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

To: MulhollandDrive who wrote (166934)	11/24/2008 4:57:55 PM
From: Smiling Bob	Read Replies (3) \| Respond to of 306849

That there were probably several million homes that were sold to people who had no business buying a home, they should’ve continued as renters. If that is the case, why does it make sense to say that well, now that they are an owner of that home, we ought to modify their mortgage so that they can stay in it? ---- This is what I've been saying for some time will be the problem that needs to be faced There's little choice but to make these people into renters again. The least tumultuous and least costly path is to allow them to stay in the home and maintain the home and lose x% of future equity gains. It's either that or deal with a glut of abandoned homes, continuous bailouts, and millions of homeless people. It's a big problem that's not going away and needs to be dealt with in big and innovative ways.

To: MulhollandDrive who wrote (166934)	11/24/2008 6:14:30 PM
From: ChanceIs	Read Replies (2) \| Respond to of 306849

once politicians realize just how much of a subsidy is not going to helping consumers, businesses, the real economy, and how much of it is really going to the virtual speculative economy, we’re going to have a very interesting political debate in this country. Above quotation from Chris Whalen from the same conference. Whalen is one of my favorite oracles these days. If I understand him correctly, he is pointing out the notion that when somebody like Citi wrote a credit default swap......took an insurance premium against some piece of debt somewhere going bad......and the loan goes south, Citi incurs an obligation to make good on the loan. Now if Treasury keeps sending them clownbux, and the clownbux keep going to satisfy all of these increasingly sour CDS obligations, then there will be no clownbux left to lend to businesses. J6P ain't happy about the printing of the clownbux, but he thinks it is going to lend to keep the wheels of commerce going. Wait until he finds out that it is going to satisfy casino obligations laid down six years ago. Where will that money go??? To the hedge funds who bought the CDO no doubt. That may not be such a bad thing. The hedge funds probably know how to invest it better than Uncle Sam or J6P. Of course Cerberus did buy Chrysler, so you can throw my argument right out the window. Great AEI conference. all should take it in. Transcript: aei.org Video: app2.capitalreach.com