Housing Giants lose billions, more to come

Fannie Mae/Freddie Mac Lose Billions in last QTR, and much heavier losses are expected by both. Oops, looks like someone bought some bad loans...And they claim that the current housing market decline is at the mid-point with at least two more years to go...but at the same time we are still in the early stages of mortgage defaults...so will home price really drop another 25 to 35% before bottoming out mid 2010???

Fannie Mae
http://www.reuters.com/article/businessNews/idUSN0835945220080808
Freddie Mac
http://www.reuters.com/article/topNews/idUSWNAB525920080806

The Foreclosure Guy

Fed to bar shady home loans

That is good in itself, but barring shady home loans won't bar uneducated people from trying to get loans or from pulling out all of their home equity to spend it on trips, or frivolous purchases, or paying off credit card balances and then charging up the cards again. Shady loans are only a part of the current mortgage mess. Many people are just plain idiots when it comes to handling finances. Lack of financial education in school is the number one failure of the k-12 system. Sure everyone knows who George Washington is, but no one can balance a checkbook, or calculate simple interest, or even judge the risk factor of an adjustable rate loan that will reset in 3 years.

Gov't Says "Housing Slump may linger until fall"

Really? No! Say it can't be so. Gov't analysts say that it appears that the housing slump may linger until fall, with slow recovery over the next year. Try again, housing demise extends through 2009, mid 2010, and recovery starts somewhere around 2012. That is unless the recession turns into a depression and then it will be somewhere around 2016 before the recovery begins.

Decline in MI home values expected to continue

With the continued downturn in automotive industry, additional layoffs, downsizing and general decline of the local economy, I am expecting property values to decline an additional 25 to 40% over the next two years. My best guess at this point, is the bottom should fall out somewhere around 2010 to 2011 and home values should begin to trend back up by mid 2012. This is assuming that the recession ends and economic recovery takes place. Should the recession linger, hampered by inflation, or world market factors, the recovery of home prices may be delayed until 2016 or later.