Explaining Southern California's economy

Faster foreclosures and loan mods mean less money for homeowners

U.S. Foreclosure Rates Rise As Bank Repossessions Soar

Kevork Djansezian/Getty Images

The LA Times has a story today about the accelerating foreclosure process. The bottom is that banks are ramping up their foreclosure activities, after allowing them to lag for various reasons over the past few years. 

There's a day-of-reckoning quality to this. Absent some kind of massive federal assistance program to homeowners who are either losing or about to lose their houses — beyond what's already been enacted — this means that the housing market will soon be hit with a large number of "real estate owned" (REO) properties. 

I blogged recently about a Federal Reserve white paper that proposes a solution to this foreclosure crunch, in the form of investor-owned rentals. The rental market is picking up and there's a need for more single-family residences, which shouldn't be surprising given all the families that are losing their homes to foreclusure. 

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Invest with James: How to make money renting your shirts

Matthew DeBord

James has discovered the value of renting stuff he isn't using.

My almost-six-year-old son James is very interested in money. But unlike some kids who think about ways that they can do jobs for an allowance or create little businesses (Lemonade stands!) in order to get some cash to spend, James wants to divert wealth from other people without actually providing any real services. 

I think this makes him a member of the 1% that Occupy Wall Street is protesting, if not in assets then in philosophy.

His chief target is his older sister, Lucia, who has decided that she doesn't care about money and wants to live for her art.

James is obsessed with separating her from her money. He doesn't really know anyone else who has money he can get his hands on, so this makes sense. 

Money for both of them comes from the traditional sources of pre-adolescent capital: intermittent allowances, gifts, the Tooth Fairy. But James has more of it because he saves it all.

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