Almost 50% of Bay Area home sales are foreclosures

It’s not nice to say “I told you so,” but I told you so. The housing bubble is bursting with a vengeance, even in the Bay Area. Almost 50% of home sales are from forclosures, up from 10% last year. Last month 47.6 percent of all homes that resold in the Bay Area had been … Continue reading Almost 50% of Bay Area home sales are foreclosures

The Real Reason Fannie Mae and Freddie Mac Are In Trouble

My old friend Bill Burnham has an outstanding post up explaining just how Fannie Mae and Freddie Mac ended up in their current pickle. I highly recommend checking it out. “Fannie‚Äôs drive to lower underwriting standards had created a pool of mortgage debt with a much higher level of embedded moral hazard risk as well … Continue reading The Real Reason Fannie Mae and Freddie Mac Are In Trouble