Category Archives: housing market

This will make you feel warm and fuzzy…not!

Americans net worth shrinks $1.33 Trillion in the first quarter.

Now, I don’t have any I figured this news didn’t really affect me. But..I saw this part and cringed:

Collectively, homeowners had 41.4 percent equity in their homes in the first quarter. That was down from 42.9 percent in the fourth quarter .The value of household real-estate holdings fell 2.4 percent.

But..never fear dear reader..because Bennie Bernanke says the recession will be over by the end of the year!

I guess he has a really great crystal-fucking-ball….

Or maybe it’s because 10 of the banks have the ability to repay their TARP loans, to the tune of $68 Billion..because they jacked the living shit out of the credit card rates and anything else they could raise legally.

Our personal money trees are getting bare..

B of A buys Countrywide..

In a deal that saves the ass of the nation’s largest mortgage lender, Bank of America has agreed to buy Countrywide in a ‘stock-only’ sale. Countrywide has been rumored to of been considering a Chapter 11 filing recently with the value of their stock at a garbage rate of $5 a share in December. “As of Sept. 30, Countrywide’s savings bank held about $79.5 billion of loans as investments. Three-quarters of these loans were second-lien home-equity loans — where Countrywide doesn’t have first crack at the collateral in case of default”-according to the Wall Street Journal.

The WSJ has a nice explanation of what it all means here. The person who makes out like the bandit he is in this deal?

Why, the founder of Countrywide of course. Chief Executive Angelo Mozilo. Angelo might be taking home a nice little golden parachute of..wait for it…

$70 million bucks

Yep, that ain’t a typo folks. Meanwhile the stockholders will get: 0.1822 shares of Bank of America for each share of Countrywide. Yes, that is a big fat fucking zero in front of that decimal point. Sure, they now will own stock in the largest bank in the US, but damn, that trade-off sure doesn’t look real inviting does it? Bank of America gets a company that was valued at one time the amount of $24 Billion, and they got it for the bargain basement price of $4 Billion.

Oh, and Angelo will also get his countryclub dues paid through the year 2011 and get to use the corporate jet. Chuck Shumer had this to say about Angelo’s sweet deal:

“Mr. Mozilo could display some good will by donating any severance pay he stands to receive to the nonprofit housing counselors trying to prevent foreclosures,”

Somehow, I doubt that will happen Chuckie..

Swiss Banker says our lending standards suck.

Amazing..the Europeans have finally figured out how fucked up our economy is and why. From the

Switzerland’s top banker has warned of massive losses from the unfolding credit crisis, describing the collapse in US lending standards as “unbelievable”. Jean-Pierre Roth, president of the Swiss National Bank, said market turmoil was far from over as tremors from the sub-prime debacle continued to rock the world. “We’re certainly not at the end of the story. There are question marks surrounding the development of the American economy,” he said. “Something unbelievable happened. People who had neither income nor capital got credit with very attractive conditions. Now reality is striking back,” he said.

Reality bites hard..

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Ride the Real Estate Roller Coaster

You don’t need sound really, but its a hairy ride, none the less. The creator of this video used the housing markets dips, spins and upshoots to create this video. Notice how high the final surge is from the ground by the scale of the objects on the ground..lots of room to fall..