Once I found out we could link a video blog here (thanks to Bryant Tutas and his "I'm Gonna Sell A House Today") you all now get to hear my southern accent and see me pounding the podium about the condition of our great industry. If you have any complaints please contact my managing agent, Mike Tyson.
One thing I find is that to say everything I want to say about the market today and how I truly believe it was created and fueled by the media for the insane purpose of toppling the largest industry in the nation is that I need hours of video and a research staff. Some of the things I say are inflammatory and I realize this. People still are not even interested that this implosion was fabricated and perpetuated by the media until it became a reality and that the Chinese and other foriegn investment groups WILL BE and ARE buying the mortgages on YOUR HOMES because of the pansy little US investors who pulled out their funds.
My challenge still stands for anyone to show proof positive that any REIT or HEDGE FUND or any other major investment group lost ANY MONEY for the sole reason that they invested heavily in the subprime mortgage market. We'll never see that because it didn't happen. A Time Magazine article recently reported that the percentage of subprime loans in default has not changed. The number of subprime loans in default has changed because there are more subprime loans that any time before. But let me tell you that a 12% default ratio on 500,000 loans is the same PERCENTAGE default as 12% of 1000. Only funds with bad management would have blown that one.
Let me show you EXACTLY what I am talking about. Bear Stearns (5 year chart) and Lehman Brothers (5 year chart) were buying MASSIVE numbers of high risk loans - even higher risk than REIT's like my old partnership NOVASTAR. Guess when BS and LB started losing money? JULY 2007! Why? Because all the sissy pants little inexperienced new money baby investors on Wall Street bought into what the media said. This was not the media reporting on a condition that HAD happened ... it was the media creating and fueling FEAR OF THE FUTURE of what MAY HAVE happened!!!
Unfortunately, knowing my fellow countrymen the way I do, another really bad thing happened that caused a spike in the number of foreclosures: entitlement. That's right, the welfare mentality created by the socialistic element of our governing bodies gave unspoken permission to the lower rung of our social scale to stop paying their mortgage payments when certain members of Congress began a wholesale attack on the mortgage industry and even calling for a BAILOUT!
LET THERE BE NO DOUBT! I am very angered at the media and these members of our ELECTED OFFICIALS who refuse to put the blame squarely where it belongs. Going back after the media is not new for me. I've been doing it since before I came to Active Rain but here are some articles I've posted here on AR over the months about just this subject. "The Baby, The Bathwater and The American Dream", "CanYou Hear That Distant Rumble? (4/14/07)", "Still Mixed Reporting On The Real Estate Market (4/4/07)", "What a Ride, What a Ride! (3/16/07)", "It Was A Minor Correction (1/26/07)", "What's This I See? (1/25/07- compares the timing of media reports to a decline in real estate activity", "Stop The Bleeding (1/4/07)" and "Starbuck's Has Nothing To Do With Mortgages (10/27/06)" is as far back as I am going for now.
Watch the video. Understand that it has holes and gaps in information because of time constraints and please don't be too shy to offer your comments here whether you agree or disagree.
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