California Housing Still Over Priced: Examining Case Shiller Data and Seasonal Distortions. The Impact of Shadow Inventory on Price.
One simple rule that every student of introductory economics understands is that a product that has more demand than supply will typically push the price up. The recent stabilization in housing prices has given the impression that the housing market is correcting on its own. Nothing can be further from the truth. There are three [...]
California Total General Fund down $237 Million in August. Recent Estimates Put State in Deficit of $8 Billion for Next Year.
It only took a few weeks for California to miss its budget estimates again. The California State Controller’s Office released data for August receipts last week and the state is already under by $237 million from the recently revised budget figures. Keep in mind that the recent budget figures were completed in the midst of [...]
Option ARM Silent Bomb: $189 Billion in Outstanding Option ARMs with $134 Billion Recasting in 2 Years. 94 Percent of Borrowers Made Minimum Payment.
There is devastating news out this week regarding option ARM loans. Option ARMs are a unique kind of mortgage since they offered borrowers a variety of methods to pay their monthly mortgage. The problem with the data coming out this week is that 94 percent of borrowers elected to go with the most financially destructive [...]