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Thread: Home price drops exceed Great Depression: Zillow

  1. #81
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Erod View Post
    True, but it's going to happen anyway. These banks will never see that money because they were dumb enough to loan it to people who didn't have the credit history in the first place.
    Now, this is one level of the scam, government passed the legislation forcing banks into accepting loans that they might otherwise reject... SO, these banks in cases ENCOURAGED people into loans they could not afford through fraud... etc.. the bank doesn't really 'care' all that much because they got insurance for the whole deal.

    BUt here's the beautiful part, they get payments for however long, and then the people can no longer afford the payments, once they are foreclosed on, the bank gets the full value of the house for insurance payment + they get to sell the house to the next person.

    The scam goes deeper though : "asset backed securities" were allowed when the glass-stiegal act was repealed... this allowed the banks to take the thousands of mortgages they had on file and to turn them into investments... they used the rate of the mortgage as the rate of return. That's fine and dandy, until you split the 'good loans' from the 'bad loans', sell the good packages to your friends and the bad packages to everyone else...

    Then you get your friends at the rating agency to use these 'bad loans' and to appraise them as AAA grade investments... meanwhile, they were all the 'liar loans', the '0 down loans', 'ninja loans' (not sure quite what that was, but sounds cool), etc...

    Then your 401(k) gets invested into these high rated bonds with a stable ROI, only to find out in 1998, oh, 'most of those loans are bad loans'... BUT, as I pointed out in my last post, a bank can have 10times on loan what they have in reserve... so for all the bad loans there was more then likely EQUALLY a 10 times more investors then ACTUAL investments...

    The proper term you're looking for is a 'ponzi scheme'.

    The governmnent should get out of it and let the banks work out whatever they can.
    If the government wasn't full of bankers and their lobbyists, and paying Obama's way into the whitehouse by 'donating' 4 times to Obama what they gave to McCain... not that McCain was any better for president.

    Quote Originally Posted by scourge99 View Post
    I'm glad. Homes were way overpriced. They are actually worth their value now.

    More Americans can actually afford to buy decent homes now.
    To a point this is true... but I don't think that this has hit the bottom yet... I mean I'm sure there's going to be SOME rebounding here and there... but I've listened to several economists walk through the numbers in various ways and they ALL come to the conclusion that it's "mathematically impossible" or something similar.

  2. #82
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Zyroh View Post
    so, if you were a fireman, and set 1,000 houses on fire but put 100 of them out that makes you a hero. nice logic.
    please tell us who committed arson on those 1000 homes
    we are negotiating about dividing a pizza and in the meantime israel is eating it
    once you're over the hill you begin to pick up speed

  3. #83
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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by justabubba View Post
    please tell us who committed arson on those 1000 homes
    oh gosh, the list is endless. the Fed, the Carter Adminstration, the Clinton Administration, the second Bush Administration (though halfway through they at least realized what they were doing and stopped), Fannie Mae, Freddie Mac, Goldman Sachs, Barney Frank, AIG, ACORN & Co., the American Consumer....
    Last edited by cpwill; 01-14-11 at 04:45 PM.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by cpwill View Post
    oh gosh, the list is endless. the Fed, the Carter Adminstration, the Clinton Administration, the second Bush Administration (though halfway through they at least realized what they were doing and stopped), Fannie Mae, Freddie Mac, Goldman Sachs, Barney Frank, AIG FP, the American Consumer....
    so, you are acknowleding the arson was rampant from a number of perpetrators but that it would be wrong to salvage the homes that could be saved

    notice how ignorant that position is
    almost as bad as the weak metaphor
    we are negotiating about dividing a pizza and in the meantime israel is eating it
    once you're over the hill you begin to pick up speed

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by PeteEU View Post
    Not really a concern. The recession did end in 2009, but recession and house prices dont have much to do with each other.

    Like it or not the housing market in the US went nuts for 10 years with massive price rises and that takes time to get back to what it should be. Some places will go faster, others slower, but with the exception of the uber rich areas most likely, then house prices are still going decline for a while yet.

    And it of course does not help thathttp://www.clearinghouse.net/detail.php?id=10112, and of course the fact that the average US consumer debt is huge.. people cant get money to buy houses, and that will push prices down too.
    If "US banks are so screwed up", as you claim, do you have any idea how or why they became that way? Even if we choose to disregard Freddie Mac and Fanny Mae?

    Scroll down this list to 'People' to see what Community Organizers, and ACORN, have done to force banks to make bad loans to those who can't afford them. We don't hear as many arguments about 'the homeless' and 'affordable housing' anymore. BHO certainly made housing more affordable by helping to destroy traditional lending practices, and thus the market.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by justabubba View Post
    so, you are acknowleding the arson was rampant from a number of perpetrators but that it would be wrong to salvage the homes that could be saved
    at the expense of all the others, yes. when a bubble pops; you don't help the economy (or the people in it) by attempting to reinflate it.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by cpwill View Post
    at the expense of all the others, yes. when a bubble pops; you don't help the economy (or the people in it) by attempting to reinflate it.
    there was no reinflation which was precipitated by HAMP
    if anything, its successes would have mitigated the downward spiral of home values
    we are negotiating about dividing a pizza and in the meantime israel is eating it
    once you're over the hill you begin to pick up speed

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by justabubba View Post
    there was no reinflation which was precipitated by HAMP
    indeed there was, as with other attempts to prop up property values and save flawed mortgages.

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by cpwill View Post
    indeed there was, as with other attempts to prop up property values and save flawed mortgages.
    the HAMP program in no way propped up property values
    it was a program devised to allow home buyers with adequate cash flow - after loan modifiation - to repay their mortgages
    the only implication of home value was these loan mod recipients tended to be those who were trying to pay off mortgages having a higher basis than the underlying value of the home (loan collateral)
    that those homes were not subject to foreclosure proceedings limited the number of properties found where evaluating comparables for valuation purposes. had they been sold at distress sale, they likely would have had a downward impact on the market values of similar properites in the buying area
    otherwise, the HAMP program had no impact on property valuation
    we are negotiating about dividing a pizza and in the meantime israel is eating it
    once you're over the hill you begin to pick up speed

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    Re: Home price drops exceed Great Depression: Zillow

    Quote Originally Posted by Grant View Post
    If "US banks are so screwed up", as you claim, do you have any idea how or why they became that way? Even if we choose to disregard Freddie Mac and Fanny Mae?

    Scroll down this list to 'People' to see what Community Organizers, and ACORN, have done to force banks to make bad loans to those who can't afford them. We don't hear as many arguments about 'the homeless' and 'affordable housing' anymore. BHO certainly made housing more affordable by helping to destroy traditional lending practices, and thus the market.

    Civil Rights Litigation Clearinghouse
    BS


    The vast majority of subprime loans were made by lenders not subject to the CRA

    Countrywide, Ditech etc were not subject to the CRA regulation (which had very little in the way of punishement) and made subprime loans, and then sold them in CDO's
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