oddsneds

Could the Top Tax Rate Reach 60%?

Great list but NJ's new 2009 state income tax rates (in budget passed 7-1-09) not reflected - this will add 1.78% to NJ top rate, pushing NJ up from #8 to #3 on the list. A crappy distinction.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

Weingarten is one of the better REIT's, I have followed it for more than 15 years. Their ability to sell sizeable stock so as to replace debt is a good sign and that alone is worthy of an analyst reconsidering their viewpoint as to the company's prospects. I don't know the analyst or her age, experience, reputation etc. so I wouldn't necessarily consider her opinion too highly on my reasons to buy or sell. I also think occasional conflicts of interest are inevitable and don't mean collusion or some secret plan to defraud us poor unsuspecting investors.

Bank of America / Merrill: Shotgun Marriage

"Bank of America (BAC) agreed to pay $44 billion for a company that would have been worth $18 billion...." well, not really, it's the marginal stock transaction that's being valued at $17, or $12 per share, or whatever. Not the company.

Noose Tightens on Non-Conforming Loans

On the other hand,in early July I applied to a small regional NJ bank, where I did not have any deposits or history, for a full doc $502,000 refi of my 2004 WaMu NIV 5/1 option arm whose initial reset was coming due in early 2009. This is about 70% LTV at today's appraisal, and I have a $200K IRA and some other assets, and run a business so I am considered self employed. It was approved in 3 days at the requested 5.625% as a 7/1 arm with 0 points. They say they will hold the loan in their portfolio.

Even putting aside the fast approval, this rate was 1 full point below what WaMu offered. WaMu has my 100% perfect payment history. I wouldn't have bothered with any major brand name bank because their need to rebuild capital is going to force restrictive top-down decisions like those discussed in this article. Bottom line: if you are qualified by reasonably conservative standards you will not have any trouble getting funding from a healthy regional or local bank. If you are looking for free and easy money those days are gone...for now.

Some Real Talk on Housing

the DESIREABLE homes and communities, as opposed to the AVAILABLE homes and communities, will not drop to the "rental income floor", or necessarily to any particular year's prices i.e. 2002 or 1999 or whatever. With inflation (stagflation?) likely to return, and the media destined to scream about it, the perceived benefit of owning a home increases, and the benefit of a fixed rate loan paid off in cheaper dollars increases. People want the stability of a home in a good community they can raise their children in, and build equity in so as to feel more secure as they age. No body wants to buy anything when they feel prices will be lower in a year, but price is as much about psychology and emotion as it is the economics. When the stabiliization comes in the better and mid grade markets it will sneak up on us all and take this doom and gloom market by surprise. As a long term homeowner this is the market we want - kiss the speculators good bye and good riddance.

2 Homes For Price Of 1 Ripoff

Mike has had some brilliant insights but this looks more like venting & frustration that the world hasn't collapsed as fully as he would like.....

6.5 Million Foreclosures; Is There a Behavioral Problem?

6.5 million foreclosures by 2012 - that's 1.3 million per year. Is that unduly excessive? I don't know what's been considered "normal" over the past 20 years, as a percent of total homeowners (not just the absolute figure). Perhaps double the norm? Looks like another analyst making a routine extrapolation made out to look like a headline.

Yesterday I read a post describing why a bank COULD NOT rush the foreclosure procedure, due to all the legal steps involved to justify the foreclosure in a future possible legal action by the homeowner. The bank doesn't want to eat the shortfall hence the reluctance to do the short sale, vs. the foreclosure process where the homeowner is still on the hook.

AIG, Fannie and Freddie Put the Crunch on Condo Mortgages

There are many Florida condos in Ft Myers for example that have core operating expenses well under $500 / mo. (taxes + homeowner assoc. fees). Theses condos are offered at, (and even sell sometimes!), in this depressed market at $140,000 - $160,000. My mother lives in one and I have seen plenty more. Only luxury condos have $3000 / month operating expenses and the owners of those are getting a lot more services than the basics.