Mana Energy Potion

I don?t know about you guys, but I?m going to be getting myself some Mana Energy Potions!

http://www.manapotions.com/index.html

http://www.thinkgeek.com/caffeine/drinks/a273/

Apple iPhone Dev NDA Removed!

http://news.cnet.com/8301-13579_3-10055509-37.html?tag=newsLeadStoriesArea.0

Yay, now I can start writing about this stuff

Microsoft Dumping Gates and Seinfeld

If you haven?t already heard the buzz from last thursday, Microsoft is moving away from the Gates and Seinfeld duo commercials and is now pushing the ?I?m a PC? campaign… an obvious play off of the Apple commercials.

Microsoft says moving away from the Gates and Seinfeld commercials were planned from the start and that it was not because the commercials simply sucked ass………. YEA RIGHT!! Their new commercials are a bit better tho. You can at least see the message they?re trying to convey. I still have a hard time understanding the whole point of having the original two commercials; by hey, i?m blogging about them so I guess MS got the buzz they were trying to shoot for.

Wow, another bailout!!

Yup, put the burden on the Tax Payers… The Fed has officially lending as much as $85 billion to rescue the insurer, AIG. Hopefully AIG will be able to repay the loan. Things really aren?t looking too good out there.

All Hell Broke Loose

So today Lehman Brothers filed for bankruptcy AND Merrill Lynch had to get bought out by BoA. AIG also went down because they just can?t seem to raise any cash.

Looks like the party is over for all those mortgage brokers and investment companies who put just a lil too much money into mortgage investments. Now with Fannie Mae and Freddie Mac both taken over by the government, it doesn?t seem likely that these investment firms and banks are going to draw any more help from the government.

What does this mean? We are in a financial crisis!! Good news is, if you?re in the market for a home, you?ll probably be able to get a good deal in comparison to what you would have been able to get the past couple years.

Now, a lot of Housing Bubble preachers (including myself) have been saying that housing prices have grown way out of proportion the past several years and that housing prices were outpacing income growth by way to much to be sustainable.

So now, we have this:

That?s a headshot right there!

This was the prediction from Jan 2007.

What does this char tell us? Well all the problems we?ve had this year were with SUBPRIME loans as seen in the gray before the ?we are here? arrow. What we have coming up next are all the ARMs resetting.

So here?s what an efficient market looks like:

But what happens if buyers ?believe? prices will keep rising no matter what?

So what does this look like for us RIGHT NOW?

Headshot.

So lets put in some real numbers/Data:

The DARK BLACK line is how much houses have to depreciate in order to get back to normal.

Other interesting charts and figures for ORANGE COUNTY and IRVINE:

So according to the last two charts, home prices at the peak of the current bubble will not be reached again till at least 2019 if you use historical price-to-rent ratios. But if you use Price-to-Income Ratios (which i think is more accurate), peak prices will not be reached until 2029!!! And in the short term, houses will have to decline 43% from their peeks!!! Boom headshot!

Mortgage investors are dying for a reason… and now they?re taking everyone else down with them.