John Vogel Subprime Mess

Sub-Prime Mess Means Digital Woes


The sub-prime mortgage mess has many implications: new barriers to getting a mortgage, the tumbling stock market, and yes, maybe trouble getting investment dollars for that cool start-up.

In the digital economy, the shake-out in the mortgage industry could make a big hit on online advertising with troubled marketers in the home finance market, like Countrywide. Larry Dignan at ZDNet weighs in with an analysis as does Rafat Ali over at PaidContent.

To understand how this all has happened, here's my interview John Vogel at the Tuck School of Business at Dartmouth. Professor Vogel is an expert on the real estate industry. He gives a sobering overview on the root and implications of the sub-prime crisis. I was up in Hanover, New Hampshire earlier this month for this interview.

Here at Beet.TV, we're going to explore more business strategy and finance issues in the weeks ahead. These things affect us all. Stay tuned.

-- Andy Plesser

Coming clean: The Tuck School of Business at Dartmouth is a public relations client of Plesser Holland.

Posted on Tuesday, August 21, 2007

Category:

People & Blogs

Tags:

• Dartmouth
• sub-prime
• mortgage
• foreclosure

[rowdy8888]

This man is very intelligent! The people wanted a house right away - So the marketing said you cheap assholes can have a house. Then they signed up for loans. The low rate is very good. But When it adjusts you are boned in the ass raw with no lube!

[larrydrawdy]

Risk is based on more than credit scores. Some people have redeemed foreclosure and paid off bankruptcy to restart there life and did good. Others simply have what underwriters dont see "red blood"..bad things can happen to good people, divorce death even for you 800 score people who needed a bandaide

[GorillaDroog]

''PRRR"' MY NIKKUH!!

ya hoe ass niggas might think this a game, prrr is how real niggas salute in 09 hoe ass niggas. ya'll be hatin on some real niggas cuz we FLY PRR! we higher then a BIRD PRRR.

AND WHO THI IE SHWATY!?!?I CAME HERE TRYNA WATCH SOME BIRDS DO THEY THANG-A-LANG NOT SEE SOME BIRD ASS NIGGA

PRRR

[TRBWS]

who diez nikkah? i be searccin fo dem birds naw mean? vogels all day and den I giet thiez shiee?? i thout we wuz folk, mayne, i doezn't like thiz, *brrrr*** birdman. shave ya self mayne, get dat baby face nawmean?

[bdweightexer]

Sorry but Spanish Speakers aren't even close to being the only ones getting Subprime loans. Of course it depends on the part of the country you live in. In Florida and Southern California that is probably true.But in the rest of the country I'm not so sure. Think it was ethnically much more mixed in other places.

[lostinseganet]

Predatory lending destroyed those who put too much trust in people to be honest.

[tellthetruthh]

HISPANICS were the major group to hold SUBPRIME LOANS. HISPANICS were given loans when other groups could not get them. Now they want to be bailed out of their mess!!!If they weren't so greedy they would not be in this situation. Most of them didn't even have SSN oe EINS.Now BUSH has made it possible for them to get bailouts without SSN or EINs!!! S0illegals aliens are milking the system again!!! While Americans pay the bill!!!

[Joyriser]

The investors and property developers create a vastly over inflated house price market.Then the "creative accounting" economy creates a situation where employers pay staff as little as possible for their work! Ideally they move jobs to China so they can make even more profit! Therefore you create a two tier market where good people cant afford a small home! Of course the sub prime market went up! They couldn't face the guilt and political embarrassment of telling the truth!

[ofInterestNZ]

Now that the volumes of home sales is down around 30-40% each month from a year ago, you'd expect a good number of those agents to chuck it in.

They rely on commissions for most of their income so fewer sales means lower income. You'd have to expect a good 5000 to 6000 would leave the industry in the next couple of years.

The other angle here is that mortgage brokers will also feel the pain. Most of their business is generated by real estate deals.

[MTXSHO9732vV8SHO]

COMMON SENSE

Do You need it? Yes, continue to next question. No, STOP.

Can You afford it? Yes continue to next question. No, STOP.

Should you buy it at it's current price? Yes, welcome to the homeowner's club! No, it is overpriced!

Apparently, these 3 questions are too hard to figure out. No need to wonder why the US of A is such a mess; the consumers are just as stupid as the politicians and lawyers criminals.

LMAO! Now GIVE me your house! LOL! C Ya Monopoly Guy! LOL, LMAO, LOL

[Psychogenius018]

The subprime schister shenanigans are merely symptomatic of the real problem which is the Federal Reserve crime syndicate dictating artificially low interest rates instead of allowing the market to determine them. They sucker everyone in with low rates then they pull the rug out from under them. THEY ARE THE ONES PROFITING FROM ALL OF THIS!!!!!!

[njmarkca]

In my opnion this run up in real estate value was created, on purpose and unwittingly by the fed gov. Unwittingly when the Clinton admin made the first $500K of home profit not taxed. On purpose by Greenspan to avoid an even worse fate, a deep depression with price deflation. Monetary policy, purposely encourgaed real esate investmenting in an attempt to aviod a catastophy casued by the tech melt down of 2001/2002. It worked for 5 years. This is all related to globalization and corp greed.