Groundhog day in the housing market

[bill]

Re: Groundhog day, every day, in the housing market

The U.S. economy is set to grow at a sluggish pace in coming months on continued weakness in the housing sector, Bernanke said. Bernanke said housing weakness would be a bigger drag than had been expected.

The political government –chartered companies come to the rescue of the housing market rather than let the market run its course. We get government political influenced market manipulation solution.

http://www.bloomberg.com/apps/news?p...eLwww&refer=us

The government-chartered companies, the biggest source of money for Americans buying houses, accounted for 46.9 percent of all mortgage bonds sold through April, newsletter Inside Mortgage Finance says.

The companies' political action committees gave $350,200 in donations during the first three months of 2007

[Slimprofits]

Re: Groundhog day, every day, in the housing market

The companies' political action committees gave $350,200 in donations during the first three months of 2007.

From 2000 to 2006, Freddie Mac PACs gave $9.2 million combined to the Ds and Rs.

http://www.opensecrets.org/orgs/summ...me=Freddie+Mac

In '04 and '06, the Fannie Mae PAC spent almost $2 million.

http://www.opensecrets.org/pacs/look...trID=C00393520

[Uncle Jack]

Re: Groundhog day, every day, in the housing market

Unheeded homes.

http://www.freep.com/apps/pbcs.dll/a...706170566/1002

Who predicted this?:

Yet with the glut of empty houses -- both for sale and foreclosed -- unkempt properties are increasing in nearly every community in metro Detroit. Instead of homes with neat lawns, trimmed shrubs and bright flowers in place, neighbors and potential buyers contend with thigh-high grass, busted shutters, falling roof shingles and litter, debris and mailers all over the porch, lawn and curb.

Ultimately, that mess decreases everyone's property value.

"If you're not taking care of the house, it is certainly detracting from street appeal, and that is something that could harm any potential sale of the home," said Walter Molony, spokesman for the National Association of Realtors. "It's certainly in the interest of the owner to maintain some presentability so that people will want to go inside."

-snip-

So there's no debate among real estate professionals that any house on the market should be in the best possible shape. And even though their names may appear on the signs outside homes, agents can -- and will -- only do so much.

"When people look at a street and they find foreclosures and uncared-for vacant properties, it decreases the value of surrounding homes -- that is a statistical fact," said Keith Weber, an agent who markets homes in southern Oakland County. "Sure, I'll mow a lawn, and you won't talk to an agent who says they don't. It may not be my responsibility, but it is my reflection."

The problem isn't only here in metro Detroit.

In Sacramento, Calif., for example, thousands of unsold and empty houses are becoming breeding grounds for mosquitoes because of uncared-for swimming pools, garden ponds and yards flooded by broken sprinklers.

Go ahead, admit it, none other than your host, EJ

[lb]

Re: Groundhog day, every day, in the housing market

http://www.reuters.com/article/busin...30849120070626

New home sales lower than expected. LEN had a shitty quarter.

Shares in resedential construction spike on the news (10 am EST):

http://finance.yahoo.com/q/bc?s=^YHOh810&t=1d

EDIT: briefly...

[DemonD]

Re: Groundhog day, every day, in the housing market

Homebuilders will be negative eps by calendar year end 2007. Put it in the book. Not all of them will survive the downturn. 2009-10 earliest to go long for homebuilder recovery, likely further out.

[Uncle Jack]

Re: Groundhog day, Alt - A

http://www.bloomberg.com/apps/news?p...Ncc&refer=bond

Alt A Loans `Disconcerting,' Jumbos Weaker, S&P Says

Batter up. I believe the next in line is the Alt-A.

[jk]

Re: Groundhog day, every day, in the housing market

http://www.pimco.com/LeftNav/Feature...+July+2007.htm

But look at it this way: using the current default rate of 7% (3-4% total losses), the holders of some BBB investment grade subprime-based CDOs will lose all of their moolah because of the significant leverage. No need to worry about fictitious 100 cents on the dollar marks here. One hundred percent of nothing equals nothing. If subprime total losses hit 10% then even some single-A tranches face the grim reaper.[emphasis added]

[lb]

Re: Groundhog day, every day, in the housing market

Homebuilders will be negative eps by calendar year end 2007. Put it in the book. Not all of them will survive the downturn. 2009-10 earliest to go long for homebuilder recovery, likely further out.

Looks like a short squeeze today.

[Tet]

Re: Groundhog day, every day, in the housing market

Looks like a short squeeze today.

I think somebody's got their tit caught in the ringer, more than just squeeze, we've got margin calls being made.

[metalman]

Re: Groundhog day, every day, in the housing market

I think somebody's got their tit caught in the ringer, more than just squeeze, we've got margin calls being made.

speaking of tits in wringers...

Fund sued for $57M worth of illegal trades

http://www.investmentnews.com/apps/p...027/HEDGEFUNDS