Poolman's Account Talk

[Pschiffdicpal]

Housing Market Being Pounded By New Wave of Foreclosures
http://www.cnbc.com/id/30929084

Over all, more than four million loans worth $717 billion were in the three distressed categories in February, a jump of more than 60 percent in dollar terms compared with a year earlier.

Under a program announced in February by the Obama administration, the government is to spend $75 billion on incentives for mortgage servicing companies that reduce payments for troubled homeowners.

In firefighter terms....
A garden hose to fight a fully involved structure.

 

[Birchtree]

So bring on the foreclosures and let those homes go to people that can afford them. The financial system has suffered a blow unlike anything since the Great Depression, and the source is the weak financial position of the people holding declining assets. Let my people go.

 

[amoeba]

So bring on the foreclosures and let those homes go to people that can afford them. The financial system has suffered a blow unlike anything since the Great Depression, and the source is the weak financial position of the people holding declining assets. Let my people go.

Agree with Birchtree on this; bring it on. The other option - which the government is doing, is to "modify" loans to let people who have bad credit, lied on their loan applications about their income and, therefore, can't afford to stay in houses to stay there anyway - well - a little longer anyway.

The vast majority of voters do not agree with this. Why is our government doing it? And it's not hard to figure out what will happen to home prices when:

a) the "temporary" first-time home buyer incentives expire or are spent out (it's up to $18K in California):

b) the shadow inventory of distressed homes (foreclosed, but not for sale; distressed - but not foreclosed when they will be), comes on the market. The banks can't hold this stuff forever. The shadow inventory (~20,000 units) in my town, Sacramento, exceeds the existing inventory (of ~13,000 units).

This is out of whack.

As for today's bounce; I don't think it's consumer confidence - probably short-covering over here. Won't last the week is my prediction.

Poolman may have something to say (or do) on this. End of month positioning time - - - still have my 2 IFT's - - - if the opportunity arises.

 

[Steadygain]

So bring on the foreclosures and let those homes go to people that can afford them. The financial system has suffered a blow unlike anything since the Great Depression, and the source is the weak financial position of the people holding declining assets. Let my people go.

OK - We have a motion

And it was seconded

I'll cast my 'Aye' - or 'Yeah' in on this one

But just to stir the coals a little and fan up some flames - would like to point to the REAL SOURCE of THIS PROBLEM. JPMorganChase I believe is the one who came up with the idea and the Investment Banks teamed together and made it happen.

So although we could 'partly blame the ones who essentially had no money to get caught up in this scheme' - it was certainly theirs for the taking - totally legal - extremely prevalent - and hugely irresistable. They'd have been crazy not to - it's live on the streets with nothing or live in a home only the rich can afford for nothing.

 

[Silverbird]

Bah, what was wrong with real estate loans is they could be sold to someone else and the house buyer would never know. No transparency, no shared risk. But the buyer didn't know the game, they thought the loan company had to sit at the table too. But the game wasn't poker, it was more like london bridge, or hot potato.

I got lucky, the real estate company I worked with to find my house recommended a good loan company that gave me a decent flat rate. But not everyone was so lucky! The people I know who are close to foreclosure had NO idea that the company whose name was on their loan documents didn't care whether they could pay or not. And they didn't have co-workers living in the area they were moving to to recommend a good real estate agent, they were house-hunting and loan hunting on their own.

 

[poolman]

http://www.youtube.com/watch?v=wmAGJTebEWQ



MOT is a little pxssed
http://www.youtube.com/watch?v=Cn8yxvCEbNw

 

[poolman]

http://www.youtube.com/watch?v=YswdM1GP_sI

http://www.youtube.com/watch?v=d2uDSLJsWt4

http://www.youtube.com/watch?v=xHXeP0eNIpU

 

[poolman]

http://www.youtube.com/watch?v=tmrAhsuJ91w

 

[poolman]

http://www.youtube.com/watch?v=1sOGeSR7yOU

 

[JTH]

Knock knock

Hope all is well how's the economy from the pool perspective?

 

[poolman]

Knock knock

Hope all is well how's the economy from the pool perspective?

Hi,

How's it going JTH and all my other fellow TSP'RS. The pool business around here is actually doing pretty good. I know this from some side work that I do and also talking to the former Boss and his new Foreman.

The Wife and I have decided to take advantage of me not working. We have had our master bathroom renovated. Bathroom was torn down to the studs, New walls installed, Dual vanities, Over-sized shower. We are just waiting for the vanity top to come in to have that installed along with the sinks.

We also had a 24x12 shed installed and wired. Also had to have about 80 feet of copper water lines replaced in a place of our home that I knew the pipes were getting thin. So I've been pretty busy in that regard.

I'm all in market wise hoping for a final push. EOM window dressing. Market's have been pretty wacky IMO this year. I do think we have turned the corner economy wise and we probably will not see march Lowe's again.

 

[poolman]

http://www.youtube.com/watch?v=_WslFQEao9M

 

[poolman]

http://www.youtube.com/watch?v=5BPyvn-hu0k

 

[poolman]

http://www.youtube.com/watch?v=nNOk59JOP6g

 

[poolman]

http://www.youtube.com/watch?v=LFP5...php?t=43337&page=3208&feature=player_embedded

 

[poolman]

http://www.youtube.com/watch?v=LA8IM550tTU

http://www.youtube.com/watch?v=4ZJKLDFprZo

 

[poolman]

Dollar index for your toolbox.

http://www.marketwatch.com/investing/index/DXY


http://www.youtube.com/watch?v=Ydovp-b-yoE

 

[poolman]

http://www.youtube.com/watch?v=g2mPDTfT1Cw

http://www.youtube.com/watch?v=xx4hkavhEB4

http://www.youtube.com/watch?v=qOUvTXa5yv4

 

[poolman]

http://www.youtube.com/watch?v=EA_VM5AJPF4

http://www.youtube.com/watch?v=n6Kte4O5u_E

 

[poolman]

Let's all hope for a good jobs report tomorrow. It would seem that short term this report will set the course or direction that we go for at least a few days. There has been lots of talk about it. More than normal because of the Huge run up that we had in July and up until now. I think this will at least push the S&P index either way 20 points.

> 400,000 job loss tomorrow would not be pretty. Personally I think we will see a 3 handle though. I'm hoping for a huge up day tomorrow.


http://www.tradingeconomics.com/Economics/Non-Farm-Payrolls.aspx?Symbol=USD