Posted on 09/12/2007 2:36:16 AM PDT by freedomdefender
Foreclosure rates (from the link): 1990--0.9%; 1995--0.9%; 2000--1.2%; 2003--1.3%
Oh, ok. I was wrong. I guess Cramer was wrong last week when his head almost exploded on live TV.
Nothing to see here. Go back to sleep.
Now that’s the question that could solve the riddle.
Shrinkage figures are part of a company's pricing formula--losses that are made up in higher pricing. An individual company has to try to keep shrinkage as low as possible in order to remain competitive.
And obviously, Safeway & Wal-Mart can't exactly repossess the steak someone had for dinner three months ago, to point out that slightly less than one percent of secured real estate loans are in foreclosure. Less than one percent mortgage foreclosure rate is not out of the ordinary according to the rates in the link I posted at #21.
Yes, yes, yes, and yes.
“Among REO filings in August, states with triple-digit gains year over year are: California (with filings up 471 percent), Arizona (up 217 percent), Nevada (up 192 percent), New Mexico (up 157 percent), Florida (up 141 percent), Hawaii (up 138 percent), New Hampshire (up 119 percent), and Minnesota (up 112 percent).
On a per capita basis, states with the most people losing their home this year include: Louisiana (14.7 homeowners out of every 1,000 households in the state), Michigan (11.1 per 1,000), Nevada (11 per 1,000), Georgia (9.9 of every 1,000), Colorado (9.8 per 1,000), Indiana (8.8 per 1,000), Ohio (7.6 per 1,000), and Missouri (7.6 per 1,000). “
Look at electoral votes here. Can someone post them?
Quit throwing cold water on a good doomsday panic! :-)
I agree, but he didn't turn on a dime. Once he finally saw the light and started lowering rates, he didn't lower them nearly fast enough considering the economic conditions.
The observation that the Fed is creating booms and busts in our economy is true. And the irony is that the net effect is still inflation. If you or I had such an abysmal track record, we would have been fired a long time ago, not treated like rock stars and oracles of truth.
As the saying goes “figures lie and liars figure”
This from a recent article. Remember Walmart has a lower “shrinkage” rate than a lot of companies.
“The hit is likely to rise to more than $3 billion this year for Wal-Mart Stores Inc., which generated sales of $348.6 billion last year,”
That is just about 1% loss, due to theft. So yes, stores seem to operate with a 1% loss.
An industry that could not handle a 1% loss is not going to stay around very long at all. For comparison:
Retail Theft and Inventory Shrinkage
http://retailindustry.about.com/od/statistics_loss_prevention/l/aa021126a.htm
According to University of Florida criminologist Richard C. Hollinger, Ph.D., who directs the National Retail Security Survey, retailers lost 1.7 percent of their total annual sales to inventory shrinkage last year.
Yes, they would, and in fact they do. Shoplifting and counterfeiting take a bite out of all retailers.
That's the safe bet.
What's your opinion of the Partnership for Prosperity agreement (with Mexico) & the New Alliance Task Force?
What effect has both of these had on the mortgage loan industry?
Hey, if you want to have some fun torquing “investors,” er, I mean, shopping for a beach condo, consider that Miami has a record 23,000 condos for sale today, and will have 42,000 condos for sale by the end of 2008 due to current construction being completed.
...selling at a mere 10 condos per day rate ain’t gonna help ‘em, either. Just beware of Florida’s outrageous property taxes and insurance for new condo buyers and for out of state condo buyers.
But my econ professor told me that government intervention in the economy is what was supposed to temper these boom and bust cycles!
I read a book on Deming a few years ago, and I learned his observation that the more managers try to control variation in a system, without knowing the cause of the variation, the worse the variation becomes. Deming demonstrated this with his Funnel experiment. I don't think it's coincidence that the worst period of inflation in our country has been since the FOMC started trying to control it in 1936.
Real estate prices are based in great measure on how much banks are willing to lend to cover the loan.
As long as prices are rising, banks are eager (aren’t banks always eager?) to loan more assuring the suckers customers that there is no way they can lose money.
This whole scheme is based NOT AT ALL about whether we produce steel in this country anymore or how many Tulips we can grow.
And now the Fed and the ECB is pumping billions of dollars into the system IN THE MISTAKEN BELIEF that it will fix things, it Cannot fix things by going to the institutions, and the consumer is too tapped out on the credit nipple to benefit!!
During the depression, it was not unheard of for sheriffs to simply ignore foreclosure notices. You have a legal right to be informed of any notice and demand.
This is the beginning of a commodities bull like we have never seen before. It even makes sense to invest in paper!!”
There’s alot to what you say. My pet theory on this thing is that larger banks wanted a vehicle to buy up smaller banks and mortgage lenders. Chase (I think) just bought a great chunk of Countrywide stock for example.
Otherwise I just can’t understand why they lent money to people who obviously couldn’t pay it back. When I think of that I see the Guiness guys saying: We’ll loan money to people who can’t pay it back and be stuck holding notes on properties worth a third of what we lent—brilliant!
Just an opinion though!
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