« prev   random   next »

0
0

Equity gains more than wiped out by equity loans

By someone else following x   2008 Apr 2, 1:20am 24,840 views   318 comments   watch   nsfw   quote     share    


dodo

From a reader:

Americans now own less than 50% of their home for the first time in many years. What I did not hear in the press is that this percentage was reported AFTER home values had increased astronomically. That is, as home prices shot upward, many Americans chased those zooming home prices by adding debt, not by rejoicing that they now owned a larger fraction of their home. To me, the story is not that Americans now own less than 50% of their home, but that this is true after home prices have skyrocketed in recent years, outstripped by debt rising even more rapidly. Consider the implications to baby boomers who hoped to retire soon, but who have already extracted a large fraction of the true equity in their homes and spent it.

This is pretty amazing. After the biggest runup in prices ever, owners managed to blow all of that equity, and then some. And now they've got rapidly declining prices on top of that.

Patrick

« First    « Previous    Comments 278 - 317 of 317    Last »

279   BayAreaIdiot   ignore (0)   2008 Apr 7, 12:53am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Duke at 6:18am

I don't have the expertise to judge Greenspan on what you call the "monetary side". As to the rest of your post re: regulation etc: You are spot on in my opinion!

280   DennisN   ignore (1)   2008 Apr 7, 1:04am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Google turns up half a dozen companies called "TPG".

Thomas Products Group
The Provo Group

etc.

Hey if an idea finally gets written up in the NY Times, is that idea now mainstream?

www.nytimes.com/2008/04/06/fashion/06survival.html?_r=1&ref=fashion&oref=slogin

It is not that of Barton M. Biggs, the former chief global strategist at Morgan Stanley. Yet in Mr. Biggs’s new book, “Wealth, War and Wisdom,” he says people should “assume the possibility of a breakdown of the civilized infrastructure.”

“Your safe haven must be self-sufficient and capable of growing some kind of food,” Mr. Biggs writes. “It should be well-stocked with seed, fertilizer, canned food, wine, medicine, clothes, etc. Think Swiss Family Robinson. Even in America and Europe there could be moments of riot and rebellion when law and order temporarily completely breaks down.”

281   Brent   ignore (0)   2008 Apr 7, 1:36am   ↑ like (0)   ↓ dislike (0)   quote   flag        

DennisN-

Same guys: TPG Capital

Expect good things from WaMu, at least from a shareholder standpoint. TPG seems to be very good at wringing out profit potential, and what else matters right?

282   DennisN   ignore (1)   2008 Apr 7, 1:57am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Brent,
Yeah, AP now reports it as "TPG (formerly Texas Pacific Group)".

283   Peter P   ignore (0)   2008 Apr 7, 2:21am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Mish has an excellent piece on the Spanish housing bubble. Apparently, we share the view that EU will not survive in its form. Cracks are forming.

People speaking differently languages should NOT share a currency.

284   Peter P   ignore (0)   2008 Apr 7, 2:22am   ↑ like (0)   ↓ dislike (0)   quote   flag        

How can we profit from the European housing bust?

285   BayAreaIdiot   ignore (0)   2008 Apr 7, 2:46am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Peter P
can you provide a link?

287   DennisN   ignore (1)   2008 Apr 7, 2:56am   ↑ like (0)   ↓ dislike (0)   quote   flag        

I'm working on a book whose thesis is that the UK should pull right out of the EU and enter the Union as a half-dozen odd states. It might be timely if I can get it out in another year.

288   DennisN   ignore (1)   2008 Apr 7, 3:05am   ↑ like (0)   ↓ dislike (0)   quote   flag        

My take is that the EU is little more than a cynical ponzi scheme of the French and Germans to suck up funds from the other countries to support their otherwise unsustainable social welfare states.

289   DinOR   ignore (0)   2008 Apr 7, 3:21am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Watching Spain and the UK's housing bust unfold makes it all that much more difficult to listen to 'former' housing bulls. All throughout the "good times" they couldn't be bothered with the fact this was ramping up on a global basis. Any of those even remotely aware of what was taking place abroad only cited it as further evidence this thing was for real. This thing was here to stay.

So now all of a sudden they've begun to show in interest in... well, REALITY frankly. The cover of Money mag. has it's lead article on "How to deal with the "mean" economy! Mean, as in any time you can't tap your home for a little well deserved MEW it's just plain mean?

I was at a party Saturday night and a few perma-perma-bulls were really freaking out. They refused to be cheered up in any way. Before I was avoiding the whole bubble topic b/c it was frustrating. Now I avoid it b/c it's depressing.

290   Peter P   ignore (0)   2008 Apr 7, 3:25am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Hopefully, the British Columbia housing bubble will deflate before I retire. :)

291   Peter P   ignore (0)   2008 Apr 7, 3:32am   ↑ like (0)   ↓ dislike (0)   quote   flag        

My take is that the EU is little more than a cynical ponzi scheme of the French and Germans to suck up funds from the other countries to support their otherwise unsustainable social welfare states.

I thought the entire Europe is one big unsustainable social welfare state.

Switzerland is one of the few countries in Europe with a sensible tax system.

292   Peter P   ignore (0)   2008 Apr 7, 3:36am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Something is wrong if individual income tax rate is higher than 15-20%.

Switzerland and many other places in the world have proven that high tax is NOT a prerequisite to social stability. Higher tax simply means inefficient government, misplaced sense of entitlement, and pure stupidity.

Switzerland was smart that it never joined the EU.

And this is ridiculous:

http://news.bbc.co.uk/2/hi/europe/6313671.stm

But Brussels' quarrel is not with Switzerland's quality of life but with its tax system, and there the EU has made it clear it expects some compromise.

EU basically wants to export its welfare state and draconian tax system.

"Hey your system is too good, it makes us look bad. We should all collapse."

293   BayAreaIdiot   ignore (0)   2008 Apr 7, 4:59am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Thahks for the link Peter P

By the way and totally off-topic, have you seen this? Although I have no great sympathy for China, I strongly object to anyone using the GG Bridge to play politics. Or the Olympics for that matter but I don't pay taxes for that.

12:43 PDT SAN FRANCISCO -- Three demonstrators scaled the south tower of the Golden Gate Bridge today and unfurled a banner intended to draw attention to Chinese human rights violations in Tibet.

The protest by Students for a Free Tibet comes two days before the Olympic Torch makes its only North American stop in San Francisco before the games this summer in Beijing.

The protesters scaled the bridge tower around 10:30 a.m., carrying a banner reading, "One World, One Dream, Free Tibet 08." They unfurled the banner - a play on the official slogan of this year's Olympic Games, "One World, One Dream" - at 11:20 a.m., facing the bay.

The activists began to rappel down around 12:30 p.m., leaving the banner hanging on the tower. Iron workers will cut it down, said Mary Currie, a spokeswoman for the Golden Gate Bridge district.

I have a hunch it's gonna be wild (and possibly embarrassing for SF) on Wednesday.

294   Peter P   ignore (0)   2008 Apr 7, 5:09am   ↑ like (0)   ↓ dislike (0)   quote   flag        

I always find it odd that people care about human rights "violations" in faraway countries.

I could not care less. These protesters should be arrested for disruptions.

295   BayAreaIdiot   ignore (0)   2008 Apr 7, 5:14am   ↑ like (0)   ↓ dislike (0)   quote   flag        

These protesters should be arrested for disruptions

But it would've been more useful if they were shot down as they were trying to unfurl their stupid banner...isn't the bridge supposedly "protected"? WTF?!

ok maybe not shot with lethal weapons, but definitely tazered...like that UCLA idiot a while back :-)

296   Peter P   ignore (0)   2008 Apr 7, 5:19am   ↑ like (0)   ↓ dislike (0)   quote   flag        

I just don't understand their motivations. Who pays them to waste their time?

297   BayAreaIdiot   ignore (0)   2008 Apr 7, 5:26am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Richard Gere?

298   Peter P   ignore (0)   2008 Apr 7, 5:31am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Huh?

If those protesters really want to free People of the World, they should support Free Market.

The freer the market, the freer the people.

299   KurtS   ignore (0)   2008 Apr 7, 5:49am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Switzerland and many other places in the world have proven that high tax is NOT a prerequisite to social stability.

I would say that Switzerland is in a bit of a unique situation due to the amount of foreign money residing there. I seem to recall they have some generous social programs in unemployment benefits and (inefficient) agricultural subsidies that likely wouldn't exist without the enormous amount of cash parked there. If Norway had their banking system and cash flow, I'm sure they could afford to cut less into citizens incomes!

Don't hold Switzerland too high on a pedestal. I lived off/on in the 80s-90s, and there is plenty of corruption, social problems, etc. combined with a somewhat inflexible national identity where real change grinds painfully and slowly. I like their direct referendum and overall pragmatism, but there are also entrenched/darker aspects to their society.

300   Peter P   ignore (0)   2008 Apr 7, 5:51am   ↑ like (0)   ↓ dislike (0)   quote   flag        

True. Since that fateful apple nothing can be perfect anymore. :(

301   SQT15   ignore (0)   2008 Apr 7, 5:53am   ↑ like (0)   ↓ dislike (0)   quote   flag        

SQT, I thought your parents were Silents.

My mom technically is, she falls a year outside the Boomer category, but my dad (who is younger) falls squarely in the Boomer years.

I also think they have a very strong Boomer mindset.

302   SQT15   ignore (0)   2008 Apr 7, 5:55am   ↑ like (0)   ↓ dislike (0)   quote   flag        

@ Protesters in BA.

Those people irritate me to no end. I seriously doubt any of those people have done anything of substance to end the abuses they so vehemently protest. Does China really care about some idiot hanging a sign off of a bridge?

303   BayAreaIdiot   ignore (0)   2008 Apr 7, 6:00am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Does China really care about some idiot hanging a sign off of a bridge

no but the media does...isn't that all that matters? :-)

idiots indeed!

304   DennisN   ignore (1)   2008 Apr 7, 7:59am   ↑ like (0)   ↓ dislike (0)   quote   flag        

I wonder what would have happened to those protestors had they attempted to hang a sign on a bridge in China?

If those protesters really want to free People of the World, they should support Free Market.

Actually they should join the Army or Navy.

305   SP   ignore (0)   2008 Apr 7, 10:13am   ↑ like (0)   ↓ dislike (0)   quote   flag        

DennisN Says:
I wonder what would have happened to those protestors had they attempted to hang a sign on a bridge in China?

Dennis, I believe _that_ is exactly their point too.

SQT said:
Does China really care about some idiot hanging a sign off of a bridge?

Not really - but China does care about the world _not_ being aware of the genocide in Tibet. Especially with the Olympic wank-fest coming up soon.

306   SP   ignore (0)   2008 Apr 7, 10:19am   ↑ like (0)   ↓ dislike (0)   quote   flag        

Peter P Says:
I just don’t understand their motivations. Who pays them to waste their time?

I don't think they were paid. Here is some context to the issue that motivated some refugees to put up that banner on the bridge today:

http://tibet.com/resolution/icj59.html
It is therefore the considered view of the International Commission of Jurists that the evidence points to:
(a) a prima facie case of acts contrary to Article 2(a) and (e) of the Genocide Convention.
(b) a prima facie case of a systematic intention by such acts and other acts to destroy in whole or in part the Tibetans as a separate nation

Pretty heady stuff...

307   KurtS   ignore (0)   2008 Apr 7, 1:33pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Peter P, I can only guess you're being light, LOL.

In any case, Switzerland looks nice from afar, but "Uusländer" (outsiders, ie non-Swiss) are unwelcome, and careers opportunities for Swiss are very restricted: get a job at a bank, get stuck at a bank forever. Guess it's different if you're a billionaire seeking a tax haven and can bribe the right Swiss officials to live in Zug. Ok, I'm done with that.

Tibet is a little like Switzerland...Insular, conservative, and don't like their way of life being interfered with. Of course, Tibet also tried to export their culture/influence to Bhutan for years...they're not totally innocent here.

308   SP   ignore (0)   2008 Apr 7, 2:10pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

# KurtS Says:
Tibet also tried to export their culture/influence to Bhutan for years…they’re not totally innocent here.

So are you saying exporting cultural influence is a crime and that racial genocide under a brutal foreign military occupation is fitting punishment?

[I am not defending Tibet, just trying to follow your train of thought]

309   lokithetrickster   ignore (0)   2008 Apr 8, 3:16am   ↑ like (1)   ↓ dislike (0)   quote   flag        

Cant blame em
They all wanted to be superstars
Media fed them well with appropriate idols, Rich bitches, armani, luxury, gucci etc.

Greed is greed is greed is greed is
only human.

310   KurtS   ignore (0)   2008 Apr 8, 3:21am   ↑ like (0)   ↓ dislike (0)   quote   flag        

SP,
No, I did not say that. I suppose that I was alluding to the fact that every country has their agenda, and Tibet is no exception. Too many people regard it as some spiritual Shangri-la that doesn't exactly jive with history. Personally, I would support Tibet's cultural and linguistic autonomy. The current policy from Beijing reminds me of the USSR's approach to the Baltic states, which was very damaging to the countrys' identities and long-term success. I know that much from my contacts in those countries, so I'm extrapolating here.

It's hard to cut a fine edge of opinion on such issues on the Net when the tendency is to go overboard, lol.

311   Peter P   ignore (0)   2008 Apr 8, 4:14am   ↑ like (0)   ↓ dislike (0)   quote   flag        

So are you saying exporting cultural influence is a crime and that racial genocide under a brutal foreign military occupation is fitting punishment?

Frankly, I don't give a damn about policies (genocide or not) in faraway places unless they have something to do with our interests.

312   SP   ignore (0)   2008 Apr 8, 7:12am   ↑ like (0)   ↓ dislike (0)   quote   flag        

# Peter P Says:
they have something to do with our interests.

Figure it out. :-)

313   SP   ignore (0)   2008 Apr 8, 7:13am   ↑ like (0)   ↓ dislike (0)   quote   flag        

KurtS Says:
No, I did not say that.

Kurt, thanks for the reply - I figured you weren't, but wanted to be sure.

314   justme   ignore (0)   2008 Apr 8, 10:34am   ↑ like (0)   ↓ dislike (0)   quote   flag        

FAB said,

I donN"t understand why a gold digger can marry a guy for a few years and after to agreeing to stay with him N4until death do us partN! break the contract (to move in with her personal trainer) and take half the guys assets…

FAB,

It is because the men of the US (and California in particular) are completely asleep at the wheel when it comes to paying attention to family law and the implications of changes in same laws. No-fault divorce is a prime example.

Men in the US are so caught up in the treadmill of success (aka. competing like crazy against their brethren for the honor of banging one supermodel before they die) that they completely forget to pay attention to what is happening to their rights in society as a whole.

Here's the big question: Do you think that either the democrats or the republicans are going to make family law and marriage contracts more equitable?

315   PermaRenter   ignore (20)   2008 Apr 8, 1:12pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Unemployment Rate Rises After 80,000 Jobs Cut
http://www.nytimes.com/2008/04/04/business/04cnd-econ.html?em&ex=1207540800&en=c1de4fb13c4ec4bd&ei=5087%0A

More news updates on Ms Parul Vora:

Until recently, Parul Vora, 28, was earning a six-figure salary as part of an elite research team at Yahoo. Ms. Vora, who has a master’s degree from the Massachusetts Institute of Technology, lost her job in early February.

“I had never been laid off and never imagined being laid off,” Ms. Vora said. “I was sad personally and professionally.”

But Ms. Vora has better prospects than most. She said she has already been wooed by several potential employers.

“There are a lot of jobs out there, but I’m pretty picky,” Ms. Vora said. “My biggest worry is finding a new job I like.”

316   sean456   ignore (0)   2009 Mar 16, 4:44pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

There is major risk to invest in equity in the downfall market but if you want, some more price money than get it with the help of equity.
Sean Cruz
Equity Loans

317   littleplanet   ignore (0)   2009 May 30, 12:14pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

All that equity....
What a story. First a ridiculously expensive education - the stick that preceeds the carrot - the choice white collar job.....which disappears after all the high-end purchases (including the pricey home, cars and other toys)
...followed by the downsizing, outsourcing, off-shoring and various other corporate creative management tricks....which results in unemployment, underemployment, shrinking wages....
It's simple math: when $80,000 annual is followed up by 5 years of $60,000....it's not that hard to figure out what kicked in the $100,000 of missing income over that time period - the sweet home ATM machine.
These realities....riddle through the population like a plague of locusts let loose in a wheatfield.
When one gazes across America at all those late model cars choking up the endless beltways, parkways - at all those McMansions sprawling across God's little green acres...and all the other various displays of ostentatious wealth - did anyone ever think that WAGE income was paying for all that?
C'mon..............( no doubt there always was a few trillion dollars missing in the equation somewhere or other.)
It never was part of the plan that all that rising house wealth would just sit put safely tucked away. Our brains aren't constructed that way.
It's an old, old game - just superimposed on new realities.

« First    « Previous    Comments 278 - 317 of 317    Last »


about   best comments   contact   one year ago   suggestions