Bubbles, Anyone? Doomsday:
The Final Months of the “Housing Bubble”
– Mike Whitney The
Stuff Dreams Are Made Of Champagne, Anyone? All I have seen the past several weeks regarding real estate markets on the Internet is more about real estate bubbles and Ponzi finance, which are not supposed to be micro and macro market real estate bubbles and illiquid financial solutions. My Outlook Express is so crowded with Spam from Fast Freddie the Lender in East BooFoo, California or Florida trying to give me a 2% real estate negative amortization loan to get me to consolidate my credit for a 150% home equity loan with the refinance, that I am blue in the face. My Outlook Express crashed today from all the lender Spam in conjunction with all the Spammers sending me drug ads for Levitra, Viagra and Cialis, or whatever that stuff is. The most frequently used key on my ergonomic keyboard is the Frothy DELETE key in the lower right hand corner. Snicking the Money… on the side, that is! Some of today’s essays on the real estate bubble and shoddy mortgage thing are pretty good. I am convinced that most folks that believe real estate values go up forever, may one day wake up to a very rude awakening. I keep remembering that we have a lot of disinformation [lies?] at the Commerce Department, the BLS, and everybody's’ favorite fraud – Greenspan and his pack of central banking inflationary thieves at the Big Government Federal Reserve who are behind the curtain pulling out all the stops, levers, and whistles to snick everyone’s money leading everyone to believe that real estate is as good as gold specie backing this ABS and MBS financial system. Real estate is a real asset if it is paid for with no mortgage. That is called equity. If it is not paid for, it is nothing but debt and financial leverage. Ponzi anyone? A Branch Bank on Every Corner… Then we have a nation of lenders building branch banks on every commercial street corner, since they have made and are making all this money off of real estate loans, as they can sell the bundled securities to GM, Ford, GE, and GSEs in the ABS and MBS financial system, and all this worthless real estate paper gets sold to global market investors who are gonna take it on the chin. Well, nah, it isn’t exactly worthless as long as the financial system holds up. We remember since Ancient China, the inventor of paper money, that all legal tender paper money unbacked by specie ultimately collapses. Greenspan and his Fed Boys are now using real estate prices as specie. Well, the French tried that Ponzi shell game to hold up the assignat at the time of the French Revolution, and it didn’t work. Perhaps, this time it is different, and Ben and Alan know something they haven’t told us all yet? However, wild rides need excellent seat belts. A Corridor Named Desire… I just completed a commercial valuation in the 763 [Business 63] Corridor here in Columbia, Missouri for a corporate client getting ready to liquidate and relocate their operation. The paired land sales support a 9% land appreciation rate in the corridor since Big Mac bought a corner lot in 2000 for $6.50 a square foot. The Big Enchilada from Mexico City on the opposite corner has the site under contract for $9.50 a square foot. Several banks are spec buying in the area and flipping current contracts that are at $8 and $9.50 a square foot, and one plans on selling over $12.50. The bank selling at $8 bought 3 years ago at $3 and change. One bank is so good, they have purchased in 2004 sites in the corridor for under $4, and their new bank site just recently placed under contract is at $8 for a premium site. Of course they are gonna spend another $300,000 contributing to MDOT for a $1.2 Billion signaled intersection at the $8 site, so they are gonna have over $11 bucks in it all said and done. One land contract is at $9.25, and the buyer has it flipped to another bank at $12. Another bank offered $12.50 and he turned it down. A local credit union jumped into the fray at $8 but not on the beaten path. I guess it is easy to make money when you can loan it to yourself. Maltese Falcons – the stuff dreams are made of… Realty Reality has been very concerned with exposing the truth about gold market and real estate market manipulation, and the Editor generally takes the position that Central Bankers lie through their teeth to keep their cushy jobs and pensions, as they steal our wealth through the printing press, creating more money out of thin air… that eventually finds its way into real estate, in some form or another. Welcome to Sydney Greenstreet. Birds do it. Bees do it. Now banks and credit unions do it. Let’s fall in love with real estate! Or Maltese Falcons! It’s the stuff dreams are made of. And bubbles are just for bathtubs? Right? Ole
Bear, Editor © 2005 Realty Reality |
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