From Inman News:
Shadow inventory down 16% from a year ago
Lenders had a “shadow inventory” of 1.6 million distressed properties and repossessed homes they hadn’t yet put up for sale at the end of October, down 16 percent from a year ago, loan data and analytics provider CoreLogic reported today.
Six states account for half of the shadow inventory: Florida, California, Illinois, New York, Texas and New Jersey.
Housing analysts track shadow inventory because it’s typically not included in the official metrics of unsold inventory, and represents a pending supply of homes. CoreLogic estimates that for every two homes listed for sale in a multiple listing service (MLS), lenders have another one in shadow inventory.
The current level of shadow inventory represents a five-month supply of homes, down from a seven-month supply in October 2010, when shadow inventory stood at 1.9 million units.
Shadow inventory should represent less than a one-month supply of homes in a healthy housing market, CoreLogic said. At the peak of the housing bubble, in mid-2006, shadow inventory stood at 380,000 homes.
From the Star Ledger:
Bergen County real estate: Are home prices falling in your neighborhood?
Over the weekend, The Record came out with an interesting analysis of home prices in Bergen County, finding that the median single-family home price fell below $400,000 for the first time since 2003.
They found that this dip hasn’t hit everyone the same way, though: Higher-end home values have remained relatively stable as those in lower-income communities have fallen.
Last week in our NJ Voices blog, Dominick Mazzagetti, president of RomAsia Bank in Monmouth Junction, and economist Frank D. Tinari wrote that the spike in foreclosures — most prevalent on the lower end of the housing spectrum — was a big contributor to the generally lousy housing market in the Garden State. They write that “fully 8 percent of all homes” in the state are in some stage of foreclosure.
…
Home prices in my neighborhood have gone down. 48.78% (40 votes)
Houses in my neighborhood have stayed on the market longer. 25.61% (21 votes)
Home prices in my neighborhood have gone up. 6.1% (5 votes)
I was recently able to sell my home for more than I bought it for. 4.88% (4 votes)
Merry Christmas and happy holidays to all!!!
Morning Mike
“Good News – Shadow inventory down, Bad News – It’s in our back yards”
Depends were you stand, it has me tickled pink.
Gary must be busy so: Tick, Tick, Tick.
Sellers still have unrealistic expectations and that “”I’m not giving my home away metality”””, they still don’t get it, If you don’t need to sell fine but don’t waste a realtors time, If you need to sell,, be realistic, cut your losses and lower the price because at the first sign of a market turn builders are going to jump back in the game and your 40 year old house thats in need of updating will be competing with new builds with extra’s at a lower price. Said it before mint houses in prime locations do not conform to the same rules. So to all yea sellers in this christmas season, Get a grip cause your ass is going to take an even bigger pounding down the road.
Funnel “Get a grip cause your ass is going to take an even bigger pounding down the road.” LOL
Good Morning New Jersey
The FICA/payroll tax goes into the Social Security Trust Fund. This is a dedicated fund currently worth $2.6 trillion, which has been built up over time through employee and employer contributions, along with accrued interest. Current and future Social Security beneficiaries receive benefits from this fund. No general revenues are involved, except for administrative and clerical costs.
Under the payroll tax cut initiated in the 2010 lame duck tax deal, the revenue loss to the Trust Fund from the payroll tax holiday is made up through compensatory payments into the Trust Fund from general revenues.O put the Trust fund in jeopardy.
The President proposes to continue this scheme — deepening a relationship between Social Security and general revenues that did not exist until the December 2010 tax deal. This will make Social Security increasingly vulnerable to demands for “reform.”In the worst case, Congress could choose to enact the payroll tax cut without actually appropriating revenue compensation for the Trust Fund. This would mean that the payroll tax cut directly depletes the Trust Fund, creating financial/actuarial problems far sooner than the currently anticipated shortfall date of 2036.
http://www.accuracy.org/the-payroll-tax-cut-talk-about-a-ponzi-scheme/
Confused in NJ says:
December 21, 2011 at 11:03 pm
122.yo says:
December 21, 2011 at 6:41 pm
The Fed is suppose to cover lost revenue to SS.They are discussing where the money will come from
2011 was unfunded and added to the debt. 2012 is questionable. Neither party has offered a way out of the deficit, without which, country is doomed.
Doom is nigh. Time to git your gat.
3 – just flip the bad and good and you’ll be all set
(8) yo,
O knows what he is doing. The sooner we get to crisis, and class and intergenerational warfare, the sooner we launch the glorious proletarian revolution.
For the geeks who frequent the blog:
http://arxiv.org/abs/1112.5154
VIX hae dropped 38% from the last month.Is it really getting better?
Shore ,this is what I was reading in #12.What does it really mean?
The chi_b(nP) quarkonium states are produced in proton-proton collisions at the Large Hadron Collider (LHC) at sqrt(s) = 7 TeV and recorded by the ATLAS detector. Using a data sample corresponding to an integrated luminosity of 4.4 fb^-1, these states are reconstructed through their radiative decays to Upsilon(1S,2S) with Upsilon->mu+mu-. In addition to the mass peaks corresponding to the decay modes chi_b(1P,2P)->Upsilon(1S)gamma, a new structure centered at a mass of 10.539+/-0.004 (stat.)+/-0.008 (syst.) GeV is also observed, in both the Upsilon(1S)gamma and Upsilon(2S)gamma decay modes. This is interpreted as the chi_b(3P) system.
Yes.
I finally found a reason to buy a home in NJ. The guy in diamond district needed a NJ address to write on my receipt. Lower sales tax.
yo says:
December 22, 2011 at 8:17 am
VIX hae dropped 38% from the last month.Is it really getting better?
Wait VIX is down 62% MOM
Yo – chi-b new particle just discovered.
Jobless claims at 364k
Interesting how AARP sold out it’s members on the Social Security depletion issue. Judas is alive and well and supports the Anti-Christ.
Q3 GDP revised down to 1.8 from 2
I was looking at a house yesterday online; an expanded 4/2 split in Oradell with updated baths but the rest of the house was a little dated. It warranted a pause based on the pics. Asking price: $529,000. I see “4” handles coming around the corner. In the immortal words of Scott Muni, “come home to papa.”
Why they gotta go and name it after Chi, why not a new grim-b particle?
Dear Jamie Dimon
“America hates unjustified privilege, it hates an unfair playing field and crony capitalism without the threat of bankruptcy, it hates privatized gains and socialized losses, it hates rule changes that benefit the few at the expense of the many and it hates people who have been bailed out and don’t display even the slightest bit of remorse or humbleness in the presence of so much suffering in the aftermath.”
http://www.thereformedbroker.com/2011/12/20/dear-jamie-dimon/
I think Libtard-b sounds a lot better.
Someone remind me. Shadow inventory = REO only? Homes where Lis Pendens was filed X years ago but no sheriff sale yet not counted, right?
I guess distressed properties and repossessed homes means in foreclosure as well as REO. So Shadow inventory = greater than 90 days delinquent or is there some other cutoff?
Typically 90 days+ delinquent (in some stage of foreclosure) and foreclosed but not listed.
[8] yo
In banking regulation, the Fed promulgated regs that incorporate something called the “source of strength doctrine.” It is the collorary to the rule that BHCs aren’t allowed to bleed banks dry. Basically, the Fed expects that bank holding companies will act as sources of strength for their banks, and if the bank gets into trouble, the Fed expects the BHC to come to its rescue. This “doctrine” has never been invoked, is of questionable legal validity, and makes no sense when you consider most BHCs are shell companies that couldn’t capitalize their banks if they wanted to.
I mention this because the “source of strength” expectation exists in this SS fight: The Boomers are going to bleed SS dry, that is a fact, and at some point, the shortfall will come increasingly from the general revenues. In short, the boomers will expect Gen Y to be the “source of strength” for SS and unlike the toothless Fed version, the Boomers will vote themselves this money whether Gen Y likes it or not.
So don’t expect SS to be cut; rather expect that more general revenues will go to SS in what will become an acrimonious intergenerational and class war with many of the memes we discuss here becoming mainstream. The antagonists will be Gen Y, nonrich boomers, and the superrich. Imagine the swordfight scene from Pirates of the Caribbean with Jack, Will Turner, and Norrington all fighting one another. Eventually the superrich (who are vastly outnumbered) will quit the fight, hop into the longboat, and row offshore (literally), leaving the Gen Yers and the Boomers who aren’t supperrich to fight it out.
Through attrition the Gen Yers win, but they inherit nothing but scorched earth.
“this is what I was reading in #12.What does it really mean?”
They found a new particle at CERN that is made up of a quark and anti quark, which may be the Higgs.
Although I do think that chi_b(nP) quarkonium has a better ring than Chifi, which could be some Chinese Government wireless internet standard.
The predictable aftermath of the Obama “Declare Victory and Pull Out” strategy
http://www.cnn.com/2011/12/22/world/meast/iraq-violence/index.html?hpt=hp_t1
Seems to me I saw this movie before, about 36 years ago.
These other names from high-energy physics could work for screen names:
Charmonium
Bottomonium
And this one could work for a town name, especially where the rules of supply and demand do not apply to housing: Quarkonia
11 – Too bad Basil Poledouris isn’t around anymore, a new socialist revolution is certainly going to require a good anthem. Maybe something along the lines of the Conan score or Hunt for Red October…
Salyut otsam i nashim dedam,
Zavyetam ih vsegda verni.
Teper’ nishto nye astanovit
Pabedniy shag radnoy strain.
My Daddy was a bankrobber
But he never hurt nobody
He just loved to live that way
And he loved to steal your money
Some is richand some is poor
And thats the way the world is
And I don’t believe in lying back
And saying how bad your life is
So we came to jaz it up
Never loved a shovel
Break your back earn your pay
And don’t forget to grovel
Daddy was a bankrobber
But he never hurt nobody
He just loved to live that way
And he loved to take your money (What law?)
The old man spoke up in a bar
Said I never been in prison
A lifetime serving one machine
Is ten times worse than prison
Imagine if all the boys in jail
Could get out now together
What do you think they want to say to us
While we were being clever
Someday you’ll meet your rockin chair
Cause that’s where we’re spinnin
There’s no point to want to comb your hair
When its grey and thinin (Hey)
Hey
Daddy was a bankrobber
But he never hurt nobody
He just loved to live that way
And he loved to steal your money
So we came to jaz it up
We never loved a shovel
Break your back earn your pay
And don’t forget to grovel (Hey)
Get away, get away
Get away, get away
Get away, get away
Get away
Daddy was a bankrobber
But he never hurt nobody
He just loved to live that way
And he loved to steal your money
Run, Laddy, run
Strike out boy
For the hills
I can’t find that hole in the wall
I know that they never will
My Daddy was a bankrobber
But he never hurt nobody
He just loved to live that way
And he loved to steal your money
Nom,
And Afghanistan is going to devolve into 1990 after we leave, whenever that is. So, it is time to declare victory and leave.
Egads!
http://www.forbes.com/sites/vickeryeckhoff/2011/11/29/racing-industry-silent-about-slaughtered-thoroughbreds/
snip
The Thoroughbreds’ tragic, untold tales lead from racetracks across America to auctions vastly different than the scene at Keeneland and Fasig-Tipton that the media celebrates so blindly. This is where Amish farmers trade in their draft horses and other people buy and sell backyard ponies, quarter horses, Paints, Appaloosas, donkeys and discarded racehorses on the cheap.
The names read like fancy farms somewhere in bluegrass country: Winter, Sugarcreek, New Holland. Most consist of feedlots or kill pens into which large numbers of horses are systematically whipped and herded, their halters and identifying information replaced by hip numbers. Some go to homes and rescues; more than 100,000 a year go to kill buyers.
snip
Nom [30],
Re-election at any cost. The Annointed Ones first words at his re-election victory speech should be, “mission accomplished.” And those same proletarians that are going to launch the glorious revolution are the same geniuses that will believe whatever the American Pravda tells them and pull the lever for him yet again. Baaaa Baaaa.
[34] shore
Exactly, which is why I wanted the Messiah to get it done and get it done early. It had to be done but I wanted him to take the electoral punishment for the eventual outcome. Instead, he surmised correctly that he’d get hit at reelection time with the backlash after the ME went south. So he pushed it off until an optimal moment, which may have been the plan all along
The timing of the withdrawal was not accidental and not devoid of politics. By keeping troops there longer, Obama pushed the narrative that Bush had fucted things up so bad, he has to clean it up. This narrative was drawn up before he took the oath of office. It also kept things from blowing up during his first term.
Obama has to pull out before the election so that he could claim the promise kept (actually broken and made up for later), but as noted above, he could not pull out so soon that Iraq descended into chaos and revolution before November. He figures we can keep the gov. propped up with money and the threat of troops in Kuwait until then.
Once November passes, the Iraqis will have the rug partially pulled out from under them as public opinion will favor it. And the Dem spin machine has already developed the narrative to deflect criticism that we pulled out too soon and blame the eventual fall of Iraq on Bush. In fact, they prepared it years ago.
I did not just come up with this. I made this prediction 2.5 years ago. Remains to be seen if it comes true. But if it does, remember where you heard it first.
35 Shore one man’s gorgeous animal is another’s gulash
[36] gary,
I am now really looking forward to the 12/31 expatriate count. If they aren’t suppressing that data by now, they will be.
From HousingWire:
Zillow estimates US home values down $681 billion in 2011
Homes in the United States likely lost more than $681 billion in value during 2011, according to analytics released by website Zillow.
The number is 35% less than the $1.1 trillion lost in 2010, according to Zillow projections.
Most of the loss, $454 billion, comes from the volatility in housing the first half of the year. From July to December, Zillow projects residential home value losses will be half of that, at $227 billion.
Some markets performed well, but not many. New Orleans metropolitan statistical area (MSA) shows the largest gain in values at $3.5 billion. Pittsburgh is second on the list, with a gain of $2.7 billion.
…
The leading MSAs losing value are Los Angeles (-$75.5 billion), New York (-$44.8 billion) and Chicago (-$41.7 billion).
Re 35, A Secretariat Steak or a Seattle Slew Steak might taste pretty good. Wonder if the Kentucky Derby horses taste better. I bet the Japanese put them on the menu kind of like Kobe Beef. Those guys eat all type of nutty stuff over there, let me put it this way if you eat with elbows on table and some soy sauce or ketchup ends up on elbow you know they will try and eat your arm. Maybe a sushi arm roll with a horse sushimi.
ASHLAND, N.H. (AP) — Republican presidential hopeful Mitt Romney says he would deport President Barack Obama’s uncle, who police say was arrested in August for drunk driving near Boston and is an illegal immigrant.
In an interview with Boston radio host Howie Carr on Wednesday, Romney said “yes” when asked if Onyango Obama should be deported. Romney at first did not recognize the name, but said the nation’s immigration laws should be enforced.
Onyango Obama is the 67-year-old half-brother of the president’s late father. His case is pending in Framingham, Mass., District Court. He was initially held without bail on a detainer from U.S. Immigration and Customs Enforcement officials on allegations he violated an order to return Kenya issued 20 years ago but has since been released.
Oh No!! How can they do this to Uncle Onyango!
They probably are a bit game-ey for my tastes JJ.
Is that what they ment when they named the old cooking show the Galloping Gourmet?
meant, even
Here is an explanation of Shore’s post about Higgs boson
http://www.exploratorium.edu/origins/cern/ideas/higgs.html
The taxes on this house went up $1000 from 2008 to 2010 despite being assessed at the same value. Tell me house prices aren’t going to continue to plummet.
http://www.realtor.com/realestateandhomes-detail/259-Paul-Ct_Hillsdale_NJ_07642_M58743-25906
42 – in all likelihood the 2008 video of Romney saying he “would NEVER deport Uncle Onyango” should turn up any second.
[32] grim,
Here you go,
http://www.youtube.com/watch?v=jvxiG56M-eU
http://www.youtube.com/watch?v=ZLB8e62BulU&feature=related
And the instrumental version with pretty good photoshopping.
http://www.youtube.com/watch?v=EXSNA5uEXiQ&feature=related
why is it most NJ MLS ads don’t list taxes? also tax rates rise each year so of course if assessed value stays the same the taxes go up If this guys house is assessed at 2008 values he needs a lawyer.
gary says:
December 22, 2011 at 10:31 am
The taxes on this house went up $1000 from 2008 to 2010 despite being assessed at the same value. Tell me house prices aren’t going to continue to plummet.
http://www.realtor.com/realestateandhomes-detail/259-Paul-Ct_Hillsdale_NJ_07642_M58743-25906
“The taxes on this house went up $1000 from 2008 to 2010”
In Montclair, that would be considered a bargain!
My taxes went from 6,400 to 8,200 over 12 yers. And I won five tax gievances. It is the tax rate that kills not the assessed value. I was told last year that a 50K reduction in assessed value as a result of a greivance would get me a zero % increase in taxes. Must people walking out got a 20K to 40K decrease and was happy till they realized their taxes are still going up, but not so much,
Just read an article in the local paper that says, “So far, the (Montclair) reassessment has found a 19 percent decrease in the value of residential properties…”
Hmmm. Only 19 percent from peak to now? How can this be?
Mayweather has much to think about in jail
Blew $50M payday
http://espn.go.com/blog/dan-rafael/post/_/id/642/mayweather-has-much-to-think-about-in-jail
Someone at Fitch got a visit from the boys at 1600 . . .
“Fitch Ratings on Wednesday warned again that the United States’ rising debt burden was not consistent with maintaining the country’s top AAA credit rating, but said there would likely be no decision on whether to cut the rating before 2013. ”
The Obamunists know the value of delaying the disclosure of inconvenient facts. Control the narrative and you control the populace.
JJ [49];
why is it most NJ MLS ads don’t list taxes?
Really?
If you wanted to get a 3.5% to 4.0% yield, where would you put some capital? It seems like high dividend equities are the most obvious choice. I’m just looking for some feedback.
Gary…You know Obama’s going to get relected.
NLY yo, although I would patiently wait until it’s under 16 again. Probably post dividend. Why invest in a publicly traded company for the yield when you essentially can invest in government backed commercial real estate? We already have a guarantee of low interest rates through 2013. Did I mention, the dividend is about 15% and the company must return 90% of its earnings in dividends? Of course, do your own due diligence and never trust a Jet fan offering financial advice. Especially a libtard.
Lib,
I know he’s getting re-elected. I’ll look into your Jet fan financial advice. :) I think the Giants eek this one out. I still gotta email you, it’s been nuts with the holidays.
[58] gary
Want to increase my exposure to MLPs and waiting for a pullback in Kinder Morgan. Went with Boardwalk during last drop, and that has performed, but KM turned out to be a better play.
Now that Cramer has recommended it, I am hoping for that pullback.
JJ, what say you? Idiotic pick or best of a bad market?
grim,
my 28 and 50 modded, and no idea why. No nasty words or anything like that.
am I banned or something?
Lib – a 19% decrease in ratables means the equalized tax rate in Montclair will be 3.07% BEFORE the 2012 increase. Fun times.
Grim,
Site problem I mentioned before persisting. Don’t know why.
[58] gary,
I want to see the Jets lose, but at this point, it means less. OTOH, wife is an Iggles fan so she has no love for Big Blue and wants the Jets to prevail.
So torn. Can’t they both lose?
30
Nom,
so when could we leave? never?
Gator[61], 3% just puts them in line with their neighbors the oranges. That can’t be good for home values!
Nom – 3 links will put you in jail
Actually JCer – my math was off. To get 3.07%, I increased the current tax rate by 19%. What I should have done was divided 2.58% (current rate) by .81. That puts the equalized rate at 3.185%. For comparison purposes, Glen Ridge with zero ratables and almost no state aid has a 2011 tax rate of 2.97%
Nom [64],
I need hope and change I can believe in. ;) As a Jints fans, I hate the Eagles with every fiber of my soul. All I want for Chr1stmas is a reason to play the Cowboys game. :)
Manly vegetables:
http://www.facebook.com/#!/media/set/?set=a.1041029274079.2006812.1475987589&type=3
http://a8.sphotos.ak.fbcdn.net/hphotos-ak-ash4/281753_1842577472283_1475987589_31501775_6311946_n.jpg
Nom,
How about the Giants go on one of those unfathomable runs like in 2007 and face the Pats in the superbowl right down to the last drive. We’ll let fate decide who takes the prize! :) What a GTG that one would be!
JJ;
Jets/Giants on Christmas Eve with playoff implications for both teams. Didn’t you dump your tickets for this game months ago? What’s the spot price today?
I did not sell months ago. But I did sell a few weeks ago the day after the Jets and Giants both won big and both were underdogs. I sold the pair for $550 over face. If I waited I could have got $650 or maybe $700 over face at most, however today they are going for about what I sold them for, as we get to last few days before game price always falls. Monday of this week was peak for pricing. But if Jets and Giants game was meaningless, or meaningfull to only one at best I could have got was $300 over face.
I am always amazed at who buys these tickets. With Stubhub fees people buying $950 a pair tickets to a regular season football game on christmas eve.
Anon E. Moose says:
December 22, 2011 at 2:56 pm
JJ;
Jets/Giants on Christmas Eve with playoff implications for both teams. Didn’t you dump your tickets for this game months ago? What’s the spot price today?
Nom,
Very weird, not sure what the problem is. I’ve gotten a few other donations this week so I’ ve got to assume it’s working.
the best nation is a donation
HTJ,
Why are schlepping around in a back office? With your timing, surely you could be running a HF somewhere.
“a 19 percent decrease in the value of residential properties…”
Are you sure that was not supposed to read “a 19% decrease in the rate of increase”? After all, things are different in MC and prices never drop there.
“Uncle Onyango”
I think I heard them play at the Chatterbox, in Seaside, around ’79 or ’80.
Hey shadow, you better watch out when your wife or gf decides to chop some vegetables.
Back to the salt mine.
Progressive Honor Roll of 2011
http://www.thenation.com/print/article/165314/progressive-honor-roll-2011
You all are f_ckin doomed. America, as a whole, is deliberately dumbed down. They just dont get it. America couldnt put 2 and 2 together if you laid 2 squares in front of their face. The will to understand is necessary before the possibility of understanding exists.
How are the Kardashians doin? Yes. I got lunch at a pizza place today and the half witted girl asked me what I thought of Kardashians dress. What I thought of her slave shop in China. Just dumb. F_ckin dumb. Unteachable trash. Their parents should be proud.
Who cares about real estate?
Ron Paul 2012 or you are doomed. This is my call for 2012. Wait until the 2012 prediction thread. This year I have a doosy.
>>>funnelcloud says:
December 22, 2011 at 7:01 am
Sellers still have unrealistic expectations and that “”I’m not giving my home away metality”””, they still don’t get it, If you don’t need to sell fine but don’t waste a realtors time, If you need to sell,, be realistic, cut your losses and lower the price because at the first sign of a market turn builders are going to jump back in the game and your 40 year old house thats in need of updating will be competing with new builds with extra’s at a lower price. Said it before mint houses in prime locations do not conform to the same rules. So to all yea sellers in this christmas season, Get a grip cause your ass is going to take an even bigger pounding down the road.<<<
WTF? This damn post sat here all damn day without a response. I wish I'd had been here earlier to deal with this shlt. Let's get something damn straight, my ass WILL NOT take a damn pounding and I'm damn sure ain't gonna give my house away to some cheapass low baller who wants to rip me off. I have a nice damn house that someone is going to want and they will damn sure pay my damn price before I let them have it. I don't give a damn if I have to wait to hell freezes over. You'll have to rip the damn deed from my cold dead hands before I discount my price a single nickel. That's how committed I am. One day soon, you stinking buyers will have to be bidding again and that's when you're gonna get some damn payback for all your insulting lowball offers.
83.reinvestor101 says:
December 22, 2011 at 10:14 pm
I have a nice damn house that someone is going to want and they will damn sure pay my damn price before I let them have it. I don’t give a damn if I have to wait to hell freezes over. You’ll have to rip the damn deed from my cold dead hands before I discount my price a single nickel. That’s how committed I am. One day soon, you stinking buyers will have to be bidding again and that’s when you’re gonna get some damn payback for all your insulting lowball offers.
12/21/2012 should meet your target for cold dead hands.
Merry Christmas to all, and to all a good night!
>>>12/21/2012 should meet your target for cold dead hands.<<<
Bullspit. Yeah, I know some here would like to see me gone and pushing up some mucking daisies, but that ain't gonna happen. I intend to be right the hell here talking shlt.
Well, the egg nog is made, the dough is rising. Tomorrow the real work of putting on a Christmas feast begins. Whatever holiday you celebrate, I hope you enjoy it; if you do not celebrate any holidays this time of year, I hope your weekend is good as well.
Be safe, be happy, and be nice.
http://online.wsj.com/article/SB10001424052970204791104577110643650732030.html?mod=googlenews_wsj
DECEMBER 23, 2011
What Fannie and Freddie Knew
The SEC shows how the toxic twins turbocharged the housing bubble.
Democrats have spent years arguing that private lenders created the housing boom and bust, and that Fannie Mae and Freddie Mac merely came along for the ride. This was always a politically convenient fiction, and now thanks to the unlikely source of the Securities and Exchange Commission we have a trail of evidence showing how the failed mortgage giants turbocharged the crisis.
That’s the story revealed Friday by the SEC’s civil lawsuits against six former Fannie and Freddie executives, including a pair of CEOs. The SEC says the companies defrauded investors because they “knew and approved of misleading statements” about Fan and Fred’s exposure to subprime loans, and it chronicles their push to expand the business
snip
The SEC also shows how Fannie led private lenders into the subprime market. In July 1999, Fannie and Angelo Mozilo’s Countrywide Home Loans entered “an alliance agreement” that included “a reduced documentation loan program called the ‘internet loan,'” later called the “Fast and Easy” loan. As the SEC notes, “by the mid-2000s, other mortgage lenders developed similar reduced documentation loan programs, such as Mortgage Express and PaperSaver—many of which Fannie Mae acquired in ever-increasing volumes.”
Mr. Mozilo and Fannie essentially were business partners in the subprime business. Countrywide found the customers, while Fannie provided the taxpayer-backed capital. And the rest of the industry followed.
As Fannie expanded its subprime loan purchases and guarantees, the SEC alleges that executives hid the risk from investors. Consider Fannie’s Expanded Approval/Timely Payment Rewards (EA) loans, which the company described to regulators as its “most significant initiative to serve credit-impaired borrowers.”
snip
Same to you Shore,Enjoy the company of friends and family.
Italians are the euro region’s least-indebted consumers and among its biggest savers, according to data from the European Union’s statistics office, Eurostat. Their frugality may be at least partly linked to a distrust of paying with anything other than cash. Italian credit-card holders use their cards on average only 26 times per year, or five times less than in the U.K., according to the Bank of Italy.
“The culture of cash is strongly ingrained in Italians, even those that don’t evade,” Deputy Finance Minister Vittorio Grilli said at a Dec. 5 press conference in Rome.
http://www.bloomberg.com/news/2011-12-22/italy-attempts-to-kick-the-cash-habit-as-monti-cracks-down-on-tax-evaders.html