Over half of modified mortgages default again within 6 months

Just another example of bailouts that don’t work. MarketWatch says  A study looking at loans that were modified in the first three months of 2008 showed that 37% of borrowers were more than 30 days behind on their payment within three months, and 55% had re-defaulted within six months¸ said Grovetta Gardineer, a managing director […]

The home sales up dirty little secret

It was all over the headlines yesterday – existing home sales rose 5.5% (seasonally adjusted) from August.  The median price dropped too – down 9% to about $191K.  Good news right?  It IS good news except for one minor detail absolutely no one reported.  Here it is straight from the press release that everyone’s story […]

Foreclosures make up 41.9% of CA home sales

Wow, here’s an interesting tidbit that you should keep in mind when you hear something about home sales increasing.   According to an article published in the San Francisco Chronicle today, 4 out of every 10 home sales in the state were foreclosures. Among the California homes sold in June, 41.9 percent were foreclosure resales, compared […]

The good, the bad, and the clueless

It was quite a day today in the financial media.  I’ve read stories tonight about why it’s great for everyone that the Fed bailed out Bear Stearns, I’ve read stories about why it’s bad that the taxpayers are bailing out Bear Stearns, and I’ve read stories where I don’t think the author had a clue what he […]

Another one bites the dust

Here’s another case of someone buying more house than they could afford and now they’re whining.  According to the story “She has had to take extreme measures to pay for her interest-only mortgage of $2,500 a month.” Let’s take a second and do the math on this.  Which is something Patricia Guerrero should have done before […]

The running of the bulls

From the 400 point rally today in the stock market, you’d think that the bulls are running rampant in Pamplona.  And you may be right, however…. Stocks are still down over 10% for the year.  The highly leveraged banks and Wall Street firms are still highly leveraged.  Massive amounts of mortgage backed securities – and their […]