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OnPointRadio.org, a nationally syndicated talkshow on NPR, is hosting a program NOW entitled, "The Subprime Mop-Up."
If you live in Greater Boston, you can listen to 90.9FM from 9-10am
this morning, Thursday, September 6, 2007, or the rebroadcast tonight
from 7-8pm. Beyond Boston, you can also listen to the program LIVE
online now or access the audio anytime later at your convenience:
Aired: Thursday, September 06, 2007 10-11AM ET
Program description: The Subprime Mop-up
you thought the subprime mortgage mess was behind us, think again. In
the next year, another two million adjustable-rate mortgages are
scheduled to reset from low "teaser" rates to household budget-busting
Foreclosure rates are already soaring. In some
regions, whole neighborhoods risk going under. A credit crunch backlash
has markets around the world in turmoil.
Now Washington is girding to weigh in. But who, if anyone, should be bailed out? Who punished? Who reined in?
This hour On Point: homes, high-rollers, and moral hazards in the subprime mop-up.
Housing economist Karl Case just ducked a question on the implications of the subprime crisis on housing prices nationwide and Congressman Barney Frank just finished speaking. The complete line-up of guests include:
Twelve years ago, The Real Estate Cafe was founded as a walk-in,
internet-based, housing information center — to our knowledge, the
first in the country (see story below.) Over the next five years,
1995-2000, we amassed a mountain of paper files, some in the 1,200
square foot body of the cafe and more in the basement.
though The Real Estate Cafe has operated virtually in recent years, we
continue to amass mountains of paper. About 20 boxes of paper, mostly
marketing materials from recent real estate conventions and newspaper articles, are ready to
sorted, filed, or tossed today. Approximately 50 files boxes are
already in deep storage. While we rarely access paper documents in
"active" file cabinets, we constantly update digital files on The
Real Estate Cafe’s intranet.
So our question is three-fold:
1. Is paper filing obsolete?
2. Are walk-in real estate offices obsolete?
3. If real estate brokerages reorganized to operate virtually, would savings be passed onto real estate consumers, both buyers and sellers, in the form of lower commissions, rebates, or fee-for-service business models like The Real Estate Cafe?
Buying A La Carte
Bill Wendel’s Latest Venture, The Real Estate Cafe, Aims To Be The Buyer’s ‘guardian Angel’
Source: Boston Globe | Date: Sep 10, 1995 | By: Mary Sit, Globe Staff
…Called The Real Estate Cafe, it is a self-service information…[reducing] costs by having consumers do some of the work themselves.
Instead of developing a "CMA" type of report that describes sold data, I’ve
been using the "pending date" instead of the sold date.
"By neglecting the critical role that housing plays in U.S.
recessions, our Federal Reserve has let our recessions be more frequent
and more severe then they need to be," said Leamer. "In particular, the
subprime mortgage crisis is a direct consequence of short-term interest
rates held too low for too long by the Fed."
Leamer examines statistics back to World War II to highlight how
weaknesses in housing and consumer durables make significant
contributions to economic recessions.
More from his paper: "The historical record strongly suggests that
in 2003 and 2004 we poured the foundation for a recession in 2007 or
2008 led by a collapse in housing we are currently experiencing. Only
twice have we had this kind of housing collapse without a recession, in
1951 and in 1967, and both times the Department of Defense came to the
rescue, because of the Korean War and the Vietnam War. We don’t want
that kind of rescue this time, do we?"