Category Archives: The Bubble

Peter Schiff Plays Cassandra on Fox News

This is a collection of clips dating back to early 2006. Watch all of the talking heads abuse and criticize Shiff for his predictions about the fundamental weaknesses in the US housing, credit and stock markets. Pay special attention to Ben Stein who as late as early 2008 was still dismissing problems in the housing [...]

On The Fence

From NorthJersey.Com. Hat tip to New Jersey Real Estate Report House-hunters Play Waiting Game David DeFabiis of Hackensack has been house-hunting for more than a year. He’s got a good job, a great credit score, a sizable down payment. He’s been prequalified for a mortgage. But he’s afraid. “I’m afraid that a house I buy [...]

A Letter To The Editor

From the NY Times: Dear Mr. Bernanke and Mr. Paulson: My student loans are too big and it is hurting the economy. Can I have a bailout, please? I need $92,000. Thanks. Nathan Kottke

Doom and Gloom

After a bit of a hiatus on the real estate front, we’re back to our core…um…competency. Fannie and Freddie are bankrupt. Foreclosures on the rise. Dogs and cats…living together. Mass hysteria! I got this graph from Matt Ygelesias. Home loan troubles break records again The Mortgage Bankers Association said Friday that more than 4 million [...]

Freddie Mac Will Stop Buying NY Subprime Loans

From Bloomberg Freddie won’t buy loans dated on or after Sept. 1 that meet the state’s subprime definition, the McLean, Virginia-based company said today in a lender bulletin on its Web site. New York Governor David Paterson last week signed new foreclosure and lending laws that tighten legal protections for borrowers. The legislation holds mortgage [...]

Ghost Town USA

I got this from The Consumerist. In Stockton, California, the mortgage crisis has resulted in waves of foreclosures, creating a virtual ghost town of empty homes in a former real estate boom area. Houses that once sold for $700,000 have trouble fetching even $200,000 and many houses stand empty without a prospective buyer in sight. [...]

Loving The REOs

Over at the New Jersey Real Estate Report, James Bednar writes in the comment section about his preference for REOs (bank owned properties). 1) Properties are often distressed. Owners trashed the place when they left. Damage from a lack of maintenance. Landscaping dead, lawn overgrown. Properties as-is. Lots of buyers will get turned off, even [...]

A Wholly Rational Panic

From Paul Krugman today What’s going on in the markets isn’t an irrational panic. It’s a wholly rational panic, because there’s a lot of bad debt out there, and you don’t know how much of that bad debt is held by the guy who wants to borrow your money. How will it all end? Markets [...]

Now playing on YouTube: Avoid foreclosure fraud

From Newsday , Freddie Mac has produced a short video about how con artists can prey on delinquent borrowers.

A Concise Explanation Of The Sub-Prime Crisis