Thursday, November 1, 2007

Foreclosures Doubled

Yes doubled. As in twice as much. Wow. Even I the biggest housing bear around am surprised. I see this as good news/bad news.

Good news is that, well housing is crashing and burning. As cash hoarding renter I am much happy.

Bad news is idiot politicians and even bigger idiot Fed Chairmen will try to "do something" about this so-called crisis. Ben Bernake already is doing something. What he's doing is destroying the $USD but he is doing something. And soon enough Auntie Hillary and Presidente Jorge W. Arbusto will do something too.

Won't matter what is done, this snowball can't be stopped. Ben Bernake can lower all he wants, the $14K a year strawberry picker still won't afford the $700K home. And that is what these goobers don't get. A 1/4 or even 1/2 of a percent cut won't do jack shit when someone's mortgage is about to double. But that won't stop them from doing really stupid things like lowering interest rates or coming up with some new regulations.

Question now is what will the lenders do? Will they keep these properties on the books and pay property taxes on them while vandals deface them or squatters take over? Or will they do the sensible thing and sell at rock bottom prices. Admit they screwed up, take the loss and move on.

They will sell at rock bottom prices one way or the other. Their choice is do it now or do it in the future. Oh well, I have all the time in the world and can wait it out. That's the difference between buyers and sellers. I as a potential buyer don't have to buy, ever. I can rent for the next 20 years and be just fine. But sellers do have to sell. Whether they are lenders with depreciating assets to carry on their books, desperate homeowners who can't afford the home or the regular day to day reasons for selling like new job out of town.

Someone pass the popcorn, it's gonna be a fun show to watch.

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