just in in-tray and out send-tray
player 1: Questions:
Is this why consumer spending has remained relatively strong?
Is this why people have been able to pay down their non-mortgage related debt?
Is this why Fannie & Freddie are getting whacked so bad in regards to earnings - that we the taxpayer are subsidizing non-payers who continue to live rent-free in the homes?
Any thoughts?
From Alana Semuels at the LA Times : Many borrowers in default stay put as lenders delay evictions
Throughout the country, people continue to default on their home loans -- but lenders have backed off on forced evictions, allowing many to remain in their homes, essentially rent-free.
Several factors are driving the trend, industry experts say, including government pressure on banks to modify loans and keep people in their homes.
And with a glut of inventory in places like Southern California's Inland Empire, Nevada and Arizona, lenders are loath to depress housing prices further by dumping more properties into a weak market.
Finally, allowing borrowers to stay in their homes helps protect the bank's investment as it negotiates with the homeowners, said Gary Kirshner, a spokesman for Chase bank, a major lender.
"If the person's in the property, there's less chance for vandalism, and they're probably maintaining the house," he said.
player tj: dunno about what be happening in america, but am now in beijing and had tea with one with insight on china regional and municipal stats and people who survey such
re the strange case of "china suffering from labour shortage", the man had some comments
- in recent hu jin tao speech, the man counted 50+ times hu uttered "must accelerate transition to new economic growth model"
- hu also mentioned that china failed within past 2 iterations of 5-years plans, glaringly, in area of increasing energy efficiency per gdp
- survey done re "where has all the labour gone", and apparently, the inland/rural developments has gotten to a stage whereby folks are starting businesses in all trades nearer where they call home, to be able to earn less but result in lot more DISCRETIONARY AND DISPOSABLE income, enjoy better family life, afford good enough schools for the kids, and so shout "stuff that coastal job"
- the central bosses are supposedly happy about the developments, believing the cheap labour and cheap capital era of past 25 years should give way to still cheap labour, as inexpensive capital, and dirt cheap intellectual capital's dawn
if indeed such is the picture, meaning if indeed what had happened along china coast is now progressing to china everywhere, then chanos' trade may not work out so well
cheers
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