and add in this. flippers: The charts reveal some astonishing facts. At the peak of the boom in 2006, over a third of all U.S. home purchase lending was made to people who already owned at least one house. In the four states with the most pronounced housing cycles, the investor share was nearly halfâ45 percent. Optimistic investorsâspeculatorsâused low-down-payment, nonprime credit to place highly leveraged bets on the housing market, perhaps facilitated for some by reporting an intention to live in the house. Because they didnât have to put much money at risk, these investors were able to continue to buy housing even as prices rose further. All of these developments were especially noticeable in Arizona, California, Florida, and Nevada. Longstanding tradition in the mortgage lending business and the predictions of economic models hold that investors will quickly default if prices begin a persistent fall. This is what happened starting in 2006, as the charts below show. http://libertystreeteconomics.newyo...ing-bubble.html
Good article. Makes clear that the government's position is this: "If the big financial institutions cannot continue to abuse the public, everyone will be worse off."
House prices are still overvalued, prices need to fall at least another 40% until then no turn around anytime soon, probably another 10 years or more before housing turns around, keep waiting because its not happening anytime soon, dont believe those who say now is the time to buy, it isnt, you can wait another few years and still get that 4% 30 year fixed. No need to rush in and buy just yet.
What a surprise!!! Why not have Anthoiny Mozillo run for president maybe he can con the Chinese. It was a scam from the start glad I did not get locked in. The further the rug gets lifted up more comes out and the US Justice system will just give a slap on the hand. We still have another 20-30 years to get out of the mess. The contagion will not go away it must be paid for. My question is where did all the money go somebody had to be the big winner in all of this? It has to come out sometime and be spent. They will have to surface sooner or later. Welcome to Planet Misery, Akuma BUY GOLD !!!
No no...it was Pedro the migrant strawberry picker who tricked the trusting professional lender into giving him a $750k loan that did it. Yeah....yeah.... Actually, the socialist TBTF banks have to be above the law or...or...it will hurt the economy.