Archive for the 'bailout' Category

The Muddle Years – Why the California economy is destined for years of slow growth and declining home values. 10 charts showing California still deep in recession and no state budget as we enter September.


5 reasons why falling home prices will be good for the economy – Higher homes values does not mean higher home equity, financial sector profits back up to 30 percent of all corporate profits, the mortgage debt equation.


Countrywide and Pay Option ARMs on trial – The most toxic mortgage ever invented by mankind is now under trial by the SEC with Countrywide.


Los Angeles County real estate values overpriced by 30 percent after adjusting for inflation. Data from 2000 to 2010 and looking at Burbank, Pasadena, Culver City, Beverly Hills, and Santa Monica.


FHA has become the new toxic lender of first resort – 4 out of 10 loans made in expensive Southern California are FHA backed. FHA now backing apartments in Manhattan with a price tag of $820,000 to $3 million with a 3.5 percent down payment.


There will be no U.S. economic recovery in the second half of 2010 – 13 charts showing weak housing trends, option ARM data, dramatic employment changes, and mortgage equity withdrawals.


5 reasons why the California real estate market will weaken from August to December of 2010: California budget delay, inventory growth, and three other important factors.


Japan Iwato and Heisei stock and housing bubbles – How the U.S. is following in the path of Japan. Real estate lost decade, technology stock market bust, quantitative easing, and mania inducing monetary policy.


Don’t bet on a 2010 economic recovery. 10 stunning charts showing no housing recovery moving forward and weak employment growth. Employment, construction spending, commercial real estate, home prices, and consumer sentiment.


Where did the option ARMs go? Cheaper to pay modified loan than paying market rents. Subsidizing the housing market through shadow finance. Interest only payment 10 percent cheaper than market rents.


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