Saturday, March 29, 2008

Rattle your Congressman's Cage

Here is a link to a site just starting up called "Stop the Mortgage Bailout."

A lot of politicians are suggesting a fix along these lines. Maybe we can help them sort it out with a letter or two. Usually if there is enough controversy over an issue, your elected officials will decide to do nothing.


Alice Cook said...

The bailout is already underway. The fed has a pile of crap on its balance sheet, and Freddie and Fannie are standing by to buy up more Mortgage rubbish.

BTW, the Bank of England is at the same sad and sorry game.


Jim in San Marcos said...

Hi Alice

I was just reading your piece on Northern Rock Bank.

At least the UK and the US both have a lender of last resort, the Federal Reserve and The Bank of England. It gives the banks some wiggle room.

I really have to wonder what is happening on the European Continent with the Euro. If one of those banks fail, it's going to take a few other institutions with it. There are jokes about Deutsche Bank being the largest landholder in Detroit.

I think here in the next 3 to 6 months, there is going to be a major bank failure somewhere that will show everyone how real the pain can be.

The concept that no one has lost a dime over this whole mess except a few banks is rather mind boggling.

I guess we will have to wait and see.

Take care

Anonymous said...

Dear Jim:

Market up 400 ponts, UBS writes off 19 Billion, Leahman Brother (Can you spare 4 Billion) gets a reprieve. Let's see, Bear and Jimmy (Don't bother me now, I'am playing Bridge) Cain extended its, and his playing days by 6 months. I would estimate that 4 billion gets Lehman another 4 to 6 months, until they get bailed, by Ben.

I'll just consider the $1200.00 to$1600.00 sent from the Treasury next month a dividend check for "our" investment in Wall Street.

The "Bulls" are back. Buy, Buy, Buy, untill the next shoe drops.

Oh, by the way, I have a friend who is a "Real Estate Broker in Florida. Nowadays that is an oxymoron (I hope I spelled that right). Anyway, the other day he was showing me the "short sales" in one, (thats 1) development that has approximatly 300 condo units. The sales two years ago averaged I would say $680,000to $700,000.
(average 1300 to 1500 sq. feet and not on the water). Most of the sales we looked at indicated that the Buyer took out a first and second on the property. Today, the sales that I looked at were in the range of $225,000 to $235,000. What stood out was that many of the sales two years ago (the first and second mortgage) were financed by Leahman Brothers. My friend tells me that now, when there is a possible sale on property in the area (Tampa/Clearwater/St. Petersburg)the Banks automatically take 20% to 30% off the top of the appraisal submitted for the underwriting process. What does that tell you about where the real estate market (and stock market) is headed.

Take care, and remember Buy, Buy Buy! (but only after you've marked it down 20% to 30%)

Jim in San Marcos said...

Hi Anon 4:02

Ouch! that's a hell of a hit in Florida. "Buy buy" turns into "Bye bye."

That's retirement country---so it's the silver foxes that are being ripped.