Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: saveslivesbyday who wrote (149684)	9/23/2008 8:55:12 PM
From: neolib	Read Replies (2) \| Respond to of 306849

if this were a reasonable fair price, why can't the banks and other institutions sell the junk? That fails to account for two important issues: Volume and Time.

To: saveslivesbyday who wrote (149684)	9/23/2008 9:48:32 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 306849

That's it in a nutshell. As one of the unwilling participants in this clusterf*ck, I'm not real eager to buy someone else's trash at unrealistically high prices. It kinda comes down to accepting Ben and Hank's word that they know the CDS's prices more accurately than the market. I reject that out of hand. Furthermore, why did IB's buy such illiquid crap in such size to begin with. If they're that stupid and/or corrupt, why would I entrust them with even a penny of taxpayer funds?

To: saveslivesbyday who wrote (149684)	9/23/2008 10:39:26 PM
From: The Reaper	Respond to of 306849

I have a real time example of what market price is on this stuff. I have a client who had owned 2 cheap, small condos in the town of Ramona, north of San Diego. She had bought them for around 50K each in the 90's. Sold them, kept in contact with real estate people in town and was kicking herself when they sold for 200K each 2 years ago. She just repurchased one today (assuming the bank accepts the deal) for 60K. Full circle. Will realize positive cash flow from rental. That is where the viable market is for this paper. 30 cents on the dollar.

To: saveslivesbyday who wrote (149684)	9/23/2008 10:42:24 PM
From: inchingup	Read Replies (2) \| Respond to of 306849

The bailout from my perspective even if it is marked to market...or how I explained it to my friends using a single home as an example. "X" buys home for $1,000,000. "X" makes no payments on home and bank marks home down to $500,000 and has not foreclosed as of yet. Paulson gives $500,000 of taxpayer money to bank originating loan based on marked to market value. Paulson then sells said loan to a "friend"...let's just call this friend "GS" for $50,000. "GS" then goes to "X" and says you can stay in your home if you are willing and able to make payments on $200,000 loan. (aribtrary figure, they might ask more) "X" is thrilled and says YES! So here are the winners. "X" just rebought his house for 20% of original cost. "GS" makes a 300% profit, plus interest. If homeowner defaults "GS" can likely resell home even at a substantial markdown from $200,000 and make a killing. Paulson then goes out and buys another similar loan from a bank and it is wash, rinse, repeat. Homeowner thrilled, "GS" thrilled. American taxpayer...screwed. Is this how most of you see it?