.

How to Solve the Housing Crisis

How to Fix the Housing Dilema

The problem continues growing because home values are going down. If we can stop this we can stop the meltdown.

Lets create an FDIC sticker for a home like the one on the window at the bank. It basically insures that if you put money in youll get money back later. Lenders currently protect themselves with PMI (Private mortgage insurance). We should make this available to home buyers, that if they agree to hold the home for a least X number of years that the value will be insured if they have to sell after that time. The owners could make a small payment per month to pay for the insurance. Buyers would not wait any longer to start buying again and this woulod put a floor of confidence under the market.

At some point in the future a smart insurance company who is already recognizing a bottom in the market anyway could step and make a lot of money at low risk.

Proposals for a Depreciating Housing Environment

Many homebuyers are waiting to buy thinking that prices will fall further. Perhaps we could find an insurance company to accept premiums to insure against a drop in value. It would be like the FDIC guarantee sticker on the window at your bank. The money you put in, you'll be able to get back out, as long as you have held the property for X number of years. We currently insure the lenders with PMI private mortgage insurance for such shortages (and the buyer pays a small monthly fee for it). Why not the owner of record too?