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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (46412)	2/14/2006 8:53:17 AM
From: shades	Read Replies (1) \| Respond to of 116555

The reason is that if the Fed came out and said something along the lines of "for the next 90 days we will use newly printed dollars to purchase anyone's house at a price equal to today's market value or the amount owing on the mortgage, whichever is the higher" there's a good chance that there would immediately be a substantial devaluation of the dollar relative to houses (and every other tangible asset). Not only will they purchase your house at todays prices - they will let you LIVE IT IN til you die too! Mish have you kept up with the reverse mortgages the government is giving to senior citizens - they have just enacted new legislation upping the caps and the limits - I went to countrywide to enquire about doing this for my mom and the loan lady got very scared and said you dont want that - and I said HUH? Its free money - mom gets a loan for the value of her house that she NEVER has to pay back - why doesnt she want this - the loan lady didnt have anything to say after that. How can countrywide compete with the fed gubbment - she knew she was whipped! hehe I have gotten several of my old friends to do this, talk about PARTY TIME! hehe! They buy me anything I want when I show them how to get 400K and STAY in thier home and never have to pay it back - I will never have to work again. Message 22057344 He had a wells fargo REVERSE MORTGAGE specialist on - she said people used the tax free money for buying a second home - buying a home for their kids - paying for kids college - help girlfriends buy a facelift - new cars - etc etc. clickpress.com The legislation eliminates the cap on the number of REVERSE MORTGAGEs that can be insured by the Department of Housing and Urban Development. H.R. 2892, the REVERSE MORTGAGEs to Help Americaâ€™s Seniors Act, applies to loans issued under the Home Equity Conversion MORTGAGE program of the Department of Housing and Urban Development. ''I know one couple who at 76 and 75 used proceeds from their REVERSE MORTGAGE and bought a new Harley-Davidson motorcycle with a side car," said Peter Bell, president of the REVERSE MORTGAGE Lenders Association. ''There are basically three types of people who get these loans. There are need-based borrowers, who need the money to supplement what they are getting. There are security borrowers, who are getting by but want to add a reserve to pay for such things as emergency repairs. And there are lifestyle borrowers, who are doing OK on their retirement income but want to add some discretionary income." The FED can print but it can neither force people to borrow nor banks to lend. If banks do lend, there is no guarantee that the money does not pour into gold or silver. Just how effective would that be at solving anything? Dont get your panties in a wad like Heinz - if my mom gets 400K FREE MONEY because she is a senior citizen for her house - she is not going to go spend it on shiny metal my man - she is going to buy more face lifts, corian counter tops, drugs and pills, applebee dinners, trip to disney and the hair stylist and pedicure folks. More BRAT dolls for my niece, more cell phone time for my other niece - etc etc etc Remember in Zimbabwe - hairstylist fees went up WAY MORE than general inflation - why do people keep talking shiny metal next to that fact?

To: mishedlo who wrote (46412)	2/14/2006 10:48:10 AM
From: John Vosilla	Read Replies (3) \| Respond to of 116555

I'm personally finally really seeing the downturn first hand. Nothing is moving anymore in Florida both in the central and southern parts of the state. Was lucky to have sold a couple of houses in Orlando area but they were creative inside deals with zero down. MLS was useless since October. Now I have my house near Ft Lauderdale for sale and we have zero showings in two plus weeks on the market. I was also just in Houston. Visited some friends of family and the house next door to them is a divorce forces sale in MLS sitting on the market for seven months at $375k for 4400sf in very nice country club community. Move up market is dead and relos from CA can't even liquidate their property anymore to move to their dream homes in less costly areas. Needless to say I finally started shorting the bloated builder and subprime sectors big time in mid January and am happy.