Negative Equity: 28.4% of all single-family homes with mortgages are "underwater"

  • metta

    Posts: 39134

    May 10, 2011 6:15 PM GMT

    Negative Equity: 28.4% of all single-family homes with mortgages are "underwater"

    "First quarter data has prompted Zillow to revise its forecast, now predicting a bottom in 2012, at the earliest."

    http://www.calculatedriskblog.com/2011/05/zillow-on-negative-equity-284-of-all.html

    Wow....those numbers are pretty accurate. It is showing that homes have dropped an average of 36.1% in Los Angeles and that is exactly what mine has dropped. Thankfully, I'm not underwater.
  • Webster666

    Posts: 9217

    May 10, 2011 6:32 PM GMT
    southbeach1500 saidYep, we sure have had great results from TARP, QE1 and QE2. icon_rolleyes.gif

    Lesson to be learned (again): The Federal government shouldn't meddle with the housing market.





    Stupid ass.
    The lesson to be learned is that Wall Street bankers (and everybody else) can't be trusted to regulate themselves. Greedy bastards will steal everything.
  • Posted by a hidden member.
    Log in to view his profile

    May 10, 2011 6:40 PM GMT
    Webster666 said
    southbeach1500 saidYep, we sure have had great results from TARP, QE1 and QE2. icon_rolleyes.gif

    Lesson to be learned (again): The Federal government shouldn't meddle with the housing market.





    Stupid ass.
    The lesson to be learned is that Wall Street bankers (and everybody else) can't be trusted to regulate themselves. Greedy bastards will steal everything.


    icon_rolleyes.gificon_rolleyes.gificon_rolleyes.gificon_rolleyes.gif to both posts.

    1. TARP did work. 28% of mortgages being underwater, while dreadful, is not the same as a complete meltdown in the financial markets worldwide, which is what we were facing. A hands off approach here would have resulted in Armageddon. I am not joking or overplaying this.

    2. We need private markets, particularly in for mortgage finance. Currently there is no effective private financing mechanism for the mortgage markets, and Fannie and Freddie (basically the US government at this point) are financing the vast majority of mortgages. Which explains why it is still so difficult to get a nonconforming loan.
  • Posted by a hidden member.
    Log in to view his profile

    May 10, 2011 9:59 PM GMT
    southbeach1500 said
    showme said1. TARP did work. 28% of mortgages being underwater, while dreadful, is not the same as a complete meltdown in the financial markets worldwide, which is what we were facing. A hands off approach here would have resulted in Armageddon. I am not joking or overplaying this.


    I disagree. Troubled Asset Relief Program (TARP) was supposed to be used by the government to buy up all those bad mortgages that the banks had (the CDOs), but as often happens in Washington DC, the money was spent for a completely different purpose. The banks still have those mortgages on their books.



    Your factual assertions are (sort of) right - the TARP money wasn't used for the specific purpose for which it was originally intended, i.e., to buy distressed mortgage backed securities. Yes, the MBS market still sucks to this day, and Dodd-Frank isn't going to help. But to get back to TARP, it did allow flexibility, and the regulators focused on shoring up public confidence in teetering institutions. It "worked" because the worldwide financial system didn't collapse.