Shadow Banking, Housing Inventory and Liabilities


By Bubbabear   Follow   Mon, 24 Dec 2012, 2:42pm   1,482 views   14 comments
In Yorba Linda CA 92886   Watch (2)   Share   Quote   Permalink   Like (3)   Dislike (1)  

Denial doesn't change reality. It only cripples our response to reality.
Psychologists and behavioral economists have found that we deceive ourselves (conceal the truth) to serve our own interests. Perhaps this is why the mainstream ignores the Id Monsters in the shadows: shadow banking, shadow housing inventory and shadow liabilities.

http://www.oftwominds.com/blogdec12/shadow12-12.html

Viewing Comments 1-14 of 14     Last »     See most liked comments

  1. Oil Can


    Follow
    Befriend
    21 threads
    163 comments
    Oil Can's website

    1   2:58pm Mon 24 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Sometimes I think I would be better off not knowing this stuff.

  2. HousingBoom


    Follow
    Befriend (1)
    48 threads
    172 comments

    2   1:27am Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    TRUTH!!! Housing is doomed!!! Thanks for the post.

  3. taxee


    Follow
    Befriend
    88 threads
    466 comments
    El Cerrito, CA

    3   6:47am Tue 25 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    I slaved my life away and built real, useful stuff and Uncle Sam took a lot of it. Uncle Sam promised, that when I got old, he'd send me slips of paper other people would need to pay their property taxes and I could trade those for services and real stuff. I was young and trusting. Turns out Uncle Sam and his friends bought themselves private jets, yachts, huge estates, and offshore factories and bank accounts.

  4. tatupu70


    Follow
    Befriend (3)
    24 threads
    8,263 comments

    4   9:35am Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    In the chart showing the 'shadow' inventory, what does the large area called "existing" refer to?

  5. Bubbabear


    Follow
    Befriend (9)
    802 threads
    941 comments

    5   11:43am Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    @E-man
    Bank-owned and foreclosed properties have a major distinction: They are sold differently. A foreclosed property may or may not be sold at a sheriff’s auction. In fact, most foreclosure auctions do not even result in bids or a successful sale...
    In those cases, the ownership of the property reverts to the mortgage holding bank, which will sell the home ...

  6. taxee


    Follow
    Befriend
    88 threads
    466 comments
    El Cerrito, CA

    6   1:51pm Tue 25 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike  

    Billybigrig says

    In those cases, the ownership of the property reverts to the mortgage holding bank, which will sell the home ...

    Not likely. Might sell a few so they still appear to be a bank, but hoarding real estate that might actually be worth something is the new bankster hedge against worthless currency.

  7. Bubbabear


    Follow
    Befriend (9)
    802 threads
    941 comments

    7   5:46pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    taxee says

    hoarding real estate that might actually be worth something

    ..and eventully sells the home to a speculator, FHA welfare reccipient or too a $500,000 purchase or more that delivers an automatic VISA...

  8. taxee


    Follow
    Befriend
    88 threads
    466 comments
    El Cerrito, CA

    8   8:38pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Billybigrig says

    hoarding real estate that might actually be worth something

    ..and eventully sells the home to a speculator, FHA welfare reccipient or too a $500,000 purchase or more that delivers an automatic VISA...

    good reason for at least a $100 million bonus. Twice that if you sell it under the table to a hedge fund.

  9. HousingBoom


    Follow
    Befriend (1)
    48 threads
    172 comments

    9   8:56pm Tue 25 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Doesn't this shadow inventory almost guarantee that home prices are going to plummet? I remember looking at the housing data in 2006 and it looks similar to what we are seeing now.

  10. taxee


    Follow
    Befriend
    88 threads
    466 comments
    El Cerrito, CA

    10   3:03am Wed 26 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    It could take a while before they have to sell. Monopoly power can manipulate markets for a long time: De Beers is well known for its monopolistic practices throughout the 20th century, whereby it used its dominant position to manipulate the international diamond market.[6][18] The company used several methods to exercise this control over the market: Firstly, it convinced independent producers to join its single channel monopoly, it flooded the market with diamonds similar to those of producers who refused to join the cartel, and lastly, it purchased and stockpiled diamonds produced by other manufacturers in order to control prices through supply.[19]
    In 2000, the De Beers model changed,[19] due to factors such as the decision by producers in Russia, Canada and Australia, to distribute diamonds outside of the De Beers channel, thus effectively ending the monopoly.[6][18]
    In November 2011 the Oppenheimer family announced their intention to sell the entirety of their 40% stake in De Beers to Anglo American plc thereby increasing Anglo American's ownership of the company to 85%.[20] The transaction is worth £3.2 billion ($5.1bn) in cash and will end the Oppenheimer dynasty's eighty year ownership in the world's largest diamond miner, if successful.[21][22]

  11. fedwatcher


    Follow
    Befriend
    253 comments
    Valencia, CA

    11   9:27pm Thu 27 Dec 2012   Share   Quote   Permalink   Like   Dislike  

    Real Estate is the largest asset class, thus its total collapse would send the world economy into a global depression.

    One must remember that the "housing bubble" was not limitted to the U.S., but spread to many economies. Spain, Ireland, the U.K., and Iceland are examples. Only Iceland took the right path out.

  12. E-man


    Follow
    Befriend (29)
    34 threads
    1,065 comments

    12   12:53am Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Billybigrig says

    @E-man

    Bank-owned and foreclosed properties have a major distinction: They are sold differently. A foreclosed property may or may not be sold at a sheriff’s auction. In fact, most foreclosure auctions do not even result in bids or a successful sale...

    In those cases, the ownership of the property reverts to the mortgage holding bank, which will sell the home ...

    Billy,

    I'm reading your definition, and it appears that you don't have a very deep understanding of foreclosed and bank owned properties. The term sheriff sale is applied to judicial states. Since you're in CA, do you know the difference between foreclosed and bank owned properties. Did you know that we don't call it sheriff sale in CA?

  13. Robert Sproul


    Follow
    Befriend
    69 threads
    863 comments

    13   3:31pm Fri 25 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike  

    Billy, I am worried about your chances for a passing grade from Professor E-man. Have you been attending properly to his lectures?

  14. Mark D


    Follow
    Befriend
    241 threads
    905 comments
    Simi Valley, CA

    14   4:35pm Fri 25 Jan 2013   Share   Quote   Permalink   Like   Dislike  

    Billy is gone now.

    no more neg news. what to do?

Bubbabear is moderator of this thread.

Email

Username

Watch comments by email
Home   Tips and Tricks   Questions or suggestions? Mail p@patrick.net   Thank you for your kind donations

Page took 97 milliseconds to create.