Who will the current bailout plan benefit and how? I've been trying for the last few days to untangle the implications of this crazy expensive plan. As the rest of you have seen, it's daunting. Any resources out there which can break it down for me? The pro's and con's of this bailout versus the pro's and con's for just telling Wall Street, "Sorry, you screwed up. You're on your own." Trying to find a set of pro's and con's for each category of the players, like: - Executives of the companies involved - Investment bankers - Investors in the companies involved

Housing in California is years away from a bottom. Let me make that clear and if you have any doubts, after reading this essay you will have a better understanding as to how I arrived at that conclusion. This article is longer since it will try to answer many of the arguments from [...] Related Posts: ■ California Budget Details: How the Recession Will Affect Revenues for the State. ■ Riding in the Short Bus of Housing: Southern California Short Sale Numbers. 1 in 10 Homes is a Distress Sale. ■ San Diego Down 4.5 percent YOY - or $42,000 from Peak. ■ A Lost Decade of Housing Equity: Los Angeles and Orange County will hit a Housing Price Bottom in May 2011 seeing May 2003 Prices. ■ Redefining Success: One Year of Inventory and 27 Percent Annual Drop for Southern California. Is This the Elusive Bottom?

As it stands, the Housing and Economic Recovery Act of 2008 otherwise known as the housing bailout bill is moving quickly through both the House of Representatives and the Senate. This weekend, the Senate overwhelmingly passed the bill with a 72-13 vote and now heads to the White House for President Bush’s signature even [...] Related Posts: ■ Interview with Senator Government Genius: Discussing the Housing and Economic Recovery Act of 2008 ■ Housing Premonition: When You Knew it in Your Gut That Housing is Overpriced. ■ Selling Mortgage Loans on the Side of the Freeway: The Reckless Bailing out of the US Housing Market by Government Agencies. ■ The Genesis of the Credit Bubble: Advertising, Deception, and $163 Billion in Subprime California Loans Resetting in 1 Year. ■ California Solution for Budget Crisis: Minimum Wage and Laying off People. But Who Will Buy the $500,000 Foreclosures?

Unless you’ve been living under a rock and given how bad the housing market is, this may be a reality, the big news making the rounds this week is the housing bailout plan otherwise know as the Housing and Economic Recovery Act of 2008. We can talk about the B-list theatrics with Mozilo shedding [...] Related Posts: ■ Two 400+ Point Days in Two-Weeks: Why this is Horrible News for Housing. Volcker and Protecting your Mac. ■ Real Homes of Genius: Two For One in Compton. Southern California Housing Bubble Hangover. ■ Real Homes of Genius: 675 square foot home in Lynwood California at $425,000?! ■ Housing Contradiction: Home Prices Down = Sales Up. Any Questions? ■ Ross Perot Charts: How I Learned to be a Housing Blogger from Ross Perot.

You are going to need to sit down for this one. If you have any heart conditions you may want to stop reading at this point. Many of you recall that Fannie Mae and Freddie Mac had their caps raised in January during the great Wal-Mart voucher experiment. It was sneaked into [...] Related Posts: ■ A Trip down the Housing Graveyard: The Casualties of the Housing Bear Market. ■ What really goes on with Black-matter SIVs. A Micro-case study. My Experience with Prosper and how it is Similar to the Current Mortgage Debacle. ■ Wrong and Wronger: Compounding the Mortgage Mess with Bigger Mortgages. ■ Two Faces of Housing Panic: Schadenfreude and the Lender of Last Resort. ■ War of the Housing Worlds: 3 Reasons why the Bubble Spread; War of the Worlds, Orson Welles, and Mass Media?

The Federal Reserve may be nearing an end to its manic cutting of the Federal Funds Rate which started in August of 2007. The rate in August stood at 5.25% and is now back at 2% bringing warmth to our heart as we reminisce our long gone friend and maestro, Alan Greenspan. The [...] Related Posts: ■ The Church of the Fed: Praying for Rate Cuts and SoCal Short Sales ■ Current Status of Real Estate Market: Boring! ■ Reading between the Lines: Countrywide Announces $1+ billion Dollar Loss, Stock Soars ■ Real Homes of Genius: Today we Salute you Downey. $100,000 off in 3 Months. ■ Et tu Subprime? Why This Mortgage Proposal is Hot Air…As of Today.

There seems to be a false sense of security that somehow, the credit (debt) crisis is now slowly floating away into space. The market rally is indicative of this false sense of security. All bad news is ignored while slim glimmers of good news are enough to spark a rally. We are [...] Related Posts: ■ The Housing Wave of the Future: Two Main Mortgage Tsunamis. ■ Did you Feel That? Housing Just Hit the Third Rail. ■ What really goes on with Black-matter SIVs. A Micro-case study. My Experience with Prosper and how it is Similar to the Current Mortgage Debacle. ■ The Rent vs. Buying Dilemma: Mortgages the Southern California Way. 3 Factors to look at: Increase Rental Prices, Housing Price Declines, and Tighter Credit Markets. ■ Second Quarter Housing All-Stars Recap: Subprime closes shop, Prime Loans Gone Wild, and the Future of Housing.

Over the past week, so much has been thrown back and forth over the “bitter” comments Senator Obama made about small town Americans in Pennsylvania. When I first heard of this while flipping through the radio news circuit, I wondered to myself, “what in the world did he say?” Bitter this and bitter [...] Related Posts: ■ Real Homes of Genius: Today We Salute you Huntington Park. Tweedledum and Tweedledee of housing. $500,000 Homes in Wonderland. ■ The Evolution of the Los Angeles Housing Bubble. 50 Years in Perspective. ■ Housing Voyeurism: What Kind of Housing Personality are You? ■ What goes up must eventually come down. Especially when going up consisted of using Houdini like smoke and mirrors. ■ Dissecting a County of 10,000,000 People: The Housing Demographics of Los Angeles.

Today the market tumbled again reflecting the underlying reality that earnings are much weaker than expected and this will have a long and deep impact on our economy. This isn’t going to be a minor downturn but potentially a severe one. The market wasn’t dragged down heavily even after all the craptastic data [...] Related Posts: ■ Dr. Housing Bubble Examines Patients of the Housing Bubble. ■ Real Homes of Genius: Today We Salute you Huntington Park. Tweedledum and Tweedledee of housing. $500,000 Homes in Wonderland. ■ When The FBI Gets Involved, You Know We Are in a Bubble! ■ Real Homes of Genius: $463,000 Price Reduction in Bell! I Just Saved Close to $500,000 by waiting 4 Months! ■ Real Homes of Genius: End of $1 Million Home in Pasadena and the Extinction of Mortgage Equity Withdrawals.

Let us layout something from the beginning. Bailouts are already occurring. The mainstream media for the most part still seems to be echoing a sentiment that bailouts haven’t occured. The bailouts have already occurred in the past tense. Bear Stearns being injected and propped up via a proxy JP Morgan/Chase was a [...] Related Posts: ■ There will be Housing: How we’ve Returned to Selective Market Ignorance. ■ Business Devours its Young: Lessons from the Great Depression: Part V: Destroying the Working Class. ■ The Menace of Mortgage Debts: Lessons from the Great Depression Series: Part IV: Where do we go After the Housing Crash? ■ Crash! The Housing Market Free Fall and Client #10 Contagion. Lessons From the Great Depression: Part VI. ■ Lessons From the Great Depression: A Letter from a former Banking President Discussing the Bubble.