Falling Home Prices December 30, 2008
Posted by loanarranger in Uncategorized.Tags: economy, falling home prices, home prices, lenders, mortgage, refinance
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Well today we heard that home prices fell by double digits throughout the whole USA today. What a surprise! However, the news outlets had fun with the latest statistic — almost trying to make it into a story of the year. No wonder we get more nervous every day.
SEE: http://www.usatoday.com/money/economy/housing/2008-12-30-sp-home-prices_N.htm
However, a more calm headline, rarely seen today was “Home prices fall to 2004 levels”. Of course that type of headline won’t have people stay tuned to the TV or listen to the story on the radio. I think prices still need to get to 2002 levels before we have enough people that can truly afford to buy up the used inventory of vacant homes. That will be tough in the next year as most everyone is fearful of keeping their jobs. But the fact remains, home prices need to become affordable again without the ability to get “too easy” credit.
Lenders will be reluctant to lend as long as they think that home prices will continue to fall. So we have perhaps another year before things return to normal — or at least 2002 “normal”. At least those that have good credit and equity in their homes have a chance to save money on a refinance.
Auto Bailout? December 19, 2008
Posted by loanarranger in Uncategorized.Tags: auto bailout, bailout, cars, Chrysler, GM, infrastructure, jobs, more stimulus, sales, Solis, taxpayer, union
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Well, the Bush administration finally announced their Bailout, but it came with strings attached—something the taxpayers were demanding, but Congress was too afraid to accomplish. Congress was too timid to hold the CEOs accountable by having a viable game plan to reduce labor costs, material costs and management costs.
see: http://finance.yahoo.com/news/Bailout-approved-Automakers-apf-13883115.html
At least they all must have read my last BLOG and decided to QUIT producing cars–we are swimming in cars with no buyers. However, the workers get laid off at 90-100% pay.
So now the BUSH administration comes up with a plan that says the auto companies must have a plan to pay back the taxpayer, which includes reducing Union pay contracts. Within minutes, the Union basically said — no deal— we will wait until Jan 21st when Obama and the Democrats will give them an open ended loan. So basically, the Unions decided to play Chicken with the next Congress.
Obama answered by appointing a very pro Union Sec of Labor today and said he supported strong Unions, good pay, and jobs. Many wonder how in this world we can assume by having the largest labor and material costs–how we can be competitive.
However, if Obama creates millions of make work(short term(4 year)) jobs, repairing bridges, repairing roads and other STATE infrastructure projects, He can dupe us all by showing high paying Gov jobs, high costs, etc—because we, the taxpayer are paying the bill. No competition required, especially global competition.
And then, Obama picks California Rep. Hilda Solis for labor secretary today, who is strong Union biased. I could not believe when she gave her acceptance speech on TV—she started speaking in Spanish. What’s going on here—are we going to carve the country into parts like Canadians threaten to do every year with their French colony in Ottawa!!
So it looks like the TIN cup for autos will be at the ignaguration and they will probably be given Billions by the new Congress—which may end up—down a rat hole!
P.S. WE DO MAKE autos that Americans want to buy —- the top 2 selling vehicles again this year will be just like the preceding 27 years === And what many buyers still need are big pickup trucks, such as the Ford F-150 and Chevrolet Silverado–the two best-selling vehicles in America so far this year.
see: http://autos.yahoo.com/articles/autos_content_landing_pages/782/the-years-bestand-worst-selling-cars
The End is Near! December 18, 2008
Posted by loanarranger in Uncategorized.Tags: economic nightmare, end is nearsnow, end of recession, global warming, las Vegas, Madoff, mortgage backed securities, mortgage rates, ponzi scheme, recession
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Remember the signs on the street –The END IS NEAR —- I think if you look around, you might come to the same conclusion. For the first time in history, HELL HAS FROZEN OVER, Las Vegas, AKA Sin City, got 4 inches of snow. Because they have no snow plows at the airport, all people were frozen in place and could not leave!
However, Malibu, near Los Angeles (the city of Angels) got snow also. So I guess you can say both Heaven & Hell got frozen over.
http://www.foxnews.com/story/0,2933,469164,00.html
Then look at the Bernard Madoff (MADE-OFF) guy who made off with $50 Billion and bankrupted many Charities, College endowments, investors, and many others that are too embarrassed to admit they got taken in the largest SCAM in history. (Don’t people that make more than 10% on their money every year in every market, have a clue there is something wrong?) Maybe the next person should have a name like IMA Ripov — however, GREED will never end and there really is a “sucker born every minute”.
Read all about him in the Wall Street Journal http://online.wsj.com/article/SB122956182184616625.html
So he admits he did the crime — but then the judge lets him post some of his stolen money for bail and lets him stay in his $7 million home until trial — he will probably die of old age before trial. Even if he does get convicted and runs overseas, he will probably get PARDONED by a President, like Clinton did with the last million dollar crook named Marc Rich.
I am having a real hard time believing the “global warming ” thing. We are in the coldest period in 30 years in the Pacific Northwest and much of the country is getting hit with snow from New Orleans to New York. If this is Global warming, I love it — I love the snow.
Are we going to have a big recession—take a look at the charts:
Great graph comparing markets’ progression (Dshort)
In the meantime, we can all get a piece of the bailout soon when we can REFI or buy a home for less than 4.5% or lower very soon. So if the END is NEAR, at least we will have lower mortgage payments and cheaper Gas!
Auto Bailout update December 16, 2008
Posted by loanarranger in Uncategorized.Tags: auto, auto bailout, Chrysler, Congress bailout, cost reduction, GM, GM sales, Toyota, Toyota sales
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How can anyone make a correct decision on the auto bailout when you can’t get either side to tell the entire truth!
Congress said they don’t want to get involved because they could not discover the truth, so now the White House is trying to go over the paperwork and see where the truth lies.
There is ONE TRUTH above all. Toyota and GM were battling for top producer of autos sold in the USA — with both tied at about 9.3 million units in 2007. BUT GM was LOSING $38 BILLION in the process and Toyota MADE $17 Billion at the same time. So if you sell the same number of vehicles but there is a difference of
GM sales in 2007: 9,370,000 vehicles
Toyota sales in 2007: 9,366,418 vehicles
GM profit/loss in 2007: -$38,730,000,000 (-$4,055 per car)
Toyota profit in 2007: +$17,146,000,000 (+$1,874 per car)
http://mjperry.blogspot.com/2008/12/2007-profitloss-gm-vs-toyota-same-cars.html
Listening to people discuss the subject is so full of DECEPTION. Republicans say they want the auto workers to get their wages down to the level of TOYOTA workers in the US—to give them a chance to survive. Democrats don’t want to upset the Unions, yet they don’t want more layoffs. The Unions are offering to stop the “jobs bank” where laid off workers are paid 95% of their wages to not work because we “need their skills later”.
Looks like we will give them $15 Billion before Christmas, then they will be back with a friendly Democratic Congress, and ask for loans of $25, $50 who knows how many Billions.
I think they need to get the cost of the GM car down to meet competition from Toyota, quit making cars for a couple months (we are no longer in a race to see who can make the most cars), and get some better gas economy cars in the mix.
We need a National auto capability–if for no other reason to make military vehicles for our long term defense of the country. It looks like we will poor good money after bad — I hope we get new leadership.
P.S. The loser CEO of Chrysler is the same arrogant guy that drove Home Depot into the ground a few years ago, before the stockholders got rid of him. Why do we pay millions to arrogant CEO losers?? Will Congress ever require ACCOUNTABILITY before it uses more taxpayer dollars?
Another Ponzi? December 16, 2008
Posted by loanarranger in Uncategorized.Tags: Madoff, ponzi, ponzi scheme, SEC, SEC Chief
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How is the world ever going to get confidence in our free market system if we can’t get REGULATORS at the SEC to ever do their job. Mc Cain said during the campaign to FIRE the head of the SEC. Yesterday, Lou Dobbs says that he is the best guy ever —-WHAT?
When are we going to learn — when we give a guy named Bernard Madoff (MADE_OFF) over 50 Billion in money that was earning very GREEDY high interest rates for the past 25 years—that something stinks?
Over the years, many reported him to the SEC, nothing was done, he would not tell anyone his “secret” formula for high return investing –it appears no one did due diligence before giving him millions of their money. He was such a nice guy!
Not only do we have many charities, foundations, and millionaires going bankrupt — but more importantly, people around the world are losing confidence in our system. It’s no surprise government regulators can’t do their job —- but we need to get it fixed quickly if we are to attract the TRILLIONS needed in the next few years. FIRE the SEC CHIEF NOW!
Maybe if the next guy’s name is Allen Ripov(rip-off) we might catch on before 25 years elapse.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aelB_MCgLc68&refer=worldwide
More Stimulus needed? December 10, 2008
Posted by loanarranger in Uncategorized.Tags: bridges, infrastructure, investment, more stimulus, Obama, recession, stimulus
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Obama and his team say they want to spend massive amounts of money–some estimates another 700 Billion, once he gets in office. It is funny to listen to Congressmen say that we need to fix bridges, roads, and buildings as an “INVESTMENT”.
Since when did fixing schools, roads, and bridges in States that have diverted money for other things over the years gain the word “INVESTMENT”. It’s like saying I am going to buy a new car, new TV, and new computer as an “INVESTMENT”. The last I checked, an investment means that something will gain in value over the years—not depreciate.
For example in Portland, Oregon, they have invested Millions in new light rail, condo conversions, streetcars, foot bridges, etc but let the schools deteriorate by not maintaining them for decades. Now, Federal taxpayers will come in and fix the mistakes in Portland Schools and roads due to years of mismanagement? Thanks Obama — but it misses the point.
We need to spend BILLIONS on NEW infrastructure that allows us to get products to markets to get jobs and the economy jump started for the long run. We can’t sell cars, because we can’t get them to ports to ship overseas.
We need to build plants for more wind turbines, more transmission lines for electricity, build plants for solar cells, and start mass producing batteries for cars.
What will we do — I think the Obama team will do what we always do. Payoff political debts by giving money to bailout States from mismanagement. Start make-work programs, fix bridges, fix highways and do everything the States did not do==nothing for our future==== I SURE HOPE I AM WRONG! What do you think?
Our Future December 2, 2008
Posted by loanarranger in Uncategorized.Tags: China, economic nightmare, security
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I had a dream==and it was a Nightmare! Where is the United States headed? I read that the largest buyer of US DEBT is now China. The last I checked, China was a Communist country. So not only do we buy EVERYTHING from China these days, because the price is cheaper because of their very low labor costs, but now they are buying our debt too.
So here we are in the US, fighting the recession and mortgage meltdown by spending and issuing Trillions in new debt. We become more and more vulnerable and beholden to China. It was OK when Japan was buying our debt because they were our friends who we helped create one of the largest economies in the world in the 1980’s. We helped them rebuild their country and protected them with our nuclear umbrella for over 60 years. In fact, most of our national debt is from the building and maintaining our nuclear deterrent against all enemies.
So here we are today, with trillions spent on nuclear weapons to deter military agression. But what have we done? We have placed our future economic survival in the hands of Communist China.
What was the nightmare? We are in home–sort of like the Mafia family, the Suprano’s. We have purchased thousands of weapons, machine guns, rocket launchers, etc… No enemy can come close to the house, we are protected. However, we let an old rival into the house because we owe an old debt and we have been business partners. We have come to trust the formal rival, in the name of “business”. The rival, however, once inside the home, killed the godfather and took over the home without a shot. All the weapons and defenses were of no use.
Could this happen to the US? Could we suffer future economic death as a country, because our business partner, China, decided to pull the plug on our nation’s finances? This has happened over and over in the business community as companies go bankrupt because they can no longer obtain financing. What do you think?
