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Rick Santelli On The United Rental States Of America
Today, Rick Santelli spoke to mortgage expert Glenn Schultz in order to glean some truth on the real state of the housing market beyond the simple attempts at headline propaganda, and sure enough he got it off the bat: "less refinancing activity, less turnover activity: this is the third straight month they have been below expectations." Not quite the glowing report many would expect to justify a spike in end-demand for housing. Glenn then focuses on the ability of homeowners to refi high coupon mortgages and while he sees some glimmers of hope, his summary is as follows: "basically you get a bunch of c-class renters and turn them into d-class homeowners."
Sadly, this does not foot with the recently reported data that the homeownership rate fell to 17 year lows. In fact, what is happening, is that more housing units are indeed being converted into rental housing (thanks to what is rapidly becoming the largest landlord in the US, private equity firm Blackstone which has taken advantage of the REO-To-Rental generosity) driven by large asset managers, while in reality the homeownership picture continues to deteriorate.
And therein lies the rub: as we reported earlier, spending on home improvements has paradoxically tumbled, a fact which did not escape Santelli, who brings it up and gets the following logical response: "when the homeowner is confident about the future of price appreciation, they're willing to invest and remodel." And vice versa: so does that by implication imply a slide in expectations about future home appreciation? Santelli's conclusion is, as usually happens, spot on: "who will remodel more: a homeowner or a renter?" The answer is self-explanatory, as is any doubt as to whether the US is becoming a nation of renters.
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Who? Those that have money left over at the end of the month... Bankers, lawyers and politicians. Everyone else is trying to keep food on the table and fill up their car.
A few years ago, when a local bank turned one of their commercial properties into a new property management division of their bank, I knew that they weren't planning on liquidating their REOs, which I thought was interesting, given that, like any bank, they manage financial assets, not physical ones requiring constant upkeep. It was doubly strange considering this is a major college town, filled with an array of experienced companies to outsource them out to for management.
I'm guessing they knew at the time that there would be no accounting reprecussions (ala MTM) to holding these properties, given Benron's back-stop of the paper game.
This is the game: the bank comes to court with a rent-a-lawyer who verified the complaint himself but has no personal knowledge of the foreclosure. Their evidence is an un-certified copy of a trustee's deed upon sale. Their entire case is hearsay. But they win 99 times out of 100 because the courts facilitate the grand theft house by placing roadblocks and restrictions on the house owner while letting the banks get away with fraud on the court. This is the kind of stuff for which people will burn in hell for an eternity, and they do it with impunity, day after day, in courtrooms across America.
Most people just sit around dumbfounded, wondering what happened to their American Dream. Some people study law and learn to use it better than they do.
I am Chumbawamba.
Rick Santelli is a pressure release valve. He says the shit you want to say but are too meek or isolated to actually vocalize. Rick Santelli is a highly paid public masturbator. He gets that quick relief you need so you can get your mind off of it and go back to whatever meaningless toil defines your day.
I am Chumbawamba.
Rick Santelli's entire job is to feed the illusion that there is real opposition to the insanity and a contrary point of view that matters. Though I doubt he understands this. As long as "We the People" have false hope that someone else will do the dirty work for us.....we never will.
<Mission Accomplished.>
When our devastatingly debilitating false hope finally dies we will finally be free to live.
So, the non-Santelli guy was saying that big buying entities have identified and are trading in mortgages on properties that actually still have equity, and we should all be encouraged by this by inferring that those mortgagees with equity in their homes will either sell soon to buy elsewhere (generating inflationary economic activity) or get refi cash to spend on marble countertops because they may now refi due to their now scoring higher on the credit bell curve now that bottom 25% has been shaken out.
What he is implying is that no one has learned any lesson, not anywhere.
Recently I received a note from my mortgage holding internationally-recognized bank HSBC that they had transferred some type of responsibility for servicing the mortgage to a smaller-sized NJ-based financing goobledy-gook firm, so I can believe that trades are being made because I do have "equity" (whatever that means) in the current market price of the house.
I consider this as tantamount to being targeted for termination. My days are numbered as I am not a man with sure income.
And his thesis assumes no tightening of interest rates and the corresponding collapse of what little price/debt positive balance remains in existing home values of the non-retiree crowd, who, if 401k's are not secure, will need to downsize to generate any lost retirement cash.
all this = FML and while I'm at it, fuck Ben Bernanke.
It makes no fucking difference whether a home is owner occupied or tenant occupied. They all have to be maintained. In fact, owner occupants will probably put up with way more broken and rundown shit than a monthly rent-paying tenant.
The real reason home improvements are lagging is because THE BANKERS WHO OWN SO MANY EMPTY HOMES DON'T GIVE A SHIT ABOUT MARKETING THEM SINCE THEY HAVE AN INFINITE SUPPLY OF YOUR DILUTED MONEY NOT THEIR OWN, WHICH THEY RECEIVE WITHOUT CONSEQUENCE FROM THE FED PRINTING PRESS AS A REWARD FOR THEIR INSTITUTIONAL INCOMPETENCE.
Are we starting to understand how things work around here now? All I can say in disbelief is, fuuuuuck meeee.
its almost as if non market inputs produce non market responses
not "almost" but "exactly"
yup.
"we are not crushed by despiration, but by hope"
Why bother when everything is rotten from fed to municipalities to cities. I would not by a home until some sort of Rule of Law returns. Hell, I'd settle for competence. The asstwats that have run the city I live in are turning it turning it into Little Camden NJ, and have been charging almost $300 for water and sewer a quarter. They just built a large ahem, "low income" apartment building in the middle of Main Street and are going to fill it with Section 8, then are astonished when people won't open businesses there. It's turning into a ghetto. Stray scary looking people wonder around and otherwise its deserted. anyway, So the lady told me that they were going to start shutting off people's water if it was more than 15 days late. the city is, of course, raising rates although they do nothing for the town. (they did build 5 useless, unused parking garages over the last 2 years, yeah really). i laughed and asked her what her plans were to do around the office after people got fed up and left the area. She shrugged and said they were quite busy...sending out shut off notices. Can't wait to repaint my humble home, SELL, GTFO.
My man Dick...
The infamous Rick Santelli laying out the hard truth for all you pogues, "who will renovate more" the owners, or the renters. apparently both groups are loooosers right Rick? cheap ass owners, and looooser renters.
Its true Santelli IS spot on as usual...
And...
Every last shred of evidence presented by the mortgagor, no matter how solid, is *automatically* discarded as "hearsay".
Suppose (pretend) for a moment there were buyers out there with jobs, I think a lot of the REO that sits empty for years is due to bad title. Nobody has a clue as to who owns the property and a "Special Warranty Deed" is a worthless POS title insurance policy. Chances are good you're buying a lawsuit.
Scum outfits like Blackrock don't give a shit about anything like that.
The U.S. government contracted with BlackRock and Larry Fink to help clean up after the financial meltdown of 2008. Obama, of course, had no problem that Fink had “longstanding relationships with senior government officials and potential conflict of interest regarding government contracts awarded without competitive bidding."
Nope. As Zero Hedge said would happen back in 2010: Wall Street will be back to doing everything it used to do before, but this time with the Frank-Dodd stamp of approval. Until the next inevitable crash.
Perhaps there's no change because restoration with government support has been kept within the country’s financial oligarchy family by those who run Wall Street—mostly those who have estates in the affluent enclave of North Salem north of New York City--courtesy of Larry Fink.
Assets under management by BlackRock by Larry Fink have risen from $1.3 trillion since the crash by “doing everything it used to do” and more to a record $3.936 Trillion on March 31, 2013. Fink, who grew up in a Jewish family in Van Nuys, California, is founder, chairman and chief executive officer of BlackRock, an American multinational investment management corporation that is now the largest money-management firm in the world by assets under management.
Here is how thesmartasset.com described “the Rescue Racket” in 2009:
“How do we repair the flattened hen house that used to be our economy? By hiring a fox — not just to guard it but to tell us how to rebuild it, carry out the actual repairs and then receive a welcome inside to feed off the newly fattened hens…
“BlackRock's role blares conflict of interest all over the place — it advises the government on how to fix the economy, gets huge federal contracts (some of them no-bid contracts) to fix the economy, and produces big profits for its investors on the changes in the economy. (BlackRock manages $1.3 trillion of assets [2009].)”
Thus began Ward Harkavy’s article, ‘Crony capitalism’: BlackRock’s profitable conflict of interests in Obama’s rescue plans—sorry it’s called ‘symbiotic.’
Said Harkavy: “MY TAKE ---- What is the shadow about those facts? Larry Fink, created mortgage backed securities; then the USA hired his firm to get to the bottom of all the corruption in Fannie Mae and Freddie Mac. The wolf is in charge of our hen house. Try to figure that one out!!!”
Read More http://www.vanityfair.com/business/features/2010/04/fink-201004?printable=true¤tPage=2#ixzz0sUd11xDU
http://www.thesmartasset.com/2009/05/in_handling_the_crisis_for_obama_blackrocks_profitable_conflict_of_interests_--_sorry_its_called_symbiotic.phpHow about this douche bag...Daniel Mudd.
DANIEL MUDD [R] – FNMA CEO (2005 – 2008)
Before becoming CEO of FNMA, Mudd worked at the Office of the Secretary of Defense, was an advisor to Asia-Pacific Economic Corp., “served” on the board of the Council of Foreign Relations, “consulted” at the World Bank, and held many positions at GE Capital including president and CEO. Mudd was dismissed as CEO of FNMA when FHFA became conservator in 2008. In 2011 Mudd and other GSE execs were charged by SEC with securities fraud. After his career at FNMA Mudd became CEO of a NYC hedge fund named “Fortress”. Fortress invested in purchasing tax liens on delinquent property taxes from local governments under many benign corporate names such as “Pleasant Valley Capital” and “Travis Farm Investments”. Cozy. Mudd’s compensation for his “work” at FNMA - $80 million.
These "people" make me sick. I only throw in the [R] because if you look at the history of FNMA/FHLMC CEO's you'll find the rip-off to be a very bipartisan effort.
As long as the checks keep coming, people are happy. Once the checks stop people will go nuts. America is and has been an oligarchy and it's now going to be a hard oligarchy.
http://en.wikipedia.org/wiki/Oligarchy
OT: awakening
a: I want a computer
b: what kind
a: am thinking maybe a macbook
b: kinda expensive
a: or maybe an iPad
b: ok
a: possible a mac mini
b: why?
a: or else the iMac
b: so you're loyal to apple
a: what do you mean?
b: these are all apple products
a: I'm not following you
b: apple makes all of them
a: they are different, competing products
b: all sold by the same company
a: that makes no sense
b: of course it does
a: you are saying that these distinct and competing products are sold by the same entity
b: duh
a: I'm sorry. I just can't believe that
b: have you considred a mac pro?
a: if only. but maybe the mac air is a possibility
b: you know who makes that, right?
a: let me guess .. your mythical "apple" company again
b: there's no fooling you
I'm offended by the stereotype. My wife and I are lawyers and make a pretty darn decent amount of money. But with 7.6% weighted average interest on 360k in law school debt, we have no money left over at the end of the month (if we're lucky), even on a 25-year repayment plan while renting a modest apartment. Interest alone is about 2200 per month. Dont worry though, 2500 of interest per year is tax deductible(although they're phasing that token out now for "high-income" earners like me).
But hey! We could do income-based repayment and owe the IRS like a million bucks 20 years from now. That sounds great. Oh wait, maybe they'll remove the tax burden on debt forgiveness for income-based repayers, since the "political will" for doing so will materialize right around year 19.5. Yeah, that's it! They'll remove the tax burden for the debt forgiveness. Oh wait... something tells me that "high income" earners will be excluded from that little election ticket.
Looks like we're just gonna have to rent (and work) for life. Awesome.
oh and we have one car: a prius, which is paid off. We better hope that things runs til we start collecting social security. oh wait...
Please go fuck yourselves. You are both members of one of the biggest rackets of all time, and you still cannot make ends meet? What the fuck are you doing whining on this site? Why don't you two go Edwardsian and sue obstetricians for delivering babies with cerebral palsy?
I used to think that way, now I consider (most) voters lower than lawyers.
One is the seed, the other is a leaf on the plant that grows from the seed.
I just this morning saw a lawyer charge a client for a document they downloaded off the internet (because I know where they downloaded it from) and checked off some boxes. This was maybe 15 minutes work. $20 grand.
So you'll forgive me if I am not in a lawyer-friendly mood today. The thought of a lawyer eating Ramen noodles for dinner is actually reason for a wry smile about now.
And I am NEVER in a mood to hear people bitch about their student loans. It was a LOAN, OK? Not a grant. That means you have to pay it back. You knew that going in so quit 'yer bitchin'.
Why don't you see if your law school will forgive some of that debt instead of taxpayers?
There is a company called LEGALBILL that essentially conducts audits of legal fees and ensures that they comply with norms/standards... might be a good firm to call.
PS, if you can bill clients $20k for drafting docs, then you probably have a company shell... that's been revised hundreds of times over its lifetime and made applicable to current law... just saying.
Not all lawyers are bad.
I know quite a few of them who are very principled and work their balls off fighting banks; often for very little or no money.
These people tend to burn out after a while because the banks have an endless supply of their own lawyers and money to grind them down.
The courts don't listen and are basically debt-collectors for the black hat bankers.
"Not all lawyers are bad."
I've heard that in Rhode Island all lawyers are buried 12 feet deep... because deep down, they're good people. ;)
In Rhode Island you have to be pre-approved by the Mafia in order to become a lawyer.
Newsflash: Judges are lawyers.
The primary directive of The Brotherhood is to place the interest (financial) of lawyers ahead of clients. The secondary directive is to protect The Brotherhood. The tertiary directive is to create animosity between clients.
Lawyers, like bankers, are self-regulated. Politicians are mostly lawyers, so it will remain so.
This is nonsense... there is such a difference between small and medium town practices and bigger city/uber corporate practices... There is definitely a "blue shield" for attorneys... in other words, you won't find anyone here that would take a malpractice case against a local lawyer... but, past that, we live and die on our success for our clients AND the price we charge them to obtain that success... this is completely contrary to propping up some brotherhood... or desperately trying to create animosity between clients. In smaller town practices, the folks who desperately try to conjure business and rub everyone the wrong way get shit on... we have the "gentlemanly practice" of law in these parts... and it doesn't get discussed, but it's how most of the country (geographically speaking) practices.
*** The tertiary directive is to create animosity between clients.***
My wife and I decided on an amicable divorce. We thought we could go "no fault" and use one lawyer. The lawyer I visited said the first thing we need to do is to have my wife picked up by the sheriff and have her fingerprinted and photographed. He was a real scumbag!
I always advocate for people to go this route. Lawyers are still necessary in the process to ensure that all matters to be decided by the court are decided in the way that the parties desire (draft of settlement agreement), but this route is typically vastly cheaper and easier on the parties. Dom Rel work can be horrifying.
If you don't want to go to court and testify, then you can probably do a divorce by deposition as well... essentially where your lawyer conducts an interview and you state all the grounds for divorce... then, something generic gets placed in the court document, e.g. irreconcilable differences, etc.
Lawyer work is all about providing value to the client... there are many ways to do it, including saving you from taking off work...
The point was that having my wife fingerprinted and photographed by the sheriff would have quickly ended the amicable part off the proceedings and this was what the shyster wanted.
Yep... and you went to a bad attorney... now, if she begins the escalation process, then there's likely no turning back... but anyone suggesting the first strike like that should answer for it to their governing organization... I would suggest contacting your local bar's ethics committee and filing a complaint. These types of behaviors only change when YOU decide they need to change and speak up... not just complain on a blog.
Thieving Bastards!!! Even here in Australia. Lawyers, politicians and banksters will always be my top three most hated, only the order changing from time to time.
Those are the folks working: Stealing from the poor, suing everybody, and making up burdensome laws and regulations that destroy the economy.
I'm sorry to hate you without knowing you. You're probably a pretty nice guy. But, if you didn't want to be universally reviled, you should have chosen a different profession. Most people consider lawyers to be leeches and ambulance chasers that don't help improve society, only make a buck off of it. Perhaps we're wrong, but then again, almost all politicians are lawyers. I think there is something in that.
The founding fathers were lawyers... civil rights... second amendment defense... first amendment defense... again, all lawyers.
Lawyers only operate within the confines of the law... ergo, if the law allows for leeches, then maybe the law needs revision. Alternatively, maybe the policy behind the law is perfectly sound and you simply don't understand it... Plaintiffs attorneys are a small % of the pool... hell, I wouldn't doubt it if the vast majority of lawyers weren't even lawyers proper anymore... just in-house counsel... compliance managers... and the like.
I'm guessing that most of your hatred is better directed towards the legislature and not the judiciary. While most of the legislators are lawyers, they're also lawyers that couldn't hack it in private practice and are now on the public dole... so keep that in mind when painting your broad brush. [they have law degrees, but never really practiced enough to be considered lawyers]
this lawyer thinks a lot of the "practice" is out of practice. It comes with some bizzare manifestation that I think comes out of law school .... school that was unlike any other school I had ever been. Despite the excellent "principles" and titilating history lessons, law schools somehow evolved to teach the students to pretend that they know more than they do, to BS really. In the end, that's a pretty bad idea. Like others have said, lawyers, as an abstract principle, are absolutely necessary to fight the good fights, but, sadly, like most other "systems" it has become broken down and corrupted. A lot don't give a shit anymore and will do anything for money.
Having litigatied in front of judges for 23 years, I would not absolve the judiciary either. Just look at SCOTUS - they have completely whored out on multiple principles including US backed kidnapping and murder, corporations as citizens, the patenting of food, and holding people forever without cause - which if I'm not mistaken, is the absolute building block of DUE PROCESS. Unfortunately, with those bastards as guidance, I am starting to see this affect the day to day behavior of low level judges and low level executive (cops). Not good.
Mostly true... I think that the issue with "lawyers" can be said for virtually every profession though... there has been significant dilution in virtually everything due to colleges being handed printing presses (degree factories). In the old days, all you had to do was pass the bar... now you have to get a degree and pass the bar... ridiculous... nothing but rent seeking.
I don't absolve the judiciary... it's just that most of the things that the public complains about have either already been addressed (torts) or are outside the judiciary's abilities to change (statute). There are always things to improve with every profession...
Most of the public's hate of the lawyer industry is because of basic equity theory and the perception that it's a get rich quick scheme... and, in years past, that might be true... but now, it's nothing but a ticket to debt serfdom and at least a decade fellating some asshole so you might be able to learn the profession, since law school is a half step beyond a glorified babysitter.
The entire profession needs to go back to an apprenticeship/clerk system (as do most) and cut out the fucking suckubus educational infrastructure... hell, I'm not sure that you couldn't learn everything there is to learn in law school from a youtube lecture series... law school is good for appellate practice, but for the vast majority of real world applications, it is completely fucking worthless... although, if you go in state, you'll make plenty of contacts, which is what it's all about anyway.
But, in the end, I think what has happened with the lawyering profession is the same as all others where there is a mad dash to sit on your ass and collect rent... the practitioners suck shit through a straw and the trade gets crowded and the hopes and dreams of riches turn into stabbing clients and everyone else in the back.
As old time cops used to say, "tell your troubles to Jesus".
First, why the fuck did you marry a lawyer woman... geez. Be sure to get fitted for your saddle... cuts down on the chafing.
Second, if you drown yourself in real world debt, then you can forgo your student loan payments and eventually be discharged... sounds like you're doing it wrong.
Third, I'm not sure you're going to get much support here with a $360k party binge... especially when contemporaneously bragging about your income levels. If you can earn enough income to where your phase outs are putting a glass ceiling on you, then you probably earn enough to be paying your loans off living a solid lifestyle. Essentially, you're complaining to us that the years of slavery you accepted by taking on that debt are more than you want to bear... well, you made the bed.
Fourth, my J.D. cost ~$25k for in-state tuition... what the fuck were you doing/thinking?
Fifth, you might consider moving to a place where the cost of living is less... your "net" pay (after living expenses) is what's used to repay loans.
Man, we are just crying a river for you two rentier parasites.
@oneshot .... quit yer whinning and get back to work.
Well, you aren't very good lawyers if you haven't figured out yet that debt is a "color of law" sort of deal. You've been hoodwinked like the rest of the nation. The US has been bankrupt since 1933. There is no money.
The UCC has two options for transferring liability: pay with cash or discharge with your own promissory notes. You better file your UCC Financing Statement and terminate the Indenture of your NAME with the US Treasury. You don't qualify to manage your own commercial affairs in your present status. Imagine discharging all your debt with your signature.
Note: This action could screw up your career. I'm sure they don't take kindly to lawyers who took the oath of honor of the BAR and then learned the law so well that they shafted the financiers of law schools.
You can let chumba spew this nonsense, but I can assure you that you're picking up the torch for a cult... and you will get shit on in any court where there is any rudimentary level of opposition.
PS, the fact that you keep mentioning this "oath" is proof that you're out in left field... do all of the lawyers who are kicking ass at foreclosure defense break their oath? What do you think is happening to them?
Anybody else on here living in the burgh? Just started to look for a new place to rent, currently living in the bloomfield area and it seems like prices/availability have gone haywire since the last time i looked in 2011. Thoughts?
Fed induced inflation?
well they are the root of almost all inflation, but to be more specific it's more like healthcare, higher ed, and natural gas induced inflation. Anybody here work in the natural gas field? Stoneliegh at the automatic earth feels its a bubble and consists of alot of land flipping and won't pan out like you hear in the news. Would be great to hear the opinion of someone with some exp. in the field.
Buy an RV or large trailer with bump outs. Pay someone to move trailer, do not buy double rear axle pickup truck.
Then you can take your "home" with you based on where your particular skills are desired.
I always wanted to be trailer trash. Is that a skill?
<Or just an avocation?>
:)
Lol... Not 'Trailer Trash'; just a 'Housing Arbitrageur'...
Inflation in the things you need, deflation in the things you want.
<Mission accomplished.>
<Inflation in the things you need, deflation in the things you already own.>
I was thinking this very thing yesterday. Anything we could use to better our life are getting deflated, things we need to survive are getting inflated.
I live about 15 minutes from Bloomfield. If you want to chat feel free to email me. Tripleswag333 at gmail
That would be called UPMC and the legions of nurses and doctors that need to live within a few miles of the medical centers.
Shadyside has gone full retard.
I agree, its been obviously coming for some time but seems to have gone full retard this year so far. I try to argue that once the gravey train of money in those industries takes a dive like housing its gonna be a shitshow. Nobody listens unless its happening to them at the current moment. I found this helpful. Not to mention the city is still bankrupt, public education is a shit show, and the PAT authority is only kept on life support with a nice drink tax and asks for more money every year. But you know, those problems will take care of themselves, now is a great time to buy. The future is so bright i gotta wear shades
http://www.trulia.com/home_prices/Pennsylvania/Pittsburgh-heat_map/
Bloomfield is still controlled by what's left of the Mob, RHI. No street crime, but high rents. It's a trade-off.
Move down a few blocks to Oakland; lots of street crime (always just 'off campus' so it doesn't show up in the university statistics so that sap parents can still delude themselvesinto sending their 18 year old daughters there)...lower rents, just have to put up with a bit more college-y dilapidation though.
The sights are much better on warm spring days, too.
Will I did work 3 weeks last month, why yes business is booming!
Why, just last week I had a day where I almost got in a full 8 hours. Of course lunch made up 4 of them. WINNING!
Perhaps Rick also should watch here http://confoundedinterest.wordpress.com/ :-)
Imagine what it would be if the banksters weren't witholding inventory.
Maybe a bottom 1 year ago instead of a bottom 5 years from now.
Sadly, rental inventory is skyrocketing, as it's about the only form of private construction left that has access to credit. Or should I say, "is still in demand in securitized paper form?"
All of the small landlords with old units are going to be absolutely destroyed.
Which is why as a prudent landlord (even the little fish) rolls out of properties... There's been a mad dash for yield by buying up all the shitbird properties, not sprucing them up, and just renting them to indigents... the return is OK outright, but not when risk and work (dealing with the people) is factored. These folks still holding the bag are going to get murdered by new inventory. It's just something every landlord has to be weary of and to contemplate...
of course, in modern america, all prudence will be punished... so, I'm sure they'll figure out a way to fuck you for getting out of the way of the steam roller. Maybe a government for REO renovation tax credit? Bring us your desperately needing bulldozing houses and we'll give you $100k/pop to throw some paint and new carpet in... hedgies, buy all you can and we'll reward you.
What's truly maddening is all of the motivated "public servants" driving the fucking steamroller in the misguided belief that they're saving the world from itself. They attend all of these nation-wide conferences where they get their marching orders (ala "line up here if you want assistance from Uncle Sugar"), then they return home and start the wholesale destruction under the guise of "New & Improved" backed by the mandate, "WE HAVE TO DO SOMETHING!!!!" Meanwhile they get an "Atta Boy!" for bringing in additional cash flow.
Guess what? Not a single one of these people have the slightest idea about what it is they're really doing. All they know is they constantly need to find new gimmicks in order to appear worthy of their job. Because, according to them, we cannot survive without their guidance.
Idiots.
Don't tell the other folks around here that their civil servants are idiots... it will ruin the conspiracy circle jerk.
The reality is that this is EXACTLY why government must be limited... moral hazard knows no bounds and, once set in motion, cannot be stopped... hence why it always ends by running out of resources. If we could keep it afloat with our imaginations, then the money conjuring would never end. It feeds on misery and broken dreams and there is a lot of fuel left.
This is why I applaud those entrepid individuals with the balls to take adverse possession on these bank properties, rent them out to indigents, and pocket the cash. Lot's of legal landmines there, but I hope for them all to be successful. screw the banks!
Adverse possession cannot arise from permissive use (practically speaking). These folks are simply squatting/holding over... big difference. I applaud their strategic defaults, but I also don't see them doing anything to ensure that banks don't receive bailouts... in short, you end up with a quid pro quo arrangement... you let us stay in these houses for free and we'll shut the fuck up about it. [never having to accept that they're deadbeats and bought the dream of illusory wealth, i.e. without production].
For the rest of us, we find it a peculiar arrangement.
Those I refer to have no permission. They saw a house sitting empty and notoriously occupied it, or rent it out. Some have done this on a multiple units. They collect rents till the game is up I guess, though I don't know much about it.
If so, that's pretty enterprising. I'm guessing that they'll get shortchanged by their respective legislatures though (NOTE: NOT THE JUDICIARY BECAUSE THIS IS A CHANGE OF THE COMMON LAW), given the recent trend to increase the requirements for adverse possession, tacking on "paying property tax on the subject property or a contiguous property" before one may adversely possess. You've also got the issue of color of title... In the end, you're probably right that they just collect the rents until getting called out... however, they'll have some liability to the tenants depending on how their leases are arranged... and I'm guessing trespassing and a clawback of all the rents collected from the bank... but interesting nonetheless.
At the end of the day, the policies underlying adverse possession, e.g. putting land to its best use, are promoted by giving title to the squatters... but don't think for an instant that the law will favor them... equitably speaking, it's a no brainer... but you can only invoke equity if the law is silent on the issue... and it rarely is. As stated many times on here, if you control the legislature, then you control the judiciary.
Anyone have a recent number on the total amount of vacant bank owned houses/condos across the country?
Last I heard (from Greg Hunters blog) it was 8 to 16M of them.
Realestate broker won the auction on the foreclosure accross the street from me (fifth one this year), she will have a tenant in by months end. Four other "bank owned" foreclosures on my block have been vacant over the past year, grass, and uncollected sales circulars growing in the lawn at an exponential rate. There are only twelve houses on my block.
Imagine what it would be like if Fannie and Freddie didn't hold almost all the paper...
It seems that because we are debt slaves we are essentially renting our lives from our masters.
<Soma anyone? I'm out.>
Soma smoke a mirrors to relive the last bust all over again. When you take a hammer blow to the forehead, why does anyone want to take another? This is what you do to livestock. Hang em by their feet, pull back the trigger and let the bolt fly.
Moooo !
That, and they are stealing our lives through taxation and regulation.
Oh in the meantime gold down. :-)
Yet physical demand soars worldwide.
I sometimes wonder if my fellow Americans were transported from another planet when I wasnt looking.
It's not an issue particular to americans, per se... more of an issue with people not being intrinsically motivated to see past their noses... it isn't until a crisis hits that the vast majority of folks are called to action and can be bothered to be prudent... unforunately, sometimes it's too late... which necessitates beating the shit out of the prudent guy and taking his stuff. [thanks nerd... *ORGE VOICE*]
It's not that folks can't grasp the concepts... they're really fucking simple concepts... it's just a question of incentivization.
*OR* The purchasing community's wounds are still fresh from the cauterization of value plummeting in the summer of 2007. Even if they are sheeple, they are baaaahing anxiously, as they should since there is a wolf, and are wolves in the pen. (I can't say they are wolves in sheep's clothing because they seem pretty transparent to me... *cough Dimon cough*)
Real housing growth won't happen until people feel that that the books aren't being cooked and the markets aren't being manipulated. We may know it here as ZH'ers, but we don't represent the base data for these statistics.
2 years of real growth in the housing industry, the DOW solidly at 800, and gradual inflation setting in from the natural causes of printing madness will cause home ownership to rise. Nothing else.
The true organic first time buyer, aged 25-40, good paying job, savings to meet down payment criteria, etc etc DOESN'T FUCKIN EXIST anymore.
Thanks fascists and marxists, and you too Obama, whoever the fuck you are
Not that they don't exist, but they're choosing to rent :-)
[although, there are few of them].
Today, instead of being able to save for the 20% down, they're having to try and maintain their credit score and employment status in order to qualify for an FHA loan.
"I sold my soul to the company store."
In other news, I can't remember the last time I met someone even looking to purchase.
I'm about to sell my house (been threatening for too long). I'll have to pay the deadbeat buyer's closing costs... and they won't be able to put any money down... and they'll probably want allowances for this or that... but they won't even bother to haggle over the asking price.
So, not only do you not have to put anything down... you get the seller to pay your transaction costs! UNF.
heck yeah...that is my new plan. got out of the housing 'game' in 2005....now I am thinking about getting back in.
gonna buy a nice place, put down 3%, let the seller pay closing costs (but I will hagle on the listing price just to be an *ss about it), then live in the f*er. if i don't need it anymore, then i will try and sell it. if it doesn't sell, then i will just stop paying for it.
its a very easy and simple strategy to follow.
oh yeah, this is going to be my 'city house' so I can cut down on commuting/work related costs. my country house/farm(52 acres) will be completely paid off in 2 years....
its a game, play by their rules and F the f*ers.
The Fed's money printing is distorting all markets. Regular people are not participating in this market rise. The banks are making profits on both the paper and now the actual real estate.
http://dareconomics.wordpress.com/2013/05/07/around-the-globe-05-07-2013/
Has a Rentier ever repaired even a small leak in a roof?
At least with 'rent-to-own' in the ghetto, you can get a $500 TV for $4Gs...!! Now, you gotta live in a 'hedge fund' rental.
Rents are actually dropping in my neighborhood. There are so many empty houses and apartments now it is a tenant's market. It's a crowded invesmtnet now....oversupply....I would not be surprised if Wall Street already sees this coming and is tyring to dump those packaged up, AAA+ rental tranches on some sucker. I mean if I see it they surely see the disaster coming.
Don't worry, your local rulers will ensure this market aberration is corrected via inspections, condemnations, and any other tool they can find to keep affordable housing off of the market.
In other words: marginal housing will be made sub-marginal. As a bonus, the same people will spend millions in an effort to create affordable housing. I saw a property recently that was built new by Habitat for Humanity that was occupied for five years by the original "owner" before they turned it back over to Habitat. It turned up in the news because it was being renovated by volunteers for the next "owner."
How saddling a low-income person with a 30 yr. mortgage for a $100k house can be considered affordable is beyond me.
Right, oversupply.
That's what I think I'm seeing. And it's thanks to the Fed, right.
I mean, you can put $300K into a modest two unit duplex and probably net $10K per year after taxes, maintanence, etc. You would need to put $600K into the 10 year to earn that much. If you're willing to do the work, you can get double the bang for your buck with a couple of rental units.
What?... This bullshit isn't OBVIOUS?
~~~
It's what the whole JOOBUCK [print money out of thin air] system was designed to do in the first place...
- Collect deposits
- Lever those up to infinity [& call those 'assets']... Not to mention, layer upon that, after a bit of maturity, an entirely exponential heap of derivatives created out of thin air...
- Bump up the aggregate debt in an IMMEDIATE [most simplistic initial] maneuver by financing [& instigating, via false flag, for that matter} WWI, WW2, Korea, Vietnam, War on Terror... To name a few...
- Blow asset bubbles in times of need...
- Contract asset bubbles in times of need... [whereby the end result is CONSOLIDATION into the hands of pre-selected beneficiaries]...
- When the joobuck system was finally ready to implode... Have your lieutenants in place, by way of the revolving door process [which you co-erced into existence by way of bribery], to cry 'TANKS IN THE STREETS BITCHEZ ~ SOCCER MOMS, THINK OF THE CHILDREN'...
- Bail [your own TRIBE] out...
- Create a window of suspension of disbelief whereby you could BUY THE COUPON & kick the Ponzi forward out of FEAR...
- skim the excess off that 'monetization'...
- Buy [for yourself] PHYSICAL with the proceeds...
- Close any [& all] windows of redemption... [of paper assets by unwitting stooges]...
- leave... in your wake... a bunch of debt serfs... 'RENTIERS' [as Rick Santelli mentions]...
- Laugh all the way to your private island...
- Collect your rental payments from your island... [While sychophant/Preatorians, like Las Vegas Dave, clean your pool]
~~~
Welcome to JOOBUCK Amerika people!
Note: This IS NOT the first ride on the merry-go-round for this SYSTEM people... The 'beta-project' happened with the BOURBONS... Then later with the WINDSORS... [Fortunately, for the WINDSORS, they escaped with their heads attached to their bodies]...
Is Rick a closet Tyler? Nice props none the less ;-)
Rick's good but he is not Tyler good.
The USA is renting the Free Shit Army. So, yes, a nation of renting.
Obama may be a socialist, but he is arguably the most corrupted politician ever to be president. And for that the homeowners have paid.
Exhibit A (as if anymore exhibits are needed): Commerce Secretary appointment Penny Pritzker. She’s a major contributor to Obama’s campaign fortunes, that’s a given, and just one more Jewish banker to manage the U.S. economy for her benefit, but Pritzker is much more.
She comes from a position of buying a president after she has made a fortune using government policy to steal from homeowners and savers.
Columnist Robert Scheer has the gory details today in Obama Did It for the Money:
“No biggie. In announcing her appointment, Obama joked, 'For your birthday present, you get to go through confirmation. It’s going to be great.' It’s the same sort of joke he could have cracked in appointing Citigroup alum Jack Lew to be Treasury secretary.
“It is deeply revealing that in the midst of the continuing cycle of misery brought on by the chicanery of the financial community two key Cabinet positions dealing with business practices will likely be occupied by people who specialized in those financial rip-offs.”
Continues Scheer: “But don’t sell the lady short; she wasn’t swept along on some kind of celebrity joyride. Pritzker, the billionaire heir to part of the Hyatt Hotels fortune, has long been first off an avaricious capitalist, and if she backed Obama, it wasn’t for his looks. Never one to rest on the laurels of her immense inherited wealth, Pritzker has always wanted more. That’s what drove her to run Superior Bank into the subprime housing swamp that drowned the institution’s homeowners and depositors alike before she emerged richer than before.”
http://www.truthdig.com/report/item/obama_did_it_for_the_money_20130507/
why go through all the trouble of buying homes and renting them out when you can just buy stocks?
The "Rentier" model has always been a central part of Feudalism. Instead of 'owning' (free & clear), you now pay 'rent' and 'fees' for a whole financial ecosystem:
Rent: Home or Facility Rent, User fees, Condo fees,
Taxes: Federal, State, City/County, FICA, UI, Solidarity (for Germans), Vehicle, Property, Sales
Fees: A list that's a mile-long. Both public and private (Agent, Club, Condo, Member, Parking, User...) In crime-ridden Feudal-War-Lord societies, you pay Extortion/Protection, 'Expedite' (Bribe) fees.
Licenses: A list that's a mile-long. Both public and private
Dues: Membership in a Church, Club, Organization, Society
Donations: Charitable, Club, church, Organization, Political, School, Society
There is a veritable 'army' of Rent, Taxes, Fees, Dues, Donation collectors that never existed in the centuries past, or even in recent decades. ---> LESS IS MORE. MORE IS LESS.
The clever have figured out that it's a lot easier and faster to play the Wealth Collection game than the Wealth Creation or Building game. Note the size of the Financial Advisor industry -- which even caters to Contrarian/Libertarian clientelle ("there's something for everyone" mindset).
The cleverest of them all have figured out to position themselves and to control the Paths and Nodal points of wealth flow. Enter Bankers, then Central Bankers.
When you pay Rent, Taxes, Dues, Fees and Licenses, you are part of the Ruled. You are part of the Rentier (polite for Serf) class, not the Ruling class.
Looking to relocate to MD/DC/VA area.
A lot of condo's and townhouses for sale, $59,000-$99,000.
Only problem is the monthly fees are $375-$400 per month! (or more!). Taxes out the ASS! ($100-$125/month).
"Utilities included" which means you are paying for the idiots who run the heat at 75 degrees and air conditioning at 69 degrees, rather than the other way around.
"Investors" probably buy the places, rent them out for $1,000/month, rented by Section 8'ers or S.S. disability recipients.
And you thought the FHA/Fannie Freddie/MBS purchases were a scam!
House of cards propped by the FED, fewer real owners.
Speculators and Serfs!
PONZI!
If owning was that free and easy everybody would own.
Sometimes renting makes sense. I prefer to stay in different hotels than own a beach house (in one place). There are other reasons too.
In three years time, Blackrock will be the biggest slumlord in the country.
They are in the rental business while they wait to "flip" those houses.
They will spend next-to-nothing on maintenance and upkeep.
When they are unable to "flip" them and as a result become long-term owners, the neighborhood becomes a slum.
"Hey, I resemble that remark!" - Many a landlord in Chicago, Detroit, Buffalo, Cleveland, Toledo...
...Camden, Newark, West Philly and Bed Stuy...
Ok...what strategy is GS using to short the Real Estate Market? Puts on the Case/Shiller Index?
I love how RS comes out on national TV and says he reads ZH. Brilliant.
Damn ! I have some mixed emotions about seeing the Hedge displayed so prominently on CNBS. I guess it's a good thing that the Hedge is pushing through the noise, but I sure hate that channel. Kudos to the Tylers.
Don't worry Doc; as long as they continue to take the level of abuse and heaping scorn they deserve here, they won't want to send too many eyeballs this direction.
I hope that somebody watching RS hears that and thinks to himself "WTF is ZeroHedge?". Then he goes and googles it and has his eyes opened to the truth.
I found ZeroHedge one day when Glenn Beck referred to it on Fox News. Is that bad? Just lucky I guess because I was flipping through channels and usually never stop for more than a minute on Fox, CNN, BBC, etc. These days they get none of my time. I have far more trust in RT.
In perfect Krugmerican fashion, just think of the building boom when all the properties must be bulldozed from neglect by renters that don't give a shit.
I think there are seven homes on my block that haven't had the grass cut yet this spring.
Eventually the Renter class will eat the Rentier class. But let's not get ahead of ourselves. One pitchfork at a time, guys.
WTF is that supposed to mean? You got it in for anyone with more than you have? I take great care of both my properties and my tenants, some people don't want to own a depreciating liability that some asshat calls an investment. BTW bring a pitchfork onto my property and i'll put something hot between yours and anyone else's eyes, filthy socialist.
No, Winston, your laundry rooms are smelly.
Good job Rick, and ZH.
Awwwwwwwwwww!
Tyler gets a mention!
You can't flaw their business plan. Or their success with it.
Before all this printing started I could get a whole square of roof shingles for $40-45. Now it's $30 for a third of a square, but inflation is subdued right Benny? You hump...
Doesn't add up. HD on a tear. LOW not far behind.
Those should be lagging if what he is saying is true - yet they are at or near 52week highs.
Your comment seems to indicate that you somehow think fundamentals matter or something. Think again.
Haven't you heard? The recovery is here, regardless of sales, incomes, or anything else.
Besides, Lowe's and Home Depot are getting rid of employees in favor of robot registers - that all the sheeple seem eager to use for no discount whatsoever.
Baaahhh!
stock prices are "supposed to" reflect future expected activity, not what has already happened. If and when the activity is widely known, the price most likely will lose initial directional momo.
Price typically reflects information 3 days forward. Look at a move, and then go three days forward to check the information flow and you will know why the move happened. getting the news late is fine.
Many are deceived to think that information that day was the reason for the move. A few days after in the news feed the true source of the move will be revealed. Be right, not early.
It is a bit harder for me to fully understand the stock price because corporate buybacks seem to be supporting the price coupled with my assumption "pool operators" are pushing the price.
Fools rush in as pools glide out.
There are also good stocks and good companies. Knowing the difference is vital to market speculation.
who will remodel more: a homeowner or a rentier?
fixed
The housing market is alive and well in the Bay Area, who the fuck cares about middle America?
Keep falling for it realturd....
Greenspam + Booosh + Derbanke + subprime = "homeownership rate fell to 17 year lows"
i.e. the opposite of what they said would happen.
Help me out here. I just spoke to a friend and I don't understand something. He's behind on his mortgage about three or four months and not for the first time. But he tried to pay one month's worth last week. But IndyMac now says they have the right to refuse partial payments and refused the money. WTF?
It's best for him to send a full payment and do it via Western Union. Partial payment (less than 1 month mtg) will go into a account and wait for enough to apply.
If you mean the bank want all monies, he should gather up all past due and send it via Western Union. If he wants to stay in his home, he should pay his mtg first. The rest can wait. I had this situation and sold, borrowed, got strange roommates, whatever it took. My situation was with Chase. Forebearance agreement should be requested if he is in a position that is leaving him with not enough. Temporary fix but he still needs the money after 3 months.
shhhhhhhhh santelli is one of the tylers.....
so my hunch is that home owners not remodeling is like because they either live in their perfect home or they don't got money to remodel...
too simple?
:)
the art of war is DECEPTION.
from my observations as a speculator:
society is experiencing "information overload" with phones, tweets, IM, email, etc. Most people DO NOT know how to manage information. Most people can only process the TANGIBLE. People are very operational.
However, it is the UNSEEN, the INTANGIBLE that has been and will continue to be more of a force that ultimately molds, guides, develops that which is ultimately seen. By then, the best risk related expected return has been captured - "What everone knows is not worth knowing".
THE POINT:
The information complexity acts as a barrier to entry for the masses. The masses are overwhelmed with life. They intuitively suspect the system is rigged, but the information complexity presents such a barrier to entry that the 99% will not charge the castle.
an emerging class warfare I am noticing is between "service workers" and "knowledge workers". social class may be less about financial status, but more about intellectual status. Zero hedge is an example of a certain social class possibly bound together by certain beliefs.
It is sad that so many are being robbed blind by those who use information complexity as a warfare tool. However, this has been the case throughout history.
Zerohedge adds value by providing information.
Not everyone can win through entitlement, in fact, ultimately, humility beats entitlement in the long run.
This post may not seem to relate to the Mortgage Fraud matter, but it attempts to highlight the strategy of deception that is launched by knowledge workers against the service workers and larger population through the use of complex information and noise to HIDE signal.