Irvine Housing Blog

Beating a dead horse will leave you angry and tired.

I figure this will be making the rounds of the internet today so it might as well be posted here too:

http://www.gocomics.com/nonsequitur/2010/03/31/

Why should you be over the housing bubble?  It is continuing with government support.  The Federal Reserve has created $1.25 Trillion out of thin air and bought MBS to prop up home prices and they have been “successful.”

Oh yeah, today is the last day the Fed is buying MBS.

Unless it changes it’s mind.  IMO, the Fed will change it’s mind and the Fed will be buying more mortgage backed securities when it sees that home prices are decreasing again.

Imagine for a second what home prices would be without $1,25 Trillion of created money to buy paper.  Is there really anybody stupid enough to think the bubble is over?

I have emailed all of my representatives again today, after skimming today’s blog.  The second time in what, five days - I emailed after Saturday’s blog.  I’ve had enough.  I have kids, I’m trying to be responsible, I’m waiting for prices to come down just a little more, and this is what is going on.  It’s one thing to keep blowing air into the bubble, but the thought of my kids, having to slave away in some crappy job, to pay off the sweaters in that closet and pay off BMW’s for these jerks just makes my blood boil. And meanwhile, I’m renting, getting about 0.1% interest on my savings and expecting it to be worthless in a few years. 

I’ve had it.  I don’t know anything about those Tea Party people and get the feeling they are a bunch of crackpots, but I am ready to sign up. 

I am through with the Democrats and the Republicans.  I am emailing the link to this blog to everyone I can think of, including the White House.  I know they don’t read emails, but hey, it’s the principle of the thing.

Planet Reality - “Beating a dead horse will leave you angry and tired.”

You should listen to your own advice.

You are not over the housing bubble, because the bubble is not over yet.  The bubble will be over when the foreclosures that need to happen have happened, and prices have stabilized at sustainable levels.  The bubble will be behind us when unemployment is closer to 5% than 10%.  It will be done when we have financial regulation in place that limits the abuses that inflated the bubble.

I am also holding out for an exit strategy for the GSE’s.  Either pared down pure public programs, or split up into 5 or 10 pure private programs.

Just thinking of baby-fannies competing with each other I realized that a lot of our problem is from risk-correlation during crisis (‘during a crisis all correlations go to one’). 

It would take a period of home price decline to bankrupt a baby-fannie.  That decline would spank every fannie, making it seem like one giant fannie all over again.  I’m not sure the degree to which breaking up TBTF institutions improves the situation. If every SETF (small-enough-to-fail) acts identically, what’s different?

http://www.nakedcapitalism.com/2010/03/fbi-warns-of-mortgage-fraud-‘epidemic’-seeks-to-head-off-‘next-sl-crisis’.html

I would like to be provided with one example of a family that truly deserves some type of additional taxpayer assistance to avoid foreclosure.  I’ve read many media articles of hard-luck stories, but there are never enough details about their finances to conclude help is deserving.  This “deserving family” doesn’t exist for my standards, because I can’t even come-up with a hypothetical of a deserving situation.

Can anyone even fabricate a family deserving of additional taxpayer help to avoid foreclosure?  There are just three reasons you have trouble paying your mortgage:

1) You bought too much house,
2) You spend too much, and/or
3) You don’t earn enough to service the mortgage debt.

Your “help” is the very consumer-friendly foreclosure process.

I totally understand the anger and agree this is not over yet. The hard part is the fraud for me and the manipulation of the system where it’s all about me and crap on you.

When you see this in life especially here so prevalent in SCAL you begin to hate living here. Even as a renter now 5 years the neighbors look at you like how did you get your money not how are you I see your son moved out but how did you buy that.

The Quality of people is surely lacking this is what the housing bubble has done.
And those who missed the chance at free money or a nice home are really pissed.

Many here also forget the damage done to other areas that have no chance of returning to normal.
Those folks who can manage to pay their bills staying in a dead town have no hope of ever getting their money back out of their home.

And so many fraud cases as well. So many were swept up into this mess and had no idea their mortgage would increase to the point where they lost their home. Those folks I can feel for their stupidity.

But everyone thought housing would go up forever. Very few of us didn’t get caught in some way or another.

The biggest mistake was allowing Wallstreet to get their hands onto the American dream. Regulation is surely needed and I mean strick new rules to keep Wallstreet out of the housing market.

Just like with students loans they need to be cut out of the housing market. The bankers only motive is making money. That in itself is the breeding ground for fraud.

In China, a rush to own a home of your own
http://worldblog.msnbc.msn.com/archive/2010/03/31/2253822.aspx

Struggling Scottsdale Realtor Kills Children

This is right up the street from me.  Local NEWS reported he was “struggling financially”.

The home gamers are an easy target produced by the banksters.  The home gamers see the bank getting bailed out and shout me too!  The banks need them to further the bailout packages and wealth transfers.  Renters and lower middle class may be shouting me too, but the political hacks will say I’m trying the best I can while plotting with the banksters.

The house gamers and banksters demand another round, which they are getting.  I don’t know how to stop this madness and theft.  Maybe BHO will pull out the defective CDO card on the banksters to get the money back or nationalize the banks, but he’s already been paid and is surrounded by GS banksters and paid congressmen to make sure he complies.  Socialists generally want nationalized large corp GSEs that the elite run and that feed up upon one another. Nazi Germany is an excellent example of applied socialism.  Too bad for Germany, the other socialists and communists leaders didn’t want to be second fiddle.

One issue that keeps most working people’s political influence low is that they have to work more than 45 hours M-F and hours with family.  Not much time for activism.  The house gamers, GSE’s and banksters work is activism for bailouts.

I forgot to mention that the first new order fell apart when the world leaders and banksters started stabbing each other in the back. 

I think the banksters will start stabbing the home debtor stogies in the back soon for these home debtors will no longer be useful.  A new generation of useful stogies will be needed by the banksters.

In 1993, 6 months after my husband and I bought our first home (at 26 percent ratio) rather than the 33 percent that was allowed, we almost both lost our jobs in the same month.  Neither possible job loss had anything to do with our own performance at work but with employer downsizing etc.  Long story short….even though I
we purchased a home responsibly we were very worried (we had no other debt).  At this time homes were also decreasing in value….at one point our home decreased by about 20%.  Our first thought was how do we make sure that we keep our home….second job?  cut expenses?  We had no thought or desire to have assistance from ANYBODY!!  Why?  Because I was raised with the old fashioned values of hard work, responsibility and perserverance. Our home was our HOME, not something to be treated like a bank. Today, because we faced this difficult time way back when, our home is almost paid in full.  We still have no other debt whatsover. Stupid us…....

I’m sorry for the people who are in the situation of potentially losing their home.  However, I believe the only people who should be helped are those who are victims of this tragedy….those who lost their jobs or suffered furloughs due to the dominoe affect.  Focus this aid on unemployment benefits given with proof that the unemployed person (or underemployed) is seriously searching for a job.  3-6 months reprieve from mortgage payments?  Seriously?  While you consider forgiving principal for others??? You are simply delaying the inevitable….focus on JOBS and on helping those who LOST THEIR JOBS DUE TO OTHER’s GREED AND STUPIDITY.  That being said my husband and I are lucky to be employed so I am not writing this because I have been a victim in that respect.  I have lost close to a half million in my home value and stocks/investments.  Regardless this entitlement to the irresponsible sickens me.  And yes, I am in real estate and don’t think our BROKE state should be giving an additional homebuyer credit…are they FOOLS?  Oh, right, they are. 

One last thought…....when someone loses their home to foreclosure or short sale or whatever, they ARE NOT HOMELESS!!!!  They can RENT, GET EDUCATED ABOUT PERSONAL FINANCE and start again when they can actually buy a house while understanding how to manage their money responsibly.  Did anyone ever think this correction needs to happen…...what are our kids going to do about housing in the next 10 to 15 years?  Oh ya, since their paychecks will amount to lunch money after the taxes they will pay they won’t ever have to worry about actually being able to purchase a home.

Stop the governement entitlements now…..contact your representative, the White house, the media….if enough people speak (you don’t have to be a hater to have an educated opinion) then someone will finally listen…...hopefully.  Otherwise, the values in our society have officially been decimated and America is nothing but an embarrassment to morals and integrity.