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Ottawa, Illinois | Just returned from California, saw a lot of unusual things as you always do there. Being from the more conservative midwest I hope everyone that says the newest fads, trends, etc start on the west coast and move east are wrong for at least this situation....We saw developements that 35-40% of the homes were for sale pending foreclosure or were already in receivership. There were even bus services in partnership with realtors that were giving "available property tours" ....a 2 hour sightseeing tour of miles and miles of 3 bedroom stucco, tile roofed homes and lots of for sale signs. For Sale by Owner, all the major realtors, Bank foreclosure, even a few sheriff sale signs, It was actually quite a wake up call....
IMHO for these folks to put a dollar figure on their loses on these mortgage backed securities at this point in time in a fairy tale...they are basing these loss assumptions on the basis of appraisals...made by some appraisers who were part of the process that led us in to mess....until values drop to the point people percieve value and start to pony up ... From a farm boy, commodity trader point of view the situation these large mortgage backed security holders are long to the position limits ....the market is locked limit down, no place to lay off the risk...what a nightmare!!!
IMO this situation make be an anchor on the economy for quite some time to come....
I heard the box lunch on the foreclosure bus tour was good ....lots of fresh fruit | |
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The Cliff, the Bus, the Rocks.
