Some Articles just Tick Me Off ....

So I just read a post on cnbc.com that appears to come from the New York times and it really made me mad!!!  So I had to write a quick post as a way to make myself feel better.

 

The title was

Backlog of Cases Gives a Reprieve on Foreclosures

The basics of the article are banks are not activly trying to clear the market.  You clear the market by getting everyone out of homes they don't or can't pay for.  You recycle the ownership, capital and you start fresh.  Now this would be extremely painful and probably mean many large makes get nationalized for a couple of years while they rebuild their capital base.  

Instead banks are choosing to sell 1 for every 5 or 6 they could take back which just means this will go on a lot longer and end up a lot more painful when we add up all the dollars lost when the cycle completes (and it will someday).

If you believe the article it will take 40 Years to clear the foreclosure pipeline in New York alone.  I don't know about you but if that were true and say I was 55 or 60 Years old I might take the gamble and keep my mortgage payments and simply pad my retirement.  What's the downside they kick an old man out when I am ready to go in a nursing home?

I don't get it.  Some people are in homes they can't pay for and they should get out and others are in homes they don't want to pay for (lots of good business reasons) and they should get out.

What we are living in now is not capitalism it is instead some kind a quasi bank hocus pocus or maybe just kicking the can as I read about all the time.

In the end I don't know why I am so mad as I will have longer to build my portfolio of cheap rental houses and at this rate I will buy the next 10 even cheaper.  This is great for me but in my opinion really bad for the nation and I would gladdy give up a few years of buying distressed assets to see us make better macro decisions.

Good Investing