Sunday, July 06, 2008
Banks Get Pucker Butt
You cannot turn around without finding an MSM article on the credit tightening. Its to the point now that I think that J6P is finally realizing making a deal with the loan sharks isn't aways in the best interest of the borrower...
Calculated Risk has more on the HELOC TIGHTENING. My take is the banks have no choice. If they let people extract every penny, they'll go under. Heck, with over $1 Trillion of unused HELOC's committed to... Where the heck would the banks get the cash?
The LA Times is noting how RV sales are "Carrening off the Road." If you read the link, its another note on how SoCal sales were really based on home equity extraction. We've been seeing the same story in Automobiles too... Note how pure RV loans are drying up too? This isn't just about gas or credit. Its the unwinding of a bubble market. RV sales are at 1981 sales rates.
Hat tip HBB Remember all of those adds to invest your 401k into real estate? I can remember flying to Florida for a family visit and it was a deluge of adds along the way to extract the 401k and put it into Florida real-estate. Well this link talks about people borrowing against their retirement accounts to keep their house too.
BMIT is showing how many sellers are still chasing down the market. Is it just me, or have we bears become so numb we don't even pay attention to homes that are not setting new records of time on the market?
Bearmaster has one of her great statistical articles up. It looks like the Realtors are still in denial. That's scaring buyers to other states... Just commenting on the standoff, its not going to be won by bluffing. I am surprised July is starting strong...
I haven't made any predictions between now and the Fall. I don't intend to. It could be interesting... it could just limp along. But by the Fall the seasons and the emotions change.