Monday, March 29, 2010
You were wrong.
You were wrong not to leverage yourself into oblivion along with everyone else between 2003 and 2008.
You were wrong to try and save money for your retirement, your children's education, and that not too distant "rainy day" your parents told you about as a kid.
You were wrong to wait for rental parity.
You were wrong to keep scraping just enough money together month after month in order to stay current on your upside down mortgage.
You were wrong to rent, and no, you'll receive no taxpayer-funded financial relocation incentive. That privilege is reserved for financially inept home debtors only, not smart, hard working savers.
You were right to game the mortgage lending system and lie about your income.
You were right to throw caution to the wind because real estate never goes down in value and even when it does, there's a safety net bought and paid for by your stupid tax-paying neighbors to catch your dumb ass when you come careening downward.
You were right to siphon the hundreds of thousands of dollars out of your home with home equity lines of credit (HELOCs) so you could buy those granite countertops, trips to Hawaii and that pathetically stupid looking white Lexus SUV for your wife.
You were right to follow the advice of corrupt real estate sales people and all of their army of duplicitous, REIC-bribed economists, because the effort and value associated with marketing a $500,000 house versus a $700,000 really is really worth the extra $6,000 you paid them in transaction commissions.
You were stupid to believe anyone in government, least of all a Harvard Law Review student come President, would defend U.S. contractual law or defend against moral hazard.
You were dumb to believe Barrack Obama would utilize common sense, prudence and a sense of fairness to govern
The United States of America is already headed for strategic default at 200 miles per hour. Obama's principal reduction plan just slammed the heel on the accelerator.
This really is change you can beLIEve in.
Sunday, March 28, 2010
Look, it's not a state or federal crime to be incredibly arrogant and financially inept, but you've got to admit it sure can cost a pretty penny.
How can so many people be up to their eyeballs in financial distress?
One would have to hit the rewind button back to 2004 and 2005 with our favorite Realtor sales schtick:
1. "15% (appreciation) is in the bag!"
2. "Get in now while you still can!"
3. "They aren't making any more land!"
4. "Buy now or be priced out forever!"
5. "It's a great time to buy a home!"
6. "Interest rates have never been this low!"
Oh man. I get all woozy when I think about these jewels of Realtor wisdom.
I really wish somebody would force every single Realtor in Orange County to send out a 360 degree survey to their past clients between 2005 and 2008. I think that would make very, very interesting reading. Alas, I cannot do this, as I'm not a Realtor.
And Realtors don't have the guts nor the integrity to do this. Oh, the rage that would pour off those survey pages!
I don't blame them. It would be too disheartening to realize just how many lives can be derailed financially as a result of one's own greed - that drive to see the transaction exchange take place, regardless of the foreboding consequences.
Many of the individuals who fell for lines 1 through 6 above have or soon will foreclosure on their expensive southern California properties. They will have to pay income taxes on the amount of debt forgiven by the financial institution or bank.
Lost home. Lost credit score. Massive income tax liability.
There are those who believe these individuals deserve financial aid from state and federal government. I cannot count myself among them. You signed the dotted line. You made your bed. Many of these people scoffed at renters and savers, and those who chose not to leverage themselves into oblivion. I can only salute them for their arrogance and naivete.
So what's the deal with the "Jeronimo Zone" in Lake Forest, California these days?
This seems to be the only freaking area in the entire community where single family homes are up for sale at a reasonable price.
Oh, wait a minute. It must be that Amtrak line. Yeah, that's it! Dammit if young families with children settling down in Orange county don't just love to live within busted earshot of a howling locomotive.
And what about my wildfires?? I distinctly remember requesting a single family home located as precariously close as possible to one of the more hot, windy and dry areas where wildfires most easily commence in Lake Forest!
Realtors and foreclosing debt freaks, please don't disappointment me now! What do I see here but a few SF homes available in Foothill Ranch!!!!! Sweet!
Hmm, raging wildfires or eardrum bursting train horns? Eardrum bursting train horns or raging wildfires?
Aww Gee, it's so difficult to choose!
Well, according to Redfin.com, there are a whopping 16 single family homes for sales in Lake Forest between the prices of $350,000 and $600,000 (4 bed, 2 bath).
But let's just see what Realtor.com has to say:
Realtors(R) of the NAR hate Redfin.com because Redfin capriciously states the previous sales history data of listings on their site. Realtors have the MLS, and apparently much more additional information and wisdowm that Redfin could ever dream of having. This is the only conclusion I can come to because Realtor.com indicates that there are not 15, but 55 freaking single family homes priced between $350,000 and $600,000 (4 bed, 2 bath) in Lake Forest today.
Meanwhile Zillow.com thinks Redfin and Realtor.com are both full of shit, because there are not 15, and not 55, but 57 single family homes available for sale between the prices of $350,000 and $600,000 (4 bed, 2 bath).
Jesus! Get it right, Realtor.com!
All I can say today is thank goodness for two things:
1.) For Jeronimo (or Geronimo) that merciless Apache medicine man, and
2.) The high level of data accuracy and integrity that is simply flooding the real estate numbers in south OC these days.