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The Rise And Fall Of Phantom Housing Collateral


By Bubbabear   Follow   Thu, 20 Dec 2012, 2:58pm PST   680 views   4 comments
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The rise and fall of phantom collateral leads us to ask: how much of the $17.2 trillion in household real estate is still phantom? How many homes on lenders' books are valued higher than their real market value? How durable is this "housing has bottomed" surge in prices if the global economy slides into recession?
http://www.zerohedge.com/news/2012-12-13/essays-fragility-rise-and-fall-phantom-housing-collateral

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Bellingham Bill   Thu, 20 Dec 2012, 3:11pm PST   Share   Quote   Permalink   Like (3)   Dislike     Comment 1

If & when we double taxes (and/or cut spending) like we need to, a damn lot of it.

We can try to inflate, weaken the dollar, etc. but if that just results in higher food and energy costs . . . kiss home values goodbye too.

People don't yet understand how we completely screwed ourselves in the 2002-2007 period.

http://research.stlouisfed.org/fred2/series/CMDEBT

We took a struggling post-industrial economy of the 1980s and just bullshitted our way into $40T debt position:

http://research.stlouisfed.org/fred2/series/TCMDODNS

owing $4T of that to the world.

http://www.bea.gov/newsreleases/international/intinv/intinvnewsrelease.htm

HEY YOU   Thu, 20 Dec 2012, 4:00pm PST   Share   Quote   Permalink   Like   Dislike     Comment 2

The Bush tax cuts & the Job Creators still have time to save housing & fix the debt problem with all the 6 figure jobs that are available.

ELC   Thu, 27 Dec 2012, 5:17am PST   Share   Quote   Permalink   Like   Dislike     Comment 3

HEY YOU says

The Bush tax cuts & the Job Creators still have time to save housing & fix the debt problem with all the 6 figure jobs that are available.

The tinkle down theory.

fedwatcher   Thu, 27 Dec 2012, 2:05pm PST   Share   Quote   Permalink   Like   Dislike     Comment 4

Collateral is an important topic. It is not only mortgage collateral but what backs the massive over-the-counter derivatives market.

Why is there demand for U.S. Treasuries trading at negative real interest rates? The need for "collateral."

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