Wednesday, November 21, 2007

HapppyThanksgiving

Happy Thanksgiving! :-)
Posted by David at 4:33 PM

9 comments:

  1. EconomicDisconnectNovember 21, 2007 5:44 PM

    I had a question as it regards to the "freezing" of teaser rates in California. Assume it can really be done. If the FED (ie you and me) has to bail out banks and lenders that are going to have massive losses from the restructuring, should the mortgage interest tax deduction be withdrwan from those homeowners that benefit from the lower fixed rates? It would seem like a double windfall to me to allow the deduction to stand. Any ideas? I have a poll up on my site where you can vote on it. Have a good holiday!

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  2. LanceNovember 21, 2007 11:14 PM

    No, they shouldn't be allowed to deduct the incremental interest they would have had to pay if their interest rates went up ... only that interest that was actually paid. I believe that is the current tax law, so there is no danger of double windfall here. I mean, it is understood that this freezing (which incidentally is new to me) only gives forebearance on "what would have been charged in extra interest" and not on "the pre-increase interest" already deductible.

    And whether we like it or not, the fed will step in to help homeowners keep their homes because the nation has an interest in seeing stable communities with homeowners literally invested in those communities and in the nation itself. It also gets votes for the politicians who pass such legislation. And it doesn't matter if we think this is right or not. It is reality. And just one of many realities that will ensure there is never a bubble bursting as some people on this site would wish on their homeowner neighbors and "friends".

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  3. tagNovember 22, 2007 7:11 AM

    Everyone, BH and HH's alike, enjoy the day off with friends and family.

    Lots to be thankful for.

    -kh

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  4. AnonymousNovember 23, 2007 11:54 AM

    lance said . . .

    "homeowners keep their homes because the nation has an interest in seeing stable communities with homeowners literally invested in those communities and in the nation itself."

    One thing not many people have talked about is vacancy rates, which have gone from ~1.5% nationally to >3% nationally over the past 5 years. You are starting to hear and read more and more stories about empty homes and neighborhoods . . . and following that you hear about the increase in home thefts from empty houses, squaters . . . etc.

    I'm sure having a bunch of empty homes is in the communities best interest.

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  5. LanceNovember 23, 2007 10:47 PM

    anon 8:54 said:
    "I'm sure having a bunch of empty homes is in the communities best interest."

    No, it isn't. Like I said, it is the the nation's best interest to see stable communities ... " Homes made vacant as a result of foreclosure do not furthur that interest. Thanks for bringing up a good reason why we'll see Congress (and the states) help prevent foreclosures.

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  6. AnonymousNovember 24, 2007 12:36 AM

    "And whether we like it or not, the fed will step in to help homeowners keep their homes because the nation has an interest in seeing stable communities with homeowners literally invested in those communities and in the nation itself."

    I have heard this spewed by so many real estate agents it isn't even funny. "Don't worry about the turmoil, the federal government has an interest in keeping this market (fill in the blank).."... well you can imagine the word(s) they used to fill in the blank, but the bottom line is the actual words are "has an interest in keeping this financial bubble inflated".... really? like pets.com? only those pols who get their campaign contributions from the real estate/banking industry have an interest in doing that. Those persons would include the Governator (isn't Countrywide in Cali?..and Sen. Schumer, doesn't Wall Street finance all his senate bitch boy candidates?)...as for lance's posts - obsutse foolisheness as usual, he likes to brag he lives in DC, but it is all too clear he knows nothing about politics...do you think they really care about some schulp who got duped into taking an I/O loan and now can't repay it? Think again.

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  7. wannabuyNovember 24, 2007 3:14 PM

    Hope everyone enjoyed Turkey day.


    Now bond insurers are having trouble:
    In other words, expect down payment requirements to ratchet up another 5% and competition to buyers to be further reduced. (So wait and be patient if you're a buyer.)
    Hattip HBB:
    http://www.washingtonpost.com/wp-dyn/content/article/2007/11/23/AR2007112301746.html?hpid=moreheadlines

    David's prediction on DC home price drops is looking pretty good. If anything, conservative.

    Got popcorn?
    Neil

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  8. AnonymousNovember 24, 2007 9:14 PM

    I went out looking to buy a new car, and the dealers are fighting over me to finance with them

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  9. AnonymousNovember 25, 2007 1:18 PM

    Great site, I stop by often.
    Hope you hade a great weekend!

    ReplyDelete

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