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The Rise And Fall Of Phantom Housing Collateral


By Bubbabear   Follow   Thu, 20 Dec 2012, 10:58pm   512 views   4 comments
In Yorba Linda CA 92886   Watch (1)   Share   Quote   Permalink   Like (2)   Dislike (1)  

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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  1. Bellingham Bill


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    Bellingham, WA

    1   11:11pm Thu 20 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike  

    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

  2. HEY YOU


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    2   12:00am Fri 21 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    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.

  3. ELC


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    3   1:17pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    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.

  4. fedwatcher


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    Valencia, CA

    4   10:05pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    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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