Article On Strategic Defaults

I ran across this article from U.S. News & World Report, dated 1/19/10 concerning “strategic defaults”: http://www.usnews.com/money/personal-finance/real-estate/articles/2010/01/19/strategic-defaults-and-the-foreclosure-crisis.html The article is interesting in that it summarizes various facets of the “strategic default” situation and presents an interesting example of the dynamics that one “underwater” homeowner faces.  I have mentioned “strategic defaults” on numerous occasions.  It is a very important “wildcard” … Read more Article On Strategic Defaults

Characteristics Of The Housing Bubble

Given the incredibly outsized intervention efforts in the residential real estate market, I think it is important to examine some dynamics of the real estate bubble. Here is a chart from the 12/15/09 Contrary Investor commentary that I believe is interesting, as it depicts some underlying residential real estate fundamentals.  It shows the equity and mortgage … Read more Characteristics Of The Housing Bubble

More On The Fannie/Freddie Developments Of December 24

Here is a Wall Street Journal editorial on the December 24 developments at Fannie Mae and Freddie Mac.  This editorial provides some new perspectives on the matter: http://online.wsj.com/article/SB10001424052748704152804574628350980043082.html My original comments on these developments was on December 28. I feel it is critically important to understand the extent of intervention as it pertains to the housing market.  Fannie … Read more More On The Fannie/Freddie Developments Of December 24

Ben Bernanke’s January 3rd Speech

I would like to make a couple of comments regarding the speech Ben Bernanke gave on January 3.  It was titled “Monetary Policy and The Housing Bubble.” (pdf) I could make a significant amount of comments regarding this speech, as I partly or fully disagree with many of the points presented. I will, however, briefly comment … Read more Ben Bernanke’s January 3rd Speech

Fannie Mae And Freddie Mac Developments Of December 24

For those who may have missed it, there was a notable development on December 24 concerning Fannie Mae and Freddie Mac.  Here is The Wall Street Journal link and the Treasury Dept link: http://www.ustreas.gov/press/releases/2009122415345924543.htm http://online.wsj.com/article/SB126168307200704747.html Basically the government announced plans to cover an unlimited amount of losses at both companies. It is yet another testament … Read more Fannie Mae And Freddie Mac Developments Of December 24

Wall Street Journal Article On “Strategic Defaults”

Yesterday The Wall Street Journal had an article titled “Debtor’s Dilemma: Pay the Mortgage or Walk Away.”  Here is the link: http://online.wsj.com/article/SB126100260600594531.html The article has a variety of statistics and views on the issue of “strategic defaults.”  As well, it discusses the legality and consequences of such. I have previously written numerous blog posts on the issue of … Read more Wall Street Journal Article On “Strategic Defaults”

“Underwater Mortgages” Statistics

Yesterday The Wall Street Journal published an article titled “One in Four Borrowers Is Underwater.” The story contains a variety of statistics with regard to homeowner equity and home ownership issues.  It gives a good overview of the situation, and this facet of the residential real estate situation is not pretty.  As the headline states, 23% of all … Read more “Underwater Mortgages” Statistics

A Quizzical Quote From Barney Frank

Here is a story from The New York Times of October 8 that discusses the situation at the FHA: http://www.nytimes.com/2009/10/09/business/09fha.html?pagewanted=1&_r=2 What I found particularly interesting in this story was a quote from Barney Frank, the chairman of the House Financial Services Committee: “I don’t think it’s a bad thing that the bad loans occurred,” he … Read more A Quizzical Quote From Barney Frank

FHA

On Tuesday The Wall Street Journal published an editorial on the FHA (Federal Housing Administration).  I found it to be a good overview of the situation there.  The editorial can be found at this link: http://online.wsj.com/article/SB10001424052970204488304574428970233151130.html I find this FHA situation highly disconcerting, especially in light of how similar situations have played out, and are playing out, … Read more FHA

The CRE Problem

I would like to highlight an article from last Thursday titled, “Second Wave of the Credit Crisis: Collapsing Commercial Real Estate”  It can be found at this link: http://www.ibdeditorials.com/IBDArticles.aspx?id=335660380569943 The article gives a good summary of the Commercial Real Estate (CRE) situation as well as makes other interesting observations. CRE is yet another huge, menacing … Read more The CRE Problem