Browsing all posts in Bubbleishis Schadenfreude.
How Did It Get This Bad?
“When Bear Stearns stepped in with a $3 billion bailout of its own troubled mortgage-investing hedge funds, the immediate crisis was averted for the rest of the market. But the old truism remains: Pay now or pay later. Having opted not to “pay now,” the financial markets will “pay later.” The pain is only beginning, and the fallout from the bursting of the housing bubble will be the defining economic event of our time. “
Continue reading this concise overview of the problem on The Prudent Bear…
Appraisal Fraud Complained about for Years
What’s interesting about this article on the rising problem of appraisal fraud is when it was written – back in 2005, at the height of the bubble.
Appraisers are taking matters into their own hands as they fight back against lenders and other real estate professionals who want them to pad appraisals in order to meet what they feel are unrealistic sales prices of homes. Some are saying that they are sick of reporting fraud to their boards and seeing nothing done to stop it. Others are contacting the FBI where the fraud can be investigated as mail fraud. Continue reading →
Mission Accomplished. Everything is F.I.N.E. Stop Worrying, Silly Middle Class.
Well, finally, the housing crash is over according to the Treasury Secretary of the Most-Honest-Forthright-and-Downright-Accurate-in-Predicting administration in American history. Continue reading →
Dear Saint Anthony Look Around, I Need…
…a parking spot and one can’t be found…
If you were raised Catholic – and even better, by a Sicilian mother, you learned many a quick prayer for every little life event or frustration. I can remember learning this little chant while searching for a spot with my mother in the mall parking lot. Apparently, St. Anthony had a lot of time on his hands – so he is available to find me a spot close to the mall entrance. Continue reading →
Another Home in Gang Territory
I continue to be fascinated by some of the listings out there. I’ve seen ads describing houses that look to be one step up from the Texas Chainsaw Massacre house with descriptions like “fascinating,” “enviable.” Yes. If you are currently living on skid row or in one of the overcrowded downtown missions these homes might be described as enviable. I’ve also seen descriptions about the “lovely chain link fence.” There is only one kind of chain link fence, and it isn’t lovely. Continue reading →
Who Are They Kidding
Why shouldn’t people profit who have had to deal with years of drive-bys – why shouldn’t their house earn ‘em big bucks just like they do for everyone else in SoCal?!
Drive By and Cry
I did a drive-by of the house I describe here, but realize I had left my camera charging today.
I will tell you – this is a little cottage, which if nature took it course and things started to be valued again according to real economic fundamentals, should run about 300K in a few years. Continue reading →
Reality Check on Tilden Ave
Here’s the sale history on the house
Sales History
03/07/2005 $605,000
12/24/1991 $220,000
Here’s the listing I captured February 2007 Continue reading →
Catching the Top of the Wave
Many of you know I am a faithful reader of the oodles of real estate bear blogs out there. Many of the blogs are “shutting down” because the main stream media is now reporting more often the real story about one of the greatest asset bubbles in history. Continue reading →
Median Price Up? Huh? Don’t Be Fooled
I keep hearing from people – prices aren’t dropping, I saw the median prices for the area and overall they are up!
Don’t be fooled by median price. If starter homes (lowest cost homes) are out of reach for the majority of people and only more expensive homes are selling (their prices have dropped, so people think they are getting a “deal”), then the median will skew higher.
The Case-Shiller index gives a more reliable view of prices in any region. Prices are going down. Period. Continue reading →