Lessons Learned: How Did It Come to This?

National Public Radio's Marketplace points out some lessons to be learned from the mortgage-default wave.

And We'll Have Fun, Fun, Fun Till Daddy Refi's the ARM Away!

If everybody had an ARM loan,

Across the USA!

The teaser rates would be adjustin,

just like Californ-I-A!

Try not strangle your realtor,

"Home values never go down"!

Everybody's foreclosin'

Defaultin' USA!

Between 2004 and 2006 over $2.2 trillion in adjustable loans were issued to homebuyers.

A tidal wave of foreclosures is on the way.

1.1 Million Americans to lose their homes.

Total potential loss of over US$112 billion.

Oh yes, America! Plenty of "tasty waves" for everyone!

Chapter 11 Declared Today for Irvine, CA Mortgage Lender

Another one bites the dust in a big way.

This time it's People's Choice Home Loan, Inc. declaring bankruptcy right in the backyard of Orange County's prolific real estate market!

What next?

Kind of creepy.

New Most Hated Profession in U.S.? Mortgage Lenders Say To Used Car Sales People, Attorneys and Real Estate Agents: "Step Aside!"

It's refreshing when members of a certain profession really step up and call a spade a spade.

In the United States of America, a head of real estate agents, used car salesman and ambulance-chasing attorneys, mortgage lenders are now attempting to blaze their own path to the top of the list of the most hated and distrusted professionals in the country, if not the world.

But why? What on earth could cause mortgage consumers to become so unhinged?

Well, don't take it from the Rancid Truth Blog. Read on from the Reuters' article today that included comments from Ms. Jillayne Schlicke, an eloquent mortgage industry veteran, and head of an organization called The Ethical Lending Foundation.

Interestingly, if you happen to visit the Ethical Lending Foundation's website, you'll notice that one of the first little things you can click on is called a "Code of Ethics".

Ms. Schlicke has tried in vain to train and instruct mortgage lenders, real estate agents and even real estate consumers of the importance of following ethical conduct.

Some damning quotes from Ms. Schlicke in the article about the current state of affairs within the mortgage lending industry:

"We're in ethical chaos in mortgage lending,"

"It's going to be a long road to climb out of that gutter."

When will they recover?

Rewind to 2002 Fireside Chat: Why Do Homebuyers Distrust Realtors?

I found the following interesting article published October 30, 2002 in the Realty Times, written by Blanche Evans. It provides a series of reasons why 5 years ago, in 2002, homebuyers might have held a certain level of distrust for realtors.

Here are some of the key reasons identified by Ms. Evans:

1. Generation Gap - That GenX and GenY prejudices pose a serious challenge to realtors hoping to make that sales connection.
2. Service Gap - That it's important to first time homebuyers to know and understand how much home they can really afford, and that other home buyers just want the realtor to find them the house they want and provide strong, favorable price negotiation expertise.
3. Cultral Gap - Too many white agents. Not enough ethnic diversity in realtor ranks.
4. Electronic Gap - That realtors in 2002 don't yet fully understand the significance of the internet and of e-mail communication as powerful tools to tranform their sales activities and success.

All good points brought forward by Ms. Evans.

But I am one who values self-inspection, perhaps some self-criticism. You know, taking a real inventory of one's strengths, weaknesses and character flaws.

It's now 2007. We are in the midst of a national housing downturn. Many who bought homes in 2002 and after may be in serious jeopardy of losing their homes due to reason 2.

So how would we today answer the same question?

Do homebuyers trust realtors more than they did 5 years ago?

Impac Mortgage of Irvine: $1.4 billion in Problematic Loans

Well, here's another surprise.

By "problematic" we mean in serious risk of default. Now 6.2% of Impac Mortgage borrowers have missed mortgage payments of 2 months or more. This is up 3.1% over last year.

Another textbook example of mortgage lender trying to shovel its way out of a financial nightmare created by lackluster self-regulation, corporate greed, and ultimate reliance on the American taxpayer to eventually foot the bill of homedebtor defaults.

Ah, the American Dream! Just like common sense. You never really come to appreciate it until it's gone.

Can't afford home. Can't afford car either.

This Detroit Free Press report earns the "No-Shit-Sherlock Award" this week as they attempt to link dips in car sales to sunny weather states.

You know, I'm not entirely up to speed about the housing market and economic situation in Michigan. What I have heard is that the situation isn't pretty. But here's a nugget of useful information for our Wolverine-state friends at the Freep:

Dips in sales of Detroit cars has little, if anything, to do with sunny weather.
A little self-criticism is always a good place to start, and might clear the air a little.
Consider some of the following factors on for size:

1. Detroit's automakers have been officially "jumped" by both Toyota and Honda in terms of car sales in America. It is highly doubtful, given past performance, that American automakers are in any position to recover market leadership in the short or long-run. Good for American car sales? Not really.
   
2. Honda, Toyota, Volkswagen and BMW have shown the greatest technology innovation, highest customer satisfaction and highest overall quality ratings of industry auto manufacturers. GM and Ford are essentially MIA in all three departments. Good for American car sales? Gee, lemme thin..No.
   
3. Southern Californians, Nevadans, Arizonans and Floridians have something a little more important to worry about these days than buying a Hummer that get's them 10 miles to the $2.80 gallon of gas. Yeah, I can understand how this might be quite a shock to some. You see, the item that all four of these markets share in common, besides sunny weather, is a housing market slowdown, the economic consequences of which may become very serious indeed. The financial well-being of many individuals and families in California alone may be adversely affected. Suddenly, buying a car - new or used - will become less and less of a priority as 2007 wears on. Now, is this good news for car sales - domestic or foreign? Probably not.
   

4th Largest Home Builder: "Recovery Unlikely in 2007"

CFO Roger Cregg of Pulte Homes, Inc., the fourth largest homebuilder in the United States of America, reports to Bloomberg that "we're not projecting anything to bounce off the bottom at this point."

But, wait just a damn minute...

On March 13th didn't NAR head David Lereah just state that a "housing market recovery" was in store in 2007?? (see March 13th post).

Oh.

OK, now I get it!

This is the part in the film where mainstream American media bashes the real estate industrial complex, and internet housing bloggers utilize these reports to justify their caustic attacks on the innocent, just-doing-our-job home realtors and mortgage lenders of America.

Tip of the hat to Mr. Cregg and Pulte Homes, Inc. for telling the story like it is - the Pulte way: "The way it should be".

Housing Crash Biting U.S. Worker Mobility

The ability of American workers to move freely from one market to another for gainful employment is just one of many important variables within a complex equation that contributes to economic stability, growth and national competitiveness. The easy, fluid movement of workers actually sets the U.S. apart from many other world economies.

This story from USA Today exposes how the housing market crash of 2006-2007 may adversely affect this critical variable to economic success, and lead to greater challenges for employers to grow their businesses, and for the U.S. economy in general, to avoid economic stagnation.

American workers considering relocation due to new employment opportunity must weigh more carefully than ever before the real financial impact of both selling their current home and buying anew.

National Association of Realtors: Recovery on Deck for 2007

Look, you bubble-bloggers and bitter renters have got to calm the hell down.

David Lereah says:

"Underlying trends point to a housing recovery in 2007,..."

"Lending problems in our nation's subprime marketplace are building, which could inhibit

future housing activity and further dampen our forecast. Even so, there problems are likely to be contained and not spill over into the prime mortgage market."

You see?!

It's all cool, baby! No problems. Now we got the NAR in the house!

You wanna see something REALLY scary? - Peter Schiff

The end of the US economic dominance is coming.

Signs, Signs, Everywhere Are Signs

"Signs, signs, everywhere there's signs

Fuckin' up the scenery, breakin' my mind

Do this, don't do that,

Can't you read the sign?"

-Tesla

Oh Fuuuuuuuuuudge!....(Only I didn't say fudge...)

The subprime nightmare unfolds continued (and explained)....

Somebody's got to be to blame, right? RIGHT?!

America's Largest Homebuilder: "2007 Is Going To Suck"

During times of trial one must often pause in order to appreciate the profound eloquence of American finest business leaders such as Mr. Donald J. Tomnitz, CEO of D.R. Horton, the largest home builder by volume in the United States.

Subprime Meltdown: Worse This Time Around

The last time the subprime lenders were knocked down in Orange County California was 1997-1998. The market shakeout lasted a couple of weeks.

This time the outcome could be very different. The market circumstances are different. The players are different.

Some analyst predict that, in the end, the potential for future "fire sales" for foreclosed homes could put substantial pressure on OC home prices.

Mark Mueller's report from the OC Business Journal here.

Don't Make The Realtor Mad

Exotic home loans.

Who needs them?

Why can't we go back to the old fashioned way of doing things?

You know, the way of actually "doing your homework" instead of going through the bureaucratic motions?

To some, exotic loans (ARMs, interest only's) have a market and a purpose for certain homebuyer types.

To others, exotic loans are toxic waste, that should be abolished altogether from the real estate industrial complex.

Whatever the outcome, let's just ensure we do the right thing and not make home realtors angry.

Afterall, nothing can or should stand in the way of that 6% carrot at the end of the homesale rainbow.

What?

Dead bodies?

No problem. Step aside!

It's Official: U.S. Housing Market Now "A World of Shit"

Anyone, and I mean, anyone who would now describe the U.S. housing market as beaming rays of sunshine is a delusional idiot.

This USA article really hits home what is, and what will be destroying the financial well-being of millions of everyday, middle-class homedebtor Americans in the coming 2 to 3 years.

The financial ineptness and illiteracy of the American homedebtor.

The rampant, anything-goes, sales strategy and tactics of American mortgage lenders.

The insidious actions of American home realtors, most completely lacking business ethics and experience, greasing the palms of mortgage lenders and home assessors, and using duplicitous promotional tactics with homesellers and homebuyers alike to earn that 6% - at all costs.

It's all being exposed before our very eyes.

There will be Congressional hearings.

It's only a matter of time.

All of these horror stories will be told.

FBI on U.S. Mortgage Fraud: "OK, We're Done Fucking Around"

The FBI is issuing harsh warnings to both mortgage lenders, realtors, property assessors AND potential homedebtors to "stop fucking lying".

After the FBI's report was released last Wednesday describing mortgage fraud in the United States as "pervasive", the FBI's notice informs consumers and lenders that mortgage fraud is punishable by up to 30 years in prison, a $1 million fine, or both.

Are any realtors out there paying attention? What good is that undeserved 6% commission you earned on a 6 figure Orange County home sale, and that huge-ass Hummer parked in your driveway, if you're own ass is parked in prison?

The FBI reported that it investigated 818 mortgage fraud cases in fiscal year 2006 (up from 436 in fiscal 2003), resulting in 263 indictments, 204 convictions, and recoveries of $630 million in restitution and fines. Currently pending cases total 1,014. The FBI estimates that 80% of all reported fraud losses involve collaboration or collusion by industry insiders.

"The increased reliance by both financial institutions and nonfinancial institution lenders on third-party brokers has created opportunities for organized fraud groups, particularly where mortgage industry professionals are involved," the FBI's annual financial crime report says. (source: National Mortgage News).

No shit, Sherlocks.

New Century Mortgage: Is This The Last Straw?

No, this isn't George Hamilton.

It's Mr. Angelo Mozilo, CEO of New Century Mortgage, one of America's largest subprime home mortgage lenders, having posted almost $60 billion of loans in 2006.

New Century is in trouble.

Big trouble.

Famous for providing special mortgage loans to individuals with shitty credit, it's now approaching crunch time for New Century. Time to pay the piper. Unfortunately, more and more of these higher-risk mortage loans are going into default, which means New Century cannot pay it's own creditors back.

The hole in the boat has been patched, according to New Century. They've finally decided to stop writing up any more shitty loans. Also, general lending standards are being tightened up. But it's probably too late to save the company from bankruptcy proceedings.

Mortgage companies overall are getting their asses kicked in the markets.

Twenty mortgage businesses have already been shut down from making further loans, or have gone bankrupt altogether.

Spotlight Lake Forest: Big Problems at 22931 Hazelwood

The owner of a 4 bedroom, 3 bath, 2136 sq. foot home at 22931 Hazelwood in Lake Forest is in pre-foreclosure.

The home's sales history includes:

February 3, 2005 $ 607,000

July 21, 2005 $ 775,000

One and a half year later, the owner defaulted on a $620,000 loan, having already put $155,000 down initially, but failing to keep up with home payments. Ultimately, the owner's overdue payments piled up to $23,300, forcing the funniest of mortgage lenders, Washington Mutual, to foreclose.

Now the house is again up for sale.

The loan default and the foreclosure are sad occurences for the owner and family and represent one problem.

The second problem is the new sale price.

The realtor is creatively positioning the home at around $750,000 "as is", despite the fact that most comparable homes next to this one are now hovering precariously around or below the $650,000 mark. The annual trend for this area of Lake Forest is definitely going south. The realtor may himself be mesmerized by the Zillow Zestimate for this home at $794, 238 as justification for his so called "aggressive, $50K markdown".

The home itself is pretty and good-sized, but it will need considerable repair work inside and out, since a large family with children was living in it.

Now listen.

Lake Forest is a great place to live. No question. Probably among the best communities in Orange County and the entire state of California. It lies at the feet of the gorgeous Saddleback mountain range. The neighborhood is beautiful with nearby parks and walking trails. Crime is low. Streets are clean and meticulously maintained. Plus, Saddleback district schools are among the state's best.

But let's set that aside for one moment and consider the following:

1. The Orange Country home market is entering a dire state. Even realtors acknowledge this fact. Home values remain clearly overstated following 3 to 5 years of unjustified price pumping by the local real estate and mortgage industry leaders, and through high sales of unsecuritized, high-risk mortgage loans, which made buying such expensive homes easier for those who, under better loan regulation, would likely not be given the time of day by a Washington Mutual.


2. The median income for a Lake Forest family is $75,000. I repeat. That is the median income. If one earns this amount or less than this, I'm sorry to say, but you have absolutely no business trying to "purchase" a home here.


3. Assuming zero down, the new 22931 Hazelwood home sales price would demand a typical family in Lake Forest to purchase a mortgage loan of 10 times the median income, most likely 2 deeds of trust and formed as either an option ARM or interest only mortgage loan. This is textbook financial suicide for any family when the housing market is already considered dangerously unstable.
   

Whether or not 22931 Hazelwood is worth every penny of $750,000, I will let other debate.

Lake Forest area home values are on a slow, gradual decline. One home, also on Hazelwood has already has lost $25,000 in estimated value since January 1, 2007.

And for sale signs are NOT coming down.

The for sale sign is still up at 22931 Hazelwood. There may be bites, but if prospects continue to show patience and fear for area declining home values, then the realtors/lenders sale price must be brought down.

As for the owner, he or she just wanted to own a home and likely did not realize the massive amount of money needed on a monthly basis to keep head above water.

He or she likely was caught up in the 2005 euphoria of pseudo-homeownership in Orange County pumped up by area realtors with the slam-dunk sales pitch that "OC real estate value never go down". Who knows what qualification process used by Washington Mutual entailed in order to substantiate a massive $620,000 loan.

But the home buyer clearly couldn't keep up.

It must be a hard lesson for one to learn, as a person's credit score and ability to buy another home someday will be forever affected in an market economy now destined for more restrictive lending practices going forward.

Fed Chairman asks Congress: Pretty Please with Freaking Sugar On It, Regulate Mortgage Lenders Better

The financial holdings (loans, mortgages) of mortgage giants Fannie Mae and Freddie Mac are considered by Fed Chairman Ben Bernanke as too risk and deserving of stronger regulation by the U.S government.

But wait a minute.

Aren't Fannie Mae and Freddie Mac both GSE's? Created by Congress, both ARE GSE's, Government-Sponsored Organizations, designed to pump money into the economy by buying up loans, securitizing them and selling them on the worldwide financial exchanges?

The fear is, if these two giants start catch a cold under the weight of risky mortgage loans, that the entire U.S. economy could get pneumonia and die.

And so here we are again. Those of you who remember the bailout of the U.S. savings and loan industry in the late 1980s, will be surprised to learn that we as a nation is chock full of amnesiacs. Government regulation of both Fannie Mae and Freddie Mac organizations has been frowned upon in the past, basically because the housing market has been considered integral to the overall growth of the U.S. economy.

But will tighter regulation by the new Congress of both GSE lending practices and financial holdings, impact the economy in other respects? Tightening the easy, no questions asked availability of loans for the real estate market - which is already reeling in most parts of the U.S.? What happens when you remove the financial grease from the economic skids?

US Dollar Going Downtown

Yes, the dollar is inching its way further to less value, and gold is skyrocketing. Again.

Thank you America for placing zero importance on personal savings, and instead focusing all of your efforts on consuming shit and making yourself look more wealthy than you really are.

Nice going.

Not too sure whether our evil ways are sustainable ones.

California Home Foreclosures Up 160%

$2 trillion in mortgages pending adjustment in 2007 - an amount the world of re-fi has never before seen.

"No Accountability" - $10 Billion In Taxpayer Money Lost in Iraq

When the cat is away, the mice will play.

And so it is with the money of hard-working American taxpayers currently NOT being utilized to secure democratic freedom for "peace loving" Iraqis in the Middle East.

I don't know how anyone can remain an adherent to George W. Bush's administration after reports like these, but I'm not wasting anymore time thinking about it.

Because I'm just not getting anywhere.

What happens when $10 billion dollars of U.S. taxpayer money disappears in Iraq within a sea of private company overcharges and complete lack of fiscal oversight?

This may be news to my Republican friends, but George W. Bush is not a fiscal conservative. And he wouldn't know fiscal conservatism if it struck him in the mouth.

The New American Dream - Smaller Homes

This NY Times article challenges Americans to step outside the big box and "think small" about the future roof over their heads. Perhaps housing should become more affordable, economical, environmental, and small.

Now why didn't David Lereah think of that?

U.S. Realtors: "Housing Crash Is Over"

The USA Today reports that the National Association of Realtors today (February 15th, 2007) considers the real estate market to have "bottomed out".

The crash is over.

We may proceed to clean up the mess that was left behind and then gleefully return to the practice of pumping up pseudo-homeownership and over-leveraging American family balance sheets to achieve it (and the 6% do-nothing commision that rides along side every sale).

In the words of Senior NAR Economist Mr. Lawrence Yun: "At least the bottom appears to have already occurred. Now whether or not that will be sustainable is a different question."

Whoa! Can sellers, future buyers and fence-sitters just feel the rock-solid confidence exuding from those prophetic words?!

Blue Cross: "California Realtors Are Lying"

California realtors filed a lawsuit against Blue Cross regarding the discontinuation of their health care benefits that were organized by CAR (California Association of Realtors)

But Blue Cross isn't backing down, citing breach of contract as grounds for the discontinuation.

Why are train wrecks like these so damn fun to watch?

Why U.S. Economy was "Addicted to Housing Boom"

This video of Christian Weller explaining his report on the U.S. housing boom might scare the ever-living crap out of most over-leveraged homeowners.

I'm curious what U.S. realtors and mortgage lenders have to say about their complicity and contribution to the results of Mr. Weller's damning report?

Should they care? They already have their money.

OC Lifestyle and Missing Mortgage Payments

Come on people! Is this really happening?
Didn't you just buy that Escalade last year?

Champ: "What are we gonna do?"

Ron: "There's only one thing a man can do when he's suffering from a spiritual and existential funk."

Champ: "Go to the zoo, flip off the monkeys?"

Ron: "No, buy new suits!"

Holy Mother of God: Declines in OC Mortgage Lending Jobs!

Can this really be happening in Orange County?
I mean, aren't real estate jobs (real estate agents, mortgage lenders, builders) a main, critical staple for the county's economy?

Holy crap, the first seal is opening....!

Illegal Immigrants Assisted After Citrus Crop Freeze

California's day laborers, many of whom are illegal immigrants from Mexico, and who work for citrus crop industries, will be offered assistance by the state of California in the form of food programs, temporary housing, low-income energy assistance and other social services.

None shall receive unemployment insurance.

If George W. Bush adheres to Governor Schwarzeneggar's request, more federal aid may also be made available for farm workers affected by the citrus crop devastation.

OC Sales Down, Median Price Up

Home sales fall 29%, but home prices increase by 3%
How much longer can this kind of bullshit economics continue?

Usually when sales in units declines over a period, one could come to expect, all things being equal, declines in average selling price, not increases.

But anyone who has visited Orange County can tell you, nothing here is equal.

Prices will eventually come down some, but according to DataQuick's Marshall Prentice, the 100% home value appreciation experienced by OC home owners the past 5 years is "here to stay".

In other words, "soft landing" ahead folks!

Gee, aren't you glad there are independent, unbiased sources of information like DataQuick right at your fingertips?

Orange County Rents to Rise 6.9% in 2007

More "good news" for renters in California's ultra-expensive Orange County.

Just when home owners thought their misery index was rising, renters may also experience a proportionate, though probably less financially devastating, hike in housing costs.

If you're paid $2000/mo. in rent last year, that could rise to $2138/mo. in 2007, or about $2000.00 paid over 12 months.

Is an increase in rent better than the risk of borrowing money from a bank to "own" a liability (home or condo) that will likely declining in value over the next several years in OC?

Orange County Housing Crash Over?

Sure 2006 was an "interesting" change up year for housing in Southern California.

But there is no housing crash people.

Not happening.

Here's the deal: The minute someone can prove that home prices are truly declining, then you can say there's a housing crash in Orange County.

Inventories of homes for sales continue to rise.

Orange County median home prices are UP 3% YTD January 2007 to $642,000 per home! That's an average price for a shack to live in folks.

A housing market correction?

Yeah, right.

This is the OC.

Nothing to see here.

After the corrupt real estate industry complex (home builders, real estate agents and mortgage lenders) in southern California are done laughing there asses off, they start shouting "bullshit!, bullshit!" at the top of their lungs.

Got $212,000 Annual Salary? OK, You Can Live Here.

More encouraging news for renters in Orange County, California.

John Lansner of the OC register reports on his blog that, hey, you only need a measly $212,500 annual salary to properly afford a house here!!

$212,500??!! Well, stand back and let me pull out my check book!!

Insanity At An End? - OC Home Price Growth at 0.0%

Is this the beginning of the end of the nonsensical rise in Orange County median home prices?

Where do things go from here?

Judging from the declines in listed inventory in Orange County up to early December, there may well be a new glut of available houses for sale in the market starting January 2007, which could drive median prices even lower. The reason for the glut? Well, perhaps homes are not selling as fast as they used to, and sellers are deciding to take their home off the market in November/December and to relist them in the new year.

I Didn't See It Coming

Yeah right.

Whatever.

Time to draw that line between idiocy and personal responsiblity.
When you sign the dotted line, that's it.
It's assumed you've read the small print.

Home realtors who touted that real estate never goes down and duplicitous mortgage brokers that pushed false affordability over true risk will never be viewed the same way again.

Surprise Surprise

Is this the part where we are all supposed to slap our hands to our cheeks in total shock and surprise?

High-risk loan defaults on the rise and thousands of Americans are getting behind on their mortgages.

And gee, if I'm not mistaken, it's now Christmas time too.

What are you gonna do? Can't disappoint the kiddies now.

Just whip out the plastic and everything will be right with the world again.

Don't worry about it.

On Borrowed Money & Borrowed Time

This interesting NY Times article indicates that the housing market statistics posted by the real estate industry machine may not be telling us the whole story:

"The truth is that the official numbers on house prices — the last refuge of soothing information about the real estate market on the coasts — are deeply misleading....

....the statistics have a number of flaws, perhaps the biggest being that they are based only on homes that have actually sold. The numbers overlook all those homes that have been languishing on the market for months, getting only offers that their owners have not been willing to accept."

When can American consumers obtain real, unbiased and undistorted statistics of both local and national housing markets? Even the press seems to indicate that the National Association of Realtors is a realiable source of information for consumers?

Wha?

People, the fox is officially guarding the chicken coop.

Please California, Keep Your Eyes on Fucking Road

As a citizen of California, I'm pleased with the new law SB1613 banning cell phone use while operating a motor vehicle. Unfortunately, this new legislation signed into law in September 2006 by our state Governor Aww-nold Schwarzeneggar will not go into enforceable effect until January 1, 2008.

For this reason, we can all expect another 13 months of needless roadway deaths, delays and general traffic mayhem in Orange County, California due to the insistence and "positive me-enforcement" of Orange County's finest and most selfish of citizens and their failure to keep their fucking eyes on the road.

Let's all grasp the truth of the following equation:

Cell phones + Driving = Death and Destruction

Hey dumbass, put down your goddamned cell-phone and drive!

The Human Factors and Ergonomical Society claims that 2,600 deaths and over 330,000 injuries are caused by cell phone using drivers in the U.S. each year.

Why is it that the upright-walking citizens of the United States seem to be the last to "get it"?

Most nations around the world have wisely banned the use of cell phones while driving all together.

In the progressive, cutting-edge, forward-thinking, United States of America, however, only 4 out of 50 states have legal bans on cell phones, and several states have tried to introduce legislation only to fail to get the votes:

California (starting in January 1, 2008)
Connecticut
New York
New Jersey
District of Columbia

Orange County Gas Prices Since November 7

Can somebody please explain to me - as if I were a 4 year old - why gasoline prices in Orange County declined from June 8, 2006 at a high of $3.17 per gallon by a total of $0.89 cents per gallon to a low of $2.28 per gallon on November 5, 2006, and have since that date risen back to $2.40 per gallon (rise of $0.12 in just 25 days)?

Housing affordability in Orange County: Nothing to see here. Move along.

Like we really need reports from the California Building Industry Association to tell us these things, but OK, here it is. California is the state with the second least affordable housing.

Of the total housing on offer in Orange County, only 3.8% is considered "afforable".

Now, let's see... I'd like a single-family, 3 bedroom, 2 1/2 bathroom house with a front and backyard, and two car garage in Orange County, California.

Well, how much should I expect to fork over?

Depending on the area and age of the house, prepare yourself to cough up anywhere between US$650,000 to US$775,000!

And before you start thinking to yourself: "Jeeze, that must be a mansion"!, forget about it!

You'll have to sift through a long inventory list of tiny stucco shitboxes with no basements. You put the same OC home on the market in Indianapolis, Indiana your talking $115,000 tops!

Think I'm joking? Well alright, go ahead. I challenge you to find one cheaper.

Bush Approval Rating at 31%

Can things get much worse for the President of the United States?

Look, if I were George, I wouldn't let that new 31% approval rating get him down.

I mean, come on! There is plenty of time and opportunity for American opinions to hit record rock bottom as the Texan originally planned.

Just consider this:

• The Republican has lost majority in the U.S. Congress. Time to say goodbye to sensible border control and immigration reform. Amnesty for all awaits.



• The war in Iraq has degenerated into a full scale civil war, American casualties are mounting, and the military OSTs (Objective, Strategy, Tactics) are seemingly unknown.



• The U.S. housing market is imploding.



• 2006 Inflation in the United States remains unchecked - CPI at 202.9.



• Nuclear proliferation by North Korea and Iran remains unchecked and unconfronted.



• Gasoline prices just increased by $0.07 per gallon since the Nov. 7th elections (OC, Southern California)



• Terrorist are gaining strength and attacking NATO in Afghanistan. Women still wearing burkahs.



• 5 years after September 11, 2001 - Osama Bin Laden is still on the loose.



• At posting time, the U.S. National Debt has risen to $8,608,413,824,530.00. George, just ask each American citizen to write a $28,700 check and get it over with.



• At posting time, the September 2006 U.S. Trade Deficit has risen to $64.4 Billion U.S. Dollars.

What's the hurry, George?

You've got until inauguration day January 2009 to make it happen.

Plenty of time, my friend. Plenty of time.

Countrywide Says: Expect 12 More Months of Bad Shit Happening

CEO Angelo Mozilo (a.k.a George Hamilton) of Countrywide Financial Corportation, predicts hard landing for housing market and another 12 months of "market adjustment":

"We have another year of adjustment, or transition" in the industry until consumers believe home prices won't decline. Various events will make the change take place and one of them is "a decline in available homes".

A decline in available homes?

OK, but ah...wait a minute. For a decline in available homes, we need to sell those available homes, so that they're not available anymore. Right?

How does one sell available homes when they are perceived to be overpriced and consumers consider home values to be on the verge of even greater decline in the future?

Since inflation remains pretty much unchecked, what happens should the Federal Reserve raise rates in the future?

O.C. Home Mortage Defaults over 5,000 Year-to-date

More foreshadowing of a future economic “Alptraum” for Orange County, California?

Prices remain high at an average of $625,000 per home, but the trend is slowly declining.

But how much longer can such high price points be sustained?

According to Mark Mueller of the O.C. Business Journal: "The number of homes sold in the county dropped 24.9% to 2,715 in October from a year earlier. It’s the 12th straight month of year-over-year declines in sales."

.....Did you hear that?

Where is that scary music coming from...?