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Sell, sell, sell

white_teawhite_tea 3,262 Posts
edited January 2008 in Strut Central
Crazy shit right now on the markets. This has been a long time coming but still came out of nowhere. Did Bush officially fuck up the money? I guess you can't wage a war and cut taxes after all. Any publically traded booze companies I should know about? At least oil is dropping (well, was dropping -- London crude starting to climb back toward $90 it seems).
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  Comments

  • Jonny_PaycheckJonny_Paycheck 17,825 Posts
  • white_teawhite_tea 3,262 Posts
    Dow down 300 already. Here we go...
  • tripledoubletripledouble 7,636 Posts
    lets get ready to store root vegetables and skin rabbits!!!

    yay!
  • DORDOR Two Ron Toe 9,902 Posts
    I never understood why banks were handing out $500,000 mortgages to people who made $30,000 and almost nothing down. Shit didn't make sense.
  • KaushikKaushik 320 Posts
    The whole world's got the jitters and a hell of hangover because of the shitty US economy.

    The main stock exchange in India was shut down for more than an hour earlier today because of a huge sell-off -- 10% decline in less than an hour! When it re-opened after an hour, things improved so now the net decline for the day is something like 5%. Crazy.
  • HAZHAZ 3,376 Posts
    I never understood why banks were handing out $500,000 mortgages to people who made $30,000 and almost nothing down. Shit didn't make sense.

    Credit cards to people with no social insurance numbers is fuckin' burnt as hell. They fucked up the money.
  • 4YearGraduate4YearGraduate 2,945 Posts
    Every Saturday my wife and I go to a burger stand called YNOT and check out the local real estate press while eating.

    One day we were there and I saw a small classified ad in the back for a "need to sell now" home. Not one to pass up a good deal in the LA real estate market, I called the dude and was surprised and saddened by his situation:

    3 years ago, during the "gold rush" period, this man bought a 2 bedroom 1.5 bath Craftsmen in my neighborhood for $565,000. In a very typical scenario, the home was listed for 525K, but with all the buyers scrambling to spend their subprime loans they had been pre-approved for, the house sold for 40K over asking. Apparently, the dude had a Interest only 2 year ARM (for chrissake). I didn't ask, but the dude's mortgage was probably 50$ a month. Anyways, the two year glory period eventually ended and dude could not re-fi, nor could he handle his now market interest rate. The house was facing immediate repo - but here's the catch. I pulled comps on the home and the house is worth, at most 485K. The dude owes the bank 565K (he didn't pay off a cent of principal), but at the very best they could only get 480 in the current market, and that would include a lengthy escrow which dude could not fade.

    Bottom line, dude is going to sell the house for somewhere around 480 (if he's lucky) and walk out the front door still owing the bank at LEAST 80,000 dollars.
    And the buyer is STILL paying full market price for a foreclosure. I have seen this over three times, enough to stop caring. There are is no equity in SoCal homes.

    Anyone thinking they're gonna get rich on foreclosures in this subprime fallout has a coming!
  • CousinLarryCousinLarry 4,618 Posts
    Every Saturday my wife and I go to a burger stand called YNOT and check out the local real estate press while eating.

    One day we were there and I saw a small classified ad in the back for a "need to sell now" home. Not one to pass up a good deal in the LA real estate market, I called the dude and was surprised and saddened by his situation:

    3 years ago, during the "gold rush" period, this man bought a 2 bedroom 1.5 bath Craftsmen in my neighborhood for $565,000. In a very typical scenario, the home was listed for 525K, but with all the buyers scrambling to spend their subprime loans they had been pre-approved for, the house sold for 40K over asking. Apparently, the dude had a Interest only 2 year ARM (for chrissake). I didn't ask, but the dude's mortgage was probably 50$ a month. Anyways, the two year glory period eventually ended and dude could not re-fi, nor could he handle his now market interest rate. The house was facing immediate repo - but here's the catch. I pulled comps on the home and the house is worth, at most 485K. The dude owes the bank 565K (he didn't pay off a cent of principal), but at the very best they could only get 480 in the current market, and that would include a lengthy escrow which dude could not fade.

    Bottom line, dude is going to sell the house for somewhere around 480 (if he's lucky) and walk out the front door still owing the bank at LEAST 80,000 dollars.
    And the buyer is STILL paying full market price for a foreclosure. I have seen this over three times, enough to stop caring. There are is no equity in SoCal homes.

    Anyone thinking they're gonna get rich on foreclosures in this subprime fallout has a coming!


    Yeah, shit is crazy. I love the fact that I know how much I will pay for my house as long as I live there, give or take a little bit for insurance and taxes.
  • spelunkspelunk 3,400 Posts
    In San Jose and all the surrounding suburbs where real estate was growing exponentially, even after the tech bubble burst, many people bought into a kind of get rich quick scheme - buying apartments, condos, and homes on weak mortgage loans and selling them a year later at a 50k+ profit. We're not talking just rich Silicon Valley tech industry employees - everyday people, like the airport bartender my friend ran into who owns three apartments, but can only sell at 40k below the price she bought each of them for.

    The grip n flip real estate market is dangerous business.
  • sabadabadasabadabada 5,966 Posts

    Yeah, shit is crazy. I love the fact that I know how much I will pay for my house as long as I live there, give or take a little bit for insurance and taxes.

  • white_teawhite_tea 3,262 Posts
    I can only hope to see some new "reality TV" concepts addressing all the fallout. I used to watch Pimp My Ride and want to come up with my own Pimp My Insurance after that. Now, I'd like to see Pimp By Debt or Pimp My Mortgage. Or maybe a twist on the grip and flip shows, perhaps, Grip and...

    I am not holding my breath.
  • SouthCrackalackSouthCrackalack 3,853 Posts
    I had a doctor appointment today and were we discussing the DOW,etc..and how fucked up it is right now here. But I found our later conversation about how a doctor he used to practice with several years ago, used to leave work 5-10 times a day to go have sex with random women a lot more amusing.
  • CousinLarryCousinLarry 4,618 Posts

    Yeah, shit is crazy. I love the fact that I know how much I will pay for my house as long as I live there, give or take a little bit for insurance and taxes.


    lol, I own a 1,500 square foot 2 bathroom house. For the same amount I pay a month you couldn't even rent the above pictured shack in NYC. The trade off is living in Richmond VA, but it will do for now.

    Does anyone know how accurate Zillow.com is? I just checked the value of my house and was pleasntly suprised.
  • shooteralishooterali 1,591 Posts
    Back in 2001 when I was a salesmen selling security systems to new home owners I would see 1 out of maybe 20 homes on one block up for foreclosure. People were able to afford the house but when I would have to run a credit check to see if they qualified for the security system. People with new Cadillac Trucks, Mustangs in the drive way and satellite TV had the worst damn credit. Beacon scores that were 500 or less. Embarrassing shit. I got out of the sales career and now I drive through some of those same neighborhoods and you'll see 15 out of 30 homes up for foreclosure. Atlanta has the highest foreclosure rate and it's been this way since 2001.
  • 4YearGraduate4YearGraduate 2,945 Posts
    It's really sad.

    It's crazy, people were so happy Frickin' around in real estate for 3 years they forgot to look around.

    I almost feel like the fed pulled things a way to create that scenario so Americans were so happy chasing their first or bigger home that they didn't notice the war, a possible recession, failing health care, etc.

    It almost makes GWB seem smart.
  • jleejlee 1,539 Posts
    I can only hope to see some new "reality TV" concepts addressing all the fallout. I used to watch Pimp My Ride and want to come up with my own Pimp My Insurance after that. Now, I'd like to see Pimp By Debt or Pimp My Mortgage. Or maybe a twist on the grip and flip shows, perhaps, Grip and...

    I am not holding my breath.

    actually i am curious how many of these "flip this house" types of shows will hang on for future seasons.
  • 4YearGraduate4YearGraduate 2,945 Posts
    "FLip my Mortgage!"

    this episode:

    How to turn Tony's 350$ mortgage (a 3yearm ARM, 0 down, interest only) into a proper 30 Year fixed on his 1.7 Million McMAnsion in Palmdale!

    Uh-OH! looks like your new mortgage is $4200 a month Tony!

    It's sure fire hi-jinks as Tony tries to Re-Fi with a 480 Fica!!!

    Tune in!
  • DORDOR Two Ron Toe 9,902 Posts
    Fucked up shit.

    http://www.wsws.org/articles/2008/jan2008/bonu-j21.shtml
  • kalakala 3,361 Posts

    wow
    well beyond fuct up shit
  • ReynaldoReynaldo 6,054 Posts
  • JazzsuckaJazzsucka 720 Posts
    This thing has been bubbling under for a while, and now that the effects of these loans are finally starting to take place, it's funny to remember the optimism that a few economists in my country had for 08. The whole situation underlines the unequal nature of global Capitalism IMO. A few pirates walk away with a bag of money while the rest of the world takes the blow.
  • kalakala 3,361 Posts

    one day all of your right wing rhetoric will catch up with you in one felt swoop
    causing you great pain and endless misery
    and since you are such a friendless self important douche no one will come to your rescue
    you'll see


    ps
    what is it like being 26 and still a virgin?
    boring is my guess
  • faux_rillzfaux_rillz 14,343 Posts
    one felt swoop
  • kalakala 3,361 Posts
    one felt swoop

    oh excuse my typo

    fell

    happy now mr spelling bee moderator

    get a life colonic

    it your birthday shorty/baldy
    you should be doing coke ,drinking scotch or reaming somone or some papers like any good NYC lawyer would
  • jleejlee 1,539 Posts

    ahahaha....

    yeah, world socialist[/b] web site. thanks for bringing that news gem to the table, as i am certain they are both Fair & Balanced &#153....just like that other news group.
  • DORDOR Two Ron Toe 9,902 Posts
    Yeah, I don't put much into the site. But I also know that while alot of regular people are crashing & burning, top level executives are talking their companies and shareholders to the cleaners. Only to cash out early and start up somewhere else.
  • Mad Drama TeacherMad Drama Teacher 1,985 Posts
    Fuck the greedy-ass losers who made this whole thing possible: The people who took these loans.

    Ever heard of "If it's too good to be true, it probably is"?

    Ever stop to think that maybe you should plop down a few hundred for a lawyer to make sure what you're doing won't fuck you later? You know, it's not like buying a home isn't the biggest financial decision you can make in your life!

    I do not blame the banks.

    And to think that our taxes will be bailing these idiots out... ridiculous...
  • BrianBrian 7,618 Posts
    Fuck the greedy-ass losers who made this whole thing possible: The people who took these loans.

    Ever heard of "If it's too good to be true, it probably is"?

    Ever stop to think that maybe you should plop down a few hundred for a lawyer to make sure what you're doing won't fuck you later? You know, it's not like buying a home isn't the biggest financial decision you can make in your life!

    I do not blame the banks.

    And to think that our taxes will be bailing these idiots out... ridiculous...
  • Mad Drama TeacherMad Drama Teacher 1,985 Posts
    Fuck the greedy-ass losers who made this whole thing possible: The people who took these loans.

    Ever heard of "If it's too good to be true, it probably is"?

    Ever stop to think that maybe you should plop down a few hundred for a lawyer to make sure what you're doing won't fuck you later? You know, it's not like buying a home isn't the biggest financial decision you can make in your life!

    I do not blame the banks.

    And to think that our taxes will be bailing these idiots out... ridiculous...

    Being a consumer whore isn't funny to me.
  • kalakala 3,361 Posts
    Fuck the greedy-ass losers who made this whole thing possible: The people who took these loans.

    Ever heard of "If it's too good to be true, it probably is"?

    Ever stop to think that maybe you should plop down a few hundred for a lawyer to make sure what you're doing won't fuck you later? You know, it's not like buying a home isn't the biggest financial decision you can make in your life!

    I do not blame the banks.

    And to think that our taxes will be bailing these idiots out... ridiculous...

    Being a consumer whore isn't funny to me.

    maybe you should do a little research before you talk shit
    most of the loans were dis disproportionately bought by minorities in "bad" neighborhoods - south central LA and detroit
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