it's Not Foreclosure, It's Just A Little Gas!!
Foreclosure as part of the digestive process?? What a novel way of stating things. That's is however just what was said today by one of the RE Economic gurus who's been telling us that there was no bubble.
G.U. Krueger, an Irvine-based economist, said default activity may slow once weak subprime loans work their way through the system. There could be “a quick kind of flushing out, a kind of a storm that passes quickly.”
Dude, ever hear of the concept Binge and Purge. He needs to talk to the Olsen Twins.
The San Diego Union Tribune, is telling "homeowners", not to panic. Sure things, look a little "worrisome" right now but they'll soon clear up. Sort of like that worrisome little hole on the good ship Titanic, or those worrisome little ice caps that're watering down the ocean.
Home foreclosures in San Diego County continued a troublesome climb into record territory in June, but analysts say the number has yet to reach a threshold that creates a drag on real estate prices or the economy.
DataQuick Information Systems reported yesterday that during the first half of 2007, San Diego County had 2,896 foreclosures compared with 445 during the first half of 2006, a 551 percent increase.
That sets a record dating to 1988, when DataQuick began tracking foreclosures, researcher John Karevoll said. “A steadily increasing portion of those who get notices of default now are being foreclosed on.”
If they don't consider a 551% increase in foreclosures a sign that there's gonna be a lot of property to move then I've got a bridge to sell them.....,plus a few thousand condos.
Of course they love to brush all of this off as just a small glitch, nothing to see here folks, just move along .
University of San Diego economist Alan Gin said a recession could make the foreclosure problem much worse, but he said there is less than a 50 percent chance that one will occur. While foreclosures are “still a small part of market,” the spike in defaults is worrisome, he said.
After all, though housing may be hurting everything else is ok.....right?...right? RIGHT??!!
Stocks plunge; Dow down more than 310,
Whoopsiedaisy, guess he didn't see that article.
Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market plunge as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones industrials closed down more than 310 points after earlier skidding nearly 450.
Investors who had been able for months to largely shrug off discomfort about subprime mortgage problems and a more difficult environment for corporate borrowing finally decided it was time to sell after the Commerce Department issued another disappointing home sales report.
Recession, recession, did anybody order a recession?
Wall Street extended its steep decline Friday, propelling the Dow Jones industrials down more than 500 points over two days after investors gave in to mounting concerns that borrowing costs would climb for both companies and homeowners. It was the worst week for the Dow and the Standard & Poor's 500 index in five years.
Investors cast aside a stronger-than-expected read on the economy and maintained negative sentiment that dominated Thursday when the market shuddered amid worries over the U.S. mortgage and corporate lending markets. Investors globally took flight from equities, shifting cash into safer investments in Treasury bonds.
The pullback Thursday and Friday wiped out $526.1 billion in shareholder wealth from the stocks in the Standard & Poor's 500 index.
But I thought the GDP sounded so good, I mean sturdy, robust, encouraging. What happened? Could it be that maybe people like, just stopped believing them, cause maybe they were, oh I don't know, say....LYING?! After all these were the guys that though housing was so cool, condos were so cool, irrational exhuberance was so coooooooooool.
"I think we're going to have continued sideways movement with 100 point up-and-down days," said Frederick, referring to the Dow's back-and-forth movements.
"The 14,000 level is going to be tough for this market to get back above," Frederick said.
I hate to break it to you Freddie my man but the only thing that moves sideways is a dead fish as it circles the drain...oh yeah, and a snake. But I guess that wouldn't really apply , would it?
More wisdom from Freddie.
"You look at a 300-point Dow day and it seems like a big day but from a percentage viewpoint it's not a big move," Frederick said
Right, like standing on the ledge 5 stories up, is nothing like standing on the ledge 30 stories up, really it's not that big a move.