The Collected Works of Author and Blogger Larry Roberts

Archive for August, 2013

First Blackrock and other hedge funds companies started to scale back or completely drop their large purchases of Single Family Residences. Actually, the very first investors of SFR's before the Blackrocks were people like IR that study the cash flow of these homes in the early days of the housing correction. Then after Blackrock this activity was picked up by small LLC type companies and cash buyers. In addition to these domestic investors, foreign investment has been a big factor for the previous 18 months. Now, this trend from foreign investors also seems to be reversing. Analysis: Higher prices sap foreign interest in U.S. real estate Reuters – Sun, Aug 18, 2013 12:03 AM EDT NEW YORK (Reuters) - Foreign…[READ MORE]

Economists and forecasters are wrong most of the time. The ones that last the longest learn to revise history and make it look like they were right when, in fact, they were dead wrong. Managing perception and reputation is more important that actually being right or wrong. Many support Janet Yellen for the soon-to-be-vacated post of Chair of the Federal Reserve Board of Governors (Ben Bernanke's job). They are trying to cast her candidacy in the best light, and in the process, they are revising history to make it look like she saw the housing bubble and bust coming. She didn't. Janet Yellen called the housing bust and has been mostly right on jobs. Does she have what it takes…[READ MORE]

Humpty Dumpty sat on a wall, Humpty Dumpty had a great fall. All the king's horses and all the king's men Couldn't put Humpty together again. Have you ever wondered why we tell out children such ghastly stories? I remember how I felt when I first heard and comprehended that nursery rhyme. It scared the hell out of me. It made me realize that actions have consequences, and some mistakes can't be undone. Americans are losing this basic understanding of behavior having consequences. The elders in charge of our society are telling the next generation that consequences can be avoided. If you behave in ways that cause you problems, someone, probably the government, will be there to bail you out.…[READ MORE]

The financial mainstream media often tells people what they want to hear. They've learned they make more money by providing emotional support to people seeking reassurance rather than providing facts and accurate analysis. This is a shame because people often make important and complex financial decisions based on erroneous or biased information they obtain from the financial press. When these investment decisions go bad, people are often wondering what went wrong. The problem is they trusted the veracity of what they read in the mainstream media. We've seen a great deal of spin and nonsense over the last few years. Barry Ritholtz wrote a post on How to Read National Association of Realtors News Release. I wrote a series of…[READ MORE]

In early 2012 lenders changed their foreclosure policies and opted for can-kicking loan modifications, most of which will fail. This dried up the MLS inventory and caused prices to bottom. Coincidentally, the low house prices and superior returns on rental homes attracted large private-equity firms to this market bringing their cash to the foreclosure sites as well as the MLS to acquire what they could. In a normal real estate market, all-cash buyers represent about 20% of sales. Ordinarily, these are empty-nesters who accumulated a lifetime of home equity, sold their properties, and downsized to a less expensive property to live in during their retirement without a payment. Plus, many people simply don't believe in debt, and with family help,…[READ MORE]

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