The Collected Works of Author and Blogger Larry Roberts

Archive for February, 2014

Lenders deferred foreclosures in order to increase recovery on their bad loans; however, loss severities on bad loans are increasing faster than house prices go up. Lenders may quicken the pace of foreclosures as home prices level off to minimize their losses. Lenders delayed foreclosures in an effort to liquidate REO and resolve bad loans at higher prices in order to recover more on their bad bubble-era loans. But what if waiting no longer serves their best interests? What happens when high servicing costs and deferred maintenance on the houses collaterlizing these loans causes loss severities to increase faster than house prices go up? In such circumstances, it would be in the lenders best interest to foreclose and get what…[READ MORE]

Lenders' loan modifications temporarily alleviates borrowers' financial distress from oversized mortgages, but the terms of loan modifications increases borrower costs over time. Families feel pressure to sell as the payments on their loan modifications increase, and the rising cost of keeping the property will force more supply on the market. Lenders designed loan modifications to maximize lender profits while giving borrowers feeble hope of clinging to their family homes. Lenders only began granting loan modifications in response to the deluge of defaults that began when subprime borrowers faced resets on their 2/28 toxic loans issued during the bubble. Lenders foreclosed on those borrowers per the lenders prior loss mitigation procedures and swamped the market with foreclosures that pounded prices back…[READ MORE]

By Mr.Burns, 2/9/2014 Who sets the price of gold?  Is the price of gold set or is the price discovered though supply and demand, bid and ask?  If bid and ask, where?  Which market or exchange determines the real price of gold? The answer, as far as I can tell, and that may not be very far, is YES or no or maybe. The price of gold is both set and discovered, and in many different places at different times.  In the past, the largest gold market for the exchange of physical gold and gold futures was the London Bullion Market.  A few years ago an exchange traded fund was launched which enabled gamblers to bet on the price direction of gold. …[READ MORE]

Demolishing the runways of the old El Toro airbase in Irvine created a massive pile of rubble... truly massive. The airport as it looked prior to demolition. The airport as it looks today. Those tiny yellow features at the top of the photo are large pieces of machinery used to break up the rubble. Much of the rubble sits in place where it was broken up, but several very large mountains of rubble have also been pushed up. The sea of debris is amazingly large. And it stretches for as far as the eye can see.[READ MORE]

Lenders engage in a pump-and-dump scheme to recover more on their bad loans and REO. Future buyers must pay bubble-era peak prices and endure a much higher cost of ownership, and they risk submerging beneath their mortgages if prices turn south again. Lenders manipulate market supply to create market excitement and momentum so they can resolve bad loans and sell REO at higher prices in a massive pump-and-dump scheme. Pump-and-dump schemes usually involve thinly traded penny stocks, but the same principal applies to any asset class where the holder of an asset manipulates the market to later sell at a higher price. When its done with penny stocks, the Securities and Exchange Commission cracks down on scammers, but when its…[READ MORE]

Page 4 of 6123456