Weekly News Round-Up

Will there be a second wave of defaults due to option-ARM loans? As if the sub-prime debacle isn’t bad enough, there is the possibility that both homeowners and lenders could further suffer due to these types of loans. The Seattle Times published an article on just this subject, “Defaults Expose the Truth of Liar’s Loans,” which explains both option-ARM loans and why they most likely will contribute to the mortgage crisis. This time around, however, both homeowners and lenders made the blunder and both sides are more deserving of loss.

Seems like I am always a day late and a dollar short. Shoulda sold my home two years ago at the peak, but still had kids around and was too young to retire, and when I am ready to downsize and possibly relocate in another year or so, my house isn’t going to be worth what I had hoped, thanks to the current mess we’re in. And as if that isn’t bad enough, USA Today reports that my generation of baby boomers is now beginning to take retirement, which means selling the old urban/suburban homestead and moving on to warmer climes, more rural environments, and smaller abodes in general. According to the story, “As Baby Boomers Retire, Home Markets Will Hurt,” their exodus will reshape neighborhoods and cities coast to coast, according to research released Wednesday.”

Seeking Alpha always has insightful posts, although some are a bit over my head at times. Today’s shocking tidbit from the story “The Federal Reserve has Failed Us,” is that “The Federal Reserve is neither Federal, nor a reserve. It is a private bank that was established in 1913.” Yes, I went to college, but my degree was not in economics or even business, so factoids like this and others in the article are real eye-openers.

“The Tidal Wave of Foreclosures Strikes the Bay Area,” is a great post over at Erica.biz. Erica is a Gen-Yer who has a strong, and possibly spot-on, perspective of the housing bust. It’s a bit scary if her assessments come true, but worth reading, nonetheless.

Over at the Dad Talk blog, Brett Levy gets a bit long winded in his post “Should Money-Troubled Americans Just Walk Away From Their Homes?” but he makes some good points and gives us rationale for the possibility that he posits.
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