The FHA is giving loans to Ponzis to reenter the housing market

 COTO DE CAZA, NEWS
Nov 152012
 
The FHA is giving loans to Ponzis to reenter the housing market

Do we really want to let Ponzis back into the housing market? There is a large group of people who’ve proven to be completely irresponsible with mortgage debt as evidenced by my daily debtor debacles. I wrote yesterday that Pent-up demand from boomerang buyers may not materialize, but isn’t stopping the FHA from trying. I have no problem with peak buyers whose only mistake was poor timing from reentering the housing market, but do we really want to let the irresponsible Ponzis back in? And do we as taxpayers want to be on the hook when they resume their old [Read More...]

The deleveraging myth exposed: Generation Ponzi doesn’t pay down debts

 COSTA MESA, NEWS
Oct 262012
 
The deleveraging myth exposed: Generation Ponzi doesn't pay down debts

When consumers take on debt, eventually it’s paid off. Debt is not an asset people spend their lives accumulating, at least it’s not supposed to be. Paying off debt is a process known as deleveraging. In a growing economy, young people take on debts to buy cars and houses while old people pay off debts. In aggregate, debts should grow at a measured pace. When lenders make debts grow too fast, the economy becomes over-stimulated and debtors become insolvent. When large numbers of borrowers become insolvent, a credit crunch ensues, and the bills come due. This flushes out the Ponzis [Read More...]

California downgrades loan owners, diverts bank extortion booty to others

 NEWS, SAN CLEMENTE
May 222012
 
California downgrades loan owners, diverts bank extortion booty to others

Many loan owners made mortgage payments over the last few years when they would have benefited more from strategic default. Many of those loan owners were motivated by the false hope of a government bailout bringing principal reduction or other goodies. California led these sheeple down the path and garnered much public attention for the tough stance the Attorney General took in favor of loan owners. Everyone rejoiced. Loan owners could taste the debt relief. Kamala Harris stoked her political ambitions as a pandering lefty. The banks got relief from further lawsuits. There was only one problem. Governor Jerry Brown [Read More...]

McMonigle’s McMansion auctioned for $18.5 million

 NEWPORT BEACH, NEWS
May 152012
 
McMonigle's McMansion auctioned for $18.5 million

John McMonigle fully embraced the California housing Ponzi scheme. He claims to have represented $2.1 billion in real estate transactions during the housing bubble. If he made 3% of that figure, that’s $63,000,000 in real estate commissions. In a game of financial football, that is a powerful offense. Unfortunately, his defense wasn’t quite as good. Falling from housing peak: John McMonigle’s ride According to bankruptcy court papers, McMonigle, 46, has amassed some $50 million in debts. His assets – even after selling his Newport Beach condo, his cars and personal effects – total $2.4 million – plus the value of [Read More...]

Housing bust losers portray themselves as victims and heroes

 MISSION VIEJO, NEWS
Feb 272012
 
Housing bust losers portray themselves as victims and heroes

Many people bought during the housing bubble because they wanted a home for their families. They stayed within reasonable debt-to-income guidelines and used fixed rate mortgages. Unfortunately, the prudent were small in number, and most of them have obtained loan modifications to make their super-sized debts manageable. Many other people bought during the housing bubble because they saw their house as an investment, or worse a cash cow they could milk periodically to supplement their spending. These people saw rising house prices as a way to cash in on the American dream. They believed their houses would go up in [Read More...]

Are the Ponzis taking over?

 DANA POINT, NEWS
Feb 252012
 
Are the Ponzis taking over?

When I was young and much more liberal than today, people told me I would become conservative when I got older. I didn’t think it would happen. But when I look at how far the pendulum has swung to the bailout-and-take-care-of-me side, I wonder if we haven’t lost our way. Consumers outnumber producers, and everyone wants a free ride. Enough already. The ‘Take Care of Me’ Society is Wrecking the USA By MAUREEN MACKEY, The Fiscal Times January 28, 2012 You’ve played by the rules. Worked hard to put yourself through school. You’ve gotten a decent job and you pay [Read More...]

Did loan owners stop having sex due to the housing bust?

 LAGUNA BEACH, NEWS
Feb 072012
 
Did loan owners stop having sex due to the housing bust?

A new study shows a strong correlation between house prices and birth rates. When the housing bubble inflated, so did… well, birth rates. When housing went flaccid, so did… birth rates. When housing began to inch up in 2009, so did… birth rates. The correlation is so strong, studies postulate a cause and effect. So I ask you, did loan owners stop having sex due to the housing bust? Housing Bust, Baby Bust Fertility falling: And baby makes three. The collapse in the housing market is bad for fertility, which could imperil long-term economic growth. By Jim Tankersley Updated: February [Read More...]

A loanowner’s tale of woe

 NEWS
Aug 052011
 
A loanowner’s tale of woe

Foreclosure sob stories always seem to lack a few pertinent details explaining exactly how the unfortunate circumstances came to pass. Today’s featured article is written by a renting former owner who works at the newspaper. She tries to portray herself as a victim, but in reality, she is only a victim of her own poor decisions. No refuge from the mortgage crisis A homeowner tries to work with bankers to hold on to her modest but beloved house, but her pleas mean little to the number crunchers. By Kathy Gosnell Seiler — July 24, 2011 From the front door of [Read More...]

OC Housewife, Ponzi borrower, failed land baron

 NEWS
Jul 202011
 
OC Housewife, Ponzi borrower, failed land baron

Today’s post is a detailed comparison of Irvine and Coto de Caza. I have joked about the posers and pretenders in Irvine, but by comparison, it looks like Coto de Caza has Irvine beat. Despite having far fewer homes built during the bubble, Coto is experiencing greater price declines due to foreclosures. Excessive Ponzi borrowing is the most likely culprit. Over the last few weeks, the IHB has been proud to present Jaysen Gillespie of Global Decision. His advanced statistical analyses of the market include An accurate view of the Irvine housing market by Global Decision and IHB, A detailed [Read More...]

The real Ponzis and posers of Irvine

 NEWS
Apr 252011
 
The real Ponzis and posers of Irvine

I saw a recent headline on another Nicolas Cage foreclosure, and it inspired me to do a little research into our local celebrities to see who is posing and who is for real. I didn’t find anyone who was for real. Graphrix, formerly of the IHB, discussed the Real Housewives of OC in A Real Housedebtor of OC. Having grown up and lived most of my life in OC I have come to the conclusion that the people here who seem to have money can be broken down to three types of people. The first is the person who actually [Read More...]

Beyond personal greed, house price inflation is bad

 NEWS
Feb 182011
 
Beyond personal greed, house price inflation is bad

For readers of this blog, the editorial that follows will not cover new ground. For the wider readership in California, what follows is pure sacrilege. Bursting our bubble Why do we continue to think that rising home prices are a good thing? By Michael Kinsley — February 15, 2011 If President Obama could ask for one gift from the economy — one statistic that turns unexpectedly rosy — what would it be? If Americans in general could choose one change in their financial situation, what would they choose? I suppose Obama would choose a decline in the unemployment rate. But [Read More...]

Lenders are responsible for the bad borrowers they create

 NEWS
Jan 252011
 
Lenders are responsible for the bad borrowers they create

Banks created their own nightmare. They turned good borrowers into HELOC dependent Ponzis, inflated a massive housing bubble, and now that prices are crashing, lenders are surprised at the behavior of borrowers. Each side feels they are being victimized by the other. Lenders are being left to hold the bag and absorb the losses, so they have suffered consequences for their actions. Borrowers lost their homes, so they have suffered too. Beyond enduring the consequences, each party bears some responsibility for what happened. But who deserves blame, and how much? Back in January of 2010 I advanced the proposition that [Read More...]

The California economy is dependent upon Ponzi borrowers

 NEWS
May 252010
 
The California economy is dependent upon Ponzi borrowers

Ponzi borrowing and HELOC Abuse Most people fail to budget properly for unexpected expenses or expenses that do not occur monthly. When these expenses occur, most will borrow the money, often on credit cards. During the year, this debt will accumulate like tooth plaque, and at the end of the year, many debtors hope for a work bonus or a tax refund to clean the debt from their balance sheets. Homeowners, particularly in California, would go to the housing ATM and add to their mortgage to pay for these un-budgeted expenses of daily life. The sad reality is that this method of Ponzi borrowing can work as long as (1) the [Read More...]