Comments on: Triangulating Real Estate. 3 New Market Behaviors: Rewriting History, Falling Sales Receipts, and a Sort of Diverse Workforce. http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 22 Nov 2008 10:59:34 +0000 http://wordpress.org/?v=2.2.2 By: Steve http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1773 Steve Thu, 23 Aug 2007 02:23:00 +0000 http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1773 Here is an interesting bit from an article back in June.<br/><br/>-----<br/>Citibank Credit Card Issuance Trust's (CCCIT) $350 million 6.15% class 2007-A3 notes are rated 'AAA' by Fitch Ratings. This rating addresses the transaction's ability to make timely payment of interest and ultimate payment of principal by the legal maturity date.<br/>------<br/><br/>I love tidbit regarding "ability to make timely payment of interest and ultimate payment of principal"<br/><br/>Should be very interesting when all of the credit card debt ratings are updated once people can't suck cash out of their homes to pay them off. Here is an interesting bit from an article back in June.

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Citibank Credit Card Issuance Trust’s (CCCIT) $350 million 6.15% class 2007-A3 notes are rated ‘AAA’ by Fitch Ratings. This rating addresses the transaction’s ability to make timely payment of interest and ultimate payment of principal by the legal maturity date.
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I love tidbit regarding “ability to make timely payment of interest and ultimate payment of principal”

Should be very interesting when all of the credit card debt ratings are updated once people can’t suck cash out of their homes to pay them off.

]]> By: Son of Brock Landers http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1771 Son of Brock Landers Wed, 22 Aug 2007 22:12:00 +0000 http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1771 @ DR HB<br/><br/>To answer your question on Buffet and Countrywide, I don't think he'll scoop in and buy a stake in CFC. I think he might be looking at those subprime piece of sh*t CDOs and asset backed securities that are out of favor. He might be considering a purchase for pennies on the dollar, and if I recall correctly, bears sterns got 5% of total value when they tried to sell one hedge funds CDO bits. Yes, the CDOs are/were bad investments at the previous value, but a millions of loans on sale for thousands of dollars might sound like a good investment to buffet. He'll analyze a situation and invest when he feels it is right. I don't think Countrywide is right for him now, especially after the 10% pop to the stock price when the WSJ floated out that unsubstantiated rumor of Buffet intervention.<br/><br/>Keep rocking Dr HB. I do not know if you have seen the new Bravo "reality" series "Flipping Out", but it might be the best satire of Southern California culture-luxury lifestyles since "Sherman Oaks". I keep trying to figure out if it is completely faked or not. @ DR HB

To answer your question on Buffet and Countrywide, I don’t think he’ll scoop in and buy a stake in CFC. I think he might be looking at those subprime piece of sh*t CDOs and asset backed securities that are out of favor. He might be considering a purchase for pennies on the dollar, and if I recall correctly, bears sterns got 5% of total value when they tried to sell one hedge funds CDO bits. Yes, the CDOs are/were bad investments at the previous value, but a millions of loans on sale for thousands of dollars might sound like a good investment to buffet. He’ll analyze a situation and invest when he feels it is right. I don’t think Countrywide is right for him now, especially after the 10% pop to the stock price when the WSJ floated out that unsubstantiated rumor of Buffet intervention.

Keep rocking Dr HB. I do not know if you have seen the new Bravo “reality” series “Flipping Out”, but it might be the best satire of Southern California culture-luxury lifestyles since “Sherman Oaks”. I keep trying to figure out if it is completely faked or not.

]]> By: TechGromit http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1770 TechGromit Wed, 22 Aug 2007 17:35:00 +0000 http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1770 I read a lot of who is to blame for our current mortgage / Market crisis, but no one blaming one of the worse ones. Sure the shady loan guy sold a adjustable, sub-prime mortgage to a deadbeat who blindly signed on the dotted line at the encouragement of his real estate agent. The mortgage was then sold to investors on wall street who used it as collateral to leverage even bigger loans. But why did wall street buy these mortgages in the first place? Because rating agencies like Moody's, Standard & Poor's and Fitch rating this crap at AAA ratings. If it's risk was properly accessed in the first place, and giving a proper rating, then no one on wall street would have brought this crap, thereby the original lenders would be stuck with it. They would be unable to make any more bad loans cause they wouldn't be able to sell what the lent so far, this crisis could been stopped in it tracks long before it became such a problem. With no more crazy loans being approved, the bubble would have stopped growing in 2003 with prices topped out by what people could afford.<br/><br/>There should be some kind of repercussions against these guys. They are the ones we were paying to keep this kind of thing from happening the in the first place. Now of course the market doesn't know what is a good deal and what is crap. Any security rated with AAA is eyed with suspicion, cause there no way to tell what it a good investment and what is crap without carefully studying what is made up of, taking days or weeks to do so, but isn't that what we were paying these rating clowns for?<br/><br/>There creditability is now shot to say the least. I read a lot of who is to blame for our current mortgage / Market crisis, but no one blaming one of the worse ones. Sure the shady loan guy sold a adjustable, sub-prime mortgage to a deadbeat who blindly signed on the dotted line at the encouragement of his real estate agent. The mortgage was then sold to investors on wall street who used it as collateral to leverage even bigger loans. But why did wall street buy these mortgages in the first place? Because rating agencies like Moody’s, Standard & Poor’s and Fitch rating this crap at AAA ratings. If it’s risk was properly accessed in the first place, and giving a proper rating, then no one on wall street would have brought this crap, thereby the original lenders would be stuck with it. They would be unable to make any more bad loans cause they wouldn’t be able to sell what the lent so far, this crisis could been stopped in it tracks long before it became such a problem. With no more crazy loans being approved, the bubble would have stopped growing in 2003 with prices topped out by what people could afford.

There should be some kind of repercussions against these guys. They are the ones we were paying to keep this kind of thing from happening the in the first place. Now of course the market doesn’t know what is a good deal and what is crap. Any security rated with AAA is eyed with suspicion, cause there no way to tell what it a good investment and what is crap without carefully studying what is made up of, taking days or weeks to do so, but isn’t that what we were paying these rating clowns for?

There creditability is now shot to say the least.

]]> By: graphrix http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1769 graphrix Wed, 22 Aug 2007 09:28:00 +0000 http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1769 This post has inspired me to get off my duff and do a post on foreclosures in OC with an adjustment to the housing stock.<br/><br/>I will also do an adjustment for the amount of people who live in the IE and who are commuting to OC for work. The census bureau did a study in 2000 about this. I can show the amount of job creation has been in line with the amount of housing produced in OC. <br/><br/>I also think it is possible that OC will have more NODs than sales for August. This post has inspired me to get off my duff and do a post on foreclosures in OC with an adjustment to the housing stock.

I will also do an adjustment for the amount of people who live in the IE and who are commuting to OC for work. The census bureau did a study in 2000 about this. I can show the amount of job creation has been in line with the amount of housing produced in OC.

I also think it is possible that OC will have more NODs than sales for August.

]]> By: covered http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1768 covered Wed, 22 Aug 2007 08:50:00 +0000 http://www.doctorhousingbubble.com/triangulating-real-estate-3-new-market-behaviors-rewriting-history-falling-sales-receipts-and-a-sort-of-diverse-workforce/#comment-1768 Steve:<br/>LOL! Good one!<br/><br/>Dr HB:<br/>RE: Buffet & Countrywide<br/><br/>Countrywide came out last week with a 4 1/4, 12/29/07 bond paying 30% at maturity!<br/><br/>Knowing Buffet's style, he'd scoop those up betting CFC stays above water 'till new years. That way, he'd have a prominent place in the creditor line in bankruptcy court if they go bust. On the other hand, and of course we're just guessing here, if they do go under, I think he'd try to buy them in bankruptcy rather than buy the stock now and lose it all at the courthouse. This assumes he has any interest in the company at all. Steve:
LOL! Good one!

Dr HB:
RE: Buffet & Countrywide

Countrywide came out last week with a 4 1/4, 12/29/07 bond paying 30% at maturity!

Knowing Buffet’s style, he’d scoop those up betting CFC stays above water ’till new years. That way, he’d have a prominent place in the creditor line in bankruptcy court if they go bust. On the other hand, and of course we’re just guessing here, if they do go under, I think he’d try to buy them in bankruptcy rather than buy the stock now and lose it all at the courthouse. This assumes he has any interest in the company at all.

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