Another part of the big scam is that we really have no idea how deep the hole is and even whether it is growing or shrinking. So much for SarbOx. Until convincingly revealed otherwise, I continue to presume man behind curtain, Wizard of Oz. Perhaps a team of BS artists behind the curtain feverishly pulling levers.
This is no tale and when it all blows, the BS artists retreat into their well lined bunkers leaving the masses to suffer. They better have a good Republican Guard out front.
The biggest difference between a jumbo and subprime borrower is that a jumbo borrower has more access to lawyers, delaying the process, modification and multiple bankruptcies.
The biggest uncertainty is that many of these jumbos were tied to libor and 1 year t-bills or other low cost of funds index. As rates move up the payments will force many who are current to not make payments.
The extend and pretend on the upper end will create larger losses for the bank on those properties in the future
Hmm, I thought I was the only Frank posting here, although I notice you’re calling yourself “frank” instead of “Frank” with a capital F.
Perhaps those “strategically” not paying their $5K, 10k, 15K, whatever K mortgages will so STIMULATE the economy with their new found “wealth” and spending, the economy to recover. Is that the plan?
If so, better hurry up with it. Most local governments are not exactly flush. Key, it seems to me, is whether, or not, the above described “strategiests” have continued to pay PROPERTY tax. When local governments move with their liens, the banks’ hands will be forced.
However, given the large spreads banks are currently earning between deposits and loans they will be able to generate more earnings to offset these losses
So, with any significant numbers not paying for 18 months or longer, surely an inflection point for these types of properties is rapidly approaching.
It is simple “denial” caused by peak optimism at the top of a trend that is possibly three orders of magnitude larger than 1929 according to the Elliott Wave Principle. Continue reading “An easy way to cross check this would be to go to foreclosureradar and punch in the zipcode”