News Sources wrote an interesting post today on
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I spent some time today going through a hundred headlines from this decade relating to the housing market. What I found is rather telling and may be contrary to what you would expect. Some in the press were early to the housing bubble but as the housing market grew stronger and the bubble expanded, many of those in the press pushed their assumptions aside and learned to love the housing bubble. Even as option ARMs and Alt-A loans made their way through the market, the housing bubble suddenl

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News Sources wrote an interesting post today on
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While the subprime and prime home mortgage loan problem is still far from being solved, there is the continual loan failures coming from commercial and Alt-A loans that will continue to put tremendous pressure on the banking industry for the next couple of years, and possibly longer. Interestingly, at this time the Federal Reserve is clueless as to the risk and vulnerability inherent in commercial loans, especially at mid-sized banks, and is, under the leadership of Federal Reserve Governor Da

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News Sources wrote an interesting post today on
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Mansoor H. Khan submits: A plan for the resolution of the insolvency of the U.S. banking system: The core problem of the U.S. banking system (and maybe the world’s banking system) is not liquidity but insolvency. The liabilities of the U.S. banking system exceed the value of its assets. The issue is not only the toxic assets (toxic mortgage backed securities, toxic commercial real estate loans, sub-prime mortgages, alt-A loans, adjustable loans likely to go bust, increase in prime

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News Sources wrote an interesting post today on
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I want to focus our attention on housing valuation. For those calling a bottom, it is also implied that they believe that incomes have stabilized and that prices rightfully reflect the economic situation of the potential buyers. Why else would you call it a bottom? Yet very little analysis is done regarding housing valuation. There is much yelling and punditry about a bottom but little long-term analysis is given to support this argument. Given the amount of Alt-A and option ARM products

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News Sources wrote an interesting post today on
Here’s a quick excerpt
Another Morgtage Bomb about to Drop is a post from: 911-Foreclosure.com Reports indicate that a second “Mortgage-Bomb” is yet to detonate – Alt-A mortgages and Option Arm’s. These loans took off like a shot as real estate prices went through the roof. Why? Simple. These loan programs allowed just about anybody to qualify without any income verification whatsoever, often without verifying the source of the borrowers funds for down payment and closing costs either. As long as a borrower

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