Zuma Dogg Predicts "Sub Prime Lending" May Cause Housing Bubble Burst, Triggering Start of A Recession
ZD PREDICTS THAT THE SUBPRIME LENDING MARKET MAY BURST THE BUBBLE AND START A RECESSION: But, the prediction was three months ago. (And I was scoffed?!?!)
FROM 5/5/07: Oh no...Sen. Chuck Shumer/NY just told Zuma Dogg (indirectly) that we are gonna have a housing bubble-burst and recession starting in about a year. (With the effects starting as soon as six months.) SELL NOW!
* Sen. Chuck Shumer/NY has a bill in congress in about six months to a year they are going to put the clamp down on “sub-prime loans”. This is a major sign that the housing bubble is gonna pop. Then, all these condos will be staying on the market, vacant -- getting cheaper and cheaper by the quarter.
* “Sub-prime lending” are high risk, low interest loans. When you have a good economy, you can give some “riskier investments/clients” these low interest loans to jumpstart their American dream of home ownership.
* They only pay 1% or 2% the first three years, or so. Then, the rate jumps to the Federal rate (what is it, 5.5%, or something.)
People coming off 3 year low interst loans, have to jump into (a higher) Federal rate all of the sudden, and they can’t keep up with the new, higher payments each month and then they default.
Well these days, with higer paying jobs being replaced with lower paying jobs; while housing costs, property taxes, and everything else -- people are gonna be defaulting on the loans, more and more. And the banks know that this is going to to become more of a problem, so they are going to stop approving these “low prime lending” rates.
What else has ZD been predicting that he spent MORE than fifteen minutes researching to make such predictions? LIKE THE NEGATIVE IMPACT OF (Dumb) "Smart Growth", LAUSD Charter Bamboozle, and Non-Profit racketeering that is bankrupting our City (along with the CRA and their Downtown development plans).
ALSO...ZD STORY ON L.A.'s ILLEGAL STREET VENDING MAKES IT ON LUKEFORD.COM: Click here: Sorry Mayor Antonio and illegal vendor, third world economy lovers.
FROM 5/5/07: Oh no...Sen. Chuck Shumer/NY just told Zuma Dogg (indirectly) that we are gonna have a housing bubble-burst and recession starting in about a year. (With the effects starting as soon as six months.) SELL NOW!
* Sen. Chuck Shumer/NY has a bill in congress in about six months to a year they are going to put the clamp down on “sub-prime loans”. This is a major sign that the housing bubble is gonna pop. Then, all these condos will be staying on the market, vacant -- getting cheaper and cheaper by the quarter.
* “Sub-prime lending” are high risk, low interest loans. When you have a good economy, you can give some “riskier investments/clients” these low interest loans to jumpstart their American dream of home ownership.
* They only pay 1% or 2% the first three years, or so. Then, the rate jumps to the Federal rate (what is it, 5.5%, or something.)
People coming off 3 year low interst loans, have to jump into (a higher) Federal rate all of the sudden, and they can’t keep up with the new, higher payments each month and then they default.
Well these days, with higer paying jobs being replaced with lower paying jobs; while housing costs, property taxes, and everything else -- people are gonna be defaulting on the loans, more and more. And the banks know that this is going to to become more of a problem, so they are going to stop approving these “low prime lending” rates.
What else has ZD been predicting that he spent MORE than fifteen minutes researching to make such predictions? LIKE THE NEGATIVE IMPACT OF (Dumb) "Smart Growth", LAUSD Charter Bamboozle, and Non-Profit racketeering that is bankrupting our City (along with the CRA and their Downtown development plans).
ALSO...ZD STORY ON L.A.'s ILLEGAL STREET VENDING MAKES IT ON LUKEFORD.COM: Click here: Sorry Mayor Antonio and illegal vendor, third world economy lovers.
Posted by Zuma Dogg @ 8/10/2007 10:39:00 AM
22 Comments:
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I'm confused. Do any of the other economists who have been screaming about this for the past 3-6 months get any credit?
Or is this gonna be another psuedo scoop drummed up by Zuma Hogg?
This already happened. It started six months ago.
Like I'm going to read a post by ZD about his feelings on the nation's economy. I'd rather listen to Paris Hilton on NPR proposing solutions to the crisis in Darfur.
Thanks ZD. The Wall Street Journal is predicting as soon as November there will be a recession triggered by the sub prim collapse. It's not as obvious in LA, where the housing market is more stable, but in the so-called boom cities like Vegas it's so bad that people aren't even showing up to bid on the many foreclosures as the money owned on the homes far exceeds their value.
OK so who gets the blame? Bush, Greenspan, or the banks. And LA will crash last but take the longest to recover.
ZumaDog predicts?? It reminds me of the the E.F. Hutton commercial where everyone would stop and listen.
The college edukation of Zuma's is finally starting to pay off.
Most subprime lending was in entry- level or marginal areas, so it's not as widespread as the panicers say. But it does hurt many of those who got these loans precisely because they couldn't (shouldn't) have gotten other kinds, but these, with low teaser rates. Too bad they signed on in hopes that their income and/or value of the house would shoot up.
That sort of thing also happened back in the 80s under Carter when interest rates were as high as 17% but this time, buyers did have a choice: live within your means, or take this risk.
We should NOT let Alarcon get the five mil he wants to bail out some of these people from his district.
LA had the strongest market. It should have been the last one that got affected and should have been affected the least by the sub-prime lending crisis.
But unfortunately not, since our mayor has been talking down our middle class economy and is succeeding. The only economy our mayor knows and spreads is the economy of miseries.
Mayor V has denied 3 things.
1. Mayor “does not recall” getting questions in advance from Univision
ERS News follow-up: Univision spokesman CONFIRMS LA mayor was getting questions in advance: “This is inconsistent with our editorial policies and once we learned it was happening, we took actions to ensure it does not happen again.”
Please see http:www.ersnews.com
One down, two more to go.
What about :
2. Denying any romantic relationships with Sabrina Kay?
3. Knowing nothing about the transaction of Salinas’ condo? By the way, who is financing the condo? Does the seller also carry the mortgage? Has Salinas been making payments?
3:33pm,
Here's what I would like you to consider: Let's face it...this is the last issue I would have expected to cover. So whether I made it all up out of the clear blue sky, or plaugerized another article word for word...out of all the predicitons and internet stories in the universe, I felt it was worth breaking precident and presented it here. And it seemed to be the right thing to "double down" on.
So maybe next time ZD pops off at the mouth like a loose cannon -- you can read with a little more confidence.
And maybe if people wouldn't attempt to minimize and discredit my postings, when their head is clearly up their ass, I wouldn't feel the need to call it to your attention. I mean, everyone was quick to call me an idiot when i posted the story three months ago. And people are saying they wouldn't read a post by ZD on this topic...Why not, if I slam dunked it? When I saw the headlines today, no one was more shocked than I. Like when i walked into Chambers the first day at city hall and said venice gentrification was all about building condos. And I was told there were no plans for condos on Venice Boardwalk. Except now they are building them, and there was no way to plan it all in the time between when I said it and when they started going up.
And all the stuff about the city's housing policy around no infrastructure. It's not like someone handed me an issue of LA Times or LA Weekly from a year into the future.
So maybe some of the other people reading this blog will see that y'all agendized ZD haters are not much interested in "reality", just distortions.
AND TO EVERYONE ELSE...I'm enjoying your added input.
The thing you need to realize about ZD...if I am good at anything, it's knowing what issues to embrace and what to leave out.
HERE'S A STOCK TIP: Invest in the digital television industry. Whoever makes them, sells them, or provides service for them.
AND IF ZD IS THE LAST PERSON YOU WOULD LISTEN TO FOR ADVICE LIKE THIS...PLEASE...IGNORE WHAT I JUST SAID. I rememeber when I was telling my friends to invest in apple computers because an "ipod" was just coming out. At the time, I had to actually explain the entire device and concept from scratch to everyone who all said, "No one wants to switch over from CD." Now they all tell the story in regret how, "Man, you sure did call that one. Wish I listened."
Sorry to everyone else who had to endure my PR...but as the spinners get weaker and thinner in their attacks...it makes me wanna jam their loserness down their throats.
And when people are haulded off for non-profit abuse...well...
He was never involved with Sabrina Kay. I've noticed he's only fond(ling) [of] women who speak Spanish and are Hispanic.
Unfortunately (and I mean UNFORTUNATELY since I do not like MAV) mayor has nothing to do with this. Los Angeles crashed in the early 90s and was the last major city to recover.
In the early 90s, the crash was fueled by the Riots. With the whole world watching our city burn, businesses were just not coming to LA and cancelling existing contracts for office space. I know cuz I started a company then, and my broker got me into a Beverly Hills deluxe highrise for less than it was going for before and he was really upset at the loss of potential clients. Business flight was reflected in homes, too.
Of course, that's not the only reason: there was a crazy doubling in prices in the couple of years before that. But prices are holding pretty steady now, just not flipping for speculation so fast.
It's Riverside and San Bernardino counties hurting the most, people in entry and lower-end housing.
I'm shocked, shocked, to hear that there is gambling in Casa Blanca.
3:39: Paris' only realistic solution to the problem in Darfur would be to join Mia Farrow as a professional hostage. She did say she wanted to do something "spiritual," didn't she?
And zuma and matt could go along, not bad company for the likes of them.
I'm not a fan of the Mayor, but how can one guy be the cause of falling real estate prices, the collapse of the subprime market, food trucks and taco vendors and problems recruiting police, meanwhile finding time to deal with the schools and mass transit and newshounds, and find the time to go shoe-shopping? IF he is responsbile for all this, gotta admit he's got energy, doesn't he?
Zuma, if you're such a fortuneteller of real estate trends, why don't you own any yet? Sure, you sense that this is "not the right time to buy," and have just been holding out for a downturn.
RE: Antonio's shoe shopping
7:09 said"IF he is responsbile for all this, gotta admit he's got energy, doesn't he?"
We gotta admit he has shoes.
10:47pm=passes the hater challenge=good one! I really do laugh out loud just like everyone else when they are good! It's the wannabe rank losers that ruin the page.
ZD,
I have taken the liberty to repost your entire comment.
It's a criminal act in writing. The word is "plagiarized." The way you hacked that word makes your spelling of the word "descent" almost acceptable.
As for the stock tip to invest in digital television: 2008 is the year that the analog signal will drop out for all broadcasters. The saturation rate of analog sets in urban areas is still pretty high.
Wow! You're a regular Greenspan.
Your childish retorts to those who disagree are becoming tedious if not tragic. You really were inspirational at one point. As of late, I just kinda shake my head.
But I'm sure you'll respond with a flurry of linguistic gaffes (like "bloggersphere") and then accuse me of being a "hater" or better yet a "looser."
If nothing else, run a spell check. I'm starting to believe that you actually misspelled your own name out of ignorance.
3:33pm,
Here's what I would like you to consider: Let's face it...this is the last issue I would have expected to cover. So whether I made it all up out of the clear blue sky, or plaugerized another article word for word...out of all the predicitons and internet stories in the universe, I felt it was worth breaking precident and presented it here. And it seemed to be the right thing to "double down" on.
So maybe next time ZD pops off at the mouth like a loose cannon -- you can read with a little more confidence.
And maybe if people wouldn't attempt to minimize and discredit my postings, when their head is clearly up their ass, I wouldn't feel the need to call it to your attention. I mean, everyone was quick to call me an idiot when i posted the story three months ago. And people are saying they wouldn't read a post by ZD on this topic...Why not, if I slam dunked it? When I saw the headlines today, no one was more shocked than I. Like when i walked into Chambers the first day at city hall and said venice gentrification was all about building condos. And I was told there were no plans for condos on Venice Boardwalk. Except now they are building them, and there was no way to plan it all in the time between when I said it and when they started going up.
And all the stuff about the city's housing policy around no infrastructure. It's not like someone handed me an issue of LA Times or LA Weekly from a year into the future.
So maybe some of the other people reading this blog will see that y'all agendized ZD haters are not much interested in "reality", just distortions.
AND TO EVERYONE ELSE...I'm enjoying your added input.
The thing you need to realize about ZD...if I am good at anything, it's knowing what issues to embrace and what to leave out.
HERE'S A STOCK TIP: Invest in the digital television industry. Whoever makes them, sells them, or provides service for them.
AND IF ZD IS THE LAST PERSON YOU WOULD LISTEN TO FOR ADVICE LIKE THIS...PLEASE...IGNORE WHAT I JUST SAID. I rememeber when I was telling my friends to invest in apple computers because an "ipod" was just coming out. At the time, I had to actually explain the entire device and concept from scratch to everyone who all said, "No one wants to switch over from CD." Now they all tell the story in regret how, "Man, you sure did call that one. Wish I listened."
Sorry to everyone else who had to endure my PR...but as the spinners get weaker and thinner in their attacks...it makes me wanna jam their loserness down their throats.
And when people are haulded off for non-profit abuse...well...
August 10, 2007 5:10 PM
I cannot respect a simpleton who assails his native tongue with such ferocity.
I agree Max, from our perspective, we see that the 110 lenders that are out of business, 62 other lenders that were bought and the hundreds of mortgage programs that were 'once here but are now gone' artificially increased the supply and demand of the housing bubble. Too many people bought a home that cost $500,000 when they were really qualified for $300,000 or maybe they were REALLY not even qualified.
I just read that the state of Minnesota has ruled that certain mortgages are not allowed, this could possibly help some understand what qualifying means.
The Feds must lower the rate in order to create some order. Obviously there is good and bad in that, we just think the good outweighs the bad and the bad may lead to a recession. Something nobody needs!
I tend to think that buying million dollar homes that were valued at $300K thirteen years ago has a lot to do with the defaults. The optimism for individuals to pay such high mortgages along with property taxes seems surreal.
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