Housing and Attitude

Big numbers have come out; existing home sales down 27%, new home sales down 12%, the largest ever in the month of July. The postponement that government intervention with home buying credits and refinancing underwater loans caused is now over. We should have had this fallout last year. Now it is going to continue into 2011 and 2012. This makes me think that we did not move out of the recession as the experts told us. We have been in it all along and the discussion around 'double dip' is misnomer. When there is uncertainty like this that continues year after year, the lenders naturally contract and hold back funds. It is a paradox and can only change at the grass roots level. The government is ineffective when trying to manage it.

In this midst of this, my husband and I have spent a week trying to find a lender on a home we would like to buy in Southern Oregon. I am fascinated by the stories and ignorance among the different lenders' representatives. They err on this side of saying no. We are looking for the open door. It only takes one to say yes.

Use this period in life to see how you want to participate in what the world is experiencing, knowing that as an individual you have a lot of power. It may not appear that way, but know that it is true. The foreclosures continue unabated every week and behind each one is an individual(s) who lost their home. Like your vote, every action accumulates and once the critical mass is reached by enough of us participating, like in this example, the walls come tumbling down. The whole world feels the earthquake.

We need to change our attitude on how we view reality to make a permanent change that will reach the top; the world governments. Again, it's one individual at a time that makes the difference.

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.

Welcoming 2010

In other parts of the world, people have already welcomed the new year. I wish each and everyone a great year of learning and manifesting in this material world, seeing through the eyes of your soul. May you see the benefit of each lesson that crosses your path after you experience the emotional turmoil and fallout. It seems to be the human way of learning here. Wisdom comes from struggle and overcoming life's challenges. Dive deeply and know that you will surface when a breath is needed. Use this year to reassess where you are in life and be honest with yourself. Allow this to be a year of conscious change if dissatisfaction seems to be the main focus.

For 2010:

* It will be a great time to buy a home. Prices should reach bottom in the second half of 2010. Now that Freddie and Fannie received blank checks as a Christmas present, mortgages will be accessible.

* Healthcare will pass in some 'form.' Congress has clearly shown their unethical colors in how the elite manipulates and controls to get things passed. We do need a transformation in this industry. The Republicans have been digging in their heels yet they had their turn when they controlled both houses of congress and did not act. I hope that we, the masses, wake up to the fact that we are lead by a plutocracy versus democracy. We need to act in our respective ways to move toward democracy since we have reached critical mass in the disconnect between us and our representatives in congress. As you can see, I am an Independent who wants a government that listens to us and acts from that base.

* Our freedoms will continue to be diminished, especially with terrorism knocking on our door and finding pin lights of entry. The latest is the full body scan before entering an airplane. I am okay with that as long as we don't have to physically disrobe. I think it's quite symbolic that they will be looking at the inner.

HAPPY NEW YEAR!!! :) :) :)

Citigroup Redirection, Housing

I'm glad to report that the government had to change plans with Citigroup, so the $38B tax credit is out of reach, at least for now. Once the holders of the stock got wind of what was in the works, the stock price dropped to a price that no longer encouraged the government to even sell a part of their stake. :)

Housing news is up one day and down the next. Continue to keep an eye on the foreclosures.

As we keep looking behind the scenes at the details, we can see a view of the surface and perhaps influence beneficial change. Be merry and know everything is in Divine Right Order.

Housing, Credit Card Debt, Stock Market, North Korea

As you know I watch the housing climate and look for a bottom. We are far from it. Foreclosures were up 5% over the summer at a pace estimated to reach 3.5 million by the end of this year, up from 2.3 million last year. That's equivalent to 1 foreclosure every 13 seconds. Contemplate on that a moment. Keep in mind the commercial real estate defaults have yet to be acknowledged by the banks.

Bank of America lost over $2B last quarter and much of it was credit card write-offs. Consumer debt is contracting, mainly because they don't have the means to cover their survival level.

The stock market reaching $10K makes me uneasy. Notice it goes up and down depending on who comes out with earnings or losses. There is instability because the foundation is sitting on shifting sand. Again, without a bottom in the housing market most of the money the government spends has no return on the investment. The deficit is the biggest since WWII, 1945. There WILL be a ceiling to our debt level. Our debt holders will be the telling sign of the end of the road as we this method to try and artificially hold up the market that needs to purge itself so we can start anew from the bedrock.

I still watch the rebel countries. Having a senior North Korean diplomat visit us this month is a good sign that they are receiving the attention they need. Their country seem to be in the adolescence phase and need to be related to with this view.

On A Personal Note

As dire as all the news portrays, there is movement of the sale of homes where I live.  Some have been vacant for over a year.  Within the last 2 months, 4 homes have sold.  I live in a mountainous area, in a community of about 1000 people in Northern California, with the nearest city about 35 miles away.  This indicates that the price of homes is now representing the fair market value of the quality of the homes.  I think what is happening here is happening elsewhere on a small scale. Keep an open mind and look for the bright spots in this financial desolate landscape.  They are there to be noticed.  

Also, there are great companies who are trading so low below their book value, that anyone who buys their stock will weather this nuclear storm well.  If there is an interest to interact with me on specific companies, please feel free to contact me at shirleyrwood@yahoo.com.  

Washington Mutual Takeover

Yesterday, I sent messages to Roy Blunt (House Minority Whip), Richard Shelby(against bailout), plus Feinstein, Boxer,  Herger, and Wolf Blitzer at CNN regarding the government taking over Washington Mutual and how it is in stark contrast to what the House Republicans want using private investment versus taxpayer money to help the financial sector.  This is what I wrote specifically to Mr. Shelby:

"Last night's (9/25) FDIC takeover of Washington Mutual was an action that is in contrast to what the Republicans are recommending on this bailout; that private investment should be encouraged versus taxpayer money.  In March, a private investment group invested $8B in Washington Mutual.  Today that investment is worth practically nothing as well as for the individual investor.  Why was the biggest thrift with over $300B in assets taken over in this format?  What foresight or consideration was given in comparison to what is being recommended?  I see lack of continuity with what the Feds are doing and what Congress is saying.  That is the primary reason for the distrust with the average citizen.  I am glad there is such a turnout protesting this bailout all across the nation.

Also, the current Washington Mutual CEO has been on the job for 16 days and has a severance package of $19M.  THe previous CEO left with $57M. This kind of reward has no bearing on the actual performance and thus again, another reason to look at Washington as being out-of-touch with reality.

In an earlier email to my congress representatives this week, I indicated my opposition to the bailout plan and why.  More debt of that magnitude added to the already enormous debt load makes us weaker as a nation and provides less room to maneuver with the world.  I think the market forces should be allowed to take the path that corrects the excess in the housing market.  Yes, it is painful, but the pain will be much shorter than trying to come up with a plan that will only delay the inevitable. And those of us alive today should bear the brunt of this fall: not our children, grandchildren, and those to come.  Thank you for considering my view."