So, banker types, if WaMu goes bye-bye...

[Jimmypoo]

So new, I'll have to go to Barnes & Noble to read them in the store!

[Seacrest]

Also, if you want to get a sense of how difficult it would have been to yank the punch bowl during the boom, while the party was "fun," read this article from the height of the folly. Not sayin' it was the right decision, hust sayin'.

http://www.time.com/time/printout/0,8816...97,00.html

I ALMOST bought a duplex in NorCal with my sister then, who had convinced me that we would be "priced out" if we didn't buy now.

But when I looked at the prospect of paying $5000 a month (each) in a few years and rents, at best, running a quarter of that, I got cold feet. My sister was quite upset with me for killing the deal, but now she worships me, her big "genius" bro (once again).

[Jimmypoo]

I would never consider rental property where the rental income didn't cover at least 80% of the mortgage, and the depreciation / appreciation didn't more than make up for the other 20%!

[Seacrest]

[quote Jimmypoo]I would never consider rental property where the rental income didn't cover at least 80% of the mortgage, and the depreciation / appreciation didn't more than make up for the other 20%!
Well, at that time "appreciation" was 20% YoY, and the re-litters were calling it a new paradigm. "Real Estate never goes down!"
It doesn't take a genius to figure out that not only was 20% a-year appreciation not going to last, but eventually 50% reductions were going to have to happen at some point, or it would take 1000 year mortgages to buy starter homes.

[Jimmypoo]

http://www.bizjournals.com/atlanta/stori...a=from_rss


JPMorgan/Chase to likely steal WAMU which is at $2/share. Didn't they or CitiBank
just steal Bear-Stearns for little or nothing?

Potter's not selling............ he's BUYING.

[Filliam H. Muffman]

[quote Jimmypoo]
I'd like to know which specific set of laws and regulations (deregulations?) put so many of
these banks at risk by permitting them to offer funds to less than credit worthy applicants,
and ultimately, who is responsible for doing so.
This guy has been criticizing "current" policy a little too much. It was July 2005 when I first noticed the chicken littles crowing about the housing bubble.

[Seacrest]

[quote Jimmypoo]http://www.bizjournals.com/atlanta/stories/2008/09/15/daily25.html?ana=from_rss


JPMorgan/Chase to likely steal WAMU which is at $2/share. Didn't they or CitiBank
just steal Bear-Stearns for little or nothing?

Potter's not selling............ he's BUYING.
Yeah, JPM "bought" BS -- with the Fed's help.
Citi had to get a $7B "gift" from the sovereign state of Abu Dhabi, I believe, to stay afloat.

[Wailer]

For what it's worth, everytime my mortgage has been sold, I have had to deal with payments not being posted and subsequent derogatory marks on my credit. I've fought every one since I had cancelled checks and set my payments certified mail to the new owner of the note. It was still a PITA. It seems many lenders cash checks first then try to figure out where to post them.

I'm not sure it would be easier with online payments.

I've never had an impound account for taxes, but I would definitely be worried about keeping tabs on that if your loan is sold or your lender goes teets up.