Three years and Counting... NOW foreclosureGate

The mood around here this week is less than good. As with all businesses once the government comes knocking at the industries door everybody holds their breath.

In the 1960's my father was in the trucking business owning a freight agency. Today, that is a fools business or a one room operation in a trucking company but before De-regulation my father in Los Angeles operated a 120 door loading dock and made money by the boat load.

So I guess government can cut both ways.

I can not talk directly about my business as I am bound by agreements, how ever I can comment about public events that relate to the REO debacle in the USA.

I see from many main stream sources that the attorney generals of many states have discovered that pooling and sercuritization rules were violated as well as every local and state law regarding the transfer for property via assignments on the books.

The media is making patty cakes and playing it down, but you should know that deep in you gut somewhere something is very very wrong and I have the same feeling. Each day I come in and get to sorting and selling. We do little buying these days.

The economists I track are not the ones you see on Bloomberg or CNBC and these men and women are pointing to factors that will reduce the values of all US Real Estate regardless of location and class or type by a minimum of 19 to 25%.

I have a son that is 16 and this problem of over all real estate depreciation is likely to still be with us after he is able to take a legal drink of booze. My mother lives on a fixed income and I have reviewed her holding as well as my and my wife's and we all have investments that are related to RMBS, CMBS and CDO's. So I have a family that is at risk of serious impact should the the banks I work for kick this can down the road.

I recommend that you call your congressperson, governor, and senator and demand that the banks make whole the investors, retirees, pension funds and bond holders to which they knowingly sold trash and called it gold.

Now one tid bit of FYI there are in 5 holding companies not controlled by a GSE that are holding 135,000 single family homes across the nation. These homes have been sitting for months and we were told in June that they would all be sold off by end of year.

Only 30,000 were sold and the every same holding companies today still have the same 135,000 homes in them. Supply is increasing and sellers are not selling. This business is about to explode or the national economy blow up instead. The time has come to demand the banks and GSE sell off or the government must step in and take over the banks via the reconveyance trust NOW!

No Body knows what is happening NoW

Greeting all and one month later I have the time and the focus to put a note in the Internet.

Did you see the market today, all sellers and no buyers I wonder why! 260 points down!

If you are attempting to buy REO Tranches and for the past year fell on hundreds of intermediary consultants that provide tapes and NCND/MFA's but never got anything well that may be about to change.

{There is a disturbance in the Force Luke} and mean a massive one. After years of the Government's gorging on the bad assets of the banks a vomiting event may come about.

By my limited and very narrow view of the business the Federal Government has a hunchback called the QuasiFED doing it's massive consumption and today QuasiFED is about to either burst or Vomit.

You see when you tell the public that you will buy as they did at the QuasiFED a total of ONE Trillion Dollars worth of triple A assets (wink,wink,nod,nod) from the corporate banking titans and it turns out that there is pitiful cashflow return and the assets are worst than penny stock.

You Vomit them up and sell the evil smelling brew to the vulture class.

And is the Vulture class ready, Yeah Baby they are but they have no idea (save a few) how deep and dark the belly of the QuasiFed is and this is question.

Can the Vultures of the financial world now play round robin roll up (banker style) with assets they buy for pennies and work up to 95% of the current bpo.

Time will tell.

Did you know that there are coming about 4.2 million more foreclosures over the next 18 months!

What will that do to your houses value?

Good night!

In the Year Zero

Hi all -

I have not been able to up date this blog regularly due to some CA agreements I have signed. The only thing I add currently is the 100M up REO business is growing.

My personal belief is that the value of all real estate in the world will continue to drop until all the financial firms stop "Extend and Pretend".

Good Day!