Foreclosures: Same Book, Different Cover
This colorful map, published yesterday in New York Magazine, doesn’t tell us anything we didn’t already know, but it does it with better graphic design. The bottom line’s the same though: Bed Stuy, Crown Heights, Canarsie, East New York and Brownsville are all getting whacked the hardest by the growing wave of foreclosures. The red…
This colorful map, published yesterday in New York Magazine, doesn’t tell us anything we didn’t already know, but it does it with better graphic design. The bottom line’s the same though: Bed Stuy, Crown Heights, Canarsie, East New York and Brownsville are all getting whacked the hardest by the growing wave of foreclosures. The red zones all represent zip codes with at least 150 foreclosure filings.
Artifact: Foreclosed [New York Magazine]
Has The What stopped posting as himself and become another hysterical “guest?”
Get a job and don’t forget to take your meds, What.
Here’s the first of the higher profile “liquidity” crisis’ that will make their appearance with more frequent regularity to a state (heck the whole US) soon:
http://tinyurl.com/2j4qw2
“not sure what the What wants me to do, but i’m going to get up and go to work everyday and then pay my bills, including my mortgage, and just keep on enjoying my very good life here, in my very nice condo.”
Imagine one day you go to the ATM and it declines to give you the cash you need. That’s what’s coming down the pike for most of us. Even if you pay your bills on time, and you are employed and own property. The “liquidity” crisis is the time when you go to the ATM to get cash and there is none.
It isn’t a question of what “the what” wants you to do, it’s more a question of “did you plan properly to survive this mess.”
“but don’t let the scare mongers lead you to believe that our 200+ year old institutions are not effective anymore or that we haven’t learned from past mistakes.”
Thing is, the ONE institution that came on the scene in 1913 IS the one that is causing all the grief for their selfish interests. That institution is the FED and the international bankers that run it secretly from behind closed doors. Since there is no oversight as to how our money supply is managed, that 200+ years of history means SQUAT!
You said it 10:04, PERSPECTIVE. That is what is missing from these mindless rants that some here call amusing and I call blithering drivel. Perspective based on NYC history, on population trends, on housing trends, on globalization trends and economic trends. There are posters here who take the usual liberal ‘sky is falling” routine to a new extreme. This is both insulting to our intelligence and sadly shortsighted. And whatsmore, it’s become all too prevalent in our culture in general. Sniping bottom dwellers looking to score a scare out of folks or the cheap thrill of causing a “ruckus” in the chatroom.
Here’s some sober perspective: NYC has been here through the Dutch days, the great fire, the British days, the Revolution, Colonial days, the war of 1812, the Spanish American war, the Civil War, the riots, the great migrations, the great flood, World War I, the Great Depression, Hurricanes, World War II, the urban decay of the 60’s-70’s, The Blackout, the race riots, the first WTC bombing, the tech meltdown, 9/11 and despite all that….will continue through the “subprime” hysteria currently gripping a few pitiful posters here. People will always need a place to live.
some drops – some a lot, some not so much. the stuff in prime areas, and of high quality will retain premium pricing. take away the flipping and easy money and pricing may finally better reflect fundamental value, so maybe the crap and stuff located in less sought after locations will now be cheap instead of expensive, but don’t expect a fire sale on the good stuff. not going to happen here.
If The What didn’t post on this site, the conversation would be much more interesting.
Get a job What.
“Not too long ago, banks required you to have a cash downpayment of 20% and 30% for commercial property. This keeps prices level and creates a world of buyers that are savvy and “wealthy” enough to save up that type of money.
If you could not save $30K or $50K or $100K then too bad. It tells of the types of buyers we had and now have.”
Unfortunately, there’s not enough “market” if you limit things this way. In the old days, banks were tightly regulated and “creative” financing schemes were a thing of pre-market crash days when stocks were bought on margin.
During the late 80’s, all those greedy investment banking houses revived the “creative” kinds of financing and so was born the CDO’s and other packaging of long term investment vehicles. But what to do, since these schemers needed a bigger market to inflate their capital, a wider audience needed to be suckered in to make these “loans” so as to increase the investment banks profits exponentially.
The money is created when the lenders sign the promissory note; mortgage. They , the “lenders,” take these as assets on their balance sheets and create securities to be sold to the greater investment market.
So now you have the “lenders” getting paid the principal AND interest and their only expense is the interest of dividends on the securities they packaged and sold. As you can see, to make more ‘money’ you HAVE to ‘loan’ more of it out or simply create more mortgages.
This system (pyramid scheme) only works if the buyers of the securities feel that these secured instruments will appreciate in value. As long as they hold on to them and the ‘lenders’ keep paying the maintenance to the investors all is well.
But we all know that if confidence, this is by all means a confidence racquet, erodes then the investors will want to cash in their securities. When the “subprime” lenders begin to default, it restricts cash flow but also, the “collateralized assets” on their books take a dive. This erodes the value of the CDO’s and created a panic to those CDO holders and they begin to run on the ‘lenders.’
But it really doesn’t matter to the ‘lenders’ they made their money, commissions and fees during the initial first steps and after they bought the securities to the grater investment market. The real losers are the CDO holders.
So the current situation was a banker’s wet dream and they made their money to the detriment of the rest of us. Of course individual greed played a great role in this fiasco. But greed is a useful tool in the hands of the “creative” financiers that got us this far.
What: I am not expecting real estate to hold its’ value. Real estate value will drop, I agree. I actually hope it drops to a level lower than it should for a while. I am counting on it 🙂 . A market correction is long overdue. Don’t assume though, that real estate will stay down. It will drop, it may stay flat for a while, it will then climb at more traditional rates of appreciation awaiting whatever the next market influence occurs to drive it nuts again. Long Term, real estate never goes down. This is a blip. It will appear as a blip on any chart spanning time. Long Term: Real estate always goes up. I dare you to prove me wrong. This may take years, but I got time.
Some people will not qualify, that is true. They never would have qualified without sub-prime loans and won’t now that they are gone. So we are back to basics. You have a good credit history, you have cash on hand, you will get credit. Go back in time, (pre-subprime) nothing has changed, other than the fact that the same opportunities are about to exist that occured in the late 80’s through the early 90’s before this craze. Remember then or are you to young to have some historical perspective.