Dr. Housing Bubble 09/12/09

[Crewleader]

Shadow Inventory Revisited: Silent Alt-A Mortgages, Southern California REO, and the Great Public Swindle.

I think you saw this coming. In the most e-mailed story on Friday, many of you sent in a link from the L.A. Times showing a confirmation of shadow inventory. One home does not make a trend. But connect that home to Bernard Madoff and you got yourself a fantastic story of absolute cronyism and corruption that we have grown accustomed to from the banking industry. Now one home is merely an example but there have been a group of people that actually deny the existence of shadow inventory all together, an argument that makes you feel as if you are talking to someone who still believes the world is flat.

This story would be laughable if it weren’t for the fact that the banking industry is an absolute corrupt industry that will bring down the real U.S. economy merely to protect itself. In a nutshell this is what happened:

“(L.A. Times) Bernard L. Madoff’s massive fraud stunned some of the wealthy denizens of Malibu Colony, especially when a couple devastated by the scheme surrendered their oceanfront home to Wells Fargo Bank.

But some neighbors say the real shocker came when they saw one of the bank’s top executives spending weekends in the $12-million beach house and hosting eye-catching parties there. What’s more, Wells Fargo spurned offers to show the property to prospective buyers, a real estate agent said.

“It’s outrageous to take over a property like that, not make it available and then put someone from the bank in it,” said Phillip Roman, an 18-year Colony resident who lives a few homes away from the property.

Residents identified the house’s occupant as Cheronda Guyton, a Wells Fargo senior vice president who is responsible for foreclosed commercial properties.

http://www.doctorhousingbubble.com/shadow-inventory-revisited-silent-alt-a-mortgages-southern-california-reo-and-the-great-public-swindle/