nytimes.com — All through last year, Jim Melcher saw the signs of a rapidly deteriorating American housing market ? riskier mortgages, rising delinquencies and more homes falling into foreclosure. And with $100 million in assets at his hedge fund, Balestra Capital, he was in a position to do something about it.
Aug 19, 2007 View in Crawl 4
cixelAug 20, 2007
I'm reading a book called Gladesmen. Its a firsthand account of living in the everglades in the great depression.I found something very interesting towards the back of the book under notes. It was interesting enough that i typed it up here:15. Land sales were so rapid during the boom years that small deposits (usually 10 percent of the property's value) were placed as binders, or options, for land in exchange for the ownership papers. A substantially higher payment was then due in thirty days or less. These land speculators, or so-called "binder boys" would then resell the bound property at a much greater profit to someone else, with only ever-increasing binders exchanging hands. the frenzied accumulation of binders and their brisk turnover partially account for the period's great inflation. When land values dramatically dropped in 1926, speculators left with multiple binders, in most cases, faced immediate financial ruin.sound familiar?
cixelAug 20, 2007
im sure it wasnt the government pushing for it. it was the other countries invested in and controlling our government today.other countries own our government and couldnt give two s**ts about the american people.
cixelAug 20, 2007
when i lived in LA three years ago i had a roommate who was a loan officer who would brag to me daily about all the illegal 130% loans he was closing. i wonder how thats all going to turn out. badly i would imagine.
sjbdallasAug 20, 2007
Agreed. How about that guy in the article? 40K a year trying to buy a 185K house with no money down. That's about 1700 a month payment? when he's only bringing home probably 2600 a month after taxes, leaving him 900 for food, gas, utilities, etc. The guy was an idiot.
albionshoresAug 20, 2007
The referee knew what was going on though and would have stopped the farce had he not been receiving payoffs from stupid & greed. Greed screws the cheerleaders to pay the ref.
albionshoresAug 21, 2007
Really not a good time for anyone to take out a mortgage. If you don't have it all sat in the account waiting to be spent then think twice about buying it. And certainly don't buy yet with the intention of making a profit. Nobody jumps onto sinking ships but they do find treasure in sunk wrecks. This ship hasn't hit the bottom yet.
nova9Aug 21, 2007
They didn't miss it, by the time they notice it, the ball was already rolling too fast to stop it until it burst last week. Just use that analogy.
tritiumpieSep 4, 2007
hate to cross-link to my submission, but... my friend, your 401K has been targeted for destruction by hedge funds<a class="user" href="http://digg.com/business_finance/Why_are_hedge_funds_betting_BILLIONS_on_a_massive_market_collapse">http://digg.com/business_finance/Why_are_hedge_funds_betting_BILLIONS_on_a_massive_market_collapse</a>
desertbeagleSep 18, 2007
Whether or not they missed it, they did profit, and on top of that, created a huge market where millions more will be made. Homeowners will be let back in after some prices fall. Savvy investors will clean up dealing with foreclosures and buying at a discount. You really have to look at all sides. If you want to know how you can profit from this mess, stop at <a class="user" href="http://www.dominatepreforeclosures.com">http://www.dominatepreforeclosures.com</a>
aabjoraNov 11, 2008
absolutely agree.. I even guess who's gonna pay for all that mortgage mess-taxpayers- as usual...<a class="user" href="http://www.mortgagerefinancingloanz.com/">http://www.mortgagerefinancingloanz.com/</a>