<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN">
<html>
<head>
<meta content="text/html;charset=ISO-8859-1" http-equiv="Content-Type">
<title></title>
</head>
<body bgcolor="#ffffff" text="#000000">
Jeez, Andrew. So what -- you think the way the housing market has
behaved over the last few years is rational and sustainable?? I think
Bruce is bringing up an extremely important point, and I share his
doubts over the viability of the Dumms condo proposal. It is only one
of several doubts I have about the proposal, but it's one of the most
serious ones.<br>
<br>
Regina Kreger<br>
5903 Cleveland Ave.<br>
<br>
Andrew Farrington wrote:
<blockquote cite="midPine.BSF.4.61.0603140853330.62734@svcs.dvnt.com"
type="cite">Did you really just forward fear-mongering commercial
email to the town talk list? "Be terrified! Give me $130 bucks or
you'll DIE!! Booga booga!" Just curious: Did you send the guy $130?
<br>
<br>
Andrew Farrington
<br>
<br>
On Tue, 14 Mar 2006 <a class="moz-txt-link-abbreviated" href="mailto:bruce.wernek@mindspring.com">bruce.wernek@mindspring.com</a> wrote:
<br>
<br>
<blockquote type="cite">All,
<br>
<br>
This is a financial news letter I receive daily from Weiss Research.
Since there is a proposal on the table for a "condominum" complex at
<br>
Dumms Corner, I thought the following would be interesting reading. I
<br>
fear this "condominum" complex will either be just another vacant
<br>
property in our Town Center or an apartment building, most likely the
<br>
later. I don't consider this economic development, but you can make
<br>
your own decisions.
<br>
<br>
Bruce
<br>
<br>
<br>
<br>
To make sure you don't miss our urgent updates, add Weiss Research
to
<br>
your address book. Just follow these simple steps.
<br>
<br>
<br>
<br>
Money and Markets Tuesday, March 14, 2006
<br>
<br>
<br>
<br>
� U.S. Housing Bust by Michael Larson
<br>
� Asian Tech Boom by Tony Sagami
<br>
<br>
<br>
Dear Stanley Bruce,
<br>
<br>
<br>
[larson.jpg] Tony Sagami�s so worried about what�s happening to
U.S.
<br>
tech stocks, he�s hopped on a plane and flown off to Asia. He�ll
give
<br>
you a sneak preview of his research tour in just a moment.
<br>
<br>
<br>
But first, Martin has asked me to give you an urgent update on
what�s
<br>
happening in the U.S. housing market.
<br>
<br>
<br>
If you�re like most of my friends and family, your home is your
biggest
<br>
and best investment. It�s worth more than any single stock or
mutual
<br>
fund in your portfolio � perhaps more than all your other
investments
<br>
combined. But right now ...
<br>
<br>
<br>
Home Prices
<br>
Are Falling!
<br>
<br>
<br>
In Bethesda, Maryland, prices have tumbled 16% from December to
<br>
January.
<br>
<br>
<br>
In a key area of Fresno, California, the median sale price for
homes
<br>
was $439,000. But in just the last 60 days, those homes have
plummeted
<br>
$51,000, to $388,000.
<br>
<br>
<br>
In San Diego, new home prices have just suffered the sharpest
<br>
month-to-month dive ever recorded.
<br>
<br>
<br>
[img1.jpg] In Palm Beach County, Florida, where we live, we see
the
<br>
same thing. Every day, when we drive to work, we see �house for
sale�
<br>
signs sprouting like unwanted weeds along the road. And every
night, as
<br>
we drive home, our eyes turn to a skyline sculpted by dozens of
new
<br>
high-rise condominiums, nearly all in darkness, nearly all
unoccupied.
<br>
<br>
<br>
And this is just a small sampling. I can give you a dozen more
examples
<br>
� from Sarasota ... Chicago ... Phoenix ... Washington D.C. and
more
<br>
that show this �adjustment� in prices could be sharp, severe and
<br>
widespread.
<br>
<br>
<br>
This Housing Bubble is Busting.
<br>
And the Bust Could Spread from
<br>
Coast to Coast Like a Giant Storm.
<br>
<br>
<br>
It may have reached your area already. Or it may be on its way.
In
<br>
either case, my question for you today is: Are you planning to
just
<br>
ride it out? Or are you going to do something about it?
<br>
<br>
<br>
Suppose your home falls 30% in value. What about 40% or 50%? Given
how
<br>
fast and far home values have surged, that would not be unusual.
<br>
<br>
<br>
Heck, even if the price of your home falls by a �mild� 10%, that
could
<br>
be a huge hit to your net worth.
<br>
<br>
<br>
Let�s say, for example, your home is worth $500,000, and you�ve
got a
<br>
$450,000 mortgage. Guess what: Just a 10% decline wipes out 100%
of
<br>
your equity. Even if you�ve got another $50,000 in the bank, that
still
<br>
means that half of your net worth has gone up in smoke.
<br>
<br>
<br>
I�m writing you now because you don�t have to ride it out. You
don�t
<br>
have to sit there passively while a housing bust wipes out much or
most
<br>
of your net worth. Indeed, there�s a lot you can do to protect
yourself
<br>
� even to go after unusually large profits.
<br>
<br>
<br>
And it does not require selling your home.
<br>
<br>
<br>
The Biggest Glut of
<br>
Unsold Homes of All Time
<br>
<br>
<br>
All across the USA, brand new, single-family homes are begging
for
<br>
buyers.
<br>
<br>
<br>
And empty condos are about as popular as lepers at a kissing
contest.
<br>
<br>
<br>
Here�s why ...
<br>
<br>
<br>
1. Home sales are dropping.
<br>
<br>
<br>
The sales of existing homes are at their lowest level in nearly
two
<br>
years ... and sinking fast. That means if you want to try selling
your
<br>
home right now, it�s probably going to take a heck of a lot longer
to
<br>
move it. And more and more people are putting their homes up for
sale.
<br>
<br>
<br>
The same is happening in the new home market, where sales just
plunged
<br>
to a one-year low. But builders are committed to past contracts.
So
<br>
they�re still building record numbers of shiny new homes.
<br>
<br>
<br>
As a result ...
<br>
<br>
<br>
[img2.jpg] 2. The supply of homes on the market is ballooning out
of
<br>
control!
<br>
<br>
<br>
The number of new homes for sale just hit 528,000 in January. That
was
<br>
the worst at any time in U.S. history.
<br>
<br>
<br>
At the same time, in the used home market, a whopping 2.9 million
units
<br>
have flooded the market. That�s just shy of an 18-year high.
<br>
<br>
<br>
<br>
3. Condos are getting hit the hardest of all.
<br>
<br>
<br>
Nationwide, condo and co-op sales have plunged 7.8% over the last
12
<br>
months. And supplies surged by 49.5%! If you own a condo, good
luck
<br>
selling! And even if you don�t own one, the drop in condo prices
will
<br>
naturally put pressure on your properties as home buyers choose
the
<br>
cheaper alternatives.
<br>
<br>
<br>
These warning signs would be troubling for any market. Yet the
real
<br>
estate lobby keeps whistling past the graveyard.
<br>
<br>
<br>
Just yesterday, the National Association of Realtors published its
2006
<br>
sales outlook, forecasting sales declines of almost 6% for
existing
<br>
homes and 8% for new homes, the biggest drops since the 1990s.
<br>
<br>
<br>
But their headline is pure spin: �Housing Market Readjusting to
Normal
<br>
Balance.� Ha! That�s the kind of doublespeak that would make
George
<br>
Orwell proud.
<br>
<br>
<br>
Look. We�ve just seen the most massive real estate run-up in
recent
<br>
memory. We�ve got a market that�s grossly overbuilt and overpriced.
We
<br>
have millions of unsold homes all over the country.
<br>
<br>
<br>
Result: We�re on the brink of a free fall. And it could take the
price
<br>
of your home along with it.
<br>
<br>
<br>
From Dream Home
<br>
to Financial Nightmare
<br>
<br>
<br>
What�s next?
<br>
<br>
<br>
Millions of American families, already stretched beyond their means
to
<br>
afford their dream homes, will snap beneath the burden of rising
<br>
monthly payments.
<br>
<br>
<br>
And we�re no longer the only ones warning you about this. Just
this
<br>
past Saturday, the lead article in the Wall Street Journal issued
a
<br>
very similar warning:
<br>
<br>
<br>
Over $2 trillion in adjustable-rate mortgages (ARMs) are going to
reset
<br>
to higher rates this year and next.
<br>
<br>
<br>
Already, a growing number of homebuyers are having a hard time
making
<br>
their monthly mortgage payments. And now, they�ll suddenly see
their
<br>
payments jump 30%, 40% even 50%. Past-due notices will start
pouring
<br>
into the nation�s mail stream � from hundreds of mortgage lenders
and
<br>
banks to hundreds of thousands of households.
<br>
<br>
<br>
Suddenly, nearly everyone will be in a rush to put up their �for
sale�
<br>
sign before their neighbors do the same.
<br>
<br>
<br>
A man�s home is his castle, but when it�s unsellable, it becomes
a
<br>
prison.
<br>
<br>
<br>
Home foreclosures are already rising ominously. According to
<br>
RealtyTrac, an online marketplace for foreclosure properties,
about
<br>
103,540 properties nationwide entered some stage of foreclosure
in
<br>
January. That�s up 27% in a month ... 45% in a year, the biggest
surge
<br>
I�ve ever seen.
<br>
<br>
<br>
Result: Still more pressure on the value of your property.
<br>
<br>
<br>
Steps You Should
<br>
Take Right Away
<br>
<br>
<br>
I�ve just written a special report, �The Great Real Estate Bust
of
<br>
2006-2008,� with detailed steps on what to do immediately. Here
are
<br>
seven to help get you started ...
<br>
<br>
<br>
Step 1. Sell your investment real estate. Don�t wait. Don�t worry
about
<br>
replacing the income right now. Just move quickly to protect
your
<br>
capital. (More details on why, how and where in my report).
<br>
<br>
<br>
Step 2. Think about your own home. If it means a lot more to you
than
<br>
just an investment, stick with it. If not, run the numbers on
owning
<br>
vs. renting. You�ll probably find that renting is cheaper even
after
<br>
you factor in the tax advantages of owning. By selling, you not
only
<br>
protect your nest-egg ... you also cut your monthly expenses.
<br>
<br>
<br>
Step 3. If you absolutely must buy now for reasons that have
nothing to
<br>
do with the ups and downs in home prices, I understand. But don�t
spend
<br>
more than 25% of your gross income on principal, interest, taxes
and
<br>
insurance. And don�t miss the section in my report �10 Ways to Be
a
<br>
Smarter Home Buyer.�
<br>
<br>
<br>
Step 4. If you�re holding mortgage bonds � from Fannie Mae, from
<br>
Freddie Mac, or based on the high-risk �subprime� mortgages � sell
now.
<br>
The market value of these bonds is likely to fall as home prices
<br>
decline and mortgage delinquencies rise.
<br>
<br>
<br>
Step 5. From your stock portfolio, dump construction companies,
<br>
subprime lenders and mortgage REITS. In my report, I discuss
seven
<br>
vulnerable sectors, and I name up to six stocks in each.
<br>
<br>
<br>
Step 6. A housing bust can do more financial damage to more
properties
<br>
than any hurricane. You have insurance to protect your home
against
<br>
storm damage. So why don�t you buy some protection against a
housing
<br>
bust? In my report, I explain how.
<br>
<br>
<br>
Step 7. Go for a profit bonanza! There are investments you can
buy
<br>
right now that are designed to double and triple in value as the
real
<br>
estate market crumbles.
<br>
<br>
<br>
For example, you can buy long-term options, called LEAPS, on the
two
<br>
home builders named in my report. The more the stocks fall, the
more
<br>
money you stand to make.
<br>
<br>
<br>
If you download my report now, you�ll be entitled to four
follow-up
<br>
reports. The entire package � my special report and the four
follow-ups
<br>
� is normally priced at $495. But right now, the complete package
is
<br>
$129.
<br>
<br>
<br>
Your overarching goals: Avoid the avalanche of properties that�s
<br>
starting to hit the market. Get out of debt. Grow your wealth.
Build
<br>
your cash. And stash it away in a safe place.
<br>
<br>
<br>
<br>
<br>
<br>
<br>
_______________________________________________________________________________
<br>
<br>
For more information and archived issues, visit
<br>
<a class="moz-txt-link-freetext" href="http://www.moneyandmarkets.com">http://www.moneyandmarkets.com</a>.
<br>
<br>
<br>
About MONEY AND MARKETS
<br>
<br>
<br>
MONEY AND MARKETS (MAM) is published by Weiss Research, Inc. and
<br>
written by Martin D. Weiss along with Larry Edelson, Tony Sagami
and
<br>
other contributors. To avoid conflicts of interest, Weiss Research
and
<br>
its staff do not hold positions in companies recommended in MAM.
Nor do
<br>
we accept any compensation for such recommendations. The
comments,
<br>
graphs, forecasts, and indices published in MAM are based upon
data
<br>
whose accuracy is deemed reliable but not guaranteed.
Performance
<br>
returns cited are derived from our best estimates but must be
<br>
considered hypothetical inasmuch as we do not track the actual
prices
<br>
investors pay or receive. Contributors include Jennifer Moran,
John
<br>
Burke, Beth Cain, Amber Dakar, Michael Larson, Monica
Lewman-Garcia,
<br>
Julie Trudeau and others.
<br>
<br>
<br>
If you have a friend, co-worker or family member who you feel
could
<br>
benefit from Money & Markets, please forward this issue to a
friend.
<br>
<br>
To make sure you don't miss our urgent updates, add Weiss Research
to
<br>
your address book. Just follow these simple steps.
<br>
<br>
The information included in this electronic newsletter is subject
to
<br>
these terms and conditions.
<br>
<br>
View our Privacy Policy.
<br>
<br>
Would you like to edit your email notification preferences or
<br>
unsubscribe from our mailing list?
<br>
<br>
� 2006 by Weiss Research, Inc. All rights reserved.
<br>
15430 Endeavour Drive, Jupiter, FL 33478
<br>
<br>
<br>
<br>
[STPTI] [YT]
<br>
<br>
<br>
<br>
</blockquote>
<pre wrap="">
<hr size="4" width="90%">
_______________________________________________
TownTalk mailing list
To post to the list, send mail to <a class="moz-txt-link-abbreviated" href="mailto:TownTalk@riverdale-park.org">TownTalk@riverdale-park.org</a>
<a class="moz-txt-link-abbreviated" href="mailto:TownTalk-request@riverdale-park.org">TownTalk-request@riverdale-park.org</a> is for automated subscription processing only
<a class="moz-txt-link-freetext" href="http://riverdale-park.org/mailman/listinfo/towntalk_riverdale-park.org">http://riverdale-park.org/mailman/listinfo/towntalk_riverdale-park.org</a>
</pre>
</blockquote>
</body>
</html>