« Tucson conference | Main | I've gotten another article published... »

Housing: Cracks in the Foundation Appearing

As I've indicated in other posts, I believe the housing market fall out has just begun to show itself.  We read in the Des Moines Business Record that,

Earlier this month, three Central Iowa banks filed foreclosure petitions on more than $6 million in past-due mortgage loans on 25 residential properties owned by Oaks Development Co. and its general partners, John C. Kline and Randy Walters.

These are the cracks in the foundation of a segment of the economy that doesn't often fall softly.  When purchases slow, inventory sits, cash flows become tight, property values drop, debt ratios get ugly, and banks use contractual provisions to stop the bleeding best they can.  The death spiral of many builders/developers is surely spooling up. 

I'd like to complain about bailing out the sub-prime lenders/borrowers.  Bottom line:  The politicians kept screaming about how "less served" groups were not getting mortgages and to "open up credit options for them" (lower the standards to get unqualified people...well....qualified).  You got your wish, now the same politicians are lambasting the "greedy" lenders for being reckless.  As usual....the old Potomac Two-Step.

I resent bailing out those who knew darn well that the fixed rate loan, although higher for "that moment" would probably be the best bet vs. interest only ARM's with teaser rates, etc.  Shame on you. 

Central Desktop


TrackBack URL for this entry:

Listed below are links to weblogs that reference Housing: Cracks in the Foundation Appearing:


Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.

My Photo

Subscribe to My Blog

Send A Card

  • SendOutCards


Please Click Here