She's got a front row seat to witness the real estate crisis. This past Friday alone her agency took over 5 more troubled banks with non-performing real estate loans. She also has an army of economists on staff that must be telling her we're far from out of the woods yet.
So who does get advice from on her home? According to this article her Realtor:
After listing the five-bedroom property in April, the couple cut the price to $745,000 less than three weeks later, then reduced it again before withdrawing the listing. Ms. Bair's real-estate agent, Stephen Feldman, of Prudential Sawicki Real Estate, declined comment. An FDIC spokesman said Ms. Bair decided to remove the listing and wait for the market to improve on the advice of her real-estate agent.
That's scary. With this kind of denial we're in for a decade of price declines.
Take a look at Tim Geithner's problems with his home.He bought at the top,tried a short sale then leased for less than his payment...I wonder what kind of financing HE used.The Kool-Aid was free and some surprising people drank it.
ReplyDeleteDoes that mean he advised her that to keep it at least until 2010 or as late as 2017?. Every situation is unique, but if she can manage carrying costs that long without incurring damage, then she is in extraordinary cisrcumstances indeed.
ReplyDeleteEveryone I know views this correction as temporary....the market will improve at some point and bubble prices will return and all will be well.
ReplyDeleteNo one seems able to acknowledge that the ridiculous spike we saw in home prices is what is temporary. Not the correction, mind you, but the fact that prices got insanely high for a few years.
So yes, people will try to rent their homes until the market returns. But returns to what?? How?? The secondary market / shadow banking system is gone, and with it voodoo lending.
Bubble prices and conventional lending standards don't mix. Ergo, foreclosures are becoming the driving force.
Bair is one of the sanest and most honest members of the Obama economic team.And Lisa,why are you surprised at the denial? Humans are Rationalizing animals,not Rational ones.You can confirm this by working with Alcohlics or Addicts for a VERY short time.or watching TV news for 30 seconds...
ReplyDeleteTom- That's not saying much for the rest of the economic team. Here is John Hempton on Blair:
ReplyDelete"...Clusterstock argues that Sheila Bair is seemingly oblivious to the corruption possibilities.
She isn't seemingly oblivious. She is totally captured by JPM and Citi.
After all WaMu was gifted to JP Morgan in a reckless and irresponsible manner and she attempted to gift Wachovia to Citigroup. It should not surprise me that Sheila Bair continues to act as if she is on the take. That represents no change in behaviour.
Recommendation: Indict Sheila Bair if she won't resign. Indict her now.
*Note - I have always believed that Sheila Bair is either incompetent or corrupt. She seems to be corrupt - but incomeptence in her case is probably a sound defence. She should resign before she is (perhaps mistakenly) indicted for corruption. "
http://brontecapital.blogspot.com/2009/04/seemingly-criminal-sheila-bair.html
correction: Bair
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