20 Years of Home Values in Charleston, SC

What: Friends of the Carter Real Estate Center Networking Event

Topic: 20 Years of Home Values in Charleston: Trends and Forecast

Speakers: Professor Tim Allen, Ph.D., Director of the Carter Real Estate Center at the College of Charleston and Brad Rundbaken, Diversified Resource Group, LLC, Founder of the Charleston Market Report

When: April 14, 2009, 6 - 8 pm (light food and beverage reception from 6:00 to 6:30)

Where: Wachovia Auditorium, Beatty Center, College of Charleston, 5 Liberty St., Charleston

Sponsored by: The Post & Courier

Invitees: Friends of the Carter Real Estate Center, Real Estate Professionals, and the general public

RSVP strongly encouraged (seating limited to 140): Tracie Mitchum, Office Manager, Carter Real Estate Center by email at mitchumt@cofc.edu or by phone at (843) 953-8103.






Speaker Bios:

Professor Tim Allen, Ph.D.

Tim Allen joined the faculty of the School of Business and Economics as the Charleston Realtors® Endowed Professor of Real Estate and the Director of the Carter Real Estate Center in 2008. He holds a doctorate degree in Real Estate Finance and Economics from the University of Georgia. In addition to teaching real estate courses in Real Estate Program at the College of Charleston and at the Charleston Trident Association of Realtors®, he serves on the editorial boards of several academic journals, maintains an active academic research agenda, and operates a private appraisal, brokerage, and consulting practice.

Since beginning his career in 1992 at Florida Atlantic University, Professor Allen has published over 60 academic writings, including journal articles, textbooks, and white papers. His work has appeared in Journal of Real Estate Finance and Economics, Journal of Real Estate Research, Real Estate Economics, Financial Review, The Appraisal Journal, Journal of Real Estate Literature, Journal of Real Estate Practice and Education, Journal of Business and Leadership, International Journal of Business and Public Administration, Journal of Real Estate Literature, and other outlets.

Over the past 17 years, Professor Allen has made over 40 professional presentations to such groups as the American Real Estate Society, the American Real Estate and Urban Economics Association, the Academy of Business Disciplines, the National Association of Auctioneers, the International Academy of Business and Public Administration Disciplines, the National Alliance of Highway Beautification Agencies, the Southern Finance Association, the Academy of Finance and Economics, the Eastern Finance Association, and the World Conference on Transportation Research.

Dr. Allen’s private consulting practice focuses on providing detailed market research and statistical analysis to assist individuals, corporations, Realtor® associations, multiple listing services, and state and federal government agencies in their real estate acquisition, disposition, litigation, system evaluation, and political lobbying decisions. He is a South Carolina State-Certified General Real Estate Appraiser, a South Carolina Licensed Real Estate Broker-in-Charge, a South Carolina Licensed Real Estate Instructor, a Florida State-Certified General Real Estate Appraiser, a Georgia State-Certified General Real Estate Appraiser, a Florida Licensed Real Estate Broker, a Certified Argus® Specialist, a CCIM candidate, and an Associate Member of the Appraisal Institute. His experience includes analysis of office, retail, industrial, residential, agricultural, recreational, billboards, and vacant land properties.

Professor Allen can be contacted by phone at (843) 953-8121 and by email at allent@cofc.edu.


Brad Rundbaken

Brad Rundbaken attended the College of Charleston on a soccer and academic scholarship where he earned a Bachelor of Science degree, with a major in Business Administration, and minors in Economics and Intermodal Transportation.

Mr. Rundbaken is a Principal with Diversified Resource Group, LLC, a California corporation with headquarters in Sacramento, CA. He is the Founder of Charleston Market Report, LLC, a former appraiser, and a Real Estate Agent with ERA Tides Realty.

Since graduating from college Rundbaken has been fascinated with the macro and microeconomic influences of supply and demand on the economy, real estate market, and the stock market. During his investment career with Raymond James Financial Services and Wachovia Securities Private Client Group, he realized that too much emphasis was placed on investing by only using a company’s earnings, which sometimes were based on unrealistic and inaccurate data. In response, he became very interested in how to implement the irrefutable law of supply and demand to provide a customized tactical allocation strategy for his clients’ portfolios and retirement plans. During his career as a Financial Consultant he spent years studying and using a unique money management style of investing focused on risk management called Point and Figure Technical Analysis. He has completed the Dorsey Wright & Associates Broker Institute and the Advanced Broker Institute which specializes in the applications of Point & Figure Technical Analysis.

Rundbaken lectures at the Citadel MBA Program and the College of Charleston Carter Real Estate Center. As a real estate and investment speaker, Brad has a dynamic presentation that demonstrates the power of using trend analysis for risk management and forecasting in today's volatile markets.

Mr. Rundbaken’s work with Diversified Resource Group and Charleston Market Report, LLC consists of pension fund consulting, customized market analysis studies, market research, and analysis on private equity, investments and real estate for institutions.

Brad Rundbaken can be contacted by phone at (843) 297-2701 and by email at brundbaken@comcast.net.




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

The Problem with Geithner's Plan

This is complete madness!!!





Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Economic Cartoon Sunday Funday!

Souce: Daryl Cagle's Political Cartoons






Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Attention American Sheeple

WAKE UP!




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Bailouts and Risk

CNBC just lost one of their best journalists, Dylan Ratigan, who apparently quit to join ABC. If you watch this video Ratigan presents an excellent case on why firms such as the Goldman Gangsters (Goldman Sachs) should be allowed to pay their execs millions in bonuses for taking too much risk by financially engineering the mortgage market and other financial instruments.

Goldman litterally created Financial Weapons of Mass Destruction (FWMDs) that were duplicated by other Wall Street firms and then created a worldwide housing and credit bubble aka Ponzi Scheme. Ratigan explains how Henry "Punk Ass" Paulson went to Congress to change the rules on leverage back in 2000 and 2004 so they could "compete" with other international firms. Once the idiots in Congress allowed the Goldman Gangsters to increase their risk their leverage went from 15 to 1 to 40 to 1. I bet it went higher than 40 to 1 but that is what they reported.

This explains the rapid increase in housing prices becauase Wall Street created a Ponzi based on risky financial products that are now blowing up. Ponzis always collapse and this Ponzi is credit related. Unfortunately, we the taxpayer have to bsilout the failed Ponzi Scheme while the Banksters essentially steal our tax dollars to stay in business until they can figure out another way to financially screw us over. Trust me, they will think of something.

What is truly sheer MADNESS is the fact that Paulson was directly responsible for creating this financial mess and then appointed as Secretary of Treasury to clean it up. He was also given unprecedented powers to work with the Fed, which also has enormous power and control of the money supply, while they are merely a private cartel. Have you noticed how Paulson, Geitner and Bernanke keep asking for more power and these same guys were either asleep at the wheel or directly responsible for creating the current financial mess.

So much for change.




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Bailout

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Proactive Plan Dealing with Distressed Real Estate

We need solutions for the distressed and foreclosure real estate market. The center piece of solving this growing problem is transparency.

Our three (3) Point Plan for the real estate and mortgage crisis essentially encompasses:

1.) A platform designed for the private (and where sensible) public purchase of assets - a market stabilizing process is involved. Essentially an auction process or clearing exchange

2.) A structural (infrastructure) analysis of relative value - not an appraisal or MAI as much as a product price analysis. Would offer guidelines

3.) Affordable housing or "market rate" housing with some assistance for governing entities

Below is an excellent article written by Carolyn Betts on the problems with Geitner's plan

A Commnent of Geitner's Plan
by Carolyn Betts


I am an attorney who was working in Washington with RTC during the S&L crisis, so I know something about “toxic asset” sales. I have been poking around the legal and contracting market to find out what work there is out there in reviewing, collecting data on and valuing the billions and billions (trillions?) of dollars of “toxic assets,” including the mortgage backed securities, CDOs and other derivatives created and backed by mortgages that are now “toxic.” I have several observations after reading media accounts of the Geithner plan for so-called public-private partnerships to purchase these vaguely described “toxic assets.”


POINT #1: We need to be defining exactly what these “toxic assets” are. One size does not fit all in this regard. It makes a difference whether we are talking about single family residential mortgages that are somewhere in the procedural process of being past due, in foreclosure or REO (i.e., real estate owned by the lender following foreclosure), which can be valued fairly readily, or, at the other end of the spectrum, derivatives based on derivatives that are subject to pooling and servicing agreements that put strict limitations on what work-outs can take place to resolve the “toxicity.”

POINT #2: If non-performing assets are to be sold to private investors, those private investors will only pay the best possible price if they have access to reliable data upon which to base their bids. I talked to a senior partner in a DC-based law firm who knows everything there is to know about what goes on in Washington having to do with mortgages. He said he is unaware of any significant efforts to hire government contractors to undertake the type of loan due diligence, review, data collection and valuation that would have to be done to conduct sales of the “TARP” assets that have been talked about since the fall of last year and earlier.

I talked to a national legal temp firm and asked whether there was any work available in toxic asset review. The recruiter said that her firm had expected to see a lot of that type of work coming down the pike, but there is nothing of that type out there so far. By all accounts, government regulators like FDIC and SEC are short of funds, and FDIC is hiring a lot of bank examiners. If you go on USAJobs and look for job openings with FDIC and the Commodity Futures Trading Commission, there are few or no openings for experts in valuing or otherwise dealing with non-performing loans.

We have been talking about the bursting of the housing bubble for over a year now, and there seems to be no one taking any initiative in categorizing, stress-testing, quantifying, defining, analyzing, valuing or otherwise collecting information to define the problem. And if any of this is going on secretly and behind closed doors in Washington, then shame on them. Real estate is all local. And if we don’t know what the problem is, any proposed solution will fail.

POINT #3: The New York Times article describing the new Geithner plan says that it is similar to what was done by RTC during the S&L crisis. Well, the Geithner “TOPS” plan not similar to anything I saw at RTC. RTC hired interdisciplinary teams of qualified major accounting, legal, investment banking and other financial advisory professionals to analyze and document all relevant information that an investor would need to value its multi-billion-dollar portfolio of non-performing commercial loans.

We knew what documentation existed and did not exist and what was the status of contractual cash flows, lien positions, bankruptcy cases, underwriting defects and local developmental approvals for the projects and often had pictures of them. We organized “war rooms” where investors could come to look at the loan and other legal documents and we performed various valuation-related calculations and provided them on a disk for a small fee to interested bidders. We interviewed potential wholesale and retail buyers to find out what kinds of sale terms would attract their interest. We provided seller (i.e., government) financing as an alternative to the cash price, with self-executing terms and government sharing in the up-side, so that there was as little future work on the part of the government as possible and the government would not be fleeced. There were very limited government representations and warranties and “put-back” rights and no government guarantees.

What was the result? The first few sales yielded fairly low prices, and the winning bidders made a killing. When others in the financial markets saw that, they bid up the prices in future sales and the government generally got respectable or even amazingly high returns for future sales. Gradually, local investors who knew of the specific projects came out of the woodwork and made informal work-out deals with owners of the projects, which allowed them to bid higher than the New York capital market investors like Goldman Sachs and GE Capital. We facilitated the formation of bidding groups comprised of smaller bidders interested in dividing up loan pools among themselves to bid against capital market bidders. This was the best outcome for the local communities, of course. Very few bidders took advantage of the seller financing, because they found private money cheaper and didn’t want to share the up-side with the government.

What Tim Geithner has proposed has virtually nothing in common with the transactions I worked on with RTC, although I admit that single family mortgage solutions are not the same as those for commercial mortgages. But we have as a model for non-performing single family mortgage sales the work of Hamilton Securities, together with Merrill Lynch, Ernst & Young Kenneth Leventhal, C & S First Boston and Cushman & Wakefield, as financial advisors to the Federal Housing Administration in the auctions of single family non-performing mortgage loans sold from FHA’s portfolio in the mid-90s. Those sales were similar to the RTC sales before, but employed more sophisticated relational databases and other digital tools as well as state-of-the-art optimization software for evaluating bids. In those sales, FHA increased its recovery rates from about $.35 on the dollar to $.70 - $.90 on the dollar, saving several billions of dollars for taxpayers. That was when a billion dollars was a lot of money. In none of these sales did the government provide guarantees, seller financing or puts or allow bidders to be in a heads-I-win-tails-you-lose position as appears to be the plan for the toxic assets in the twenty-first century housing bubble.

POINT #4: There needs to be a plan to figure out how to deal with some problems going forward. I see no sign of new government regulations that would prevent more of the same, including credit default swaps in the trillions of dollars.

No Congressional or regulatory action is in the works, to my knowledge, to exercise regulatory authority over these “financial weapons of mass destruction.”
For all we know, more credit default swaps are being issued as we speak to bet on future financial institution collapses.

The Financial Accounting Standards Board is talking about loosening the mark-to-market rules that require banks to disclose to regulators and stockholders the actual current value of their assets, with no hue and cry from the SEC (which has the power of regulation over financial statement standards for public companies).
Hedge fund investments are still unregulated by the SEC.

The Chairman of the SEC says the agency doesn’t have enough money to do its job, including the conduct of investigations of things like the illegal naked short selling that appears to have brought down Lehman Brothers.

When I was an internal auditor of a NYSE member firm, there was a rule (apparently dropped at some point during the last ten years) that prevented short sales except on an up-tick, meaning that there had to be a purchase for every short sale. This prevented severe market drops as the result of massive short-selling. And, of course, my firm had to borrow a share of stock for each share our clients sold short. There was no naked short selling. And fails to deliver were investigated, with strict disciplinary action taken unless a good explanation was forthcoming.

POINT #5: In my view, the only hope we have to make good on, or reduce the losses on, the “toxic” mortgages at issue is to manage them on a local level with community involvement. I have a friend in the real estate business who is interested in purchasing houses in foreclosure and working out a plan to help the former owners get jobs or otherwise deal with the financial problems giving rise to their defaults. He would allow them to continue to occupy the houses as renters and repurchase the homes in the future after getting back on their feet if they so desire. If this type of action were taken on a community-wide basis with the cooperation of local governments and businesses, a lot of heartache in all sectors could be avoided. We cannot guarantee or borrow our way out of this as a society. We need to put people to work producing things of value.



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Rebound in Home Sales?

The answer would be NO.

In fact I see some alarming trends in the city I track and live, Charleston,SC, right now such as:
* Inventory continues to rise in spite of low interest rates.
* Foreclosures are increasing at a rapid pace.
* Unemployment is increasing.
* Home prices are still declining in many areas.
* We have a large shaddow inventory of distressed real estate the banks are holding on their books that nobody can see in order to properly evaluate real estate values.
* Existing home sales are at all time low volumes. In February 2009 we had 381 total sales out of a total of 9889 homes listed for sale.
* Home sales in February 2008 were 698 compared to 381 in 2009, which is a decline of 54% year over year.
* Approximately 85-90% of the homes listed for sale in the local MLS are overpriced!

There are some excellent buying opportunities in Charleston right now but you have to be very careful and use a Realtor who understands the dynamics of both the retail and distressed markets to guide you through difficult housing market conditions.






Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Tri-county to get $7.4M to help mitigate foreclosures

This is great news. Charleston is in desperate need of more affordable housing. The Lowcountry Housing Trust is a wonderful organization with a great mission.

However, this only puts a minor dent into the Tri-County foreclosure problem. There are currently 596 active short sales or foreclosures listed for sale in the mls. According to my research there are over 3000 homes in some sort of distressed status in the Tri-County area right now. This would mean that close to 30% of the Tri-County real estate market contains homes in some phase of distressed mitigation.

The foreclosure inventory is going to continue to grow due to future mortgage resets, increasing unemployment and declining real estate values.


























I went on 1250 WTMA on Tuesday to discuss this problem but I am having a tough time finding anyone in Charleston who wants to help me address the problem with proactive solutions. Meanwhile some of the banks are holding short sales on their books because they are stalling to make a writedown. This creates a high risk homebuying environment when there is a lack of transparency for distressed houses in subdivisions all over Charleston.






















Would you want to buy a $200k home if there is an identical one down the street that nobody knows about that is about to go to auction or a short sale and sell for $150k? If this becomes a chain reaction and all the neighbors begin to "Jingle Mail" their keys to the bank then the buyer of the retail priced home @ $200k is SOL of $50k in equity real quick.

With all this hidden and invisible distressed real estate it is next to impossible for real estate agents to properly advise their clients on existing market conditions.



Tri-county to get $7.4M to help mitigate foreclosures


By Ashley Fletcher Frampton
aframpton@scbiznews.com
Published March 26, 2009

Housing officials in the tri-county area have learned they will receive $7.4 million to buy foreclosed homes to sell or rent at affordable prices.

The money comes through the federal government’s Neighborhood Stabilization Program, which is meant to prevent blight and declines in home values in neighborhoods with clusters of foreclosed homes.

At the same time, the program increases the inventory of affordable homes for those people earning 120% of area median income, said Tammie Hoy, director of the Lowcountry Housing Trust.

State housing officials announced the award to the Lowcountry counties yesterday. South Carolina received a total of $44 million for the program.

Hoy estimates that the money will allow local housing officials to purchase about 100 homes now owned by banks. The $7.4 million will also cover the cost of any needed repairs to the homes, which might have been vacant for months. In addition, the money can provide homebuyers with assistance in making a down payment.

The money likely will flow to local housing officials by the summer, Hoy said.

By April 15, her organization and its partners must submit to state housing officials the homes they intend to purchase. The trust’s original application sought nearly $20 million for the three counties, so local officials must pare down the list of homes they plan to buy.

They’ll also update their lists of foreclosed homes on the market. Some might have sold in recent months, Hoy said.

“Which is a good thing,” Hoy said. “We are glad they are being sold.”

She emphasized that the money isn’t meant for isolated foreclosures. The federal program targets clusters of foreclosures or likely foreclosures that could bring down neighborhood values.

Hoy said the money could end up going further than the estimated 100 homes. When housing officials sell a home they have purchased, sales proceeds will be available for additional investments.

She said the original request for $20 million was ambitious, considering South Carolina received a total of $44 million for the program for all 46 counties.

The money comes through the federal government’s Housing and Economic Recovery Act of 2008. This year’s federal stimulus plan includes $2 billion for the program, but details on applying for those dollars are not expected until May, Hoy said.

The homes would be available to people earning up to 120% of area median income. Based on 2008 data, individuals earning up to $49,000 and families of four earning up to $79,000 would qualify, though Hoy said the program might use updated 2009 income data.


Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

In Depth Look at the Housing Crisis

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Obama and Sleight of Hand

I wish President Obama could really make the current economic crisis disappear!



chicagotribune.com
Few notice Obama's sleight of hand
Charles Krauthammer

March 9, 2009



WASHINGTON—Forget the pork. Forget the waste. Forget the 8,570 earmarks in a bill supported by a president who poses as the scourge of earmarks. Forget the "$2 trillion dollars in savings" that "we have already identified," $1.6 trillion of which President Barack Obama's budget director later admits is the "savings" of not continuing the surge in Iraq until 2019—11 years after President George W. Bush ended it, and eight years after even Bush would have had us out of Iraq completely.

Forget all of this.

This is run-of-the-mill budget trickery. True, Obama's tricks come festooned with strings of zeros tacked onto the end. But that's a matter of scale, not principle.

All presidents do that. But few undertake the kind of brazen deception at the heart of Obama's radically transformative economic plan, a rhetorical sleight of hand so smoothly offered that few noticed.

The logic of Obama's address to Congress went like this:

"Our economy did not fall into decline overnight," he averred. Indeed, it all began before the housing crisis. What did we do wrong? We are paying for past sins in three principal areas: energy, health care and education—importing too much oil and not finding new sources of energy (as in the Arctic National Wildlife Refuge and the Outer Continental Shelf?), not reforming health care, and tolerating too many bad schools.

The "day of reckoning" has now arrived. And because "it is only by understanding how we arrived at this moment that we'll be able to lift ourselves out of this predicament," Obama has come to redeem us with his far-seeing program of universal, heavily nationalized health care; a cap-and-trade tax on energy; and a major federalization of education with universal access to college as the goal.

Amazing. As an explanation of our current economic difficulties, this is total fantasy. As a cure for rapidly growing joblessness, a massive destruction of wealth, a deepening worldwide recession, this is perhaps the greatest non sequitur ever foisted upon the American people.

At the very center of our economic near-Depression is a credit bubble, a housing collapse and a systemic failure of the entire banking system. One can come up with a host of causes: Fannie Mae and Freddie Mac pushed by Washington (and greed) into improvident loans, corrupted bond-ratings agencies, insufficient regulation of new and exotic debt instruments, the easy money policy of Alan Greenspan's Fed, irresponsible bankers pushing (and then unloading in packaged loan instruments) highly dubious mortgages, greedy house-flippers, deceitful home buyers.

The list is long. But the list of causes of the collapse of the financial system does not include the absence of universal health care, let alone of computerized medical records. Nor the absence of an industry-killing cap-and-trade carbon levy. Nor the lack of college graduates. Indeed, one could perversely make the case that, if anything, the proliferation of overeducated, Gucci-wearing, smart-ass MBAs inventing ever more sophisticated and opaque mathematical models and debt instruments helped get us into this credit catastrophe in the first place.

And yet with our financial house on fire, Obama makes clear in his speech and his budget that the essence of his presidency will be the transformation of health care, education and energy. Four months after winning the election, six weeks after his swearing in, Obama has yet to unveil a plan to deal with the banking crisis.

What's going on? "You never want a serious crisis to go to waste," said Chief of Staff Rahm Emanuel. "This crisis provides the opportunity for us to do things that you could not do before."

Clever politics, but intellectually dishonest to the core. Health, education and energy—worthy and weighty as they may be—are not the cause of our financial collapse. And they are not the cure. The fraudulent claim that they are both cause and cure is the rhetorical device by which an ambitious president intends to enact the most radical agenda of social transformation seen in our lifetime.

Washington Post Writers Group

Charles Krauthammer is a syndicated columnist based in Washington.






Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

The Emperor Has No Clothes

In fact the emperors are butt ass naked right now!

I wish this British chap would come make this speech to the current Administration and Congress. Would it do any good?





Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Geithner Remarks on IMF Roil Foreign-Exchange Market

Timmy Timmy Timmy, please do not talk to the media! You can not spook the markets in this manner! Are you a complete nimrod or just for the NEW WORLD ORDER? Is there really any doubt the dollar destruction is under way? The Fed just announced they were going to buy $300 billion in Treasuries with money we do not have in order to keep rates down and destroy the dollar.







March 25 (Bloomberg) -- Treasury Secretary Timothy Geithner sent the dollar tumbling with comments about China’s ideas for overhauling the global monetary system, only to drive it back up by affirming that it should remain the world’s reserve currency.

Geithner was initially asked at a Council on Foreign Relations event in New York about proposals from People’s Bank of China Governor Zhou Xiaochuan for a new international reserve currency. He said “as I understand his proposal, it’s a proposal designed to increase the use of the IMF’s special drawing rights. And we’re actually quite open to that.”

The dollar slid as much as 1.3 percent against the euro within 10 minutes of news accounts of Geithner’s remarks. The U.S. currency was down 0.6 percent at $1.3553 as of 12:31 p.m. in New York.

Roger Altman, who worked with Geithner as deputy Treasury secretary in the Clinton administration, later asked Geithner whether he wanted to “clarify” his remarks.

“I’d like to ask one final question, in effect on behalf of the market,” said Altman, founder of Evercore Partners Inc. “Let me ask the question this way. Do you see any change over the foreseeable future in the basic role of the dollar as the world’s key reserve currency?”

‘Strong’ Dollar

Geithner responded by saying that “I think the dollar remains the world’s dominant reserve currency.” In an interview with CNBC broadcast after the event, the Treasury chief said that a “strong dollar” is in “America’s interest.”

In his earlier response, Geithner said an increased use of SDRs should be “rather evolutionary, building on the current architecture, rather than moving us to global monetary union.”

Those remarks don’t indicate Geithner favors moving to a system with the SDR as a reserve currency, strategist Lee Hardman at Bank of Tokyo-Mitsubishi Ltd. wrote in a note.

“That was the big concern amongst the confusion,” London- based Hardman said. “A move to an SDR-linked system away from the dollar would naturally lead to a reduction in the dollar’s share of global reserves.”

Geithner, a former Treasury undersecretary for international affairs and president of the Federal Reserve Bank of New York, which carries out U.S. interventions in currency markets, also said that “we will do what’s necessary to make sure we’re sustaining confidence in our financial markets.”

Bernanke, Obama

Geithner and Fed Chairman Ben S. Bernanke both told lawmakers yesterday that they expected the dollar to remain the most important global currency. President Barack Obama said at a news conference late yesterday that “the dollar is extraordinarily strong” because investors are confident in the ability of the U.S. to lead a worldwide recovery, and also rejected calls for a new global currency.

China is the largest foreign holder of U.S. Treasuries, and Premier Wen Jiabao earlier this month expressed concern about the value of its investment. Central bank governor Zhou this week advocated a “super-sovereign reserve currency” that’s disconnected from any individual nation.

Zhou said, in an essay posted on the PBOC’s Web site, that the IMF’s special drawing rights, a unit of account at the fund used for member countries’ reserves with the IMF, offer “light in the tunnel for the reform of the international monetary system.” He said the SDR has yet to be “put into full play due to limitations on its allocation and the scope of its uses.”

Geithner said in his interview with CNBC that “China is playing a very important stabilizing role in this financial crisis we’re seeing globally.” U.S. officials are “working very, very closely with them. I think they have a lot of confidence in the policies we’re pursuing,” he also said.

To contact the reporter on this story: Rebecca Christie in Washington at Rchristie4@bloomberg.net




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Study: Point-of-sale reassessment makes taxes less equitable

Study: Point-of-sale reassessment makes taxes less equitable
Wednesday, 25 March 2009
Staff Report

COLUMBIA -- Immediate reassessment to sale prices is increasing tax inequity and restraining the market, according to a new study released by the S.C. Association of Realtors.

The association is trying to push its fix for point-of-sale taxation through a key S.C. House committee this week.

The study, conducted by Tim Allen, a professor in the real estate program at the College of Charleston, found that immediate reassessment had increased the inequities already present in South Carolina’s tax system. Tax rates are different for owner-occupied properties versus rentals, as well as for residential properties versus commercial.

Allen’s report found that the new law presses property owners to remain where they are if values are on the upswing, because the property assessment will jump up for any new home they buy. In a down market, Allen wrote, property owners might be motivated to purchase a different property of the same market value, because the tax assessment will decrease. That trend would tend to depress prices overall, the study said.

A bill supported by the S.C. Association of Realtors would block immediate reassessments, instead pushing assessments back into the regular five-year cycle.

Any properties affected so far would see their assessments rolled back to 2006 levels. The measure could go before the House Ways and Means Committee this week.

Published March 25, 2009




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

US Credit Rating and Ponzi Portfolio

The following article was published in the March 2009 Charleston Market Report.
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USA Credit Rating
Once of my biggest fears regarding the exploding US debt and deficits, which is the fault of both the Republicrats AND Demopublicans, is a real possibility of the U.S. losing our AAA credit rating. General Electric and Berkshire Hathaway just lost their AAA rating so I am real confused how we (United States) still have ours. That leaves just five companies with AAA ratings: Automatic Data Processing, Exxon Mobil, Johnson & Johnson, Microsoft, and Pfizer.

Not to long ago, US Treasuries were considered safe but are now they are being viewed more and risky and the default premium is soaring. Just like the investment banks before they collapsed. As default insurance on Treasuries soars, the actual credit rating will decline, and bond prices will drop and interest rates will spike during the recession making it worse.

FYI, when the Treasury CDS reaches 400 basis points it will be all over the main stream media news and if it reaches 1,000 we will have a major crisis on our hands. God forbid if that happens many of you will probably be joining me with our pitchforks and torches and taking a trip to DC along with millions of other pissed off Americans. Let us all pray it does not come to this but it is a possibility.



Now take a look at the chart below. A very nice looking chart since the January 2009 isn’t it? Unfortunately, this is a Proshares UltraShort Lehman 20+ Year Treasury ETF. In other words the worse US Treasuries are doing the better this chart is going to perform. I was expecting this chart to break out to the upside on 3/17/09 when evaluating some trends in the bond market.



But wait one minute. One day after I pulled this chart above (3/17/09) the Fed pulled a fast one on me and many other investors and yields fell because the Fed said it would buy $300 billion worth of government debt. Stocks rose - with the Dow up 90 points. And the dollar fell heavily against the euro...down to less than $1.31/euro. The moves may more than double the Fed's balance-sheet assets by September to $4.5 trillion from $1.9 trillion, said John Ryding, founder of RDQ Economics LLC in New York.

Check out what happened to TBT after Bernanke announced he was going to press the “Print” button on the Printing Press.



This type of “quantitative easing” as the media calls it was used by Germany in the 1920s, because her war reparations burden was greater than she could sustain. Argentina did it in the 1980s, because it owed too much money to too many foreigners. And Zimbabwe did it in 2003-2009, for reasons of its own. Not good examples of countries that we should follow in their financial footsteps. All eventually experienced hyperinflation.

In response to the Fed's latest move, the yield on 10-year Treasuries fell more than any time since they started keeping records in 1962. From 3.01% it had fallen to 2.48% when last we looked. Simply unbelievable stuff if you work in the financial industry!



All I am doing is painting a picture of potential risk on the horizon with regards to the US credit rating, bond market and interest rates. If the future projections above play out this would spell disaster for the real estate industry since bond prices would drop and yields would increase. Let us all hope and pray this “Black Swan” does not materialize or we could experience some major disruptions in the credit markets which is the last thing this economy needs right now.

“… I think the US government bond market is a disaster waiting to happen for the simple reason that the requirements of the government to cover its fiscal deficit will be very, very high,” said Marc Faber in a CNBC interview. “There will be a time when the Federal Reserve will have to increase interest rates to fight inflation, and it will be reluctant to do so because the cost of servicing government debt will rise substantially.”

The government’s actions also fall perfectly into place our Tactical Inflation Protection Portfolio (TIPP) which was discussed in the following White Paper below that was written in November 2008:
White Paper



I really believe the AIG media distraction was to divert attention away from the Treasury and China issue. There is economic warfare going on between the U.S. and China right now. You really do not hear about it in the MSM but it is very real and has major implications. Keep in mind that China does NOT float their currency, Yuan, like other countries do which gives them an unfair advantage in international trade. The recent global slowdown has had a major impact on China as their exports have slowed down. It works to their benefit if they devalue the Yuan so their export business picks up again so the Chinese can get back to work. It is difficult for the U.S. to bully the Chinese around on economic issues when they own a large percentage of our Treasuries. The Chinese have recently expressed discontent over the devaluing nature of the U.S. government's activities toward their investment.

This sequence of events has had a major impact on the U.S. Dollar, which has shown some relative strength weakness recently. If the U.S. Dollar continues to weaken this would have an impact on oil which is showing signs of getting stronger. The last thing the U.S. consumer needs right now is Oil to climb back up to $100+ per barrel prices.



Ponzi to Money Laundering Economy
The Ponzi Economy will never be abolished and replaced with a true Capitalistic structure until the Shadow Banking System is dismantled. The way I see it is that from 2000 on was the formation of the Ponzi Economy and then in September 2008 once TARP was passed began the era of Money Laundering Economy. Think about it. The large banks responsible for creating this mess such as JP Morgan, Goldman Sachs, BofA, Citigroup, etc. make tons of money with the expansion of the real estate market due to creative financing and then once the bubble burst they get to make (steal) money on the way down. Simply unbelievable!

Note to reader: Not all banks are bad! Many small and regional banks in Charleston or your city did not get involved in these crazy lending practices so do not blame them for this mess. It was really caused by a few large banks and an aggressive mortgage broker industry.

What is the Shadow Banking System (SBS)?

The SBS is really the centerpiece of the Ponzi Economy we are witnessing collapse before our very eyes. My analogy to what is happening today is the equivalent of a gigantic money laundering scheme to the tune of trillions of dollars. Only in America and our great free market system can the banksters and the SBS make trillions of money by creating the Great Credit/Housing Bubble of the 21st Century and then make trillions more as it collapses. You may be asking yourself that these banksters and the SBS are going bankrupt and losing money so how are they making money? The unfortunate employees who helped build up the wealth of these various companies through hard work and dedication is many of the victims whom have now received pink slips. There are a select few “Masters of the Universe” who are in the Upper Management, Board of Directors, Government, etc. who are siphoning off the TARP and Stimulus Bailouts after creating Financial Boondoggle. Guys like Andrew Mozillo from Countrywide, Alan Greenputz, Henry “Punk Ass” Paulson, Hank “Putz” Greenberg (Former AIG Chairman), etc.

Here is how it works. The Banksters and SBS work seamlessly together to create credit and make trillions in fees through Wall Street, the securitization of loans, the creation of exotic financial instruments such as Credit Default Swaps, raiding pension funds, etc. Then once The Gig is up they take a private jet to Washington D.C and ask for a bailout. They tell or should I say sell the idiots in DC on the story that they are too big to fail (BRILLIANT!) and if they do not siphon off trillions of dollars of our money in bailouts the entire global financial system will collapse. It will be FINANCIAL ARMAGEDDON and we will go back to the barter system. I could care less! Let it blow up and let’s start over. We will have moonshine and spam parties here in Charleston until we can reinvent the financial system into a true capitalistic free market. We will live off the land and have a good old time which would be much better IMO than bailing out these egotistical and machiavellian SUITS.



Sorry folks but our fearless leaders bought into “The Bezzle” hook line and sinker even with the worst salesman in the world presenting the case, Hank “Punk Ass” Paulson. So after the majority of the US population screams to Congress not to bailout these clowns out they do it anyway because that would have ruined the money laundering machine. Now our future tax dollars go to Shitigroup, The Goldman Gangsters, AIG, Deushbag Bank, etc. Sometimes the money is funneled to AIG (See chart below) who in turn siphons it off to Goldman, BofA, Citi, etc. There are probably hundreds of different ways the money gets printed by the US Mint and funneled to these Financial Maniacs but at the end of the day we are all getting RIPPED OFF. Ain’t life grand? Woooooo hooooooo!

What a cowinkidink that Hank Paulson’s Goldman Gangsters received $8.1 BILLION from the AIG money laundering operation. Want to prosecute him don’t you? It is too bad because he had a clause in the first TARP that basically gave him diplomatic immunity to steal from us, the taxpayers. The stupid idiots in Congress let him get away with it. Get your Pitchforks and Torches ready! What company makes pitchforks? That may be a good stock to buy soon!

Disclaimer: I do not own any positions with companies that make pitchforks or torches.



The Ponzi Portfolio







Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

The End Game

I think there's only one endgame to this, to use the chess analogy. Which is that—most of the large financial institutions have to go through some kind of bankruptcy. Now we can't stick them in a ten year bankruptcy, because we need them. So we have to have some accelerated—bankruptcy. I think, basically, we have to do that with most of the large banks. At the same time, we probably need some big amount of money to clean up all these toxic weird assets. It probably needs to be—done all at once. It—it's been very disappointing to me, with the new administration, who have a wonderful team—economic team, that they have not taken the bull by the horns—yet. They're sort of wishing it away. They wish the—economy would get better. You listen to their forecast. And even though they say things that are bad, but they're gonna get better soon. They're not gonna get better soon. And this problem's gonna continue. And if we leave the banks the way they are it's like our—our blood has too much cholesterol in it. It's not—or the arteries in our economic system aren't working. And we need to clean it out. And unfor—it's painful. It could make things worse for a while. But if we don't do it, if we don't clean up the financial system, we could be in and out of recession for a decade. And that's what happened to Japan. So it's—it's very painful. But that's the endgame. You face the music sooner, and you'll be growing again sooner.

Ken Rogoff


Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

March 2009 Charleston Market Report

The March 2009 edition of the CMR is now available.

I am pleased to announce we have redesigned the CMR website. It looks great and I hope you enjoy the new look.

In order to view the March 2009 newsletter and the CMR Indicators you will need to go to www.charlestonmarketreport.com and register. If you are a current subscriber I still need you to register again because the new webiste will require a username and password in order to view the current and past newsletters and CMR Indicators. In order to register click on "Create Account" on the right side of the website and fill out the information. It is a very simple process.

We will be addng more valuable content to the Registered User section of the website in the future that will add more transparency to the market. If you do not register you will not have access to important real estata information and updates in the future.

In The March 2009 Edition:

Dr. Tim Allen joins the CMR
Save the Date!!
CMR Website Redesigned
Diversified Capital Advisors, LLC
Charleston Real Estate
What does a Trillion Dollars Look Like?
AIG, Bailouts, Pork, Stimulus, Congress, etc.
USA Credit Rating
Ponzi to Money Laundering Economy
Change is Possible
Why Economists Missed the Boondoggle
Stock Market






Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

What is the Credit Crisis?

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Financial Cartoon Sunday Funday!

Source: Cagle Cartoon Index





Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

The Fed

The Fed Plays Texas Hold Em

Do ya think Bernanke is a good poker player????

Specifically, the Fed said this week that it will ramp up its purchases of Fannie Mae and Freddie Mac Mortgage Backed Securities (MBS) from $500 billion to a whopping $1.25 TRILLION in the coming months. The Fed is also going to double its purchases of Fannie Mae, Freddie Mac, and Federal Home Loan Bank bonds to $200 billion from $100 billion.

Welcome to the Banana Republic of the U.S.

Tread lightly!!!!
























Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Mortgage Rates Drop

Yesterday the Fed announced they were going to buy $300 billion worth of long term treasuries which caused the yield on 10-year Treasuries to fall more than any time since they started keeping records in 1962.

Warehouse lending is drying up and increasingly more loans are being submitted through FHA because the government just keeps printing money in order to keep the credit market alive.




Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Financial Cartoon Sunday Funday

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Madoff Cartoon

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

Jon Stewart Tears Jim Cramer and CNBC A New One!

Jon Stewart became my hero last night.

Jon Stewart of The Daily Show asked the hard hitting questions that I have been writing about for years regarding the MSM's (Main Stream Media) role in investigating and reporting the truth regarding Wall Street. Stewart does an incredible job of pulling down the curtain of bull shit that CNBC has been playing for years in front of uneducated viewers day after day.

The fast talking Cramer actually is at a loss for words when Stewart asks legimate questions with video proof that leave this Wall Street clown speechless and apolagetic for probably the first time in his life.

These are must see videos that are informative and humorous at the same time.
Enjoy!

The Daily Show With Jon StewartM - Th 11p / 10c

Intro - Brawl Street: Get Read to Buy Low! And Sell Die

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Interview Outtake Pt. 1

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Interview Outtake Pt. 2

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Interview Outtake Pt. 3

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.

February 2009 U.S. Foreclosure Market Report

FORECLOSURE ACTIVITY INCREASES 6 PERCENT IN FEBRUARY

ACCORDING TO REALTYTRAC U.S. FORECLOSURE MARKET REPORT

Third Highest Monthly Total in Report’s History

Up 30 Percent From February 2008 Despite Foreclosure Moratoria


IRVINE, Calif. – March 12, 2009 – RealtyTrac (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its February 2009 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 290,631 U.S. properties during the month, an increase of nearly 6 percent from the previous month and an increase of nearly 30 percent from February 2008. The report also shows one in every 440 U.S. housing units received a foreclosure filing in February.

“The increase in foreclosure activity from January to February is somewhat surprising, given that many of the foreclosure prevention efforts and moratoria in place in January were extended through most of February as well,” said James J. Saccacio, chief executive officer of RealtyTrac. “There were some notable exceptions to this: a 45-day voluntary moratorium in Florida expired at the end of January, and foreclosure activity there was up 14 percent from the previous month; and many New York foreclosure proceedings delayed by a new law for an extra 90 days appear to have hit the system in February, when the state’s foreclosure activity increased 23 percent from the previous month.”

Nevada, Arizona, California post top state foreclosure rates

With one in every 70 housing units receiving a foreclosure filing in February, Nevada continued to document the nation’s top state foreclosure rate. Foreclosure filings were reported on 15,783 Nevada properties during the month, a 9 percent increase from the previous month and a 156 percent increase from February 2008.

Arizona posted the nation’s second highest state foreclosure rate in February, with one in every 147 housing units receiving a foreclosure filing during the month, and California posted the nation’s third highest state foreclosure rate, with one in every 165 housing units receiving a foreclosure filing.

Other states with foreclosure rates ranking among the nation’s 10 highest were Florida, Idaho, Michigan, Illinois, Georgia, Oregon and Ohio.

California, Florida, Arizona post highest foreclosure totals

Foreclosure filings were reported on 80,775 California properties in February, the most of any state and a 5 percent increase from the previous month. The state’s foreclosure activity increased 51 percent from February 2008, with auction sale notices increasing nearly 179 percent — the most of any category on a year-over-year basis.

Florida foreclosure activity increased nearly 14 percent from the previous month and 43 percent from February 2008 — thanks in large part to a nearly 158 percent year-over-year increase in auction sale notices and a 128 percent year-over-year increase in bank repossessions. With 46,391 properties receiving a foreclosure filing, the state posted the nation’s second highest state total in February.

Arizona posted the third highest state total in February, with 18,119 properties receiving a foreclosure filing during the month — a 23 percent increase from the previous month and an 88 percent increase from February 2008.

Nevada, Illinois, Michigan, Ohio, Texas, Georgia and Virginia also reported foreclosure totals that were among the nation’s 10 highest.

Sunbelt cities post top metro foreclosure rates

One in every 60 Las Vegas housing units received a foreclosure filing in February, giving the city the nation’s highest foreclosure rate among metro areas with a population of at least 200,000. The city’s foreclosure rate was more than seven times higher than the national average. Another Nevada metro area posted a foreclosure rate in the top 10: Reno-Sparks ranked No. 8, with one in every 108 housing units receiving a foreclosure filing.

The Cape Coral-Fort Myers, Fla., metro area documented the second highest foreclosure rate in February, with one in every 65 housing units receiving a foreclosure filing during the month.

Six California cities registered foreclosure rates among the top 10: Stockton at No. 3 (one in 67 housing units), Modesto at No. 4 (one in 68), Merced at No. 5 (one in 74), Riverside-San Bernardino at No. 6 (one in 80), Bakersfield at No. 7 (one in 85), and Vallejo-Fairfield at No. 10 (one in 111).

With one in every 110 housing units receiving a foreclosure filing, the Phoenix metro area posted the ninth highest foreclosure rate in February.

Report methodology

The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the month — broken out by type of filing at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the month or quarter, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month or quarter. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

U.S. Foreclosure Market Data by State – Feb 2009



Disclaimer:This is a personal web site, reflecting the opinions of its author. It is not a production of my employer, and it is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than myself. The information on this site is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.