Wednesday, Sep 09, 2009
US hpc bankrupting the wealthy
Bloomberg: Wealthy Families Succumb to Bankruptcy as Real Estate Crashes
Actor Stephen Baldwin sought voluntary Chapter 11 bankruptcy protection in July after lenders began foreclosure proceedings. Baldwin, 43, listed $1.1 million in assets and $2.3 million in debt in documents filed in U.S. Bankruptcy Court in White Plains, New York. His home is valued at $1.1 million and the banks sought to recover about $1.2 million in mortgage loans, according to court papers.... “Real-estate is an incredible thing on the downside,” said Jason Green, a bankruptcy attorney based in Washington. “Equities can only go to zero. Property can go well below zero,”
Posted by mountain goat @ 01:22 PM (573 views) Add Comment
3 Comments
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1. kruador said...
Depends if you leveraged to buy the equities!
2. layers said...
It's a shame they didn't state what he paid for it. Also the article goes on to state:
"Listings of homes for sale worth $1 million or more increased 27.3 percent in July from October, according to Zillow.com, a Web site that tracks real-estate transactions. The number of homes sold with a value between $1 million and $2 million fell 23 percent in July from a year earlier, according to the Chicago-based National Association of Realtors."
Not exactly encouraging signs that the housing market in the US stabilizing then is it? So much for all the BS coming through about how the economy is out of recession, world piece has almost been solved, no more world hunger, wars are ending. All rubbish of course. And all of this to the back-drop of virtually zero % interest - God knows what'll happen when they eventually go up, or are our leaders hoping that jobs will suddenly in crease along with salarys so that 5, 6, 7x salary is achievable and realistic, thus sucking in the new blood needed to keep the housing ponzi scheme alive?
Imagine what'll happen if interest rates go back to 7-9%?? Anyone anticipate how long that might take? I'd say sometime in July 2012 as a total guess, but who knows.
3. japanese uncle said...
Silly people betting on the very house that provides roof to themselves.