PIMCO: Millions of Homeowners to Become Renters

He's right. Many more people will be homeless and renters soon. New report shows 1 out of every 2 new college graduates (past five years) are unemployed or working low paying part-time retail and restaurant type work that has nothing to do with their degrees but they have expensive student loans that will follow them to their graves they can't pay.

I blame Greenspan... If he didnt lower rates so much in 2002 and 03 it would have taken longer to emerge from that recession and it would have been a little more painful but we would not be facing this same issue.  This is the end result of an over abundance of cheap money. 

Also remember when pressed on whether or not the Real Estate bubble was a bubble Greenspan described it a "Frothy".

Looks like Matt has been hitting the coker a little bit too much. PIMCO has been involved in so many FRAUDS & SCAMS, it's not even funny anymore.

from jesses cafe

  in the past three years nothing has been fixed but that we must hold Wall Street responsible for the fraud that resulted in the financial crisis. What should be done?We need to have investigations. But with the pushback and all the lobbying, what they’ve been counting on is that the statute of limitations for some of these frauds is expiring. So if you don’t file complaints, you may not be able to.Members of Congress are enabling the lack of punishment and covering up great misdeeds in our financial system — and they’re doing it with no fear of consequences — i.e., being voted out of office, in which case they could find themselves the subject of investigation.What do you mean: “covering up”?Many people are covering up for cronies who have a lot of money sloshing around. We threw money into the financial system with no accountability and thus made the problem worse. Our system has been completely infiltrated and bought off. Things aren’t changing because Big Money doesn’t want it to change.What other indications are there of a cover-up?The MF Global dog-and-pony show. The attitude toward bundlers like Jon Corzine [the firm’s ex-CEO], who is a big bundler for the Obama campaign, is that the guy can do no wrong. This was before he even testified. People who are raising big money for campaigns get off with no real investigation.In the Sarbanes-Oxley age, for MF Global to say they were unaware of what they were doing beggars belief. And yet there has been no indictment.Is President Obama part of the cover-up?Yes, in that he’s enabled it. He’s left people in place who crashed the global financial system in the first place: [Treasury Secretary] Tim Geithner and [Federal Reserve chair] Ben Bernanke. Obama had told us: “You can’t keep doing things the same way and expect different results.” So he’s been quite a hypocrite.Who else is in the cover-up?Mary Schapiro was appointed [by President Obama] to head the SEC. She was formerly head of FINRA, the antichrist of investor advocacy! Yet she was chosen SEC [chair] because the regulators are captive by and serve the people they’re supposed to be regulating. They do not serve investors.In a way, Obama has been the anti-regulator because he didn’t put people in the regulatory agencies, the Fed or the Treasury who would investigate and fix things that are wrong in our global financial system.If he’s re-elected, then presumably, things will continue in this same way?Yes.What if a Republican is elected President?Who else is not in the pocket of Big Money interests!  (Ron Paul - Jesse)So, no matter who’s President, these crimes — if you want to call them crimes — will be perpetuated?Yes. And we do want to call them crimes! They are crimes.

banks got bailed outmiddle class got sold outby bush and obama

This is sad but right. There's nothing wrong with renting, but the lending banks, those who use to give a loan to anybody, are givinig people the hardest time now. For obama it's fine though, since he stimulated them to death with printed money, which probabely got the banks CEOs some beautiful houses.Good articles on www.ariespost.com

I find it funny that neither mention the bazillion-dollar companies that pressured banks to accept bad loans and then bet against the same mortgages and suffered no consequences. God bless America!

When the housing boom was just a cookin' so many homeowners took money against their homes because they are fools and jackasses. As the market 'cooled' and they didn't win the lottery and their payments went up they began to see the light.  can't fix stupid. Debt forgiveness/ no way. 

It makes sense.  Depending on the area, your return on investment for a simple rental is conservatively 6%-8%.  The only comparable investments are high-risk bonds and bank preferred stock. This is an excellent way to let the market fix the housing situation versus some government mandate. 

Of course, I'm sure the OCW believes we should use debt forgiveness instead.  Commies.