The poll results ran about 3 to 1 in favor of trickle, but I think we can agree that a flood is certainly possible. All it would take is:
1. Citizens revolt, resulting in a political uprising that turns off the backstop, or
2. One of the servicers who also owns a lot of paper breaks rank, and unloads. They decide that being the first one out wins. But it would take a real renegade.
Where is Angelo when you need him?
Jim Klinge
Klinge Realty Group
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Trustindex verifies that the original source of the review is Google. Jim & Donna Klinge helped us sell our home of 30 years in Ocean Hills. We were very happy with their service and would HIGHLY recommend them to anyone looking for an Honest, Knowledgeable, Skilled, Informed Efficient realty team. Both Jim & Donna were so helpful in different ways and complemented each others skills. Please refer to a more detailed review that we wrote on YELP. Thank You Both for all your help!!!Trustindex verifies that the original source of the review is Google. A+ thank youTrustindex verifies that the original source of the review is Google. Many years ago, we purchased a home in Carlsbad, using a realtor that was recommended to us - Jim Klinge. Fast forward to 2025, we recently had the privilege of selling 2 homes in Carlsbad, CA and didn't hesitate to reach out to Jim and Donna Klinge of Klinge Realty Group to guide us through the sales. 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Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation. Thank you Donna and Jim, Jerry and MaryTrustindex verifies that the original source of the review is Google. We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years. Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. 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Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale. Communication was prompt and we were well-informed throughout the entire process. For anyone looking for a dedicated and knowledgeable real estate team, look no further! ---Trustindex verifies that the original source of the review is Google. Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.Trustindex verifies that the original source of the review is Google. Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.Trustindex verifies that the original source of the review is Google. This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. 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Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless. So grateful that I had them on my side!Load more
Hi Jim,
Thanks for letting me present the opposing case in the prior thread. I believe that a variation of #1 is eventually going to take hold; humans are basically (as a group) optimistic, and cannot bear crisis for too long. It wears on the psyche. I think we can bear about another 6 months before everyone in America just wants to forget all about the Great Recession and get on with their lives. At that point, there will be no political will to continue bailouts, and if needs be, there will be another RTC established that will simply unwind all of the assets.
Remember what I said… the crisis in subprime was not really related to foreclosures per se, those were the side issue, but rather that financial firms (and banks) had heavily invested in securities that were untradeable. That crisis is largely over, with the FED being the lender of last resort. All of the asset impairment on held-to-maturity notes is still ahead of us, but far less dramatic in its time scale. IMO. They’ll implode one-by-one over the next 3 years and need to get cleared out. We’ll see a lot more local and regional banks implode from these notes and FNM FRE will continue to bleed profusely.
Chuck Ponzi
If another RTC is created home prices will drop dramatically in the areas properties are auctioned.
I worked at the Small Business Administration HQ in Denver as a summer intern one year. I worked with one of the accountants that liquidated all the S&L assets. His group worked 8 hours a day 40 hours a week for 4 years selling/auctioning assets at 20% of their booked “value”.
The S&L crash was/is small potatoes (focused primarily in southwest states) when compared to the National Housing Bubble that’s been going on for the last 10 years.
Yes,
Consider the facts in this article that came out today:
http://finance.yahoo.com/news/US-largeloan-bank-losses-rb-3031314786.html?x=0&sec=topStories&pos=7&asset=&ccode=
You’ve got an exponential rise in potential bank losses (even from 1 year ago), and there still seems to be a debate whether banks can slowly “trickle” them out.
It’s like the little dutch boy with his finger stuck in the dike telling the townspeople that “it’s contained”.
Yeah, but pressure is building, not receding!
I try not to be alarmist, but anyone buying now should know what is likely to happen in the future.
Chuck
Jim,
What is your take on the Landmark Natl Bank vs. Kesler ruling? I know it only affects Kansas as of now, but it does seem to set a precedent that might greatly affect California and the abundance of Alt-A/Option Arm loans that were issued here. I think that this ruling, if or when something akin to it is brought about here in California, might make a huge difference in the trickle vs. flood debate.
Citizen’s revolt? Who do you envision doing that? Not sure what “backstop” means.
Chuck,
Are you saying it’s time to invest in SKF again? 😀
My only thought is that you’ll see more bank failures. A lot more.
As I noted before, markets can remain irrational longer than you can remain solvent. I thought we would have had the banking crisis and attendant plunge in the stock market back in late 2007. I was only off by 1 year, but that 1 year is an eternity in the investment world. At least now-a-days it is.
Chuck Ponzi
All I can say, from regularly attending trustee sales, is that the system is already near saturation. There is such a sheer volume of properties going through there, and so many buyers, that I don’t know how it could handle many more. It’s already difficult to even get near the auctioneer in LA County, and the sale goes on all day. In the winter it will be getting dark before the sales are done.