Sub-Prime Mortgages and the Frosted Housing Crash

Like the LTCM Hedge fund collapse, the rating agencies aren't going to tell you anything about the mortgage collapse, until it is too late.

[source: Feb. 9 {TheStreet.com}]
AS WITH THE 1998 LTCM CRISIS, THE MAJOR RATING AGENCIES ARE NOW COVERING UP FOR THE PROBLEMS OF THE SUBPRIME MORTGAGE MARKET. In 1998, the three major, British-controlled rating agencies--Fitch, Moody's, and Standard & Poor's--refused to
downgrade LTCM's rating, until after LTCM had exploded in September. Now, they are at it again. They have duplicitously refused to downgrade much of the subprime mortgage market financial paper, which is worthless. Case in point: A 13-month-old, mortgage-backed security pool, by the name of MABS 2006-FRE1, has 9% of the mortgages in the pool in foreclosure; a further 10.5% of the mortgages in delinquency (60 days or more behind in payment); and 3.5% repossessed by the banks. In short, 23% of the loans are known to be dysfunctional. Yet, neither Fitch nor S&P has downgraded the pool, an act that they have repeated numerous times. Of course, the suckers in the MBS (Mortgage Backed Securities) game, are supposed to be the last people to know.

Real Estate Collapse continues

The real estate collapse continues. The bubble is bursting and it is only a matter of time. Real estate collapse could be extremely dangerous for the rest of the economy.

While the real estate bubble continues to deflate in many areas, there are frantic efforts to keep it up in other crucial places. Real estate has unfortunately been turned into a commodity like anything else. And is this acceptable under the preamble to the US Constitution, that establishes the goal to secure: life, liberty, and the pursuit of happiness.
That is not John Locke's trio of life, liberty and property. So if speculators are holding on to real estate, unoccupied, isn't that a form of a crime. It certainly could easily be taxed into oblivion. You own your house, you may have a small country or beach house, everything else should be taxed at a very high rate if you hold onto it for a long time. If you are holding on to something for a few months to sell it that is one thing, but no more hoarding of goods.
That's why this whole mega deal between either Blackstone or Vornado, and this creature called Equity Properties or whatever stinks to high heaven. If these buildings are worth so much, why is much of the housing market collapsing. Is the commercial market the next to go? Good questions.

The Shanghai Cooperation Organization is taking some steps that could link up to a re-stabilized fixed exchange rate dollar. This could happen if the system is put through a bankruptcy reorganization of the real estate bubbble, derivatives, etc.
THE PERCENT OF U.S. HOMES FOR SALE THAT ARE VACANT HAS RISEN
TO ITS HIGHEST LEVEL IN THE FOUR DECADES SINCE THE CENSUS BUREAU
HAS BEEN KEEPING THE STATISTIC. Wall St Journal Feb 5th- Last week, the bureau said that
in the final three months of 2006 there were about 2.1 million vacant homes for sale. That brought the national homeowner vacancy rate to 2.7%, up from 2.0% a year earlier. Before 2006, the number had never risen above 2.0%. The figures vary by region: 3.0% in the South; 2.9% in the Midwest; 2.4% in the West; and 2.0% in the Northeast.
The WSJ reports that, ``Many economists agree that the rising vacancies have likely been fueled by a group that is proving to be the wild card of this housing market: speculators.
During the boom, they flooded the market and flipped homes for a profit. When sales slowed, speculators were stuck with vacant homes that have lingered on the market.''
Buildings with five or more units--which include condos that were favorites of speculators--had the highest rate of vacancy. The vacancy rate among these units rose to 11% in the fourth quarter of 2006 from 7% in the first quarter. For single-family
homes, the vacancy rate rose to 2.3% in the fourth quarter from
1.8% in the first quarter.
The WSJ article blandly talks of the ``excess housing supply'' when we have how many homeless in this country? Housing prices continue to go up, while unoccupied housing mushrooms.

Housing Bubble Ready to Bust, Vacancies Rise

THE PERCENT OF U.S. HOMES FOR SALE THAT ARE VACANT HAS RISEN
TO ITS HIGHEST LEVEL IN THE FOUR DECADES SINCE THE CENSUS BUREAU
HAS BEEN KEEPING THE STATISTIC. Wall St Journal Feb 5th- Last week, the bureau said that
in the final three months of 2006 there were about 2.1 million vacant homes for sale. That brought the national homeowner vacancy rate to 2.7%, up from 2.0% a year earlier. Before 2006, the number had never risen above 2.0%. The figures vary by region: 3.0% in the South; 2.9% in the Midwest; 2.4% in the West; and 2.0% in the Northeast.
The WSJ reports that, ``Many economists agree that the rising vacancies have likely been fueled by a group that is proving to be the wild card of this housing market: speculators.
During the boom, they flooded the market and flipped homes for a profit. When sales slowed, speculators were stuck with vacant homes that have lingered on the market.''
Buildings with five or more units--which include condos that were favorites of speculators--had the highest rate of vacancy. The vacancy rate among these units rose to 11% in the fourth quarter of 2006 from 7% in the first quarter. For single-family
homes, the vacancy rate rose to 2.3% in the fourth quarter from
1.8% in the first quarter.
The WSJ article blandly talks of the ``excess housing supply'' when we have how many homeless in this country? Housing prices continue to go up, while unoccupied housing mushrooms.

Storing the Files of Your Business Collapse

Alot of people are going bankrupt out there, but when your business crashes, don't throw out all the files. Rent a storage bin at http://self-storage-finder.storageconcierge.com/. You may feel a little guilty holding on to the junk, and there is some expense involved, but, hey, it may be good for a tax break.

When you live in the average overpriced apartment in New York City or similar urban areas, space is so expensive. I have my infant son sleeping in my bedroom, in a crib next to me and my wife, and his room when he gets bigger will be a converted porch about 12 feet by 5 feet. So any space is precious, so anything extra goes to http://self-storage-finder.storageconcierge.com/ or to the Salvation Army. Kid, I'm telling you.

But, don't despair. Where else can you get a room the size of a one car garage, for less than $1,000 a month. If you win the lottery, or get a better job, you can get a big house with garages and storage and all that. Till then, try http://self-storage-finder.storageconcierge.com/. Bye, and leave the light on.

Will Bio-Fools Steal Our Food? Enviro- Real estate grab

Yes, bloggers, I don't know about you, but, I like to eat. And when more and more farmland is converted to producing bio-fuels (such as corn to ethanol) I worry. Cong. Roscoe Bartlett (R-MD), spoke out yesterday at a hearing, on the pro-biofuels bill H.R. 547 -- "Advanced Fuels Infrastructure Research and Development Act," which is being marked up this morning by the
Energy and Environment Subcommittee of the Science and Technology Committee, for expected passage. The bill supports expanding the number of gas stations that can handle ethanol/biodiesel and so on.
Witnesses at yesterday's hearing gave glowing reports on biofuels, especially Bob Dineen, Pres. and CEO of the Renewable Fuels Association, representing the international bio-fools stampede, from Wall Street to the local dupe. Several Committee members pointed out to Dineen problems already apparent in the food-for-fuels trade-off, for example, Rep. Lynn Woolsey (D-CA). She said that in her C.D., the price run-up for corn is causing
impossible prices for her dairy farmer consituents; and even so, there is an ethanol "shortage" for drivers in California.

Bartlett said, "All land in corn is in corn," and there should NOT be more land put into the crop. "Corn is one of the greediest crops we have" in terms of its nutrient and water
requirements. It can contribute to serious erosion if not grown properly. Forcing more acreage into corn will be a "big detriment in land quality." Even if it is true, that we improve our "air quality" with biofuels, that doesn't compensate. As for the comparisons to what Brazil is doing on biofuels, "We're not Brazil, thank you."

So, the Anglo-Dutch oligarchy if not stopped is not only trying to get us into a war with Iran, but they are taking the food out of children's mouths. Yes, Cargill, ADM and the other big grain companies are pushing this genocidal policy of food for fuel for fools. Now do you understand why we in the US, Aus, Gr Br, and yes, even Iran and Israel, need nuclear power? In fact, environmentalism is shown again to be a giant real estate game, to destroy the productive use of millions of acres of land.