CHESSNOID

I have been reading about the Housing Bubble for over a year. Back then, it seemed liked that was information that could only been picked up on the internet. I still recall talking to an old boss in April 2006 about his property he owned in Corona that was appraised at $1.3 million dollars. He was renting it to a doctor for about $4,500 a month. He had one of those special loans, but at the time his renter was easily covering his million dollar loan payment. I think it is amazing you can borrow big money with such low payments. Fast forward April 2007, he was worried about his payments going up and was unhappy about what the appraisal had come in. He had lost over $200,000 in paper value.

I liked this site called the implode meter. I still remember when he started posting the numbers of how many lenders were biting the dust. I wouldn’t have guess the number would have grown to what it is now. Seems like more are getting added to this list at a faster pace. Another big company American Home Mortgage Investment Corp just went under and laid off about 7,000 employees last Thursday. Indirectly, these mortgage companies’ bad news announcements keep bringing the stock market down. There is talk among economists that the Fed might bring the rates back down. I am not sure if it is too late to change the momentum of the snowballing effect of the housing bust. We can only wait and see.