Real Estate Market / Inflation / Recession / Depression (Denver: credit report, insurance, debt)

[CosmicWizard]

Did anyone hear Senator Bernie Sanders talk about the bailout before last nites vote? Here is a quote from the article below:

"This bill does not deal with the absurdity of having the fox guarding the hen house. Maybe I'm the only person in America who thinks so, but I have a hard time understanding why we are giving $700 billion to the Secretary of the Treasury, the former CEO of Goldman Sachs, who along with other financial institutions, actually got us into this problem. Now, maybe I'm the only person in America who thinks that's a little bit weird, but that is what I think.

"This bill does not address the major economic crisis we face: growing unemployment, low wages, the need to create decent-paying jobs, rebuilding our infrastructure and moving us to energy efficiency and sustainable energy......Senator Bernie Sanders

Wall Street Bailout



Bob...do you have any fish stories for us?

[CosmicWizard]

A viewpoint in favor of the bailout:

Japan’s failure to respond urgently and decisively to its banking mess caused the country to endure a “lost decade” of economic stagnation. If America wants to avoid Japan’s decline, the House should follow the Senate’s lead and approve the bailout — immediately.....Nicholas D. Kristof form Save the Fat Cats.

[Bob from down south]

Originally Posted by NewAgeRedneck

A viewpoint in favor of the bailout:

Japan’s failure to respond urgently and decisively to its banking mess caused the country to endure a “lost decade” of economic stagnation. If America wants to avoid Japan’s decline, the House should follow the Senate’s lead and approve the bailout — immediately.....Nicholas D. Kristof form Save the Fat Cats.

Of course it's merely a widely contested theory that a banking rescue would have prevented the Japaese decline, which was caused in large part by a the pop of a terrific real estate bubble. It might have slowed it down, but the reality of hundreds of trillions of yen in bad paper would have still weighed down the Japanese economy.

Unlike the Japanese, who have a robust personal savings ethic, we don't even have that to rely on. Japan's option would have been to use some of the massive national savings to pull itself up...that's a far different thing than borrowing $trillions that haven't even been earned yet.

Other than driving a large federal income tax increase for a broad swath of the population, this bailout is very, very unlikely to make a difference in the long term...we still have $trillions in bad paper to work through as a result of the housing bubble and related manias, and this government action only would move the day of reckoning back slightly while making the downside that much more horrific.

[CosmicWizard]

Five surgeons from big cities are discussing who the best patients to operate on are.

The first surgeon, from New York says, I like to see accountants on my operating table, because when you open then up, everything inside is numbered.

The second, from Chicago , responds, Yeah, but you should try electricians! Everything inside them is color coded.

The third surgeon, from Dallas , says, No I really, think librarians are the best, everything inside them is in alphabetical order.

The fourth surgeon, from Los Angeles chimes in: You know I like construction workers, those guys always understand when you have a few parts left over.

But the fifth surgeon, from Washington , DC shut them all up when he observed: You're all wrong. Politicians are the easiest to operate on. There's no guts, no heart, no b*lls, no brains and no spine, and the head and the *ss are interchangeable

[MN2CO]

Ha!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! Perfect

[2bindenver]

Daily Real Estate News | October 2, 2008
PMI Index: Prices Stabilize in Some Metros

PMI Mortgage Insurance Co., one of the largest providers of mortgage insurance in the country, ranks the nation’s 50 largest metropolitan statistical areas according to the likelihood that home prices will be lower in two years. The Fall 2008 Risk Index is based on second-quarter Office of Federal Housing Enterprise Oversight (OFHEO) data.

Risk scores of less than 10 percent aren’t statistically significant, according to David Berson, PMI's Chief Economist and Strategist. But in some areas where prices rose the most during the housing boom, the risk of price declines remains high.

The highest risk of future price declines are in Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla. (99.5 percent), Riverside-San Bernardino-Ontario, Calif. (99.5 percent), Orlando-Kissimmee, Fla. (99.4 percent), Miami-Miami Beach-Kendall, Fla. (99.3 percent), and Tampa-St. Petersburg-Clearwater, Fla. (99 percent).

The 15 areas where the risk of price declines is less than 1 percent are:

St. Louis, Mo.-Ill.
Milwaukee-Waukesha-West Allis, Wis.
Charlotte-Gastonia-Concord, N.C.-S.C.
Cincinnati-Middletown, Ohio-Ky.-Ind.
Denver-Aurora, Colo.
Columbus, Ohio
Austin-Round Rock, Texas
Kansas City, Mo-Kan.
Indianapolis-Carmel, Ind.
Memphis, Tenn.-Miss.-Ark.
San Antonio, Texas
Pittsburgh, Pa.
Houston-Sugar Land-Baytown, Texas
Dallas-Plano-Irving, Texas
Fort Worth-Arlington, Texas

Source: PMI Mortgage Insurance Co (10/01/2008)

[Bob from down south]

Originally Posted by 2bindenver

PMI Mortgage Insurance Co., one of the largest providers of mortgage insurance in the country, ranks the nation’s 50 largest metropolitan statistical areas according to the likelihood that home prices will be lower in two years. The Fall 2008 Risk Index is based on second-quarter Office of Federal Housing Enterprise Oversight (OFHEO) data.

Risk scores of less than 10 percent aren’t statistically significant, according to David Berson, PMI's Chief Economist and Strategist. But in some areas where prices rose the most during the housing boom, the risk of price declines remains high.

I wonder what a trip down memory lane would produce in the way of, say, PMI's predictions about these same markets made in 2005. I'm sure their stunning predictive accuracy had something to do with the reason PMI is taking it square in the shorts with major losses on the mortgages they insured right through the height of the bubble mania.

Fool me once...

[sterlinggirl]

This is just a gut feeling, but with all the schlitz hitting the fan in the credit market lately, I have some doubts about the financing of the energy boom in Colorado.

Does anybody else have some thoughts on the matter?

[Bideshi]

I don't wish to oversimplify, but this "bail out" is just a golden handshake for the last tier people to profit in this huge criminal pyramid scam. The economy will continue to tank worldwide.

[jwiley]

Originally Posted by sterlinggirl

This is just a gut feeling, but with all the schlitz hitting the fan in the credit market lately, I have some doubts about the financing of the energy boom in Colorado.

Does anybody else have some thoughts on the matter?

Most oil companies are not having any problem getting their hands on the money to drill, in fact I recently talked to a man who is heavily involved in arranging the financing for oil companies, and lenders are still actually competing to get the loans.