COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE


EDITOR’S NOTE: If the same thing is happening in China, Europe, Asia etc., then how do any of the explanations from the Banks, Mayor Bloomberg or anyone else make any sense? It’s the Banks, stupid!

Those “values” used at closing were false, fraudulent in that they were meant to deceive both the homeowner to get him to sign the documents and issue securities that he thought was a loan, and to deceive the investors whose reliance on AAA ratings was based upon the perception of a “rising” market that was completely false fed and controlled by the banks and developers who were only too happy to raise prices every month.

The ONLY answer to this crisis is the truth and to fashion remedies from reality — the property was never worth what they said it was and it certainly is obvious that those “values” will not be achieved for decades. You want to see a recovery? Then start thinking about how to fashion a remedy that takes the Banks and servicers out of the equation and starts with investors/lenders and homeowners/borrowers starting a dialogue in the marketplace or in the Courts.

Home Prices Crash 62.5% Since September In Chinese ‘Ghost Town’ Ordos

Ordos is an inner-Mongolia city with rich natural resources. However, it’s a ghost town with many buildings but few people. Home prices just crashed 62% in a few months.

Let’s take this story starting from the beginning.

China Times reports Housing bubble in Inner Mongolian city burstsA property boom in the Chinese city of Ordos started in 2006, but became stagnant this year after banks tightened credit and coal enterprises in the region have consolidated.

Ordos, a city in central-west Inner Mongolia, has deposits of coal and oil. A recent report by China’s Ministry of Housing and Urban-Rural Development showed that the GDP per capita of Ordos surpassed that of Hong Kong.

The number of the rich people with more than 100 million yuan (US$15.468 million) is over 7,000. One out of every 15 people in Ordos has more than 10 million yuan (US$1.546 million). Those who have only one million yuan (US$154,680) are considered poor.

With so much wealth floating around, housing prices have skyrocketed. According to the newspaper Southern Weekend, this third-tier Chinese city once had real estate prices that averaged 7,000 yuan (US$1,082) per square meter.

Several buildings sold recently for as high as 13,000 yuan (US$2,010) per square meter. Home prices in Erdos have climbed to over half the price in Beijing, one of China’s most expensive property markets with an average of 22,914 yuan (US$3,544) per square meter.

However since February, home sales have stalled, with only around 10 percent of properties on the market being sold.

In addition, underground financing is rampant in Ordos. Every housing project has to seek funds from the private sector, which has taken a 40-50% share of the lending market.

A developer in Ordos said that some in his industry have invested all their money into real estate. Now, with new homes still being built, developers must pay their bills monthly, but since they cannot sell the properties, they are forced to continue to dump in money. Once banks refuse to offer loans, they have to borrow from the private sector, forming a vicious cycle of dependency.

Kang Bashi, the well-known ghost town in Ordos, represents the epitome of China’s housing bubble.

The town, which cost 17 billion yuan (US$2.629 billion) to build, was originally intended to become a city with a population of around one million, but the number of people actually living there is less than 20,000.

Chinese media has described the town as “quite barren, with only a few vehicles passing through the multi-lane highway. Some government offices open in the daytime. Pedestrians that appear every so often look like illusive beings, dragging their heavy feet along, like a lone survivor after a catastrophic event from the movies.”

China Loan Shark Market Crashes; Scores of Chinese Business Owners Unable to Pay Black Market Loans Commit Suicide or Disappear

Here is an interesting email from reader “Kevin” regarding the crashing loan-shark market in China.

Hello Mish

I am a long time reader and want to bring to your attention on a new development in China: private business owners are disappearing or jumping off buildings because they can no longer pay off black market shark loans.

According to national new paper Economics Information (part of state media Xinhua), on 9/22, Hu Fulin, owner of the biggest eyeglass manufacture of the city of Wenzhou disappeared, leaving behind 2 billion RMB debt.

On 9/25, 3 more business owners in Wenzhou disappeared (owners of copper, steel and shoe manufacture).

On 9/27, owner of “Zhengdeli”, a shoe manufacture jumped off of a 22 story building and killed himself.


China Financial Daily reports Erdos “Ghost Town” property market crash, ten thousand yuan housing price drop by 70%

Living in the edge of the Ordos storm , Ordos was beset with a different version of real estate lending Wenzhou panic . For example, local ” Jinxin Han Lin Yuan ” project , its second-hand house prices are around 10,000 yuan , while the market price now only is 3750 yuan.

The example given is a 62.5% decline but some properties may have fallen 70%. Either way, that is one hell of a price decline since September.

Mike “Mish” Shedlock
Click Here To Scroll Thru My Recent Post List

Please follow Money Game on Twitter and Facebook.

Read more:



13 Responses

  1. @Trespass,

    Why don’t you just post that audio you’re refering to?

    That’s what I do. We can lead a horse to water. We can’t force it to drink. Lead us to the water please and let us decide what we’ll do.

    Fair enough?

  2. Opinion, not legal advice.
    so I’m listening to this audio that says when we purchase our home there are more papers on file in the county that we may not be aware of..One is a grant deed.

    The grantee of that deed never accepted the deed, so six months after the grantee purchased the property they are considered to have abandoned it and the creditor collected the rents and so on and so forth.

    Now Warranty Deed and Special Warranty Deeds are not the Deed that conveys the title to the property. That’s why there is title insurance.

    If we’d accept the deed, we should be able to get our property.
    To accept we need to acknowledge (a legal term) in writing acceptance of the Grant Deed and ‘re-record’ the deed. First in line, first in time. So that means that if someone purchased your foreclosed home and you accept the Grant Deed, they have to get out. But if you don’t accept it, they can accept it, because it is still abandoned until accepted.

    How the banks will deal with these assets they stole, collected money on and so conveniently transferred to Fannie Mae? I don’t care.

    Contact me on the private side to get the information regarding this.
    I’m not selling anything. I’ll respond with a link and that’s all. I do not provide legal advice, and neither is the information at the link considered legal advice.

    I’ll monitor that e-mail until the end of this year.

    Light and Love,
    Trespass Unwanted, corporeal, life, a Free and Independent State

  3. @lies is all they tell
    In years past, it didn’t always matter that you fought back against fraudulent foreclosures.

    No one fought back harder than me, I lasted three years but I still got ousted by the Marshalls.

    I had a Federal Judge remand my case after three months in Federal Court because he said who can create money is not a Federal Issue and is frivolous.

    Maybe he thought this Country was still under the Articles of Confederation. So it is not just China that makes Chop Suey.

  4. at enraged as long as they are paying the salaries of our judges, congress, and president. why would they. they have it all. a scam of all scams. only 3-4% o fhte people are awre of the scam and are stating in their homes defending it. the rest walk away out of shme. my sister did that. and now i uncovered brian bly from palm harbor fl sign as vp for chase and the notary isin ca. the s=assignment was not recorded until the day of the fore closure 1/29/2009 which falls right in line with the occ review. way to go sis, well actyally me for uncovering the fraud. in my county office i have no wells fargo assignments. home closed 2006. yes it was securitized wells is th e debt collector.

  5. Hu Yu Foolin…

  6. Such wit! Yu Fook Mei, mistah bankah yu tink, but yu be velly solly when it’s all ovah! Mei visit yu in prison.

  7. To start correcting the massive bank fraud it has to start with homeowners that were ousted getting their properties back,

    All the Banks did was Nemo dat to the investors
    (give away something they did own)
    and I can’t believe that the Investors did not know that
    there was fraud going on but there was money to be made
    so they turned a blind eye to the fraud

  8. Don’t mind me, I’m entertaining myself.

  9. Along with the head of the Treasury, Secretary Fookin Usall.

  10. Guns. Get one and learn how to shoot.
    From time to time the blood of Patriots and Tyrants needs to water the tree of liberty.All bankers are liars, all notes were paid off with TARP, all foreclosures using the mortgage is an illegal ass backwards approach.
    When facts and logic fail, shoot and kill a thief.

  11. Hu Fulin? That should be the surname of the entire bank regulatory family.

  12. According to national new paper Economics Information (part of state media Xinhua), on 9/22, Hu Fulin, owner of the biggest eyeglass manufacture of the city of Wenzhou disappeared, leaving behind 2 billion RMB debt.
    Who Fooling! If I owed $350,000,000.00 I’d pick up my loose cash and move to HK … change my name to Hu Kiddin!

    Lets face it people ,, with 2/3rds of Chinese condo’s unoccupied and their banking system crashing we can’t count on anyone to buy our debt. They’re going to be shoring up their banks and selling US Treasuries.

  13. Any chance we may hear of a US banker having committed suicide out of shame (or fear or represailles)?

    Naw… for that, they would need to be human and capable of those emotions.

Leave a Reply

%d bloggers like this: