I won’t have a chance to make a substantial post today until later tonight. When I do, it will probably on the latest Case-Shiller data. But until then, enjoy this open thread.
FYI, a few people have been asking “I don’t get it, what’s the deal with pink ponies?” As an answer to that question, I direct you toward this post on the forum. In related news, something I’ve been intending to add on here (”when I get the time”) is a glossary. Anyone have any suggestions of other items that should be included in such a resource?
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15 responses so far ↓
1
Matthew
// Aug 29, 2007 at 12:12 pm
I thought Lizzie Rhodes said Seattle had a small exposure to the subprime market???? That’s not what this map shows…
http://money.cnn.com/magazines/fortune/storysupplement/subprime_statebystate/
2
redmondjp
// Aug 29, 2007 at 12:34 pm
Hi Tim,
Hmmm, there are many terms and abbreviations that could be included (mostly for the newbies), here’s just a few that come to mind:
FB
CDO
MBS
Upside-down
I/O
Alt-A
FICO
Housing ATM
HELOC
Liar Loan
Most people that are familiar with housing bubble blogs will already know what these mean, of course.
3
Demersus
// Aug 29, 2007 at 1:08 pm
MSM
PITA
4
James
// Aug 29, 2007 at 1:30 pm
POS
5
redmondjp
// Aug 29, 2007 at 1:31 pm
Demersus–did you mean ‘PITI’?
6
brettro
// Aug 29, 2007 at 1:53 pm
maybe building a wiki into the site would be good for this
7
Orion
// Aug 29, 2007 at 3:30 pm
Yes, brettro has a great idea, a Housing Bubble Wiki which could be updated and edited by fellow bubble trackers (bubbleheads?). What is the name for someone who recognized the housing market was a completely irrational bubble before the MSM and the sheeple were forced to admit it.
There’s another term for the list:
sheeple
8
Peckhammer
// Aug 29, 2007 at 3:36 pm
You may also want to check out this afternoon’s article in the Seattle Times entitled “As adjustable rates soar, mortgage applications sink.”
9
rose-colored-coolaid
// Aug 29, 2007 at 4:42 pm
Matthew, Rhodes is using the New American NRA Dictionary. It defines subprime as the following:
sub·prime–adjective
1. being of less than top quality: a subprime grade of steel.
2. being below a prime rate: banks engaging in subprime lending.
3. residing outside of King County, WA: he bought a condo in Florida.
So based strictly on the ‘dictionary’, I guess she’s got us. I do like your map though, regardless of how inaccurately their definition of subprime fits Lizzie Rhodes’ definition.
10
Nolaguy
// Aug 29, 2007 at 7:41 pm
Did you notice that since her “Don’t worry Countrywide chicken-littles, everything will be fine” story blew up on her, Reba Haas over at RCG has been blogging on more mundane topics: the importance of landscaping, having a goat eat your grass, a recall a GE dishwashers.
Good stuff
11
Jillayne Schlicke
// Aug 29, 2007 at 7:43 pm
Hi Matthew,
That’s because Eliz Rhodes was looking at only Seattle and the Eastside.
I have always said that the entire Puget Sound area has been populated with upwards of 8 to 9,000 loan originators whose sole income was only originating subprime: Starting from Pierce, up through King and Snohomish, if you add all three counties in together, there has to way more subprime loans that what she originally stated several months ago.
These folks never learned how to originate prime, conforming, A paper conventional loans and never wanted to learn because they could make so much more money shafting people into a subprime loan due to the high yields being offered by investors.
The cool map is only for the year 2005. Would love to know their data source. My guess is that it came from Firstam/CoreLogic
12
crashcadia
// Aug 29, 2007 at 10:45 pm
Don’t forget to add NINJA Loan.
It is one of my favorites.
Also FB,
but you may have a little trouble with the explanation.
13
Joel
// Aug 30, 2007 at 2:11 am
Real price vs. Nominal price
14
just_checking
// Aug 30, 2007 at 8:00 am
One thing i have always wondered about RE is the effect of leverage.
I came across this at a lender’s flyer recently and was wondering if the statistically/mathematically inclined folks here would comment on it
http://www.estateofmindinc.com/2007handout_large.html
One thing i can see is that at today’s RE prices, the comparable rent is lower than the 6% they assume in the chart and will definitely affect the overall equation.
Other thoughts/comments ?
15
Grvetti
// Aug 30, 2007 at 12:06 pm
Anyone notice how Liz Rhodes keeps attaching headlines to AP stories? I’ve seen this like 2 or 3 times in the past two days…
“Seattle leads nation in housing appreciation?”
and…
“Seattle avoids housing slump!!”
Sure… and the last rat at the bow of the sinking barge will somehow miraculously not drown, right?
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