They call them Flippers, Flippers Kings of the loan fraud..


I am sure you remember when the housing bubble burst, and a lot of

English: Showing how the rapid rise in in mort...
English: Showing how the rapid rise in in mortgage credit distress is being led by subprime ARMs. Conventional loans past due 90+ days and Conventional loans in foreclosure. (Photo credit: Wikipedia)

the mortgage papers that banks sold to investors turned out to not be worth the paper they were printed on, and the subsequent recession?

There were all kinds of reports about how Flippers would form little clubs and buy properties, which they got loans on, then they sold the property to other club members, who also got loans on them.  At the time when they started this it was no problem.  Credit was cheap and, since houses were selling like hotcakes, the banks were more interested in pulling in money than trying to decide if either the property was worth the loan or the people could pay it back…

Normally you might have thought it was no big deal..  Club Member A get inflated value placed on a property.  Goes to Big Bank(BB) for a load that reflects the new appraisal.  BB give him the money(mortgage) and sells the paper to an investment fund..  Where the money might come from funds that hold people’s pensions…  Other people buy that paper and soon it is scattered among many investors.   Member A gets and inflated value and sells to Member B, who does the same thing Member A did…  The property changes hands and double, or triples, in price, NOT VALUE.

When the bubble burst on the housing market there a whole bunch of bans that discovered that because they had not bothered to do any research on the property, or buyer, they had paid out more than they could ever hope to get back…  They lost money on worthless paper..  The problem was that, while the banks were able to get Uncle Sam to give them your tax money, in order to keep them from going under and putting their employees out of work, the various pension funds that put money into these papers were NOT able to get anything and so more companies crashed, more people lost jobs, and some people watched their life saving out out the window but, the banks made out, with bail outs, like the bandits they were…

So, you might ask “Joe Guy, where are you going with this?”  In a very simple direction…  Depending on which results you read the housing market is getting better, or not, the supply of money is rising, or not, and then the Flippers seem to be starting up again.

I recently got an invitation to a seminars about how to make thousands of Dollars in the housing market by learning to Flip using other people’s money..  That seem to be the way they do it so they don’t lose anything.

Don’t get me wrong..  There are Flippers and there are Flippers.  Some Flipper buy a house, fix it up, to increase its actual value, and then sell the house..  One guy I listened to, some years ago, told about how he had a drawer full of credit cars..  When he wanted to buy a house he got a $1,000 advance on each card, he said he had about 200 of them, and used that money to buy the house..    He then worked out some deal with the seller so that he paid less for the house, with the cash, than the mortgage that he took out, pocketed the extra money, and the sold the house to pay off the mortgage..

The thing is..  The Flippers are starting again and I wonder if the Big Bank has learned it lesson or, are they thinking we will bail them out again?

If not then maybe we should just let them fail this time..

 

Thanks,

That Joe Guy.

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Another Myth Disspelled? “To Serve and To Protect”?


One of the many things that the Angeles Police Department is  famous for is the phrase “To Serve and Protect“.  It was selected as a motto by the LAPD Academy in 1955 and has been used by many Police Departments since then….

So maybe the Emeryville Police Department should get their own motto.  They could use this one “To Force and Intimidate”.

Thanks,

That Joe Guy.

How to get paid for a job you are not atteneding while looking for work….


How many people would expect their employer to pay them for a job they do not attend so that they can look for a new job?  For example : lets say I was still working for Walmart.  What do you think would happen if I went in one fine day and said “I am looking for work, and will be missing some days but, I want you to pay me for not being here”?

For most of us we would leave with NO job but, if you are a New College of Florida professor of Political Science named Keith Fitzgerald the you would have no problem.

The Saint Peters Blog headline reports “76% of New College students bash absentee professor/congressional candidate Keith Fitzgerald”.  These student assessments did span from about 1995 to 2011, so I am sure he was not running the whole time but still, %75 of 713 student assessments were critical.  So just what does this mean?  It seems to mean that professor Fitzgerald spend less time paying attention to the paying students then he did his running for his new job….  He was, at least, late enough  that students commented on this in their assessments.

I understand that a lot of people will vote along party lines.  I just wonder, if he paid this little attention to his classes, just what he is like in office?  Is he as disorganized there as his student said he was in class?  Is party loyalty more important than getting a competent person in the job.  This is something we, as voters, should keep in mind when we go to the polls.

Thanks,

That Joe Guy.