Still Renting

Jim the Realtor: San Diego New Homes Selling Briskly

My wife sent me a video on how to reset the memory on an Epson print cartridge. It showed how you simply use a paper clip to pish a little plastic button. It then showed them putting the cartridge back in the printer and, presto, it showed that it had more ink.

I tore apart one of the print cartriges. The "restet" button was nothing more than a plastic tab used to line up the plastic parts.

IOW, One video does not the truth make, and things in videos are not always what they seem.

Mortgage Lender Blowbacks

Which is yet another reason why people should not necessarily hand over the keys until the foreclosing bank can "prove" they have legal standing. With the legal standing comes the responsibility to maintain the property.

A Bottom in Home Prices Is Still Far Off

That's why I hate auctions. Often the one that wins is actually the loser.

On Urban Decline and Efficient Government Intervention

What is lost on them is the concept that sreducing taxes can actually increase tax revenue.

But I digress from what I want to say, which is, Detroit's problems are only partly economical. I've been there. When the rule of law breaks down (corruption, etc.) the effects on a city in an economic downturn can be catastrophic, as we are seeing in detroit.

Fed Continues to Posture on Inflation

"They WANT inflation. Either this thing is heavily monetized, or we are in for bad times indeed. But then, I repeat myself.

But at least if it is monetized, the "status quo" is somewhat preserved. That is, it saves those who most deserve to lose their shirts.

Fact is, I am all for the "non-inflation" solution, but I admit the risk of hot war/civil unrest is greater with that solution. But all inflation does is put it off. And the longer it is put off, the greater the pain when it does finally unravel. It is what got us into this mess in the first place.

On the Burden of Home Ownership

I was very much in agreement untill that last sentence. On a side note, my son owns several rental properties - and rents his own home. It works out really well. He owns real estate, yet is afforded the freedom of movement only renting ones home offers.


On Apr 20 07:39 AM abetterplace wrote:

> Surely no one thinks that this country can stand as it is without
> the "dream of home ownership" staying intact and it will.

Has Recent U.S. Data Signaled a Bottom?

There is investment activity, then there is "hard" activity.

March retail sales were down considerably. We have found no bottom. Discussions and articles may hint at a bottom. Consumer activity does not.

The Shadow Inventory of Foreclosed Homes

Lots of butterfly effects on this housing market.

What about the exodus of both illegal and legal aliens back to Mexico, etc.? And what is the impact to the Mexican economy of them not sending their earned american dollars back to their families in mexico?

The Shadow Inventory of Foreclosed Homes

That is true, however the net effect is still quite negative. I'm paying $1,600 a month for a house that WAS valued at $525k. That is why I rent. :)

Meanwhile, the mythical foreclosed house, where the monthly payment was $3,800 a month can now only command a rent of $1,500 (or less) for people in the same demographic as the evicted "owners".

Meanwhile, my daughter rents a condo in downtown Seattle for $1200 a month that has $500 monthly dues. The owner bought it for $285k three years ago but it has gone into foreclosure. It is being offered for $235k.

She now pays $600 a month rent to the "deadbeat" owner and probably should not be paying anything, since he has "walked away". Meanwhile, she enjoys very low rent while hte unit rots on the market.

I have little doubt there is a lot of that going on.

On Apr 09 04:45 PM Charles Lieberman wrote:


> of the equation. Every foreclosure also adds a family to the demand
> side of the market looking for a rental. So, net demand for housing
> units is zero.

Job Loss Peaks and Stock Market Lows

This was not an income bubble. It was a credit bubble. Credit catastrophically stopped. Let's see how the commercial RE bubble burst impacts us.

Also, because this was a consumer based boom, it is subject to the whims of the consumer. The consumer tends to spend until he simply can't. Nobody will give him credit or money. The ranks of people in that condition continues to grow and Craigslist continues to boom.

Again, I want to get some feel for impact of commercial RE contraction before I'd say we are even close to any kind of floor. This whole thing has way too many butterfly effects.

Upward Curve of Treasury Yield Could Signal Recession's End

So I check out my SA alerts this morning and see a slew of positive articles and I'm thinking, did I just pass into a parallel universe?

Then I notice they are all by the same guy.

Is This a Sucker Rally or New Bull Market?

Tim, your articles are getting better and better. I'm actually seeing the difference in quality from when I first saw your stuff.

And your quality relative to other SA sources is outstanding!

Is This a Sucker Rally or New Bull Market?

I'm yping with a cast on one hand.

I gotta spell check more. :)

Is This a Sucker Rally or New Bull Market?

I tend to agree except I don't think it will be two years. Maybe a month or three.

I think this thing is analogous to a car running out of vas, You get that first cut out and you look at the guage. You realize you are in trouble. Then it's fine for a few seconds and ithe motor cuts out again. The cycle repeats, but each cycle is slower until the engine is dead, with an occasional droplet giving a spurt of power to your coasting.

This current suckers rally is one of those droplets.

Fundamentally though, the tank is empty. Hopefully there is a gas station just over the hill and you have a gas can in the trunk.


On Apr 08 07:52 AM Jolly_Rancher wrote:

> couldn't it be a new bull market big sucker rally? That's what the
> last bull market was. This time I think there won't be quite as many
> suckers. I wouldn't be surprised at all to see the S&P move up
> to 1200 over the next 2 years then roll over.

Buying Stampede Winding Down? Tread Cautiously

I saw the downturn coming years ago (2.5 to be exact) but left my 401k in anyway. To be fair, it is very small (5 figures). I clearly saw this runup as an opportunity to get back some of my losses.

The only thing that will save this market for more than a few dead cat bounces is a rapid devaluation (serious inflation) in the currency in which it is traded. I don't see that happening for ab bit, but happen it will, and probably with a vengeance.