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View Diary: The Housing Market Has NOT Recovered (19 comments)

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  •  Not true. (1+ / 0-)
    Recommended by:
    FG

    All banks and thrifts must categorize loans that are greater than 90 days delinquent as Classified Assets. They must create specific reserves for those assets based on their expected liquidation value. So they are not carrying seriously delinquent loans on their books "at full loan value". This is the case for all banks - state and federally regulated. The only thing they CAN do that may be improper is to under-reserve for such assets, by over-estimating the expected liquidation value. So for loans that will lose 50 cents on the dollar, perhaps they can get away with reserving for only a 40 cent loss. But they can't carry the loans anywhere close to book value.

    •  And we both know how it works IRL. Here in Vegas (0+ / 0-)

      there are almost twice as many properties held back as the entire inventory of listed. That still isn't enough to inflate prices high enough for the average owner to get out from under, but they are over-priced enough that the cash buyers are less and less interested.

      At some point, we are going to have to deal with what really happened and how very much more we still have to pay for the banks crimes.

      "Those who can make you believe absurdities can make you commit atrocities." - Voltaire

      by Greyhound on Wed Jul 30, 2014 at 10:31:53 AM PDT

      [ Parent ]

      •  Banks did not orchestrate the housing (0+ / 0-)

        collapse. They lost a fortune due to bad loans done based on inflated real estate values. Every person who bought a house during the balloon period in hopes that they'd be able to make a sweet profit is to blame as much as any participant in the market.

        •  You can just keep spouting the same lies that have (1+ / 0-)
          Recommended by:
          a2nite

          been shown to be lies for years now, but I'm not listening to any of them again.

          The truth will out, and some of us have been paying attention.

          "Those who can make you believe absurdities can make you commit atrocities." - Voltaire

          by Greyhound on Wed Jul 30, 2014 at 12:20:18 PM PDT

          [ Parent ]

          •  Don't be mean about it, we're all progressives. (0+ / 0-)

            We just disagree on who is at fault for the housing crisis. We're a big tent though, those of us who are in the financial services industry and those of us who call all people in finance "banksters". Disagree with me, but love me just the same.
            Doc

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