Wednesday, October 31, 2007
Home prices, confidence slide
Scott Stoddard writes in Investor's Business Daily that home prices in major metro areas declined at the fastest rate since 1991. Consumer confidence as reported by the Conference Board was the lowest since October 2005.
Tuesday, October 30, 2007
House of plastic cards
Peter Gumbel of Fortune reports that defaults on credit cards could be comparable to losses see on subprime home mortgage. Which could mean the better part of another trillion dollars just evaporating.
Subprime beat goes down
Scott Stoddard writes in Investors Business Daily that fallout from subprime home loans is expected to continue.
Monday, October 29, 2007
Sean David Morton on the economy
Natural psychic Sean David Morton was a guest on the overnight talk show Coast to Coast AM with George Noory on October 10, 2007. One of the topics discussed was the subprime mortgage situation and its effect on the economy:
SDM: “…The real challenge in the United States is we have only seen—the beginning of the collapse of the subprime lending market and within about the six months is when it’s going to get really bad. In the last seven years there have been 14 million subprime loans actually made…. You will see in the next sixty days or so they are going to foreclose on more than 50% of those loans. And when that happens—and you’re seeing just the beginning of it, but there’s whole areas…like areas in Pomona…areas around San Gabriel Mountains and San Bernadino [in California] that are looking at a 60-70% foreclosure rate…. You’re only seeing the tip of the iceberg of what’s going to happen. And the real terror of this is that I always thought that the revolution, or when people were really going to get up on their hind legs and get upset was not gonna happen in—amongst the proletariat, it wasn’t gonna happen in the ghettos. It was gonna happen when middle class people [start to lose]. They’re losing it now.
“…the material world as we know it is about to be shaken up. The material world with all these bankruptcies and all these things going on—people…are being grabbed by the roots, so to speak. And being uprooted and shaken. So you have these massive numbers of the population are now going to be on the move and they’re moving to places away from the [west] coast, where the real estate is more expensive, to places like New Mexico and Arizona….
“…there are going to be spiritual communities established in the next few years or so that are not going to be based on the material. And I think a lot of what I’m seeing politically and a lot of what I’m seeing in the economic markets…is going to lead, I think to the establishment of spiritual communities, not just in the United States, but across the world, that are not based on the old capitalistic paradigm and not based on the old monetary paradigm. These communities are gonna be based on spirit and based on the things that are closer to the earth, are closer to the family and the things that are really important to people….“
via WTAM 1100 Cleavland, Ohio
SDM: “…The real challenge in the United States is we have only seen—the beginning of the collapse of the subprime lending market and within about the six months is when it’s going to get really bad. In the last seven years there have been 14 million subprime loans actually made…. You will see in the next sixty days or so they are going to foreclose on more than 50% of those loans. And when that happens—and you’re seeing just the beginning of it, but there’s whole areas…like areas in Pomona…areas around San Gabriel Mountains and San Bernadino [in California] that are looking at a 60-70% foreclosure rate…. You’re only seeing the tip of the iceberg of what’s going to happen. And the real terror of this is that I always thought that the revolution, or when people were really going to get up on their hind legs and get upset was not gonna happen in—amongst the proletariat, it wasn’t gonna happen in the ghettos. It was gonna happen when middle class people [start to lose]. They’re losing it now.
“…the material world as we know it is about to be shaken up. The material world with all these bankruptcies and all these things going on—people…are being grabbed by the roots, so to speak. And being uprooted and shaken. So you have these massive numbers of the population are now going to be on the move and they’re moving to places away from the [west] coast, where the real estate is more expensive, to places like New Mexico and Arizona….
“…there are going to be spiritual communities established in the next few years or so that are not going to be based on the material. And I think a lot of what I’m seeing politically and a lot of what I’m seeing in the economic markets…is going to lead, I think to the establishment of spiritual communities, not just in the United States, but across the world, that are not based on the old capitalistic paradigm and not based on the old monetary paradigm. These communities are gonna be based on spirit and based on the things that are closer to the earth, are closer to the family and the things that are really important to people….“
via WTAM 1100 Cleavland, Ohio
Saturday, October 27, 2007
Evelyn Paglini on California fires
Parapsychologist Evelyn Paglini was Art Bell’s guest during the first hour of overnight talk show Coast to Coast AM on October 26, 2007. Art played an excerpt from “several months ago” during which Dr. Paglini had predicted fires:
EP: “I am picking up devastating fires and I’m talking about tens of thousands of acres on fire. Not only here in the state of California, but as I said, in other states…. I am picking up that a lot of this is going to be done by arson. And Art I keep getting…three or four men and I see them kneeling down. And so I can’t tell a lot about them, but they have got plans. And not just in the state of California, they’re in other states. And they are going to start major fires.... This is not a sicko, this is a planned operation….”
After the recorded excerpt, Art continued live with Dr. Paglini:
AB: “…You’ve just done it again.”
EP: “Unfortunately, these fires that I have been seeing are going to continue, Art. I wish they would abate, but they’re going to go all the way into November. And we’ve only just begun to see the beginning of this. There are still going to be thousands more people that are going to be evacuated across this nation. There are serious fires that are still gonna continue and it will last all the way into November. Thousands and tens of thousands of acres will still be burned. And hundreds of people are gonna lose their homes….”
AB: “…you talked about three…three…people…”
EP: “Three or four men, kneeling down…”
AB: “And you still hold to that?”
EP: “Yes I do…. this was planned and executed. And I feel that these plans are continuing….”
AB: “…is it going to let up for a period, or what…?”
EP: “It will let up, but I feel there’s going to be another one that’s either late November or early December, although I am worried about one fire here may continue to burn for about three weeks or longer. So I don’t know if we’re gonna get a handle on one of them…. There is going to be another tragedy or disaster before the year is out. I’m not sure if it’s a fire or something else….”
AB: “But not the nature of it?”
EP: “No, I haven’t gotten it clear enough.”
via WTAM 1100, Cleavland, Ohio
EP: “I am picking up devastating fires and I’m talking about tens of thousands of acres on fire. Not only here in the state of California, but as I said, in other states…. I am picking up that a lot of this is going to be done by arson. And Art I keep getting…three or four men and I see them kneeling down. And so I can’t tell a lot about them, but they have got plans. And not just in the state of California, they’re in other states. And they are going to start major fires.... This is not a sicko, this is a planned operation….”
After the recorded excerpt, Art continued live with Dr. Paglini:
AB: “…You’ve just done it again.”
EP: “Unfortunately, these fires that I have been seeing are going to continue, Art. I wish they would abate, but they’re going to go all the way into November. And we’ve only just begun to see the beginning of this. There are still going to be thousands more people that are going to be evacuated across this nation. There are serious fires that are still gonna continue and it will last all the way into November. Thousands and tens of thousands of acres will still be burned. And hundreds of people are gonna lose their homes….”
AB: “…you talked about three…three…people…”
EP: “Three or four men, kneeling down…”
AB: “And you still hold to that?”
EP: “Yes I do…. this was planned and executed. And I feel that these plans are continuing….”
AB: “…is it going to let up for a period, or what…?”
EP: “It will let up, but I feel there’s going to be another one that’s either late November or early December, although I am worried about one fire here may continue to burn for about three weeks or longer. So I don’t know if we’re gonna get a handle on one of them…. There is going to be another tragedy or disaster before the year is out. I’m not sure if it’s a fire or something else….”
AB: “But not the nature of it?”
EP: “No, I haven’t gotten it clear enough.”
via WTAM 1100, Cleavland, Ohio
Thursday, October 25, 2007
Existing home sales at record low
Scott Stoddard writes in Investor's Business Daily that existing home sames reached another new low in September according to the National Association of Realtors.
Meanwhile, cnbc.com (Reuters) reported that new home sales were up in September over August, but down sharply from a year earlier. Sale prices also increased compared to August when sales were very slow. The inventory of unsold new homes declined from August to September.
Chris Isidore, senior writer of CNNMoney.com paints a gloomy picture, seeing more bad news to come.
Meanwhile, cnbc.com (Reuters) reported that new home sales were up in September over August, but down sharply from a year earlier. Sale prices also increased compared to August when sales were very slow. The inventory of unsold new homes declined from August to September.
Chris Isidore, senior writer of CNNMoney.com paints a gloomy picture, seeing more bad news to come.
Wednesday, October 24, 2007
Mortage mess continues
Noelle Knox and Sue Kirchhoff write in USAToday about continuing problems in the housing markets.
Tuesday, October 23, 2007
Buyers bet on fire sale homes
John Leland of the New York Times covers the foreclosure auction scene in Minneapolis.
Mortgages milked dry
Vikas Bajaj of the New York Times describes how holders of mortgage backed bonds may see their income dwindle.
Saturday, October 20, 2007
Friday, October 19, 2007
Black Monday 1987
Black Monday, October 19, 1987, is usually sited as the largest one-day percentage drop in the Dow Jones Industrial Average (DJIA) at 23%. However, the two-day loss of October 28-29, 1929 was also 23% (1). Of course trading systems were much slower in 1929. And the DJIA kept going down after the crash in 1929, not reaching bottom until July 8, 1932 (2).
Barron’s October 15, 2007 issue contains a good article comparing the market in 1987 with today, but it doesn’t look back to 1929. And it doesn’t mention that a major problem with the Internet could prove disastrous.
References:
(1) Irrational Exuberance by Robert J. Shiller (Princeton University Press, 2000)
(2) 1929: The Year of the Great Crash by William Klingaman (Harper & Row, 1989)
Barron’s October 15, 2007 issue contains a good article comparing the market in 1987 with today, but it doesn’t look back to 1929. And it doesn’t mention that a major problem with the Internet could prove disastrous.
References:
(1) Irrational Exuberance by Robert J. Shiller (Princeton University Press, 2000)
(2) 1929: The Year of the Great Crash by William Klingaman (Harper & Row, 1989)
Thursday, October 18, 2007
Credit crunch reprise
The mortgage mess water torture continues unabated. Meanwhile, a clique of large banks is preparing a bailout for Citigroup's slush fund holdings of trash mortgages.
Wednesday, October 17, 2007
Credit crunch game over?
Peter Eavis, senior writer of Fortune, lists what he thinks it will take before the credit crises is over.
Mortgage iceberg intact
An article in the New York Times suggests that the housing slump may last longer than some expect. Default rates of subprime mortgages made in 2007 are higher than ever. It appears that lenders were months late in tightening standards.
Thursday, October 11, 2007
Wednesday, October 10, 2007
Existing home sales bleak
The National Association of Realtors continues to lower their forecast of existing home sales for 2007.
via money.cnn.com
via money.cnn.com
Tuesday, October 9, 2007
Tuesday, October 2, 2007
Future home sales index at record low
The National Association of Realtors reported that their index of pending home sales fell to a record low.
via money.cnn.com
via money.cnn.com
Monday, October 1, 2007
The flippin' speculators
Home speculators whose buying and selling for quick profit helped push prices ever higher are now left holding the bag.
via cnbc.com
via cnbc.com
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