Hmmm...Ouch! one of our favorite contributors here on SmashedFeet also saw this coming and shared it with clients back then.
Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/tech-ticker/housing-bulls-are-%22not-paying-attention%22-to-the-facts-says-dean-baker-483703.html?tickers=xhb,%5Edji,%5Egspc,xlf,tlt,tbt&sec=topStories&pos=8&asset=&ccode=
Wednesday, May 12, 2010
California is the New Greece
Governor Arnold begins to describe the "absolutely terrible" cuts and pain ahead for CA...it's a good thing CA doesn't show us what other states will eventually do...or does it?
Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/tech-ticker/schwarzenegger-warns-of-%22terrible-cuts-absolutely-terrible-cuts%22-coming-in-california-483776.html?tickers=tlt,tbt,xlf,ncu,nvx,nkl,cev&sec=topStories&pos=6&asset=&ccode=
Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/tech-ticker/schwarzenegger-warns-of-%22terrible-cuts-absolutely-terrible-cuts%22-coming-in-california-483776.html?tickers=tlt,tbt,xlf,ncu,nvx,nkl,cev&sec=topStories&pos=6&asset=&ccode=
Monday, May 10, 2010
Foreclosures heating up in the high end . . . what it means to everyone else
As we have been sharing for several years, there will be phases to this foreclosure hurricane. According to the CNBC article (click on title above or cut and paste this : http://www.cnbc.com/id/36993480 ) foreclosures are starting to pick up in the high end. Sooo . . .
consider these questions:
When the house with a $1.5M mortgage is foreclosed on and sells for $850k, what happens to the value of the other homes currently on the market for $850k that pale in comparison to the foreclosure?
When the house that was at $850k must now drop to $650k to sell, what happens to the house that was at $650k?
When the house that was at $500k now pales in comparison to the house that was at $650k what will that seller have to do?
See the dominoes and how they will fall?
Oh, but wait, what happens to the already upside down homeowners in ALL these price ranges when they realize that they are simply getting further upside down and not only are they paying waaay more for housing than many others in their neighborhood, but they figure out that their tax dollars are subsidizing this entire mess (govt continuing to back shitty loans to unqualified buyers, allowing financial institutions to lie, cheat and steal while making record profits, etc?)
Hmmm
Batten down the hatches, the winds are picking up again, this hurricane is FAAAAAAAR from over!
consider these questions:
When the house with a $1.5M mortgage is foreclosed on and sells for $850k, what happens to the value of the other homes currently on the market for $850k that pale in comparison to the foreclosure?
When the house that was at $850k must now drop to $650k to sell, what happens to the house that was at $650k?
When the house that was at $500k now pales in comparison to the house that was at $650k what will that seller have to do?
See the dominoes and how they will fall?
Oh, but wait, what happens to the already upside down homeowners in ALL these price ranges when they realize that they are simply getting further upside down and not only are they paying waaay more for housing than many others in their neighborhood, but they figure out that their tax dollars are subsidizing this entire mess (govt continuing to back shitty loans to unqualified buyers, allowing financial institutions to lie, cheat and steal while making record profits, etc?)
Hmmm
Batten down the hatches, the winds are picking up again, this hurricane is FAAAAAAAR from over!
Wednesday, May 5, 2010
Do as I say not as I do...
Did you know that Congress people and other politicians are legally permitted to conduct insider trading? Holy shit that is just wrong.
Click on the title above or the link below to review a Yahoo Finance article and learn why Congress Refuses to Outlaw Insider Trading for Lawmakers.
http://finance.yahoo.com/tech-ticker/congress-refuses-to-outlaw-insider-trading-for-lawmakers-478701.html?tickers=%5Edji,%5Egspc,%5Eixic,brk-a,brk-b,gs,xlf&sec=topStories&pos=9&asset=&ccode=
Click on the title above or the link below to review a Yahoo Finance article and learn why Congress Refuses to Outlaw Insider Trading for Lawmakers.
http://finance.yahoo.com/tech-ticker/congress-refuses-to-outlaw-insider-trading-for-lawmakers-478701.html?tickers=%5Edji,%5Egspc,%5Eixic,brk-a,brk-b,gs,xlf&sec=topStories&pos=9&asset=&ccode=
Riots in the streets of Athens
As Ouch! has been sharing with his private clients for the past few years, riots will happen, not just in Europe but we will see them here in the US. I know he is sharing that we could see it here within 12-24 months. For those of you who know him, you'll understand that he is excited by this because he fully believes that it will lead to change. As we have always learned, the bigger the breakdown, the larger the opportunity for the next breakthrough.
Click on the title above or the link below to review a CNN article on the riots in Greece.
http://www.cnn.com/2010/WORLD/europe/05/05/greece.strikes/index.html
Click on the title above or the link below to review a CNN article on the riots in Greece.
http://www.cnn.com/2010/WORLD/europe/05/05/greece.strikes/index.html
Tuesday, May 4, 2010
Bloomberg article should serve as red flag for those who are buying into the nonsense of a recovery.
Click on the title above or the link below to review a Bloomberg article and think about our "recovery."
http://www.bloomberg.com/apps/news?pid=20603037&sid=a8o9QE6Ly6rg
http://www.bloomberg.com/apps/news?pid=20603037&sid=a8o9QE6Ly6rg
Ok rocket scientists and brain surgeons - pay attention!
As more and more people buy into the hype that there is some sort of financial recovery I would like to point out a few things:
* Right now, today, more people than ever in the history of The United State of America, are NOT paying their mortgages.
* There are more homes which have already been foreclosed on being held off the market than have actually been brought back on the market and sold. What does this mean for future supply and therefore pricing?
* BofA is talking about going from it's current level of 7,500 foreclosures completed/mo now to 45,000/mo by the end of the year! Again what is the future of supply?
* Tax credit just expired, rates keep sliding up and now lending guidelines are going to be tightening again. What impact will this have on demand?
* These people are instead using some of this money to buy other things which creates the illusion that they are better off financially than they really are. Where will this pattern of spending more than we are earning end up?
* The government and the media report stronger retail sales, increased auto sales, etc - Is this because every single day more and more people are choosing to ignore their mortgage payments and instead spending these saved dollars elsewhere?
* Europe is a mess, many of the countries there are edging ever closer to the much publicized situation Greece finds itself in. What happens when these dominoes start to fall?
* The European issues are minuscule when compared to those we have right here in the United States. Do you think Ouch! has been right for all these years saying that we are moving towards "The Former United States of America?"
* We are growing ever closer to the day when we will default on our debts to the rest of the world. What will happen when we can't pay our bills, social security fails, medicare fails, welfare goes away, pension funds fail? Or will we first try to throw even more money at these problems and thereby create hyperinflation?
* Many states are starting to realize that their citizens are paying twice or more in federal taxes what the state and it's citizens are receiving in real benefits. With the states struggling to stay afloat financially, how long will it be before they stop sending $2 off to DC for every $1 of benefit???
* There is an ever growing movement of those who are disgusted by how wasteful our government has become. How long will it be before someone rallies this group behind the FACTS that our baby boomers allowed us to get into this mess, now they want services and feel entitled to have others foot the bill?
* When will people simply say "the hell with it, I'm not sending one more dime to any of the large financial institutions, insurance companies or the current government?"
* What if there was a large group who simply stopped working to support others and instead pushed for a system wherein those who created the messes we have today were held accountable?
Ok, Mr/s Rocket scientist/brain surgeon - are we really in a recovery?
* Right now, today, more people than ever in the history of The United State of America, are NOT paying their mortgages.
* There are more homes which have already been foreclosed on being held off the market than have actually been brought back on the market and sold. What does this mean for future supply and therefore pricing?
* BofA is talking about going from it's current level of 7,500 foreclosures completed/mo now to 45,000/mo by the end of the year! Again what is the future of supply?
* Tax credit just expired, rates keep sliding up and now lending guidelines are going to be tightening again. What impact will this have on demand?
* These people are instead using some of this money to buy other things which creates the illusion that they are better off financially than they really are. Where will this pattern of spending more than we are earning end up?
* The government and the media report stronger retail sales, increased auto sales, etc - Is this because every single day more and more people are choosing to ignore their mortgage payments and instead spending these saved dollars elsewhere?
* Europe is a mess, many of the countries there are edging ever closer to the much publicized situation Greece finds itself in. What happens when these dominoes start to fall?
* The European issues are minuscule when compared to those we have right here in the United States. Do you think Ouch! has been right for all these years saying that we are moving towards "The Former United States of America?"
* We are growing ever closer to the day when we will default on our debts to the rest of the world. What will happen when we can't pay our bills, social security fails, medicare fails, welfare goes away, pension funds fail? Or will we first try to throw even more money at these problems and thereby create hyperinflation?
* Many states are starting to realize that their citizens are paying twice or more in federal taxes what the state and it's citizens are receiving in real benefits. With the states struggling to stay afloat financially, how long will it be before they stop sending $2 off to DC for every $1 of benefit???
* There is an ever growing movement of those who are disgusted by how wasteful our government has become. How long will it be before someone rallies this group behind the FACTS that our baby boomers allowed us to get into this mess, now they want services and feel entitled to have others foot the bill?
* When will people simply say "the hell with it, I'm not sending one more dime to any of the large financial institutions, insurance companies or the current government?"
* What if there was a large group who simply stopped working to support others and instead pushed for a system wherein those who created the messes we have today were held accountable?
Ok, Mr/s Rocket scientist/brain surgeon - are we really in a recovery?
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