I am so glad this bail out bill will correct the principle owed and place that cost on the government. I wonder how many Friends of Mozillo will get their million dollar mortgages reduced?
or the laugh of my child and the presence of my wife and family made up for all those things we didn't have back then as we were 20 leaques under water. This will make us all wiser and stronger and more appreciative of the things we do have.
In other words, hope is on the horizon. It doesn't matter if it is barely shining now, it will improve. A trillion dollars sounds like a lot but really it won't be that much cause the government has the time to hold these assets to maturity if they so wish. This reminds me so much of the last bust which affected me more that time cause I was basically at ground zero and in my early 20's. One thing I did learn though, life is more than the tangable things I didn't have. A walk in the park ....
Greg, Congress and market participants have finally awoken from their sleep and illusions of a world without risk. This is actually a very good thing! The government will finally begin to start to move to repair the damage done. It might take some time, and there will be some more damage to come, but the clouds are diminishing on the far horizon. In 1989 something similiar happened when the RTC was created and by late 91 the sun appeared. Many didn't believe what they saw until 93.
You are totally correct in what you've written here [except the part about me being in fantasy land :)]. The dillusional underwriting guidelines have been rolled back. The financing structure is rapidly being repaired. Loans are being underwritten just like they were in the 90's, before all the madness. My enthusiasm for the housing law is because it will avoid many instances of the divorce, broken families, ruined careers, unemployment and bankruptcy you talked about.
Forgive me if I get kind of passionate with my wording. All this is bringing back nightmare I finally got over in the late nighties. i spent the late eighties up to Dec. of 92 trying to fix the mess i got into. It took another 5 years just to calm down and realize things don't always fall apart. It plays on your mind. One thing I did learn is the timeline and being realistic.
Listen to what said. We have reverted back to the 90's. What did this past securitization financing model give us? capital and unqualified buyers. Decrease the available capital and the available buyers and the prices will fall. The question is how far. Does this make sense?
Until the financing structure is repaired, there will be pain. And lots of it to go around! Divorces, broken families, ruined careers, unemployment, bankruptcies, and MORE foreclosures. Banks and other financial institutions will HAVE to de-leverage. And so will the American public. I hate to be so negative but that is the cold hard facts. The quicker we adjust and recognize the damage the quicker we can start repairing the basic foundation of capitalism. "Trust"!
In Texas this kind of break down resulted in hundreds and hundreds of depository institutions going belly up. For years, I had to use scuba gear to get to my front door because I was so far under water. At the age of 21 I learned real quick what happens when underwriting standards go to shit. I hope it is different in New York but I doubt it. Yes all Real estate is local. But the financing which fueled this bubble was international. WAS!
You had people with out the income and in some cases without a job being able to get a loan. The definition of demand is someone willing and able to buy. They are no longer ABLE to buy because the non-agency securitization market has frozen up. Which is good because they weren't good credit risks anyway. Now the lenders are not clawing over one another to shove money in their hands. Without the money in their hands they cannot claw one another to buy an over priced piece of property.
Greg, I'm just a dumb ass Texan but I can tell you this much, you are living in a fantasy land. You sound sincere but lack the experience of living through a bust. Prices in our economy are based on the available money supply and credit of which the Fed controls. They increased the money supply back in 2001 through 2003, and the global securitization market increased the available credit. It ruptured Greg and a huge bubble developed. This greatly increased the demand.
I am so glad this bail out bill will correct the principle owed and place that cost on the government. I wonder how many Friends of Mozillo will get their million dollar mortgages reduced?
remembranceTX 3 years ago
or the laugh of my child and the presence of my wife and family made up for all those things we didn't have back then as we were 20 leaques under water. This will make us all wiser and stronger and more appreciative of the things we do have.
remembranceTX 3 years ago
In other words, hope is on the horizon. It doesn't matter if it is barely shining now, it will improve. A trillion dollars sounds like a lot but really it won't be that much cause the government has the time to hold these assets to maturity if they so wish. This reminds me so much of the last bust which affected me more that time cause I was basically at ground zero and in my early 20's. One thing I did learn though, life is more than the tangable things I didn't have. A walk in the park ....
remembranceTX 3 years ago
Greg, Congress and market participants have finally awoken from their sleep and illusions of a world without risk. This is actually a very good thing! The government will finally begin to start to move to repair the damage done. It might take some time, and there will be some more damage to come, but the clouds are diminishing on the far horizon. In 1989 something similiar happened when the RTC was created and by late 91 the sun appeared. Many didn't believe what they saw until 93.
remembranceTX 3 years ago
You are totally correct in what you've written here [except the part about me being in fantasy land :)]. The dillusional underwriting guidelines have been rolled back. The financing structure is rapidly being repaired. Loans are being underwritten just like they were in the 90's, before all the madness. My enthusiasm for the housing law is because it will avoid many instances of the divorce, broken families, ruined careers, unemployment and bankruptcy you talked about.
gsrand 3 years ago
Forgive me if I get kind of passionate with my wording. All this is bringing back nightmare I finally got over in the late nighties. i spent the late eighties up to Dec. of 92 trying to fix the mess i got into. It took another 5 years just to calm down and realize things don't always fall apart. It plays on your mind. One thing I did learn is the timeline and being realistic.
remembranceTX 3 years ago
Listen to what said. We have reverted back to the 90's. What did this past securitization financing model give us? capital and unqualified buyers. Decrease the available capital and the available buyers and the prices will fall. The question is how far. Does this make sense?
remembranceTX 3 years ago
Demand is the ability and willingness of someone to buy.
1. Some do not have the ability or willingness .
2. Some do not have the ability but are willing.
3. Some are able but not willing.
4. Some are able and are willing.
Greg, #1, 2, 3 changed between 2000 & 2007 because of securitization and poor underwriting. Now it is back to normal.
remembranceTX 3 years ago
Until the financing structure is repaired, there will be pain. And lots of it to go around! Divorces, broken families, ruined careers, unemployment, bankruptcies, and MORE foreclosures. Banks and other financial institutions will HAVE to de-leverage. And so will the American public. I hate to be so negative but that is the cold hard facts. The quicker we adjust and recognize the damage the quicker we can start repairing the basic foundation of capitalism. "Trust"!
remembranceTX 3 years ago
In Texas this kind of break down resulted in hundreds and hundreds of depository institutions going belly up. For years, I had to use scuba gear to get to my front door because I was so far under water. At the age of 21 I learned real quick what happens when underwriting standards go to shit. I hope it is different in New York but I doubt it. Yes all Real estate is local. But the financing which fueled this bubble was international. WAS!
remembranceTX 3 years ago
You had people with out the income and in some cases without a job being able to get a loan. The definition of demand is someone willing and able to buy. They are no longer ABLE to buy because the non-agency securitization market has frozen up. Which is good because they weren't good credit risks anyway. Now the lenders are not clawing over one another to shove money in their hands. Without the money in their hands they cannot claw one another to buy an over priced piece of property.
remembranceTX 3 years ago
Greg, I'm just a dumb ass Texan but I can tell you this much, you are living in a fantasy land. You sound sincere but lack the experience of living through a bust. Prices in our economy are based on the available money supply and credit of which the Fed controls. They increased the money supply back in 2001 through 2003, and the global securitization market increased the available credit. It ruptured Greg and a huge bubble developed. This greatly increased the demand.
remembranceTX 3 years ago
Thought you broke it down very nicely! Easily understood for those less knowledgeable on the subject.
jeurellhockey 3 years ago 2
Great job!
jwnyrealtor 3 years ago