Another Fine Mess, Big Al
Insanity Dependent
on the Kindness of Strangers Just got off the phone with a mortgage broker.... "How
fast can you turn an appraisal for me in Prairie Home, Missouri?"
he queries. On my voice mail from yesterday... Some Young Pup mortgage broker from St. Louis [20-something, in the business 4 years or less] left me a detailed message [you can tell a Young Pup by the excitement in the voice and how fast they talk, as this is the deal that will make their credit card payment, the house payment, and their car payment on the Sports Porsche!] that he wanted me to do a comp search so he could order an appraisal, and it had to appraise at $95,000. I didn't return the call yesterday or this morning. A little while ago I get a detailed fax from this Young Pup in St. Louis at Yazoo City Gazinga Mortgage Company [haven't you seen their ads on National TV and Bubblevision?] wanting the comp search as if it were a real appraisal order and a national emergency, and it is on the standard "Request for Appraisal" every brother and their dog Spot uses anymore to order single family residential appraisals. Here is the actual text this Young Pup tossed at me: To whom it may concern: I need this property to comp out no less than $90,000. What is the approximate maximum value in this area for this property? Is $90,000 obtainable? The home has been kept up and is in good condition. A brief description of the home would be a ranch, 2 bedrooms, 1 bath, no basement, no garage, and no pool. Please let me know what kind of comps you find in the area so that I can sell the customer. -- Erik@....com That's a really good one.... "so that I can sell the customer!" This is a refinance on a 768sf low income home built by the Columbia Community Development, Inc. in 2000, and is a five-year old home in a older run down district of Columbia, which is a target area for investment and revitalization, which is a very good thing. The assessor has the property on the books at $62,000, and the local assessor, bless his heart, just reassessed all the single families here upwards in market value this summer, which ticked a lot of folks off. Folks hate paying higher real estate taxes. Even if the current assessment is 15% to 20% low, indicating $72,950 to $77,500, there ain't no way on God's Green Earth that this property is worth $90,000, much less $95,000. Even on a wild guess that Mr. Assessor is off 25% on the market value, this would only indicate $82,666. Our assessor is pretty tough and usually very close to what properties sell for in this market. He's a former appraiser in realty, and a Good Ole Boone County Country Boy who knows the market. Besides, he is a friend of mine, and he lives about ten blocks away. I have wised up in nearly 30 years in the realty appraisal gig... I don't even respond to these Young Pup Jokers, since it takes phone time [uses up my cell phone minutes], my time, and I am not going to get paid anyway, because if it doesn't appraise out at $90-$95,000 to make their deal, these Young Pups and their Bad Boy Broker will call and threaten to report me to the Missouri Appraiser's Commission down in Jeff City, that I was unethical predetermining their value, and completing a report that was less than what they needed. If the crap hits the fan in real estate, hopefully all these Jokers will go out of business and take a long solitary hiatus in Leavenworth. For you normal folks out their in financial land, this is lender/client pressure on the real estate valuation community, and every appraiser in realty in the land, whether doing commercial or residential, gets this stuff tossed at 'em every working day of their life, thanks to FIRREA 1989, and Alan Greenspan! There's even more stuff behind this smoke and mirrors at HUD, The Appraisal Foundation, and St. Elsewhere in the Windy City and the Suburbs in Ohio, which make for entertaining reading if one is inclined to find out just exactly what the Royal Bank of Scotland rigs and controls here in the States. The articles we linked above... ... with my favorite being Fleck's Greenspan Menace, penned back in '03 [2003, not 1903!] are most topical to the Money Issue of Real Estate Backing the Federal Reserve Note in our view. We don't have gold or silver backing the Mandrake Mechanism of printing money out of thin air, but we sure do have real estate supporting the printing press and the Buffoons at the FED with all those ABSs and MBSs [securities]. Roach alludes to the kindness of strangers, or foreign money going into our money bond market to maintain the suspended animation in financial markets. This is a reference to a famous series of lines from Tennessee Williams's Streetcar Named Desire.... and Blanche Dubois. Folks that think that all heck could break loose at 6% mortgage interest rates -- are not really in touch with the reality of real estate or the power of the FED and the Bank of New York! It is going to take at least 8 to 10% mortgage interest rates to put a damper on the commercial and residential real estate markets [in our view!]. Most Folks simply forget how powerful an instrument of monetary destruction this Federal Re$erve really is, and what it can manipulate and control in global financial markets. It seems like all we have heard since Franklin Delano Raines got the boot out the door in McLean, Virginia at Fannie Mae with their fudged accounting cookbooks last December, is Alan Greenspan covering his Behind in the ABS and MBS markets since he is preparing notes on his "Memoirs," and writing them after January 31, 2006. We have one source that indicates, The Memoirs are already written and at the publisher, to be released June 1, 2006. From retirement to memoirs, that's faster than Ulysses Simpson Grant, who penned his, to support his family, before he died. Several wagon loads were delivered to the Grant home during the writing of this text, we surmise, but we haven't been able to track the livery reports fully being from Tennessee or Kentucky. Ehh, that's satire, Folks! At least we know that Prozac hadn't been invented yet when Mr. Grant was alive, but Kentucky Bourbon was.... along with Tennessee Sour Mash! Folks, enjoy the linked articles today... ... for Alan Greenspan to tell us one year that there is no real estate bubble [caused by inflated mortgages, unsound lending practices caused by FIRREA 1989, and using real estate to support the paper money fraud], and a couple of years later before he retires to start the revolving chant of risky mortgages in the American Republic, should put all of us onto the fraud of the money system, and the Federal Reserve Private Banking Cartel that rules the roost in the realty valuation gig. This isn't nuclear astro physics, and one does not have to be Albert Einstein to figure out that the FED is moving at the speed of light squared, to keep the whole equation [financial system] from falling apart. This is what all we call in Missouri and the Mississippi Delta... a big Tap Dance around Bull Pies in the Pasture! The question is: If
Alan miss-steps in the pasture messing up his shoes... Alan could have gotten the Republic back on a sound money system backed by specie during his tenure, dissolved the FED, and then retired. He did not. In the end, he used real estate to support the paper fraud of the Federal Reserve Note. Alan, there is no Economic Freedom, without Gold. How Many Devils, How Many Kindnesses from Strangers, and how Much More Financial Insanity... shall we now endure?
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