Friday, February 12, 2010

Don’t expect a hpc or recovery any time soon

An Insider’s View of the Real Estate Train Wreck

Must read insights from a US housing insider. Details are different to the UK but the result is similar to here and Spain etc . 1: "For all intents and purposes, the United States home mortgage market has been nationalized without anybody noticing." 2: New rules let banks warehouse the bad assets without reporting losses in value. "It means the FDIC and the Treasury Department have decided that rather than see 1,000 or 2,000 banks go under and then create another RTC to sift through all the bad assets, they’ll let the banking system warehouse the bad assets. Their plan is to leave the assets in place, and then, [hope] when the market changes, let the banks deal with them." 3: The result will be a Japanese style decades long stagnation and indigestion of illiquid mis-priced assets.

Posted by mountain goat @ 01:54 PM (604 views)
Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>