Return of the House Flippers + Crowd U.S. Courthouse Steps in Hunt for Deals

[mEDITate-OR:

not understand why...

At the beginning of the RE collapse, the foreclosures were being bid down by everyone looking for a deal.

As the prices in the Sand States - Cal, Nev, Fla & AZ - dropped below the Dead Zone prices - 2002 to 2007, "cash buyers"/investers moved into take over the market. People trying to buy a home using a new mortgage simply could NOT move fast enough to find a home; and even if they could, they were being out bid for them.

Then, recently we shifted over to "short sales" - cash buyers and home seekers, knowing that they were never going to find a great deal in foreclosure sales, opted use "short sales" to try to cherry pick off the best deals.

What is NOW talking place is another shirt - new buyers are faced with extremely high rental numbers, with prices dropping like flies.

Unless they are prepared to hold the property, even sitting empty, they need to sell them, quick.  And, with the New Home Buyer Tax Credit the buyers CAN actually find some financing.

The real question is what happens when the Tax Credit program stops?  Is there really enough pent up demand? Can they turn a quick buck?

We'll see.

-------
Return of the House Flippers
http://news.yahoo.com/s/bw/20100401/bs_bw/1015b4173024165587
------------
House Flippers in U.S. Crowd Courthouse Steps in Hunt for Deals
http://www.bloomberg.com/apps/news?pid=20601109&sid=aH_4WjvZMGrE
----------

China's future powerhouses = See the future in your fortune cookie

[mEDITate-OR:

not see that "They" have lapped U.S...

and there is NO good reason for this to have happened.

This article from China Daily show U.S. where they want growth to occur.

You should note that the first autonomous region is the most volatile in China.

This is where the Hong Chinese are driving out the Uzbeks, who just happen to be Muslim.

Just as with Tibet, it is Chinese policy to "drown" everyone but themselves.

Not pretty, not just, but it IS what they are doing.

--------

You need to go to the site to SEE all of The Rest of The Story...

-----------

China's future powerhouses

(China Daily)

Updated: 2010-03-22 10:02

http://www.chinadaily.com.cn/bizchina/2010-03/22/content_9622056.htm

Regions set to be new driving force for the national economy

Trade winds blowing strong + China tops US in spending on clean energy

[mEDITate-OR:

not see that "They" have lapped U.S...

and there is NO good reason for this to have happened.

However, what China is doing is amazing.

============

Trade winds blowing strong

http://www.chinadaily.com.cn/bizchina/2010-04/01/content_9673395.htm

===========

China tops US in spending on clean energy

http://www.chinadaily.com.cn/business/2010-03/25/content_9643030.htm

Finally! Job growth returns = Payrolls in U.S. Rise 162,000; Unemployment at 9.7%

[mEDITate-OR:

not see that we are improving every day in every way...

[mEDITate-OR:

not understand WHAT the new jobless numbers ARE and are NOT telling U.S.

These are very good articles that attempt to do precisely that.

---------

============

Finally! Job growth returns

March jobs report shows growth

http://money.cnn.com/2010/04/02/news/economy/jobs_march/index.htm

==========

U.S. Labor Market Grew By 162,000 Jobs in March

http://www.theatlantic.com/business/archive/2010/04/us-labor-market-grew-by-162-000-jobs-in-march/38372/

==========

Bloomberg

Payrolls in U.S. Rise 162,000; Unemployment at 9.7%

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqAQE1llfl78&pos=1

========

Hiring Makes Best Showing Since March 2007, Jobless Rate Steady at 9.7%

http://www.dailykos.com/storyonly/2010/4/2/853460/-Hiring-Makes-Best-Showing-Since-March-2007,-Jobless-Rate-Steady-at-9.7

=======

Bloomberg Exclusive: How Lou Lucido Let AIG Lose $35 Billion With Goldman Sachs CDOs

[mEDITate-OR:

not wonder why this story is only now being told...

This is complicated, but a necessary read.

But, what it DOES tell U.S. is that The Game was on..., and they made Trillions, at (Y)our expense.

See/read how it was done.

Sequel will be outed later in courts around the country.

    

This story was picked up by both Business Week and the NY Observer.

==========

How Lou Lucido Let AIG Lose $35 Billion With Goldman Sachs CDOs

http://www.bloomberg.com/apps/news?pid=20601109&sid=arFjbsBO7BS8&pos=10

the 25 top-earning hedge fund managers made a record $25.3 billion last year

[mEDITate-OR:

not see that these are only round numbers...

the zeros, that is...

This is only the tip of the iceberg of massive shifts in wealth in the U.S.

All the inmates are equal, but some of U.S. are now more unequal than others.

{or something like that...}

-----------

the 25 top-earning hedge fund managers made a record $25.3 billion last year

In 2008, top managers pay fell nearly 50% to $11.6 billion

last year was the best year since 2007, when the top managers brought in $22.3 billion

=========

Hedge fund manager paycheck: $4 billion

http://money.cnn.com/2010/04/01/markets/hedge_fund_manager_pay/index.htm

Hedge fund 'golden boys' celebrate record paydays

http://www.google.com/hostednews/afp/article/ALeqM5hUKh0e4K7tDxHYcULIZIDohI0RdQ

Comparing this Recession to Previous Ones: Job Changes

[mEDITate-OR:

miss the shifting sand under the sand states economies...

Once again, Economix, a NYTimes web site, had provided U.S. with not only different and very good charts, but Catherine has explained for U.S. what she sees in our tea leaves.

What we need to understand is that the first graph, similar to Calculated Risk's chart, shows U.S. that THIS recession is much deeper than past one were.

And, in the second article/chart Ms. C shows U.S. that PERMANENT job losses are much higher too.

What the third article/chart shows U.S. - as if we didn't know it - is that woman are now critical to the workplace numbers; and that the effects THAT may or will have on our children is not fully known, yet.

-------

Comparing this Recession to Previous Ones: Job Changes

By CATHERINE RAMPELL

April 2, 2010, 11:47 AM

-------------

The Long-Term Unemployed

By CATHERINE RAMPELL

April 2, 2010, 12:49 PM

------------

Parents at Work

By CATHERINE RAMPELL

March 31, 2010, 7:27 PM

Signs of Life in Sand-State Real Estate

[mEDITate-OR:

miss out on Prof Norris' view of Sand State RE developments.

While we do like the chart, you should notice that when you divide the current growth in RE values by OR into the gain needed to return to peak values, you too will see that we have a LONG way to go.

--------

Signs of Life in Sand-State Real Estate

By FLOYD NORRIS

April 2, 2010

http://www.nytimes.com/2010/04/03/business/economy/03charts.html?src=un&feedurl=http%3A%2F%2Fjson8.nytimes.com%2Fpages%2Fbusiness%2Feconomy%2Findex.jsonp

Mortgage rates rise, hover below 5 percent + U.S. to give $600M in housing aid to 5 states

[mEDITate-OR:

not see that we are not out of the woods yet...

and grandmother's house is being foreclosed...

Very low interest rates...

but no new home sales, no existing home sales, no re-fi's, and many more foreclosures...

While we are clearly not getting worse as fast as we were...

we are NOT seeing the progress that we SHOULD be seeing.

And, not only are we not seeing new jobs being created and the hiring we need...

there are still MORE additional job losses than new hires.

With the home buyer credit about to expire, the FED purchase of FMae&FMac RE securities about over, and with still little to no funds for condos or Jumbo RE loans, this looks like it will get a LOT worse, before it gets better.

The NEW, improved housing program will NOT work. As the last article shows U.S. they will pump a lot of money into 5 more states that have very high unemployment, however, the "unemployment relief" will only delay house payments for up to 6 months.

That WILL help the newly unemployed who can find new jobs quickly...; BUT, it will do NOTHING for the long term unemployed. That is only over 6 million of U.S.

We are in Real, & estate, trouble.

----------------

Mortgage rates rise, hover below 5 percent

Standard 30-year fixed loan is now 4.99 percent, up from 4.96 percent

Mortgage rates moved slightly higher but remained just below 5 percent this week, as a Federal Reserve program that has maintained rates near record lows prepares to end.

http://www.msnbc.msn.com/id/36034436/ns/business-real_estate/from/ET

------------

Stall in housing market threatens economy

Fed ending program that has held mortgage rates down may also hurt

The recovery in the housing market is at risk of collapsing.

Home sales are sliding, prices are stalling and foreclosures are rising. And mortgage rates are likely to go up after next week, when the Federal Reserve ends a program that has driven them down.

 

The trend could threaten the broader economy, economists warn. People whose home equity is stagnant or shrinking are less likely to spend freely.

http://www.msnbc.msn.com/id/36014580/ns/business-real_estate/from/ET

 

-----------

U.S. to give $600M in housing aid to 5 states

Beneficiaries include N.C., S.C., Ohio, Oregon and Rhode Island

 

The Obama administration unveiled Monday $600 million in financial aid for five more states with high unemployment that have been slammed by the housing bust.

http://www.msnbc.msn.com/id/36083038/ns/business-real_estate/from/ET

-----------

Latest housing plan likely to help just a few + Qs&As

[mEDITate-OR:

think you see some progress being made...

This is almost as worthless as BoA's recently announced "plan", bcuz it does almost nothing for the vast majority of U.S. who DO need help, and it does almost nothing for the few who will receive it.

 

What Goldman's ex-employees and BoA are trying to do is "buy off" the worst of the worst RE loans, so that 1) they keep making some payments & nobody has to write of anything for a long, long time, and 2) by keeping them on the hook and in the home, they will delay, and pray to whomever's God that it works to eliminate, the lawsuits that WILL be filed, sooner or later.

 

BoA is only addressed to "sand states" - Cal, Nev, Fla & AZ; "dead zone" = underwater RE loans from 2002-06; and ARMs that should never been written = liar, neg amp and 5 yr re-set loans, ALL made by Countrywide.

 

The Administration's -aka, Goldman- plan is NOT intended to actually DO anything, only to delay the discovery of their own personal and former employer's culpability.

Almost as deceitful as their "packaged securitized" phony RE loans.

------------

 

A series of changes to the Obama administration's year-old foreclosure relief plan do little to attack fundamental logjams that have plagued the program.

http://www.msnbc.msn.com/id/36053545/ns/business-eye_on_the_economy/from/ET

 

-----------

U.S. unveils plan to shrink some home loans

New effort would also help jobless keep paying their mortgages

 

After months of criticism that it hasn't done enough to prevent foreclosures, the Obama administration has a plan to cut the amount some troubled borrowers owe on their home loans.

http://www.msnbc.msn.com/id/36050868/ns/business-real_estate/?ns=business-real_estate/from/ET

 

---------

 

Q&A: Obama’s new mortgage aid plan

Program designed to help underwater or jobless homeowners

The Obama administration on Friday announced a major reworking of its troubled $75 billion plan to prevent foreclosures. The revamped program is now designed to aid jobless homeowners and people who owe more on their mortgages than their homes are worth.

http://www.msnbc.msn.com/id/36057529/ns/business-real_estate/from/ET

[mEDITate-OR:

Canadian snowbirds, an important factor in AZ's real estate market

The AZ real estate market is very different from what is seen both with and outside the "sand states" of Cal, Nev, Fla & AZ; bcuz the bulk of the snowbird in AZ are from different states of U.S. and from different provinces of Canada than in Cal, Nev or Fla What this report tells U.S. is that Canadian snowbirds are a very important factor in AZ's real estate market. However, keep in mind that the Canadian Dollar - the Loonie - is now almost at par, again. That makes it VERY desirable for them to come down here and buy - their money is now worth 25% more than a few years ago, AND property in some parts of AZ is very cheap - compared to back home in Canada OR in Cal or Fla.

----------

Canadians Are Buying 5% of Phoenix Homes

MARCH 26, 2010

A perfect opportunity coupled by supporting strong assets.

http://www.phoenixmarkettrends.com/public/item/252883

DATE	CANADA	California	TOTAL	CAN%	CAL %
Feb-10	293	260	6158	4.76	4.22
Jan-10	274	256	5549	4.94	4.61
Dec-09	342	297	7820	4.37	3.8

------

Canadian Banking Is Not the Answer

mEDITate-OR:

not see that what we think might be true, might not...

 

This is a very troubling article, for we Canucks, and ex-Canucks...

it makes being "holier than thou" more difficult.

Not impossible, of course; not just, more difficult.

 

But, this article IS important..., bcuz it tells U.S. things nobody else is.

 

note the info about RE financing...

 

===========

 

March 25, 2010, 6:37 am

Canadian Banking Is Not the Answer

By PETER BOONE AND SIMON JOHNSON

----------

David Leonhardt: Heading Off the Next Financial Crisis + Lessons from the Crisis Stress Tests

[mEDITate-OR:

not see the Economix truth of this...

 

David Leonhardt is not only a regular contributor to the NYTime Economix column/blog, but a very respected commentator on what is really happening to U.S.

 

This is a VERY well thought out article, with serious implications for U.S. - both what we should have and now should do

and what probably will happen if we do not.

 

the Second article is by One of The Fed.

what it tells U.S. about what SHOULD be in a banking system "stress test" is critical reading.

 

All of U.S. assume that what companies must put into their SEC reports are true AND complete.

 

What we NOW know is that commercial and investment banks do NOT play by those same rules.

 

There was a reason for the adoption of Freedom of Information Acts AND for Public Disclosure laws.

 

That reason also applies to banks, credit default swap AND derivatives...!

Leonhardt: "Heading Off the Next Financial Crisis"

by CalculatedRisk on 3/27/2010 05:36:00 PM

-------------

Fed's Tarullo Argues for Regular Stress Tests with Public Release of Results

by CalculatedRisk on 3/27/2010 12:59:00 PM

----------

More on HAMP "Improvements" + HAMP Principal Write-downs

[mEDITate-OR:

not see precisely WHY there have been and will not be modifications or principal write downs...

The Big Banks OWN the 2nd mortgages and the last thing they are going to do is write them off.

Bcuz, letting go of THAT high(er) interest loan cuts into their profits...

but, letting go of the mortgage does NOT let go of the debt..., the security for the debt, yes...; but not the debt itself.

We are not talking "chump change" here...

we are talking about almost a US$ Trillion, when you add in the interest and penalties.

There is NO possible way that they are going to write that off, and require them to raise more capital reserves.

Increasing the "pay off" from 3% to 6% is NOT going to accomplish anything.

------------

Just a few banks hold most of the second liens, according to data from Inside Mortgage Finance.

Of the more than $840 billion in home-equity lines and piggyback loans outstanding

Bank of America has about $147 billion of them

while Wells Fargo and J.P. Morgan Chase have $124 billion and $118 billion of the market

Citigroup has about $53 billion of these loans on its books.

They have all signed up for the administration program announced last year, but none has taken action yet.

-------------

Morning HAMP

by CalculatedRisk on 3/27/2010 08:45:00 AM

----------

More on HAMP "Improvements"

by CalculatedRisk on 3/26/2010 02:49:00 PM

--------------------

HAMP Principal Write-downs

by CalculatedRisk on 3/26/2010 11:41:00 AM

-----------

------------

[mEDITate-OR:

miss out on a very interesting view of local, small AZ banks.

By separate post we pointed out the fascinating graphs put out by CRisk that show U.S. the dramatic increase is bank failures.

What we NEED to remember is that there are a LOT more small banks - community banks - that made local commercial loans..., for shopping malls, condos, office bldgs, and to construction companies and RE developers. All of those loans are now coming due, or in serious financial trouble.

And, Sheila at FDIC is telling U.S. that a LOT more of them are going to be closed, this year.


-----------

A rough road still lies ahead for small banks

The housing crash and recession have battered the small Arizona banks that grew and thrived in the state's boom times.

http://www.azcentral.com/business/articles/2010/03/28/20100328biz-Banks0328.html
-------------

Desert Hills Bank shut down by federal regulators

http://www.azcentral.com/business/articles/2010/03/26/20100326Desert-Hills--bank-shut-down.html

Big Discounts on High End Real Estate - Luxury and Waterfront Homes are Selling at "Bargain" Prices

[mEDITate-OR:

not see the rich taking it in the shorts sales...

The problem is not only that the homes were not worth what they cost them...

there is NO funding available for "Jumbo RE loans".

So..., you hold your own contract, if you can...

OR, you take a really big hit...

What is also interesting is that this RE collapse is affecting, or is that effecting, OR is that INfecting...

different areas, in different ways, and at different times.

While the so-called "sand states" = Cal, Nev, Fla & AZ, were clearly most impacted by the collapse first...

due to the Trifecta ARMS = Countrywide (now BoA), WAMU (now Chase) and Wichovia (now Wells Fargo)..

THAT mess appears to have now stabilized.

What we are NOW seeing is the serious impacts of:

loss of jobs...

and

loss or pulling back of lines of credit.

The rich are finding that their banks/lenders are now calling their loans, for payment.

Their banks/lenders NEED the money to restore their capital.

How sad....

  

-----------

Big Discounts on High End Real Estate

- Luxury and Waterfront Homes are Selling at "Bargain" Prices

http://blog.seattlepi.com/seattlewaterfronthomes/archives/199930.asp?from=blog_last3

----------

Time to Storm the Castle?

At the High End, a Bit More Money Yields Lots More Home; 14 Acres and an Orchard

http://online.wsj.com/article/SB10001424052748704207504575129690814499872.html

======