case shiller - double dip coming

[Bullwinkle]

Inflation - It may be the only way out as inflation makes it easier to pay off old loan balances with cheaper money

I read really early on in the bail out proposals that homes that had the loans written down - should be bulldozed to reduce inventory - kind of like the dairy farmers dumping milk to keep prices up....

Either way --- I think the best plan for real estate has always been to live in them, I treat them as consumambles rather than investments.

As to Hawaii - it seems the upper end of the economy will be ok - those seem to be the Hawaii buyers - folks with extra cash for a second home will be looking for bargains as they retire - there are some really good values coming up for sale -

remember the late 80's with 17% home loan rates - that was inflation


http://finance.yahoo.com/news/Financial-...1.html?x=0 related read

"The government commission that investigated the financial crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors, and risky bets on securities backed by the loans."

[konadave]

I remember the 80's quite clearly. I had to work two jobs to keep up with my bills. And I had one of those new IRA's instituted by then President Reagan that paid 12% from my bank! Can you imagine a fully insured bank paying 12%?

I have been talking to two banks while I was trying to qualify for my loan. Both banks are local and were not affected by the mortgage meltdown. Both told me that some mainland banks are holding on to some of their foreclosure and REO properties to try and keep the available inventory down in order to try and keep prices higher.

On a similar note I have been following a particular foreclosure that has been thru the entire process of showings by the commissioner and going to auction. The mainland bank has had it back now for a month and they have not put it back on the market yet. I wonder what they are waiting for?

|---The Ka'u Web---||---The Kona Forum---||-----Da Kine Hosting-----|
| www.KauWeb.com || www.KonaForum.com || www.DaKineHosting.com |