Reggie Middleton on Bloomberg TV's Fast Forward
Bloomberg TV: "The risk/reward ratio in commercial real estate does not look good!"
Bloomberg TV & Reggie Middleton on the Flawed Case Shiller Index: "That's what they said in Japan about 12 years ago, look where they are now!"
I will be discussing much of the same on Max Keiser tomorrow. Part of the problem is that the foreclosure pipeline has been artificially clogged, causing a severe backlog that is not registering in the official numbers. Again, an issue that I went into depth in last year. Foreclosure activity decreased in April for the seventh straight month, bringing total foreclosure activity to a 40-month low, according to a new report from RealtyTrac. But the numbers are deceptive. When adjusted for reality, these numbers and this turn of events corroborate what I have dug up regarding the shadow inventory available to subscribers, (see the latest Shadow Inventory Analysis Spreadsheet online) in that although shadow inventory looks bleak, there is a massive wave of unseen inventory waiting in the banking rafters. This is online tool is a very, very under appreciated asset that I would expect to get much wider use in the near to medium term.
Bloomberg also reports Banks Said to Offer $5 Billion to Resolve State, U.S. Foreclosures Probe. This amount is a mere pittance, and even if they do push this through for their nth bailout, I don't think it will permanently squelch the various avenues for private litigation, then again I'm no lawyer. Even as a layman though, the litigious threat was quite obvious, reference :
- “As JP Morgan & Other Banks Legal Costs Spike, Many Should Ask If It Was Not Obvious Years Ago That This Industry May Become The “New” Tobacco Companies”
- Less Than 24 Hours After My Warning Of Extensive Legal Risk In The Banking Industry, The Massachusetts Supreme Court Drops THE BOMB! Monday, January 10th, 2011
Bloomberg reports that Foreclosures Prompt Four U.S. Cities to Sue Banks for Mowing, Home Repairs. I discussed this in detail both on Boombustblog and on the Max Keiser show: Reggie Middleton On Max Keiser Discussing Tradable Fraud, Goldman’s Facebook Deal & Phantom Bank Earnings
For more detail, reference I Warned That Banks Will Soon Be Forced To Walk Away From Homes… Guess What! Monday, January 17th, 2011. You would be shocked at the amount of so-called professionals and experts who told me this could never happen! I pushed further, with articles that expanded on the topic last year as well:
Now, in May, my proclamations from last year and the first quarter look prophetic. They are not, they are the result of objective analysis. Either way, In Case You Didn’t Get The Memo, The US Is In a Real Estate Depression That Is About To Get Much Worse.
In There’s Stinky Gas Inside Of This Mini-Housing Bubble, You Don’t Want To Be Around When It Pops! I illustrated the poor macro and fundamental conditions that made it impossible for a housing recovery to occur in the near term.
Nobody wants to admit it, but the 2008 never finished - The True Cause Of The 2008 Market Crash Looks Like Its About To Rear Its Ugly Head Again, With A Vengeance.
Why so glum? Well, because mortgage lending is still the biggest lending component in this country and the biggest lenders have YET to come clean on their trash. After calling the fall of Bear Stearns, Lehman Brothers, General Growth Properties, Countrywide, WaMu, Merrill Lynch, and a whole host of other "trash as collateral" financial institutions (see Who is Reggie Middleton!!!), one would think that I would get more airplay. If one truly believes housing is still falling (in other words, if one can count), then here's proof of more "hide the sausage" games being played: There’s Something Fishy at the House of Morgan Wednesday, April 27th, 2011
As a historical reminder, I suggest you go through this dense post detailing JPM's 3rd quarter performance from last year that was hailed as impressive in the media: JP Morgan’s 3rd Quarter Earnigns Analysis and a Chronological Reminder of Just How Wrong Brand Name Banks, Analysts, CEOs & Pundits Can Be When They Say XYZ Bank Can Never Go Out of Business!!! Sunday, October 17th, 2010