Weekly News Round-Up

Will the culprits be caught and brought to justice? That’s one question that is on our minds, after reading for weeks, nay months, about the mortgage debacle and what it is doing to our economy. Government regulators, fueled by media, ran round like chickens with their heads cut off, caught off guard as they were. Panic begot band-aids, some of which will help, most of which taxpayers are footing the bill on. But now we are seeing investigations into the root of the problem and Yahoo Finance says that “Wall Street Faces Fury Over Subprimes,” and MSNBC tells us that “Regulators Eye Wall Street Role In Housing Bust.” It will be a wait-and-see game to find out if they actually pay for their dirty deeds, but at least they are being called on the carpet.

Another question I’ve been asking myself is one why we are spending the time and energy to bail out foreclosures. The LA Times blog has a good article “Preventing Foreclosure: Why Bother,” and reference to Daniel Gross’s take on this issue, which is “efforts to stop foreclosures are ultimately bad for the economy.” The article talks real estate in general, not specific to LA, so is pertinent for the rest of us in the Golden State. Lots of commentary on this one as well, so you can hear what the regular folk have to say about this issue.

Only in Texas? I have heard that Texas has some strange laws on its books, but they got this one right when they passed it last September: It is now a felony to lie on loan applications. While I support the added inventive to punish the no-gooders, I have to say the punishment doesn’t fit the crime. How about up to 99 years for adding that zero? That’s a bit of overkill, isn’t it?

Two weeks ago I reported on the new 401k debit card, which falls in the “Don’t Try This At Home” category. A dangerous and ultimately regrettable scheme, if you ask me. This week, The Washington Times reports that this program is raising red flags with financial planners, Well, duh. I want to know when it will raise red flags with regulators. Hopefully someone will sit up and take notice before people, who cannot afford to buy a home, spend their retirement income prior to 60, and then get left on a doorstop in their old age, when Social Security can no longer provide an income due to government incompetence. I see a whole flurry of homeless senior citizens walking the streets in 2020 wondering how they ended up without a dime.

And just to make you feel a little better about this whole foreclosure mess, just be thankful you do not live in Las Vegas. This foreclosure map shows just how bad that community is suffering. And we’re talking bad. I’ve been traveling several times a year to this city for a variety of reasons and actually considered purchasing a loft at one point. There was so much building going on, so much inventory, and it seemed like a good investment; I could stay there when I visit, rent it out at other times. Soooo glad I didn’t. It would be worth about half what I paid, and given the proliferation of casinos and timeshares, renting probably would not have been much of a reality, except to friends, who tend to pay in “thank yous.”

Recent Sweet Digs Posts:
Shock Horror: Berkeley Is Both Well Run And Supremely Green
SF and Daly City: Beauty is in the Eye of the Beholder
Don’t Bet On Those Lower Jumbo Rates Just Yet….
San Mateo Inventory Spotlight