EppsNet Archive: Housing Market

Get Rich Making Dumb Decisions

The people on the short side of the subprime mortgage market had gambled with the odds in their favor. The people on the other side — the entire financial system, essentially — had gambled with the odds against them. Up to this point, the story of the big short could not be simpler. What’s strange and complicated about it, however,… Read more →

EppsNet Book Reviews: The Big Short by Michael Lewis

I worked in the information technology department of a mortgage bank in the run-up to the 2007 implosion of the subprime mortgage market . . . Given┬áthat it was fairly evident at the time that complicated financial instruments were being dreamed up for the sole purpose of lending money to people who could never repay it, it’s remarkable that very… Read more →

The Moreno Valley: Junkyard of OC Dreams

The Moreno Valley is now the poster child for American housing gone wrong, and the New York Times weighed in with one of their stock magisterial pieces, the kinds that read purty but don’t say jack shit about reality. The Orange County connection is that two of the homeowners profiled in the piece moved to the MV because they couldn’t… Read more →

Now It’s Tomorrow

Phoenix has achieved the unwelcome distinction of becoming the first major American city where home prices have fallen in half since the market peaked in the middle of the decade, according to data released Tuesday. — Home Prices Continued Their Decline in February – NYTimes.com Money quote from Greg Swann, a Phoenix real estate agent: “We were living during the… Read more →

Signs of the Times

The house two doors down from us is for sale. The house across the street is empty and for sale. The woman behind us and the woman next door, who was recently laid off, have asked my wife if she knows anything about loan modification . . . Read more →

Thomas Jefferson on the Financial Meltdown

ALBANY, N.Y. (AP) — If anyone could emerge from the AIG bonus debacle looking good, it could be New York Attorney General Andrew Cuomo. — “NY’s Cuomo wins praise for pursuing AIG on bailout” Cuomo. KWOH-moh. Italian, I suppose. I have no personal animosity toward Mr. Cuomo, but despite his favorable write-ups in the press, he is certainly no hero… Read more →

Outside the Lines

It’s the last high school roller hockey game of the regular season. One of the kids’ dads shows up for the first time and asks questions like, “Do they win most of their games?” Do they win most of their games?! Are you kidding?! You should know that. Even if you don’t come to the games, you could ask your… Read more →

Good News, Bad News

First the bad news: ARE YOU KIDDING ME?! THERE’S NOTHING BUT BAD NEWS! THE HOUSING MARKET HAS COLLAPSED! GLOBAL MARKETS ARE IMPLODING! EVERYTHING IS SPINNING OUT OF CONTROL! THE FALCON CANNOT HEAR THE FALCONER! THE CEREMONY OF INNOCENCE IS DROWNED! THE BEST LACK ALL CONVICTION WHILE THE WORST ARE FULL OF PASSIONATE INTENSITY! EVERYBODY PANIC! OK, now the good news:… Read more →