Dan Alpert of Westwood Capital explains why RE has not yet bottomed out - Feb 18/11 (15min.)

[LargoWinch]

Runtime: 15min.


For more on Dan Alpert.

h/t Jesse's Cafe

[bill]

Re: Dan Alpert of Westwood Capital explains why RE has not yet bottomed out - Feb 18/11 (15min.)

Thanks for posting Largo,
Still confirms what I said.

http://www.itulip.com/forums/showthr...ategy?p=149357

bill 2-17-2010
What should happen, but won’t.


Gov. needs real and enforced regulation on banks holding nonperforming assets forcing liquidation, cleaning the system. Mark to market pricing selling assets would bring down housing pricing to average annual income affordability. Government backed program intervention has only delayed price decreases and will take years for debts to be paid down. . Government is protecting banks and bond holders guaranteeing mortgage collections using taxpayers funds. Note modifications are only a short term fix. As home pricing devalues home owners will soon find themselves in the same situation before the note modification. Delaying the debt deflation using programs with government backing will only delay affordable pricing and keep homeowners in debt they cannot service. Homes need to be sold for cash or terms on an open market bidding system. Pricing would drop fast allowing existing in debt home owners to walk away from their existing home and repurchase, lowering their debt payments. Thus, lowering debt payments would allow for more savings or spending giving the economy a little breathing room.