Wednesday, July 8, 2009

Required Reading: Wednesday, July 8th 2009

L.A. County's May default rate double last year – The Los Angeles Times

May's 9.5% delinquency rate for L.A. County was up from 5% of mortgages late by 90 days or more in May 2008. First American bases its foreclosure analyses on public records.

Credit card firms try end run around new federal rules – The Los Angeles Times

The law would restrict interest rate increases unless a credit card has a variable rate. So at least two major lenders are switching their cards with fixed rates to -- you guessed it -- variable rates.

"It's completely unfair," said Linda Sherry, a spokeswoman for Consumer Action. "It's an end run around the intent of the new law."

U.S. Housing Market Is Cursed by Brain Freeze: John F. Wasik – Bloomberg

Our loss-aversion fears are so powerful that they override our logic circuits. We tend to ignore economic reality because we are emotionally anchored to our homes and values based on boom-era prices. It’s like holding on to a favorite stock long after it has tanked.

Banks Reject California's IOUs – Minyanville, Andrew Jeffrey

Battle Lines Form Over "Son of Stimulus" – Mish

Tell Wells Fargo, Bank of America, JP Morgan, and Citigroup to Go to Hell - Mish

Every one of those blood sucking banks was bailed out by taxpayers (California taxpayers too) and now will not take an IOU from the State of California for the citizens of California. This is disgusting.

If you have an IOU that the big banks will not cash, I recommend closing your accounts and putting them someplace that will. Please tell Wells Fargo, Bank of America, JP Morgan, and Citigroup to go to hell.

Sale shows San Francisco property values in free fall – The San Francisco Business Times

A downtown San Francisco office building that sold for $400 a square foot in 2006 has traded for just $172 a square foot, a 57 percent decline that industry experts see as an important milestone in establishing new, recession-era values for financial district property.

PMI Expects Lower Housing Prices in 2011 – Housingwire

In California, Even the I.O.U’s Are Owed – The New York Times

LOS ANGELES — The only thing worse than being issued an i.o.u. rather than a check from the State of California may be not getting the i.o.u. at all — at least in time to meet the deadline of your bank.

But across California on Tuesday, many vendors who had been told they would receive the i.o.u.’s instead of actual money said they had not yet received them. And if they do not arrive soon, they may be hard to turn into cash.