Housing, Iraq Reconstruction Funds

To continue the journey following housing, mortgages, and foreclosures, an article came out today stating that home ownership fell to 1999 level of ~ 67%. This number will grow given the defaults, increased foreclosures, and underwater mortgages. Regardless of who says we are out of the woods, this is the yardstick to use to know we have reached bottom. Loose lending practices forced by congress since the 1990s created the housing bubble and housing will also show when this recession/depression ends.

A startling statistic is that 95%, $8.7B, of the money spent in Iraq for reconstruction is unaccounted for. I am amazed that this amount of money can be spent without any accountability. This clearly shows that our government has no idea how to manage in a businesslike fashion. I either assume this or outright fraud and deception in the use of the funds. I keep shaking my head thinking it is hopeless until I think of my children and grandchildren.

As I keep reiterating, vote out ALL incumbents in November. Lets get some practical business-minded influence into congress.

Backpacking, Housing

I just returned from the annual backpacking trip in the Marble Mountain Wilderness and want to share an observation. Nature does not discriminate. There were ponderosa pines, douglas firs, cedar, and other varieties of trees all growing together. Some were old with gnarled branches and some seedlings. Some were straight and others crooked. There were tall and short ones sharing the same space. As I looked at this picture, I thought of humans and how we are like those trees; different colors, ages, sizes, ethnic groups, and physical appearances. If we watch Mother Nature, we can see how life works here as we share this planet. She is a good teacher and can provide a strong foundation to instruct us how to live with each other without prejudice and judgment.

An article I read upon my return, related to the housing industry, is that 1 in 7 homeowners with mortgages greater than $1M are in default. The majority of holders are walking away. The magnitude is big because of the size of the mortgages that the banks hold. This situation is adding to an already precarious condition that continues with the other mortgages. I watch certain housing statistics in my areas of interest on Trulia. For the first 10 days of July, 80-90% of the new listings are foreclosures. One area is Grants Pass, Oregon. There were close to 300 new listings in this category. A couple of months from now, most of those will be listed for sale through a realtor. There still is no rush to buy a home. I don't think this market will bottom out this year.

One other note, 8% of the new loans as of February 2010 were low-doc mortgages. This is one of the reasons the banks got into trouble in the first place; not making sure the borrower could afford the loan. It amazes me that this going on when the foreclosures have not peaked from the previous loan policies.