Archives for October 2008

Real Estate Triggered Recession

Economist Fred Foldvary Real estate crashes have led to recessions in the U.S. economy the majority of times major recessions or economic depressions have developed since the early 1800's. In California, Santa Clara University economist Fred Foldvary may have been the first to predict a recession for 2008 back in 1997. "Macroeconomists are not always familiar with the real estate literature," Foldvary said, "and I wanted to use it to come … [Read more...]

High End Homes Take Hit

The Luxury housing market is taking a hit of its own in the on-going national real estate slowdown, which ever way you want to put it. Home prices in the mightiest of all real estate sectors, from $5-million and up are taking a beating, and the forecast for the long term isn't looking good, according to the Housing Predictor outlook all the way through 2011. Values are projected to slide as much as 40%. The loftiest of all real estate … [Read more...]

Debt Boom Backfires

It's really so simple once you look through his looking glass. J. B. Richards has a simple way of looking at things as an economist for more than 40 years. "It's been played out on Americans more than any other place on the planet," he says. "It's really a debt boom of monumental proportions. Banks and mortgage companies lent money as freely as they could and then it all came slamming down. "When you don't own a house and I mean have title … [Read more...]

Avoiding Foreclosure with FHA Loans

Foreclosure is one of the largest and most talked about problems in the country today. The good news for some homeowners struggling to make payments is that FHA loans may be able to help. FHA, or the Federal Housing Association, has been designed to provide additional help to people looking to obtain a home loan, but that may not have the ideal background for doing so. Throughout the time the FHA has been operating, the foundation has helped … [Read more...]

Homebuilder CEOs Cashed Out before Crash

Dwight Schar Dwight Schar's Palm Beach Estate Zvi Barzilay David Mandarich By Mike Colpitts Editor As the U.S. struggles with the growing economic crisis, many of the nation's largest homebuilders are battling to stay in business. All of the largest publicly traded building companies have seen their values drop on Wall Street. But many of the company's CEOs and directors cashed out before the real estate boom went bust at a … [Read more...]

Bailout Tops $2 Trillion

Editors Note: Housing Predictor originally published this article in October 2008. When it got dark on Wall Street, really, really dark the Bush Administration knew it had to act. But the attempts to save the U.S. economy by the Bush Administration were quickly seen for what they were, failures to rescue the ailing economy. Amid the mania on Wall Street there were a handful of big bankers who saw the nation's economy nearly come to a … [Read more...]

New Vulture Capitalists Forming Line

The waiting line is already being formed of investors to buy up low-priced real estate and mortgage-backed securities cheap. Some 400 different funds are being developed ranging in size from $25 million up to multi billions of dollars, a Housing Predictor investigation has revealed. These investors are composed of investment companies, Real Estate Investment Trusts (REITS), individual investors and partnerships being developed as companies to … [Read more...]

Congress Fails America

Analysis of the Bailout Congress Fails America By Mike Colpitts When the nation's economic disaster hit the breaking point Congress took action. The bailout approved by Congress gives the U.S. Treasury Department nearly complete discretion to purchase $700 billion of mortgage-backed securities and other troubled assets clogging the lending pipeline. But it fails to provide direction to handle the core problem of the nation's economic … [Read more...]

Benefits of FHA Loans

FHA loans are fast becoming a popular option for home buyers, and rightly so. With their backing from the federal government they are appealing not only to the home buyer but also to the lender. Today's lending markets are tough; good credit, significant down payments and steady employment is necessary. FHA loans make these requirements easier to be met, which is why so many home buyers are turning to them. How FHA Loans Work In short, FHA … [Read more...]