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STORIES:
Did
stopping HELOC abuse kill the economy? - (www.ochousingnews.com) This affirms the basic hypothesis that people were borrowing from their
homes to buy cars. This study erroneously implies that people were cutting back
on discretionary spending by choice. That’s not what happened. These people
were cut off from the housing ATM by lenders who didn’t want to lose any more
money on Ponzis. There is a huge difference between the two reasons, and these
guys, like most other economists, completely missed it. In an e-mail interview,
Sufi says he and his co-authors believe the paper is the first to show that
borrowers with very high leverage – which would include people who are
underwater – are likely to cut back significantly on spending in a housing
decline. “This shows that a decline in household wealth will have larger
consequences for housing spending if losses are concentrated on high leverage,
low net worth borrowers,” he says. “The distribution of losses matters, not
just the level.” Sufi says the findings underscore the notion that principal
reductions – reducing the overhang of mortgage debt left by the financial
crisis – should have been more widely embraced as part of the policy response
to the housing bust.
Why
Is The Obama Administration Provoking A Political War With Latino Homeowners?
- (www.mfi-miami.com) Latino
Homeowners Growing Angry As Taxpayer Owned Fannie Mae Plays “Three-Card Monty”
With Modification Offers And Threatens Confiscation. Life was good until they
had the misfortune of meeting Tashia Winstanley, a scam artist who convinced
them she could get their mortgage payments lowered. However, there was a
catch. She convinced them that in order for their servicer Select Portfolio, a
subsidiary of Swiss bank, Credit Suissse to take them serious, they had to
make their mortgage payments directly to her while she negotiated a loan
modification with Select Portfolio. In total the Bocardos paid Winstanley
$13,000 before they discovered that she never made the payments and the house
went into foreclosure. The Bocardos had no idea what had happened until a
process servicer knocked on the front door from Orlans Associates, a Michigan
foreclosure mill informing them that their client, Fannie Mae was evicting
them. They then hired attorney Jason Jenkinson who successfully beat back
Fannie Mae’s motion for summary judgment in federal court. The judge
allowed the case to move forward and gave both sides a six-month discovery
period. Jenkinson immediately filed a motion for discovery.
Dreams
of new homes abandoned in Greece - (www.cnn.com)
While traveling in Greece, Dutch photographer Patrick van Dam noticed
unfinished buildings and homes spotting the countryside. They looked
spectacular, he said, but they didn’t look like they’d be finished anytime
soon. Plants were creeping in on the structure sides. Stray dogs and squatters,
not the owners, were calling them “home.” He had seen the photographs of people
in despair due to the financial crisis in Greece, but he hadn’t seen this kind
of structural beauty that had been born in the country’s troubles. “We have a
big tragedy, a crisis, and still I can see the beauty of it in these unfinished
houses,” he said. With the Greek economy in a long and painful lull, hopeful
homeowners have had to abandon their dreams and watch time wear down the
frameworks of their future homes.
Student
Debtors Under 30 Are Shying Away From Buying Homes, Cars Consumerist - (www.consumerist.com) If life were a 1950s sitcom, college graduates would zoom out of school,
get a job, buy a house, buy a car and get married. But these days, student
loans are just one of many reason debtors under 30 are staying far away from
the housing and auto markets. That, and lifeisn’t a sitcom. A new report from
the Federal Reserve Bank of New York shows that this age group could be a drag
on the economy by the very fact that they aren’t participating in it. Because
younger people aren’t able to join in the fun of buying homes and cars, and
instead are stuck with low credit scores, reports the bank’s Liberty Street
Economics blog. A third of borrowers are in repayment delinquency as
of the end of 2012, making those people a lot less likely to spend big and
boots the economy. “Now, for the first time in at least 10 years, 30-year-olds
with no history of student loans are more likely to have home-secured debt than
those with a history of student loans,” wrote the authors of the data analysis.
Massive
Worldwide Run On Precious Metals - (www.libertygoldandsilver.com) We are in the midst of experiencing two of the most radical weeks in the
history of the precious metals markets. Paper prices for gold and silver,
those prices determined by the fraudulently managed commodities exchanges
(namely the COMEX and the London Bullion Marketing Association – LBMA) and regulated
by the equally corrupt and complicit Commodities Futures Trading Commission
(CFTC), have been driven into the basement. Simultaneously, the available
physical supplies of precious metals, especially silver, have suddenly nearly
disappeared. Some of the most extreme shortages for silver in memory have
caused premiums for all types of bullion and coins to skyrocket. Nearly
all major wholesalers in the United States, and for that matter the world, are
completely out of stock for smaller denominated silver rounds and bars, with no
projected delivery dates in sight. This phenomenon is a worldwide event.
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