HandsOn

Re: Wells Fargo: Housing Crisis Worst Since Great Depression

Limoman — Wed, 28 Nov 2007 13:05:20 GMT

Geech, More Spin Dr.'s with their Gloom and Doom to get Attention to read their Articles. Is just another CNBC trick...

Of the *est 40 Million Home owners, *1.5 milliion loose the place, of which 80% had no business owning them and wouldn't ahve if they had to meet 1980 qualifications, is still less than 3.75%. Of course they want to concentrate on the 1.5 million vs a few thousand way back when... when the % ratio was 22%

What a bunch of Misleading Baloney...

When in fact> American Homeowners had one of the Best 5 yr increases in Home Values in History, adjusted for Inflation.. and now some are crying the blues that their place isn't rising at 15-20%+ a yr anymore...

Probably put out by Real Estate People ( And Flippers) to Influence the Fed to keep dropping rates, so they can go back to their Devious ways again..of selling homes to the Unqualified. Isn't it amazing how these kinds of articles show up at the same time the Fed is to met a few wks prior? LOL

and Andy Rooney Advocate

PS. My formet Home went from $150 k in 02' to being sold for $329k in 06'.. Rose +119%.......Amazing... But it wen up " Only" 5% this Yr....Terrbible

Not worth owning it anymore....lol

Let's see how these Gloam and Dommers feel say 10-20 yrs from now about their homes values...when they will be going for 3-5 x as much.....

* est. only, 38% were Short term buyers, better known as Flippers. 73% were Marginal Qualifed buyers not meeting Standard Requirements.

Re: Wells Fargo: Housing Crisis Worst Since Great Depression

Santa Cruz — Tue, 20 Nov 2007 16:07:34 GMT

What we can say now is that the US is experiencing real inflation in the economy that is much higher than what is reported (6-8%). In addition to real inflation in the economy, the US has experienced hyperinflation in the financial economy—first in the stock market (the tech bubble between 1995-2000) and then in the mortgage, bond and real estate markets since 2000. If inflation continues to increase as I suspect in the real economy, I can guarantee you it will never show up in the CPI and PPI. Real inflation will be removed statistically through the magic of hedonics, geometric weighting, substitution, and seasonal adjustments.

This whole process of purposefully understating the real inflation rate also keeps real inflation artificially subdued. Think of all of the aspects of our economy that are tied to the CPI. Listed below are just a few examples:

Wage and labor contracts
Rents
COLAs on pensions
Market interest rates

Labor contract negotiations begin with CPI adjustments. Annual raises at companies are based on CPI changes. Think of how many workers fall further behind in their pay because of an understated CPI. How many landlords are cheated out of their just rents by understated inflation rates? How many retirees are robbed of real increases to their pensions as a result of underreported inflation? What would be the real rate of interest, if bond investors figured out that the real inflation rate was 6% and not 3% as reported by the BLS.

Re: Wells Fargo: Housing Crisis Worst Since Great Depression

Santa Cruz — Tue, 20 Nov 2007 15:37:19 GMT

"One bubble seems to replace one that just burst, in this case, the '90s Stock Market Bubble was replaced by a housing bubble."

Like japan market crash then a real estate bubble

at least we did not have 100 year mortgages.

Re: Wells Fargo: Housing Crisis Worst Since Great Depression

uncleharley — Tue, 20 Nov 2007 15:28:55 GMT

Yes, but, the housing report on Bloombergs has a paragraph that states Condominium construction is taking up most of the slack that is being created by slow construction of single family dwellings. Perhaps Wells Fargo is talking about bad loans which have already been made rather than what the market is doing now. Just a guess.

Re: Wells Fargo: Housing Crisis Worst Since Great Depression

EagleTed — Tue, 20 Nov 2007 14:13:41 GMT

From your article:

Stumpf said the current downturn resulted in part from "froth, unscrupulous lenders, (and) borrowers who got too greedy," and called it the "steepest, fastest, most prolonged decline in residential real estate" in a long time.

"Once we reach the bottom, the (housing) inventory is going to come off pretty quickly," he said. "Once the secondary market gets comfortable with (credit) ratings again, and once you think you've hit bottom, I think we'll see some turnaround, and it could be faster than we've seen in the past."

Misplaced optimism? We all hope not. This thing amazes me. What amazes me the most is how many foreign bankers were throwing money into the system. There seems to always be an excess of capital desperately seeking homes. One bubble seems to replace one that just burst, in this case, the '90s Stock Market Bubble was replaced by a housing bubble.

If you can figure what bubbles next, you can make a lot of money. Just get out in time.

Re: Housing Crisis Worst Since Great Depression

gaiuslives — Fri, 16 Nov 2007 01:52:42 GMT

And we are only in the early innings too.

So much for the "ownership society" touted a couple years back by "He who shall remain nameless, but who speaks to a 'higher Father'".

Next stop: The Receivership Society.

Wells Fargo: Housing Crisis Worst Since Great Depression

Santa Cruz — Fri, 16 Nov 2007 01:09:28 GMT

Wells Fargo: Housing Crisis Worst Since Great Depression