Posted on 03/06/2008 10:40:53 PM PST by TigerLikesRooster
Ping!
Funny how the flipper Freepers have disappeared.
You mean interest-ing times.
I still maintain that loaning money to homeless people to buy a house is a good business model. I don’t care what anyone else says.
Flipper Freepers finally fled forever...figures.
I have a friend making a very good living flipping houses in New Mexico.
probably sold their computers
I wonder just how much of the world’s apparent wealth lies in these multiple-leveraged phantoms. I have had many discussions on the topic over the past year with a friend who argued that “on-paper” dollars were just as valid as cash-in-hand dollars.
So much money can simply disappear only if it never really existed in the first place.
Their mistake was not foisting their "bonds backed by home loans" (CMOs) onto other parties. Then they would be home free. These CMO are commonly referred to as "toxic waste" these day and Thornburg is a Superfund site
Only in Matrix-like "virtual world."
Actually many people have been living in virtual world(or virtual reality) for several years. Now it is unplugged.
I suspect discounts of these funny money bonds are going to go deeper than 30% before this is over.
Let me note, I am shocked at a 30% discount.
Be interesting to know who was the buyer or buyers.
I didn’t know we had flipper FReepers. I like the sound of that. I guess they were for flipping before they were against it.
LOL :)
People are losing their homes on these darn adjustable rate mortgages they signed up. Payments are going through the roof at the same time they are finding their income shrinking.
Of course it was there fault for signing up for such stupid loans but what about the total lack of responsiblity on the part of the banks that made the loans.
It is not just a recession coming. We will be lucky if it only ends up as a deep recession. It is not just interesting times, it is troubled times.
“Actually many people have been living in virtual world(or virtual reality) for several years. Now it is unplugged.”
Not if you can hold it long enough. Real estate is forever, only those who buy needing to get out in a short period of time are doomed.
If you can hold it long enough you generally will not lose money. Patience and research is the key. Real estate is forever, man’s patience is not.
Government also shares the blame; it has encouraged over-valuation as a way to boost tax revenues. The people made happiest by the housing valuation boom were not homeowners, very few of whom have seen any real, in-hand dollars from the run-up, but rather property tax assessors. Who here thinks property tax assessments will match the reduction of asset prices as quickly as they matched asset price inflation?
JPM will be happy to buy Thornburg's $3.2 billion of forced liquidated assets for, say, $320 million. Heck it might just offer to buy the whole company.
yitbos
...very few of whom have seen any real, in-hand dollars from the run-up, but rather property tax assessors.
Part of the problem, people were borrowing “in hand dollars” against the increased value of their homes. Folks who signed adjustable rate mortgages were told not to worry, since the price of the home would always go up and they could refinance.
Last I heard, nobody knows how much equity was drawn from those inflated prices, but I’d be interested to know.
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