Fire up the presses

Elite

3290

Oliver, BC, "Wine Capital of Canada"

Subject: RE: Fire up the presses

JoshR - 2012-09-13 2:20 PM

The only reason I disagree with you about the dollar is, what will replace the dollar? The Euro?

The Canadian dollar.

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Elite

6387

Subject: RE: Fire up the presses

mr2tony - 2012-09-13 3:08 PM Yeah as I said I couldn't get approved for the program I wanted ... And yes it sucks. All that paperwork and time. What really irked me is that I was ``pre-approved'' for a program that I didn't qualify for and spent oodles of time and effort getting them documentation for no reason. I also don't understand why they'd leave the houses off the market. I figured after a foreclosure they'd just dump everything at the lowest prices, take the loss, write it off and move on. I guess it doesn't work that way anymore.

It's the sheer magnitude of the inventory. If you dump all the forclosures on the market, they will be next to nothing. You might as well give them away for free. What that also does is devalue the the homes people are still in... heck, I could walk away from my house at 200K, borrow 50K from my 401, and buy a 400K house. You would make every solvent home owner upside down over night paying a fortune for nothing.

If they dump them on a property company into the rental market... they do the same thing... all the apartments go into forclosure due to no tenats. they are holding their inventory to protect THEIR assets. Even sitting empty there is still value on paper.

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Champion

34263

Chicago

Subject: RE: Fire up the presses

rayd - 2012-09-13 4:36 PM

mr2tony - 2012-09-13 3:23 PM

rayd - 2012-09-13 4:15 PM

mr2tony - 2012-09-13 2:15 PM

trinnas - 2012-09-13 2:36 PM

Unfortunately even if you don't like the tune as long as the piper is playing every one must dance or lose. Any predictions when the "stock bubble" the fed is inflating is going to burst?

To which stock bubble are you referring? Yes investing in bonds right now is a guaranteed income but it's also low return. That was done intentionally to get people to invest in the stock market, and it's working. When the Fed decides to raise interest rates, do you think they're going to do it all at once, from zero to 3 percent or something? No. They'll increase it a tick at a time, 0.25 percent a year or every two quarters or something like that. People will slowly make that transition back into bonds as interest rates rise. If there is a stock bubble, which I personally don't think there is, I feel the powers-who-be will be smart enough to deflate it slowly so it doesn't burst. Furthermore, it's not like the tech or housing bubbles -- investments are spread across enough sectors that people won't jump ship because of the same fundamental factors like they did in the late 90s or in 2006/2007.

Tony, I wish I had your optimism. Yes, there are smart people at the Fed...but we all know that smart people make dumb decisions. QE1 and QE2 have artifically inflated the market while putting the screws to seniors that have counted on their low-interest baring, yet safe investments. QE1 and QE3 did not do much to help the economy along (yes, some say things would have been worse without it). Now we have QE3...indefinately! 40 billion dollars a month...indefinately! I don't know that it's going to work. One thing I certainly do know is it's going to continue the decline of the dollar. Which I think we can all agree is not a good thing. Bernanke is going to go down in history as the Fed Chairman that destroyed the dollar!

While we agree that buying mortgage-backed securities to the tune of $40b a month isn't a good idea, I fail to see your argument about the decline of the dollar. The dollar has been declining since July ... not exactly a cliff. It's still up 12 percent from bottoming out in 2008 and is at the same level nearly it was at the end of 2004. Now, of course it's down from a high in 1980 and is still at an historically low level but it's been in a range for the better part of the past decade. I think your description of the dollar as `destroyed' is a bit of a misnomer -- more likely the dollar is stuck in a range and is currently on the low side of the new normal. And really, a weaker dollar is a boon to the U.S. economy because it makes our manufactured items, raw materials and other exportable goods that are based on the greenback attractive to overseas buyers. Too weak a dollar is a bad thing, yes, but I'd hardly say Bernanke is destroying the dollar.

IMO, the primary reason that the dollar has held up as well it has over the last several years is because there is because of all the problems in europe and the euro. I don't see a decling dollar as a good thing...even if we export more...consumers are going to pay more for basic needs. who is going to hurt the most...the working class and the poor! Gold is over $1,700 an ounce. Why are do so many investors and governments continue buying gold?

Gold is an enigma. Some investors buy gold when things are bad as a `safe-haven' investment while others buy it when things are good as a hedge against increasing consumer prices, aka inflation, which rise when the economy is doing well, or on signs that it is. Some people buy it when the dollar declines because they fear inflation in commodities (because of the potential for increased prices) and some overseas buyers purchase it when the dollar gains because it's an alternative to currencies. Some people buy gold when the price is low as a value buy and some buy it when the price is high to get it before it goes higher.

Investing in gold is popular for so many reasons.

Now, the dollar is another enigma. Is it strong from an historical standpoint? No. As I said before, it's not. Is it the coolest kid in a really nerdy neighborhood? Yes it is. Everything is relative. I'll say it again, we may have found a new normal. At least we have for now.

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Champion

34263

Chicago

Subject: RE: Fire up the presses

powerman - 2012-09-13 5:03 PM

mr2tony - 2012-09-13 3:08 PM Yeah as I said I couldn't get approved for the program I wanted ... And yes it sucks. All that paperwork and time. What really irked me is that I was ``pre-approved'' for a program that I didn't qualify for and spent oodles of time and effort getting them documentation for no reason. I also don't understand why they'd leave the houses off the market. I figured after a foreclosure they'd just dump everything at the lowest prices, take the loss, write it off and move on. I guess it doesn't work that way anymore.

It's the sheer magnitude of the inventory. If you dump all the forclosures on the market, they will be next to nothing. You might as well give them away for free. What that also does is devalue the the homes people are still in... heck, I could walk away from my house at 200K, borrow 50K from my 401, and buy a 400K house. You would make every solvent home owner upside down over night paying a fortune for nothing.

If they dump them on a property company into the rental market... they do the same thing... all the apartments go into forclosure due to no tenats. they are holding their inventory to protect THEIR assets. Even sitting empty there is still value on paper.

I understand what you're saying. In my 'hood you can find a $150,000 condo for $50,000 on foreclosure. Which is why, in my neighborhood, which is a good one in Chicago, home prices are so depressed right now. I guess I thought that's how it was everywhere, that they were foreclosing and just dumping stock immediately for whatever they could get to clear out the inventory, cut their losses, and move on to better times. If I had more money, I'd be buying real estate right now.

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Elite

6387

Subject: RE: Fire up the presses

mr2tony - 2012-09-13 4:08 PM

powerman - 2012-09-13 5:03 PM

mr2tony - 2012-09-13 3:08 PM Yeah as I said I couldn't get approved for the program I wanted ... And yes it sucks. All that paperwork and time. What really irked me is that I was ``pre-approved'' for a program that I didn't qualify for and spent oodles of time and effort getting them documentation for no reason. I also don't understand why they'd leave the houses off the market. I figured after a foreclosure they'd just dump everything at the lowest prices, take the loss, write it off and move on. I guess it doesn't work that way anymore.

It's the sheer magnitude of the inventory. If you dump all the forclosures on the market, they will be next to nothing. You might as well give them away for free. What that also does is devalue the the homes people are still in... heck, I could walk away from my house at 200K, borrow 50K from my 401, and buy a 400K house. You would make every solvent home owner upside down over night paying a fortune for nothing.

If they dump them on a property company into the rental market... they do the same thing... all the apartments go into forclosure due to no tenats. they are holding their inventory to protect THEIR assets. Even sitting empty there is still value on paper.

I understand what you're saying. In my 'hood you can find a $150,000 condo for $50,000 on foreclosure. Which is why, in my neighborhood, which is a good one in Chicago, home prices are so depressed right now. I guess I thought that's how it was everywhere, that they were foreclosing and just dumping stock immediately for whatever they could get to clear out the inventory, cut their losses, and move on to better times. If I had more money, I'd be buying real estate right now.

The estimate I have heard is 5-7 years to get through all the inventory in the worst areas. Again, I was trying to buy up, but could not get what I needed for my house. I was willing to loose money, I could only afford so much though. And my city isn't near what others are. Consolidating more troops to Ft. Carson kept us affloat. Housing prices are down about 10-15% overall here. The $400K and up are the ones really hurting. Yes housing prices are down, but not even close to what they would be if Banks dumped all their inventory.

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Pro

9391

Omaha, NE

Subject: RE: Fire up the presses

mr2tony - 2012-09-13 5:08 PM

powerman - 2012-09-13 5:03 PM

mr2tony - 2012-09-13 3:08 PM Yeah as I said I couldn't get approved for the program I wanted ... And yes it sucks. All that paperwork and time. What really irked me is that I was ``pre-approved'' for a program that I didn't qualify for and spent oodles of time and effort getting them documentation for no reason. I also don't understand why they'd leave the houses off the market. I figured after a foreclosure they'd just dump everything at the lowest prices, take the loss, write it off and move on. I guess it doesn't work that way anymore.

It's the sheer magnitude of the inventory. If you dump all the forclosures on the market, they will be next to nothing. You might as well give them away for free. What that also does is devalue the the homes people are still in... heck, I could walk away from my house at 200K, borrow 50K from my 401, and buy a 400K house. You would make every solvent home owner upside down over night paying a fortune for nothing.

If they dump them on a property company into the rental market... they do the same thing... all the apartments go into forclosure due to no tenats. they are holding their inventory to protect THEIR assets. Even sitting empty there is still value on paper.

I understand what you're saying. In my 'hood you can find a $150,000 condo for $50,000 on foreclosure. Which is why, in my neighborhood, which is a good one in Chicago, home prices are so depressed right now. I guess I thought that's how it was everywhere, that they were foreclosing and just dumping stock immediately for whatever they could get to clear out the inventory, cut their losses, and move on to better times. If I had more money, I'd be buying real estate right now.

Is that possible?

Every time we start printing money I have this picture of a guy pumping air into a tire with a big hole in it trying to keep it full of air. (The big hole that all the air is coming out is the Federal Spending)

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Champion

7347

SRQ, FL

Subject: RE: Fire up the presses

powerman - 2012-09-13 6:23 PM

The estimate I have heard is 5-7 years to get through all the inventory in the worst areas. Again, I was trying to buy up, but could not get what I needed for my house. I was willing to loose money, I could only afford so much though. And my city isn't near what others are. Consolidating more troops to Ft. Carson kept us affloat. Housing prices are down about 10-15% overall here. The $400K and up are the ones really hurting. Yes housing prices are down, but not even close to what they would be if Banks dumped all their inventory.

In FL, unless they did an excellent job of making sure its secure, if a house sits for 5-7 years w/o power (as most are) the house is probably going to be a total loss.

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Pro

9391

Omaha, NE

Subject: RE: Fire up the presses

oopsies

Egan-Jones Analyst Hints At US Rating Downgrade Post QE3
–QE3 To Lead To higher Unemployment, Stall US Growth Within Months
–’We Are Not Receiving QE3 Positively’

Edited by tuwood 2012-09-14 6:35 PM

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Elite

4564

Boise

Subject: RE: Fire up the presses

tuwood - 2012-09-14 5:34 PM

oopsies

Egan-Jones Analyst Hints At US Rating Downgrade Post QE3
–QE3 To Lead To higher Unemployment, Stall US Growth Within Months
–’We Are Not Receiving QE3 Positively’

See the problem is EJ isn't bought off by everyone

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Austin, Texas or Jupiter, Florida

Subject: RE: Fire up the presses

TriRSquared-"In FL, unless they did an excellent job of making sure its secure, if a house sits for 5-7 years w/o power (as most are) the house is probably going to be a total loss."

Our HOA told a bank that owned two houses on my street that I'd they don't pay their HOA fees, the HOA would cut the locks and rent the houses out to make up for lost HOA fees. Apparently this is a FL law. Sounds great right?

The bank listed both houses the next week for ~$30K less than the last house that sold on the block in the spring.

Sucks most for me because I got my papers to move to Austin the same week. So just like that, underwater... Hoping for a miracle before next June when we want to sell.

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Member

127

Franklin

Subject: RE: Fire up the presses

^^^^ ouch

Champion

7347

SRQ, FL

Subject: RE: Fire up the presses

GomesBolt - 2012-09-15 12:05 AM TriRSquared-"In FL, unless they did an excellent job of making sure its secure, if a house sits for 5-7 years w/o power (as most are) the house is probably going to be a total loss."

Our HOA told a bank that owned two houses on my street that I'd they don't pay their HOA fees, the HOA would cut the locks and rent the houses out to make up for lost HOA fees. Apparently this is a FL law. Sounds great right?

The bank listed both houses the next week for ~$30K less than the last house that sold on the block in the spring.

Sucks most for me because I got my papers to move to Austin the same week. So just like that, underwater... Hoping for a miracle before next June when we want to sell.

Wow...that sucks for you. Inventory is tight right now however so it might not effect the pricing too much. Hopefully.

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Fire up the presses (Page 2)

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