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The Home ATM Is Back: HELOCs Surge To 2008 Levels
While the memory of a financial market participant can be measured in nanoseconds, it appears that the average American has also become goldfish-like as RealtyTrac reports a total of 797,865 home equity lines of credit were originated nationwide, up 20.6% from a year ago and the highest level since 2008.
As Jim Quinn so eloquently notes, after a two year Wall-Street-engineered fraudulent boost in home prices in the exact markets that led the bubble in 2003 through 2007, the delusional dolts are now acting like the increase in home equity is real:
Metro areas with the biggest year-over-year increase in HELOC originations were Riverside-San Bernardino in Southern California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase), and Phoenix (60.1% increase).
RealtyTrac's Blomquist exudes:
"this recent rise in HELOC originations indicates that an increasing number of homeowners are gaining confidence in the strength of the housing recovery."
Here we go again. After a two year Wall Street engineered fraudulent boost in home prices in the exact markets that led the bubble in 2003 through 2007, the delusional dolts are now acting like the increase in home equity is real.
Do delusional idiots congregate in California, Nevada, Florida, Arizona and Ohio for a reason? The morons in these markets are ramping up new home equity lines of credit at a 60% to 90% pace over the prior year.
It’s as if the lesson of the previous bubble was completely forgotten in a couple years.
Are these people really that dumb? The housing market started rolling over six months ago. Prices peaked, new single family home sales peaked, existing home sales peaked and the Wall Street investors are exiting stage left.
Now the very same Wall Street hucksters want you to borrow against the artificially inflated value of your house and spend that money on more shit you don’t need, or to lease a brand new Escalade.
It’s called the American Way. So it goes.
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i wouldnt buy a house now...
i wouldnt buy a house now with your money..
now is the time to be mobile with places to hide...
frickin MBS all over again...
Helocs are not coming from delusional people; they are coming from desperate people. They need the cash. Folks are broke; of course you use the Heloc.
and of course they have to promote HELOCs again: How do they continue with the greatest transfer of equity in history if the plebs are dissuaded away from prudence?
Bankers prepared for jingle mail again?
Turning down a 3.75% fixed for 30 years is like a 18 year old turning down a whore with her legs spread wide open.
Do you know where I an get one? either one will be fine.
VA loan.
Are banks again lending to anyone w/o income? If not, then they're just 'dolts'.
On second thought, it could be both: broke dolts.
Bankers are many things, but dolts they are not.
Each loan generates a fat series of commissions vertically and horizontally. By the time the loans go belly-up, the loan officer (and usually his superiors) are long gone (along with their bonuses and commissions). The bank may or may not get bailed out but who cares? They'll always have the Shareholder Sheeples to shear.
As long as there is no risk for them personally (or potetnial jail time) they will continue the zero-down, subprime loans and HELOCS.
As my own banker says, "There's never been a better time then now to be a banker!"
We've all witnessed that to be true.
Yep the whores are busy these days.
Thanks to Eric bankster-dick-Holder and Obankster-cock-sucker-in-chief.
One of Obama's main functions for the banksters who paid for his campaign is as a diversion, a lightning rod.
For us.
Hating Obama is a waste of good mental energy. But I admit it can be hard not to. Especially for those of us who helped get him elected.
Not your grandpa's bank, for sure!
Helocs are like holding a bag of heroin in front of a guy in day 5 of withdrawals! He sees the promised land right before his eyes! Debt, money from home equity, it's so easy to grab, spend it, live large, or just live, whatever. It is too easy to get, and people forget the long pain of payback!
What a grand fucking idea. Now that I have no mortgage, having scraped saved and forgone all the good shit for so long, why don't I just go out and borrow as much as can from as many different lenders as I can (thinking rehypothecation of the good old roof over my head) take the cash and invest it in stawks since they're gettin' really cheap. What a great idea!
Now, betcha some folks is looking at the same idea s a way to pay for college, or put food on the table.
It's a shitty world out there, kids.
Talkin' about kids, talking to my kids friends, bunches of 'em are sayin' they're thinkin' of not having kids because it's way too fucked up and getting worse.
What the fuck, go ahead, borrow all you can, live like a hedonist and be happy in the time of Ebola.
Maybe a nice Airstream. Start out in Las Vegas and disappear off that freeway with the exit to nowhere.
Hell, if they're just givin it away, why not. One can always just give the cash to Joe Scaboli on the down-low, nmewn disappears forever and the house goes back to the bank.
Kinda like what the bank does when they get in financial trouble.
I like it!
Didju know that that freeway exit to nowhere to which I referred really exists (well, did many years ago) turns into a dirt road and if you followed it for a long long way, and I maen nobody about, just a dirt track, you get to a place with a whole buncha fences and signs that say your sweet little ass most definitely should not be here as in here, right here, where you are reading this sign, property of the us goobermint?
Very creepy.
But yeah. Betcha you could buy an acre out there and be left alone, pretty well. Just you, Molly the 2 toothed semi-diseaed nymphomaniac hooker form the Bunny Ranch, a couple tubes of KY and that old still you've had in the weeds in the back yard.
Didn't the Feds own the Bunny Ranch for a time?
Mmmmmm, Airstream....
Sounds great; where do I sign up ?
Not on the list!
http://money.cnn.com/gallery/luxury/2014/06/11/richest-zip-codes/19.html
Do as they do not as they say.
Lol
• student loans
• consumer credit
• EBT
• subprime auto loans
• 120% LTV house loans
Long, water cannons.
When will Joh Q Debt Pack realize that the time to defalut is now? No need to wait at 4 in the morning to buy cheap Chinese shit at the mall on Black Friday...just fucking shotgun your mailbox and rip the phone out of the wall.
I met you about 12 years ago just outside of " Hogs Breath".
Yeah, I remember. You were the guy with the rotary phone and the bad aim.
"Nuh uh..... In all the excitement I've forgotten whether I spent 5 or 6 rounds. You remember? I sure don't. Go on punk, make my day."
Amazing that film, Dirty Harry. In the middle of the Vietnam War protests, students being shot by the National Guard at Kent State, cops bashing all the long haired hippies, America Love It Or Leave It, when you could still get jailed for wearing an American Flag print tee shirt, along comes Clint Eastwood with the movie Dirty Harry, carrying S&W model 24(?) .44 magnum revolver with the 11 inch barrel (?) and he's blasting the piss out of people, violating just about every Constitutional right in the land, and the student body at my college, all long haired communist sympathizers, later to be Progressives BTW, striking to close the university, stoned out of their gourds, are standing up screaming for MOAR blood and shootings, killings of graphic detail, charged, encouraging a rogue cop to shoot the "bad guys".
Pure Blood Lust, just like the Colosseum!
Fucking amazing!
The hippy dippies rooting for the cops, demanding blood.
The hypnotic effect of Hollywood.
Studs Turkle?
Nope! I was the guy that stayed out of the picture. It was for my girlfriend. You were in the alley, with a few friends. You were a perfect gentleman.
I had just flown into San Luis Obispo, to pick up my car. We drove it to Monterey, and had fun in Big Sur, Pismo Beach.(love that fireplace in Big Sur lodge, and the huge deck out back. ;-)
You were a perfect gentleman, over by your rentals/condos to the right.
I met the real Clint Eastwood. He was a perfect gentleman.
I have the pictures at Hogs Breath . The 3 ladies we met were celebrating thier Mothers birthday. They offered a room, but we had to drive back to our B/B in Cambria.
My memory must be getting rusty.
That's because you're an imposter.
I've caught you lying 3 times.
I force fed you information, and you sucked it up !
Now I can find you!
mod 29, 8 3/8
i really enjoy all the "we can show you how to flip houses" commercials i hear on the car radio as i drive past discarded mattresses here in the bay area streets...
party like its 2006...i laugh to keep from killing bankers.
Yeah but, which side of the Bay?
"Chocolate rations are up!"
Party like it's 2007, Bitchez.
get down, get down,
Nice Booty.
Ah, yeah
(is it so wrong that I'm deriving a great sense of pleasure in seeing the lemmings head towards the cliff? Better than anything on TV. God, stupidity has never been more entertaining in the history of mankind!)
Here we go again! Only problem is this time the FED has a 4.3 trillion dollar balance sheet and already blown their load and the Federal Government is now close to 18 Trillion in debt. We have nearly 60 million Americans on food stamps and nearly 120 million on some sort of Government assistance. Not to mention the 1.3 Trillion dollar student loan debts and the 100 million subprime auto loans that will soon fold... Great job Keynesians!! What a bunch of fucking idiots... I always like to go back to this quote from Peter Schiff in 2009... Seems like he has always been right...
For those market boosters who are prattling on about the possibility of a "jobless recovery," I offer an invitation to join me for a breakfast of "fat-free bacon," "eggless omelets," and "no-carb bread." As unappetizing as such a meal may sound, it would nevertheless offer more substance than the oxymoronic concept of an economic resurgence without job creation.
Peter has a great new offshore bank for you, great returns! Allen St..., I mean Peter, has a 100% deposit ratio and would never be wrong!
Not to mention, everybody and their brother is getting back into 'house flipping'. Once my mailman tells me about the house he is flipping, I will know that we have reached the top.
Look out below....
The FINANCAIL TERRORISTS= THE FED and all the BANKSTERS facilitating another credid speculation bubble need to be BROUGHT TO JUSTICE
Sure, to pay for healthcare premiums and college tuition.
Almost all those locales are the same that the Dems in 2008 made a national issue out of a handful of housing markets, and did collapse the financial markets and economy (Not saying it wouldn't have happened, but Schumky Chucky Schumer of NY started it causing the run on the Indy Bank).
All these HELOCs flying off the shelf and Helicopter Ben can't get a REFI?
Next your going to tell me something crazy like... the Clinton's left the White House and did not have two nickels to rub together they were so broke.
Helocs in these hyper markets is another mass theft by 'main street', and again it is the income TaxPayers who'll be whipped mercilessly until they scream for Moar.
So, ... who exactly are these Main Streeters?
Tyler wrote: " ... the delusional dolts are now acting like the increase in home equity is real"...
In my town, the primary reason folks are borrowing against their house is for "home improvement", aka deferred maintenance.
I believe this is happening because while their income may look to be stagnant, in reality because price increases are being systematically underestimated by the CPI. Because the reality is half the folks in my neighborhood can't really afford to own a house anymore.
That's a problem.
May I ask what area and are those neighbors losing household jobs or did they stretch just to get those houses?
I don't know for sure but I see many people losing homes to foreclosures taken out for "home improvement" now that had been in the family for 30, 40, 50 years, and my sense is that they used to be able to afford the upkeep from current income, and perhaps revolving credit. They no longer can. During the height of the "recession" damage was accumulating and now the value of the house is back up theyu can borrow on it to fix the roof, the window sashes, the leaky basement and failing sceptic system. And that's how they get in trouble.
The banks have changed as well. When life dealt you a curve - a major illness, a long layoff or period of unemployment, a death in the family - ou used to be able to go to the mortgage loan officer at your bank and go over your troubles with him and work out a recovery plan. Wells Fargo and Bank of America could give a shit. They draw money from the trust that actually holds the mortgage for their phony 2-year loan mod negotiations and another big chunk for the foreclosure and then a continuing payment for pretending to oversee the property while it sinks into ruin.
And the courts, they have accomodated themselves to massive scale lawlessness.
It all fits into a bigger picture of a system where no one really gives a shit, except the homeowner who is being sometimes literally driven to an early grave by the heartless and ruthless way their dreams of a comfortable old age and a home that will be a family resource are taken from them.
Wow, now that is a very different demographic, and your post really shut me up. thx
Don't let anybody shut you up. But I'm glad if I helped you disengage your ego
We're not in a fight with each other, just a friendly struggle for a bigger piece of the truth, a bigger grasp on reality.
Falcon.
Old industrial city with some grip on the hi tech economy.
We're seeing many foreclosures of people who've owned them 20, 30, even 40 years.
Second mortgages for home maintenance have played a big part. I don't really know - I only know the 40-year history of a few faimily and friends - but I'm pretty sure anyway that they used to be able to maintain their homes out of current income.
With all the money that goes into maintaining a home, it's hard to pencil an ROI from owning and selling it if it's your place of residence. I sure wouldn't borrow money to do maintenance.
Low cost dry powder for me, I'll take it , fuck'em
The road to HELOC is paved with easy credit.
Two nice (an expensive) houses just went up for sale on my street. Not more then a year old. Both families overextended to a huge degree they, both admit. However, they also smile out loud since they put almost zero down for the house and have not made a payment for the past 5 months.
One told me, "Everyone's doing it!"
It's odd how people are almost proud of this and veiw it as an 'accomplishment.'
Not only is the economy bad news esp with destruction of the Middle Class private sector, but our culture is also degenrating at a seriously swift rate seems like.
At least we can all hold our heads up high and brag, "We're ceptional !"
... mmmmm ....
It's the new and improved don't judge me, I'm owed Merika. Politicians of our era will more likely than not, encourage us to forsake personal ethics so that we may readily forgive the pols and their excrement engorged souls.
Remember the commercial where the guy finds pot in his kid's room and says, "Where did you learn to do this?", and the kid goes, "From YOU! I learned it from watching YOU!"
Uh huh...
847, you have touched on what's wrong
with the "market". It has nothing to do
with P/E's or balance sheet issues but more
with society values in this country. Many folk
feel like they're living in a different country with
no sense of community or self honor. Fing Woodstock
AH's started the new culture and it's all about me. I'm 59 and
just needed to b born 15 years earlier. Bye Bye USA
People see other people doing it so they do the same.
Fresh immigrants come over here and already know how to game the system and collect government money.
They get on public aid, food stamps, and their relatives come over to get freebies as well.
It's a free-for-all.
It's the new normal! Churn cash, no wealth creation, just wealth distruction and sending it up the channel...
That's the way she goes.
The fucking way she goes, buddy.
"why don't I just go out and borrow as much as can from as many different lenders as I can"
Buy PMs. Buy it ouside the country so when the IRS comes after you for the taxes your long gone.
It's all about the fraud now. The greater the better. Bankers are cooking books and commiting fraud as well. Financial crime has hit normalcy.
Join in on the criminal feast.
I endorse this comment.
The watchmen are on the dole. System is fucked: scuttle the fucker.
This shows that an increasing number of homewners are idiots.
Or maybe not. Is it possible they see another crash coming and are pulling cash out to preserve their equity and then walk away when Crash 2.0 hits?
Sounds like Wall Street strategic theft to me. I am sure there are idiots out there who are desperate for cash flow so they can keep buying Made in China crap.
Dumb? Maybe...But who is lending all that money?
A person can either pay it back, or not. Sometimes "or not" is what happens...
Now WHO is the dumb one?
“It is well enough that people of the nation do not understand our banking and money system, for if they did, there would be a revolution before tomorrow morning.”
Another sign the next big crash is not far off.
Henry Hyundai ???
Even renters are gaming the system. In some cities it's tough to get tenants out.
Lawsuits, welfare and take as much as you can. Why because the 1% are doing it even bigger.
You need to keep it simpler for people to understand.
Central banks in league with ordinary banks game the system pumping property prices higher.
Then for those with property and the increase you release equity creating consumption and inflation.
Those with no property = tennants just got doubly robbed by the central bank AKA the Fed because they did not get the property price increase and with the fuelled inflation from the spending found their worth got fucking less.
Did I miss anything?
Yeah , the fucking property taxes. Just make my house value $1. I will never sell it. And then leave me the fuck alone !
Sounds like a great deal for lender. Give HELOC for home improvements ONLY. Foreclose in about 3years with new kitchen, bathrooms and roof.....I would suggest only lending if you are in first position however.....any banksters need my advice, I'm available for hire.
Thanks for the heads up...I am shopping 110% mortages(hopefully a couple on the same home) with no money down...if you can't beat them...join them!
"...the delusional dolts are now acting like the increase in home equity is real"
That is what an echo bubble feels like, as it reaches up toward, but doesn't quite reach the heights of the bubble itself.
Why is this moron blaming homeowners? The idiots that blame the borrowers are on some kind of mushrooms. Who was making money 5 times on every damn loan made during the bubble? Not the borrowers!! Hell, they just think why not take out the cash now cause you can just walk away. Big Brother US Gov. is changing laws to wipe your slate clean sooner then ever. Borrow, borrow, borrow and the Fed tells banks, lend, lend, lend... This is all that's left people, there is almost no wealth being generated in the US, just churning the cash up the channel, the neo-surfdom. The deals are there. Borrowing and lending is all there is. Mint money, lend money, wipe it out once in a while, repeat... Sad but true.
Convert > Maximum HELOC to PM's > Leave > Don't pay bill > Hold tight = win.
Interesting numbers
8,133.5 Mt Claimed US Gold Holdings
2,204.6 Lbs/Mt
17,931,114 Lbs
286,897,825 Ounces (28 grams/ounce)
259,133,519.90 Troy ounces (31 grams/ounce)
$1,221 Current Price per troy ounce
$316,402,027,794 Gold value At todays price
$17,000,000,000,000 Declared Debt
$150,000,000,000,000 Unfunded Liabilities
53.73 Ratio to declared debt
474 Ratio to unfunded liabilities
$65,603 = 1 troy ounce of gold valued against declard debt
$578,852 = 1 troy ounce of gold valued against unfunded liabilities
so do you think the bond backers(fed) want your gold?