From the category archives:

Housing

Backdoor Bailout for Banks

May 12, 2010

Here is a video segment by Yahoo Tech Ticker featuring Barry Ritholtz, whom I am a big fan, where a theory is discussed about a backdoor bailout of the banks. It deals with Fannie Mae and Freddie Mac. Both of these organizations are losing billions every quarter, and we, the taxpayers, are acting as an [...]

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PBS Special on Strategic Defaults

April 24, 2010

Nice segment from PBS about strategic defaults on mortgages (tip of the hat to Barry Ritholtz). If you have been reading my blog, you know that I am all for a strategic default when it makes sense. Too many Americans have this view that it is immoral to walk away from a mortgage. These folks [...]

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Mortgage Principal Writedowns

April 14, 2010

Interesting article at Yahoo about folks behind on their mortgage getting their principal reduced. As I have written previously, this is a bad idea. It will motivate others to default to get their mortgage reduced. The Yahoo article profiles a couple folks probably hoping for sympathy, but when I read their tales, I couldn’t muster [...]

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Smorgasboard of Articles Regarding New Housing Bailout Plan

March 27, 2010

I am posting links to articles in the blogosphere about the recent bailout plan. Essentially, most agree this is a hidden plan to funnel money to the banks while making it look like a homeowner friendly plan. Also, I talk to a friend who is a banker. They are getting tons of calls asking what [...]

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New Housing Plan Will Promote Delinquencies

March 26, 2010

Apparently, the government is at it again with housing. Considering the $75 Billion dollar HAMP plan that the government set up for housing has been an abysmal bust, the gubment now wants to forgive loan balances for underwater homeowners. They are going to use $14 Billion of the repaid TARP funds to pay for this. [...]

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Supply of Foreclosed Homes on Rise Again

March 19, 2010

Interesting article from the Wall Street Journal about the rise in foreclosures. The author claims the foreclosures will rise through April, but then they will start to decline. I believe the author is a bit optimistic. He is neglecting the upcoming Option ARM and Alt A ARM resets (recasts). You can see we have between [...]

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FDIC Looking to Reduce Principal for Underwater Homeowners

February 26, 2010

In yet another example that the government has gone mad, Sheila Bair, Chairwoman of the FDIC, is looking at a trial program to reduce the principal for homeowners who owe more than their home is worth. Under the FDIC program, borrowers would be eligible for a reduction in their mortgage balances if they kept up [...]

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Another Silly Vote Pander in Housing

February 19, 2010

Today, President Obama spoke in Las Vegas where he promised to allocate $1.5 billion to unemployed homeowners in Florida, California, Michigan, Arizona, and, of course, Nevada who owe more than the home is worth. I know President Obama is an intelligent man. He was editor of the Harvard Review, usually given to a pretty sharp [...]

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Foreclosure Headline Great – Reality Bad

February 11, 2010

RealtyTrac released a report showing that foreclosures shrank 10% in January from December. While the press focuses on the headline, the details to RealtyTrac’s report are much grimmer and shows a housing market that is still in trouble. The month-to-month drop is a positive, but year-over-year foreclosures are up 15% from January 2009. REO (real [...]

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A Bubble In Search of a Pin

February 6, 2010

Here is a Letter from John Mauldin. As usual, a thoughtful piece that focuses on the headwinds the economy faces. I agree with John, and those he quotes, in many respects about how Greenspan, Bernanke, and the powers that be missed the bubble. However, we are naive to think that the Fed would ever prick [...]

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