Good post, BSD, I agree 1000%. Ig anyone watched Nightline last night, they did a repeat story on a guy who buys houses from the bank---sight unseen---for as little as $2k when the bank was asking for $35k, for instance, on a mortgage default in the $50's and $60's. He then sells the house for as little as $300 down, $275 a month, at 12% interest, as is.....to people who would NEVR be able to get a loan from the bank---and the banks take the hit!
One of the big prblems in my city, is that there are no jobs left for people who want to live the American dream--the companies have moved away, for the most part....and in Michigan, the ripple from the automotive industry has really done damage to the housing market, as well.
Now, if TKO is able to follow thru, and deliver, in a timely manner, and IF the market recognizes a value in TKO stock, why then, many of the shareholders tht are left, will be able to buy houses---just like that guy above---and sell them....just like that guy above, and the banks will STILL be the ones to eat their profit. People are simply walking away from their homes, as BSD stated....I looked at one 2 summers ago, thinking I would buy it, was in foreclosure---the bank in Colorado wanted about $20k MORE than what the market value of the house was---a sub-prime loan, turns out---and of course I walked away from it---did not sell until this past January---for pennies on the dollar---but it took the banks a long time to realize they were not going to get their money back---and NOW is crescendo of that realization....and lately, I have noticed that Banks are being replaced by mom and pop 'mortgage companies'....AND new houses being built? I personally know about 2 housing development projects that got CANCELLED in the past 2 years, right here....AFTER the new streets were put in.....they pulled right out...affordable housing was no longer 'affordable' for the builders to build....bad bad bad
AND, we thought that if we gave every child a free college education (Kalamazoo Promise), we would be able to keep the houses filled with people moving in....didn;t work too well for the houses...but is working great for the kids who want to go on to college---and the increase in HS graduates isn;t bad either!!
