Trump Entertainment will miss an Interest payment
In order to maintain “sufficient” liquidity Trump entertainment Resorts Inc. won’t make its $53.1 million interest payment due on Monday.
Read the Story here.
That would be similar to somebody not paying their credit card bill to maintain “sufficient” liquidity in their household budget and have no adverse reactions.
Wealth has its advantages.
Real Estate Downfall Parody
This video uses Hitler to parody the housing bubble and burst. If you are offended by Hitler please do not watch.
Peter Schiff Makes Sense on the Auto Bail Out
CNN November 20, 2008
Part One
Part Two
Gas $2.03 in Los Angeles – Great News
Yesterday, I saw gas for $2.03. Shocked!! The thought of gas being under the $2 mark is not only possible but likely. This is the short term good news. This helps put money back into to the pockets of American. This is a good thing.
Gas Prices
This past July (08), gas in Los Angeles (my area) hit a record high of $4.80 (I buy my gas at Costco, where gas is discounted by .10 or more.). Some areas in Los Angeles hit the $5.00 mark.
DJI
October 2007 the DJI was trading at 14,000+ Fast forward one year and the market was down to 8,175. Come November 2008 the market went below 7,550.
Gas prices are down 57% from the summer peaks. The DJI has almost lost half its value, which translates to trillions of dollars of wealth wiped out in less than a year.
While I am happy gas price have dropped, the economics that have orchestrated this drop is very disturbing.
FOX News Talking Heads Go Nuts
This is the funniest FOX news clip I have seen in a very long time. Ok, not as funny as the Little Bill O’Reilly video.
Everyone on this show a year ago believed the economy was strong and doing fine. Now the sky is falling? They are so called experts?
Just silly.
Inland Empire Auto Dealerships Under Siege
In the last year 14 car dealers in the Inland Empire have shut their doors or filed for Chapter 11 bankruptcy protection. This is all before the current crisis in Detroit. Read the story here.
The Inland Empire also happens to be the epicenter of the California housing collapse. They lead the state in Foreclosures.
8718 Cadillac Ave Los Angeles CA 90034
Why I don’t think this place will sell any time soon?
Let’s start with price. The home as of today (11-23-08) is listed for $619,000. The house last sold June 15th 2005 for $615,000. This is 14 months before the housing market peaked. Take into account the absolute collapse of the housing market and the economy, why would anyone buy this home at ABOVE peak bubble pricing?
Smart money says this house will not sell until the homeowners get real about the current market and the significantly tougher economic times ahead. If the current owners need to get out of the home, they should price it well below $500,000 and hope someone can get qualified to take the home. If they owe more than $500,000 short sell the home and move on. If they don’t need to sell, sit on it and accept the house will be upside down for many years. It will bounce back, it just takes time.
Location, location, location
Speaking of location, this home sits on the other side of the “rail road tracks,” the good side, kind of… However less than one block away and you are smack in the middle of serious gang territory. In fact, this year a young girl was gunned down with in eye shot of this home.
I dare you to search this area on LAPD crime website or Megan’s law website.
That being said, the owners of this house have put a lot into the home and it looks very nice on the inside.
In my humble opinion his house is worth $300,000 to $350,000 but only time will tell. We will check back at a later date.
924 5TH St #2 SANTA MONICA, CA 90403 Short Sale
924 5TH St #10 SANTA MONICA, CA 90403 a Wells Fargo REO is listed for $684,900. Down from the $1,054,000 it sold for in March 2007.
I’ve got some bad news for Wells Fargo. Unit #2 in the same building (924 5TH St #2 SANTA MONICA, CA 90403) is a Short Sale listed for $337,500. It is a much smaller unit, but does not help the comparables to support the $684,900 asking price.
Also Unit #4 in the same building Sold in February 2008 for $430,000. Granted it’s a 1 bed room 1 bath unit. But this sale took place before the economy fell off a cliff.
Search for Foreclosures and Short Sales
924 5TH St #10 SANTA MONICA, CA 90403 – REO
This Wells Fargo bank owned property is in heart of Santa Monica California. This area, once thought to be immune to the housing crash is now seeing Bank owned homes popping up in some of the most prime real estate in Los Angeles County.
The Foreclosure wave which started in the Inland Empire and washed its way westward across the valley, has now reached the costal enclaves of Southern California, Santa Monica.
This 3 bed room 2 bath Condo solid in March 2007 for $1,054,000. That is not a typo. I did not add an extra zero. This Flip, now turned flop, went back to the bank. The asking price for this REO is $684,900? This is a rollback to 2005 pricing or a loss of 35% since March 2007. Ouch.
Home details:
924 5TH St #10 SANTA MONICA, CA 90403
3 beds
2.0 bath
1,283 sqft
Lot 2,200 sqft
Built in 1961
Listing Description:
“Bank owned penhouse in prime location of Santa Monica. large decks and patio area with amazing views of the Santa Monica mountains.indoor and outdoor flow.One kind of property. Kitchen need appliances, the building does not have an elevator. this building is a Torca conversion.there is 2 private garage on the front. The building security is gated.Buyer to be prequalify by a Wells Fargo home mortgage before presenting the offer.Hurry will not last long.”
Before and after pictures:
Read more
Peter Schiff on CNBC
Finally!! This man get his dues!!! He has been right for the last 2 years, while all the pundits have said everything is ok, just keep spending. ..
“The dollar will collapse.” Scary stuff.
