Housing Bust “Winners”

Is That Like Charlie Sheen “Winning?” John Paulson, one of the winners of the subprime crisis, is having a bad year. Investors are showing unusual patience. –“Despite Losses, Investors Stick With Paulson“; The New York Times (11/2/2011) Did you know that the housing bust has also had big “winners?” People like hedge fund titan John Paulson,...
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Easy Money No More

Crash Victim: The Mortgage “Honor System” I thought I knew a lot about go-go mortgages. I had already written several articles about the explosive growth of liar’s loans, no-money-down loans, interest-only loans and other even more exotic mortgages. I had interviewed people with very modest incomes who had taken out big loans. Yet for all...
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P.S.: Foreclosure Feeding Frenzies

(More) Market Manipulation?In my last post, “Banks Price Low to Elicit Multiple Offers,” I discussed the increasingly popular tactic of foreclosure Sellers pricing low to precipitate bidding wars. What I left out was the identity of the banks who appear to be behind many of them: notorious, sub-prime lenders such as Countrywide and Indymac. Just...
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Illusory "Bright Lines"

Two Types of Housing Distress The key to understanding [the administration’s housing] plan will be remembering that there are two different groups of homeowners who are at risk of foreclosure. The first group is made up of people who cannot afford their mortgages and have fallen behind on their monthly payments . . . The...
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