Comments on: Double Dips Coming Everywhere http://usawatchdog.com/double-dips-coming-everywhere/ Connecting the Dots to Give You A Clear Picture of What’s Really Going On Thu, 09 Feb 2012 00:48:32 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Revolutionary Politics » Blog Archive » Dreaded Double-Dip Is Here http://usawatchdog.com/double-dips-coming-everywhere/#comment-45450 Revolutionary Politics » Blog Archive » Dreaded Double-Dip Is Here Sat, 04 Jun 2011 17:28:51 +0000 http://usawatchdog.com/?p=1902#comment-45450 [...] I see a double-dip in housing.  There’s no doubt about it . . . prices are going down again.” (Click here to read my original post from a year ago.) At the time, many people thought Ms. Whitney was being overly pessimistic.  In fact, her dire [...] [...] I see a double-dip in housing.  There’s no doubt about it . . . prices are going down again.” (Click here to read my original post from a year ago.) At the time, many people thought Ms. Whitney was being overly pessimistic.  In fact, her dire [...]

]]> By: Monetary Reform: US Dreaded Double-Dip Is Here « The New World Order http://usawatchdog.com/double-dips-coming-everywhere/#comment-45307 Monetary Reform: US Dreaded Double-Dip Is Here « The New World Order Thu, 02 Jun 2011 22:27:20 +0000 http://usawatchdog.com/?p=1902#comment-45307 [...] If you look back six months, prices are off nearly 8% according to Case/Shiller.  If you look on the chart on the first page of the Case/Shiller press release (click here), it clearly shows a double dip in housing.  That is exactly what was predicted nearly a year ago on this site.  One of the many people I quoted was renowned banking analyst Meredith Whitney who said last June,“Unequivocally, I see a double-dip in housing.  There’s no doubt about it . . . prices are going down again.”(Click here to read my original post from a year ago.) [...] [...] If you look back six months, prices are off nearly 8% according to Case/Shiller.  If you look on the chart on the first page of the Case/Shiller press release (click here), it clearly shows a double dip in housing.  That is exactly what was predicted nearly a year ago on this site.  One of the many people I quoted was renowned banking analyst Meredith Whitney who said last June,“Unequivocally, I see a double-dip in housing.  There’s no doubt about it . . . prices are going down again.”(Click here to read my original post from a year ago.) [...]

]]> By: Monetary Reform US Dreaded Double-Dip Is Here | Kevin Gilmour http://usawatchdog.com/double-dips-coming-everywhere/#comment-45162 Monetary Reform US Dreaded Double-Dip Is Here | Kevin Gilmour Wed, 01 Jun 2011 14:34:27 +0000 http://usawatchdog.com/?p=1902#comment-45162 [...] If you look back six months, prices are off nearly 8% according to Case/Shiller.  If you look on the chart on the first page of the Case/Shiller press release (click here), it clearly shows a double dip in housing.  That is exactly what was predicted nearly a year ago on this site.  One of the many people I quoted was renowned banking analyst Meredith Whitney who said last June,“Unequivocally, I see a double-dip in housing.  There’s no doubt about it . . . prices are going down again.”(Click here to read my original post from a year ago.) [...] [...] If you look back six months, prices are off nearly 8% according to Case/Shiller.  If you look on the chart on the first page of the Case/Shiller press release (click here), it clearly shows a double dip in housing.  That is exactly what was predicted nearly a year ago on this site.  One of the many people I quoted was renowned banking analyst Meredith Whitney who said last June,“Unequivocally, I see a double-dip in housing.  There’s no doubt about it . . . prices are going down again.”(Click here to read my original post from a year ago.) [...]

]]> By: Greg http://usawatchdog.com/double-dips-coming-everywhere/#comment-10351 Greg Thu, 30 Sep 2010 03:53:40 +0000 http://usawatchdog.com/?p=1902#comment-10351 Greg, I agree. Thank you! Greg Greg,
I agree. Thank you!
Greg

]]> By: Greg http://usawatchdog.com/double-dips-coming-everywhere/#comment-10327 Greg Thu, 30 Sep 2010 00:56:23 +0000 http://usawatchdog.com/?p=1902#comment-10327 Think about this: If there is no limit to the amount of money Washington can print and throw into the economy then there is no limit to where Gold and especially Silver can go! Think about this: If there is no limit to the amount of money Washington can print and throw into the economy then there is no limit to where Gold and especially Silver can go!

]]> By: Greg http://usawatchdog.com/double-dips-coming-everywhere/#comment-4202 Greg Mon, 28 Jun 2010 03:21:40 +0000 http://usawatchdog.com/?p=1902#comment-4202 Bob, Location, location, location. Very good point. Simple but so true. Thank you. Greg Bob,
Location, location, location. Very good point. Simple but so true. Thank you.
Greg

]]> By: Greg http://usawatchdog.com/double-dips-coming-everywhere/#comment-4200 Greg Mon, 28 Jun 2010 03:19:31 +0000 http://usawatchdog.com/?p=1902#comment-4200 WL, Thank you. Greg WL,
Thank you.
Greg

]]> By: Bob http://usawatchdog.com/double-dips-coming-everywhere/#comment-4192 Bob Sun, 27 Jun 2010 23:25:48 +0000 http://usawatchdog.com/?p=1902#comment-4192 It's more about location of these homes . What state, what city. But what was said before about buying a home for the long haul is the smart move. It’s more about location of these homes . What state, what city. But what was said before about buying a home for the long haul is the smart move.

]]> By: WL http://usawatchdog.com/double-dips-coming-everywhere/#comment-4179 WL Sun, 27 Jun 2010 03:04:20 +0000 http://usawatchdog.com/?p=1902#comment-4179 I worked in the mortgage business from 1992 until 2006. I saw the business morph into giant ponzi scheme. Starting in the mid 1990's credit underwriting standards were systematically loosened. By the mid 2000s anyone, and I mean anyone could get a mortgage. The entire lending scheme was based on rising collateral values. So long as there was little risk of loss as prices rose the risk of default was meaningless. That was until prices began to fall and the entire risk model blew up. As a result house prices began to reflect the availibility of credit rather then personal income gains which have been basically non existant for quite some time. I am in total agreement with Stephen that prices need to fall. A better way to put it would be to say prices need to fall and/or incomes need to rise. The bottom of the RE market will be a function of those two items over a time interval that is probably longer than most people think. Everything the gov't does in an effort to fix the housing market prevents exactly that from happening. There are a lot more delinquent mortgages out there then what is being revealed with regard to agency loans. After all the supposed R.E. bailout is really just a bank bailout and that bailout will come at the expense of the RE market rather than in favor of it. Taxpayer money should have gone to setup new banks with clean balance sheets. Such a bank could actually make loans because they would be risk negative, and thats a rare thing these days. The legacy banks are so laden with risk that they are paralyzed and take the free money to buy treasuries in an effort to reduce their risk profile. This stimulates nothing. They will have to do this for years before they will even begin to look sound. While these banks claim they don't hold these loans they lent out billions to others to buy them, which is even worse. When a mortgage defaults it takes a team of lawyers and derivative scientists to figure out who takes the haircut. It's a real mess and I am beginning to wonder if a solution actually exists and if it does I'm certain no one is going to like it. I worked in the mortgage business from 1992 until 2006. I saw the business morph into giant ponzi scheme. Starting in the mid 1990′s credit underwriting standards were systematically loosened. By the mid 2000s anyone, and I mean anyone could get a mortgage. The entire lending scheme was based on rising collateral values. So long as there was little risk of loss as prices rose the risk of default was meaningless. That was until prices began to fall and the entire risk model blew up. As a result house prices began to reflect the availibility of credit rather then personal income gains which have been basically non existant for quite some time.

I am in total agreement with Stephen that prices need to fall. A better way to put it would be to say prices need to fall and/or incomes need to rise. The bottom of the RE market will be a function of those two items over a time interval that is probably longer than most people think. Everything the gov’t does in an effort to fix the housing market prevents exactly that from happening. There are a lot more delinquent mortgages out there then what is being revealed with regard to agency loans.

After all the supposed R.E. bailout is really just a bank bailout and that bailout will come at the expense of the RE market rather than in favor of it. Taxpayer money should have gone to setup new banks with clean balance sheets. Such a bank could actually make loans because they would be risk negative, and thats a rare thing these days. The legacy banks are so laden with risk that they are paralyzed and take the free money to buy treasuries in an effort to reduce their risk profile. This stimulates nothing. They will have to do this for years before they will even begin to look sound. While these banks claim they don’t hold these loans they lent out billions to others to buy them, which is even worse. When a mortgage defaults it takes a team of lawyers and derivative scientists to figure out who takes the haircut. It’s a real mess and I am beginning to wonder if a solution actually exists and if it does I’m certain no one is going to like it.

]]> By: Stephen Clifton http://usawatchdog.com/double-dips-coming-everywhere/#comment-4170 Stephen Clifton Sat, 26 Jun 2010 18:29:46 +0000 http://usawatchdog.com/?p=1902#comment-4170 Liz, As a mortgage professional I can tell you that rates must go up from their current levels which means prices will come down further to offset the increase in payment. If you are still strongly considering buying a home knowing that you are likely to lose 10-20% of it's value over the next few years with no recovery in sight then go ahead and purchase. Don't buy as an "investment" or a "starter home" because those days are gone. Buy a home to live in it and be okay with possibly owning it for 30 years or more. I just heard that the government is not extending unemployment benefits and will let the tax credit expire this time instead of extending that as well. This means more foreclosures and a smaller buyer pool which will also lead home prices downward. This doesn't even mention the shadow inventory of homes that are bank owned but not on the market to keep prices up. When commercial paper takes a dive the banks will be forced to liquidate these assets as well. Much more inventory and a much smaller buyer pool will bring prices down without rates even going up. Just want you to make an informed decision. Stephen Liz,
As a mortgage professional I can tell you that rates must go up from their current levels which means prices will come down further to offset the increase in payment. If you are still strongly considering buying a home knowing that you are likely to lose 10-20% of it’s value over the next few years with no recovery in sight then go ahead and purchase. Don’t buy as an “investment” or a “starter home” because those days are gone. Buy a home to live in it and be okay with possibly owning it for 30 years or more.

I just heard that the government is not extending unemployment benefits and will let the tax credit expire this time instead of extending that as well. This means more foreclosures and a smaller buyer pool which will also lead home prices downward. This doesn’t even mention the shadow inventory of homes that are bank owned but not on the market to keep prices up. When commercial paper takes a dive the banks will be forced to liquidate these assets as well. Much more inventory and a much smaller buyer pool will bring prices down without rates even going up.

Just want you to make an informed decision.

Stephen

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