Waiting in line: That was then... This is now.

October 7, 2003, Simi Valley

In Simi Valley, in 2003, people camped out for the chance to buy a yet-unbuilt condo for about $300,000.
Photo Credit: Bob Carey, L.A.Times

July 14, 2008, Pasadena

In Pasadena today, depositors line up to take their money out of IndyMac Federal bank on its first day of operation as a federally-run bank.
Photo Credit: Al Seib, L.A. Times

Hat tip: Commenter Buz, who wrote of today's IndyMac picture, "Reminds me of the lines that used to form outside new housing developments a few years ago. People literally camped out overnight to be first in line..."

Comments

[Cal]

Very appropriate. One caused the other.

Those condos I believe are Sycamore Shade, I think they sold from 359-370k and have a couple of REOs in the complex right now. Selling in the low 400s currently.

If we pass through 2003 price points in many markets that will result in another leg down due to the way the equity cushion is weighted right around. The massive appreciation and cash out refis really were concentrated from 2003 forward.

[E]

If you camped out in line outside of a condo/house sales center like you were waiting to buy StarWars Tickets at the Cinerama Dome back in the 70's then...well...

You deserve to lose your house.

Buying homes like concert tickets.

MORONS

[Brad]

"If you camped out in line outside of a condo/house sales center like you were waiting to buy StarWars Tickets at the Cinerama Dome back in the 70's then...well..."

This is more like The Empire Strikes Back.

[Bill]

In 2003 we were not even on a bubble yet, but the beginning of one. Needless to say, everything in the Simi and Moorpark areas are losing value fast. There are some streets in Moorpark that are beginning to look like ghost towns with abandoned and foreclosed homes and brown lawns to match.

I, for one, value my self esteem more than anything, I would have never lowered myself to the point of making a line either to pay a bill, eat or buy a home.

[NV]

the drunken reckless behavior of housing speculators (investors if you insist) causes a (similarly reckless) bank to fail, which in turn brings out into the cold those people who actually had some savings, maybe even living within their means.
how appropriate indeed ...!
and I have a feeling this is just the beginning; more and more responsible citizenry will have to bail out those too drunk to take care of themselves.

[Michael Snyder]

There needs to be a photo of a soup line to complete the series. Let one more "expert" comment on the liquidity of Downey or WAMU and lookout below. Where's "lefty" when we need him/her?

[unconfused]

The Bush administration and the interests it represents have played this country like a Stradivarius. Please note that offshore drilling is back, just months before the current administration departs. Our national debt doubled on Friday.
It will not be business as usual for this country for a very, very long time. Save your dimes. You may soon be able to become
a real estate mogul for less money than you ever dreamed. If you--and your renters-- have a job, that is.

[That's Retarded]

Why are they waiting in line? If they were smart they would just get on the internet and transfer the money to another account.

[jag]

Pete, great comparison. Of course, the Westside bloggers are going to post that no home was financed or refinanced by IndyMac. LOL

[Robert in Palm Springs]

If you want a vision of the future, this is it. Many more banks will soon fail and will be taken over by the FDIC. Lehman Brothers will fail and so will the other investment banks. The stock market will crash. Real estate will plummet because there will be no buyers because there will be no money to loan. The next Great Depression is almost here.

Paulson and Bernanke are idiots. They expect taxpayers to foot the bill. How? With jobs being lost by the thousands, government spending more money than it collects and the current account deficit growing bigger every month, it is impossible. The USA is broke. That is reality.

The USA will have to default on its national debt just as Russia did in the early 1990s.
Since we no longer have the manufacturing base to produce enough goods for ourselves, much less export enough to make up the trade balance, rebuilding our country will be a long and arduous process. The good news is that the wars will end because we can’t afford (literally) to keep our troops there.

The desert already is looking like a dust bowl as I have mentioned before. The Desert Sun reported that 85 new businesses opened in Palm Springs last month while 100 closed. Development has come to a halt despite comments in the press that projects like Port Lawrence and Escena will continue. They won’t because they can’t get the financing and there is no need for them anyway. Time to face the facts.

My biggest concern is maintaining social order. Since Bush has already made us a de facto police state, we can expect even greater government intrusion and suppression in the future as social unrest grows. Banking will be nationalized, gold likely confiscated and taxes increased. Personal liberty? Forget it. Meanwhile, the bastards that caused all this will be sitting pretty in the Bahamas thumbing their noses at those of us trapped here unable to flee. Pina colada anyone?

[Robert in Palm Springs]

If you want a vision of the future, this is it. Many more banks will soon fail and will be taken over by the FDIC. Lehman Brothers will fail and so will the other investment banks. The stock market will crash. Real estate will plummet because there will be no buyers because there will be no money to loan. The next Great Depression is almost here.

Paulson and Bernanke are idiots. They expect taxpayers to foot the bill. How? With jobs being lost by the thousands, government spending more money than it collects and the current account deficit growing bigger every month, it is impossible. The USA is broke. That is reality.

The USA will have to default on its national debt just as Russia did in the early 1990s.
Since we no longer have the manufacturing base to produce enough goods for ourselves, much less export enough to make up the trade balance, rebuilding our country will be a long and arduous process. The good news is that the wars will end because we can’t afford (literally) to keep our troops there.

The desert already is looking like a dust bowl as I have mentioned before. The Desert Sun reported that 85 new businesses opened in Palm Springs last month while 100 closed. Development has come to a halt despite comments in the press that projects like Port Lawrence and Escena will continue. They won’t because they can’t get the financing and there is no need for them anyway. Time to face the facts.

My biggest concern is maintaining social order. Since Bush has already made us a de facto police state, we can expect even greater government intrusion and suppression in the future as social unrest grows. Banking will be nationalized, gold likely confiscated and taxes increased. Personal liberty? Forget it. Meanwhile, the bastards that caused all this will be sitting pretty in the Bahamas thumbing their noses at those of us trapped here unable to flee. Pina colada anyone?

[vultur]

Robert,

How's the food in the psychiatric ward these days? I assume you are either senile, have alzheimers or are just plain angry.

Either way, chill out dude! America will recover and you will find another boom to scrutinize.

[jim]

Hi Robert
You hit the "nail on the head" !
Here,,here at least , there is more than one of us who sees through all this mess created

[MyLessThanPrimeBeef]

Peter, that picture was nice, but we really need a 21st century Dorothy Lange. Show some close ups. Maybe a despaired mother with her baby.

[Will]

These pictures do not contrast, they show the exact same thing. The American working class standing in line.

I seem to remember a similar picture. Oh right, the ones where we made jokes of the Soviets and their lines.

[E]

www.golddealer.com

[puckhead]

Robert,

Banks will fail as a result of the mortgage meltdown just as banks failed during the S&L meltdown. Indymac failing was not unexpected just as Downey S&L and WAMU either failing or getting taken under would not be unexpected. Larger/well runned banks will get stronger and the weak ones will ceast to exist. It's happened before and it'll happen again and we'll move on from there. One thing that may change this time around is that I would not be surprised if regulations are lifted to allow private equity firms to buy up and take control over weak banks. This would be a more favorable outcome than letting the banks fail outright

[desmo]

The good thing about the people waiting in line at the SV condo's is that they did not have to wait in line at IndyMac because they are broke.

[PotsNPans]

Things that make you go Hmm?

I was listening to CNBC interview a high ranking govt. employee about IMB --she said that all foreclosure processes would be put on hold and a workout plan would be offered to borrowers --hmm, undoubtedly prolonging the inevitable.

[bobsuruncle]

This is what happens when you elect someone you wouldn't mind sharing a beer with.

[Fred]

Latest HousingTracker numbers:

25% percentile down to $299,900 (under $300k looks funny)
50% even at $425,000
75% even at $655,000

[Gina]

"If they were smart they would just get on the internet and transfer the money to another account."

Many banks have a $5,000 limit on bank-to-bank transfers.

[Kathy]

I remember when that picture and a story ran in the Times, and I wish my memory was better, but I vaguely recall the developer being quoted as saying that they had done a random credit check of a couple dozen people from that group and 9 out of 10 would not qualify for a 30 year fixed loan; all would get some kind of adjustable. Of course, back then, they could have flipped it in a year or two, no worries. Not so much now...

[Roger Ramjet]

It is called "the herd instinct". As a builder, I have made alot of money on these idioits linning up like cattle. You bet, they are in que at Indymac. I love it.....

[Roger Ramjet]

Hey Robert in PS,
What 2 do. Buy gold? Buy a shotgun? Leave the U.S. (that costs $ if you relinguish your citizenship) Maybe I should to PS! I find the Springs really boring cause everybody talks about what they user to do............

[Housing Bull Chorus]

NOW IS THE TIME TO BUY!

You certainly wouldn't want any of your money sitting in one of those "Bank" things.

You see all those people in line?

They are all lined up for one thing.

TO GET CASH TO BUY REAL ESTATE!

(insert Downtown L.A. condo development ad here)

You'd better hurry down to all your bank branches and clean out your accounts post haste, or else you'll REALLY BE PRICED OUT OF THE HOUSING MARKET FOREVER.

Why do you idiot bubbleheads think that HELOCs were invented?

You can't "spend" money that you keep in a bank. Especially when it's not there when you try to pull it out, but you can spend your house (I mean hoooome) FOREVER!

Oh I know I know. You dirty renters are thinking something like,

"How will I pay my mortgage if I don't have money in the bank?"

Fret not. That is taken care of with the special "My House Pays My Mortgage (tm)" HELOC. We have a special introductory rate just for you.

So you'd better hurry up, or else you'll be begging those lucky condo owners (pictured above) for their tents after your landlord kicks you out of your scummy rental because you don't have any money in the bank to pay your rent!

[jag]

Housing Bull Chorus is either ShockG or Lefty. You are definetely a desperate RE agent. Using the same line "now is the time to buy". Get over it.

[Todd in WeHo]

Time to break out the SoCal Songbook. Hmm, let's see, I'm thinking a new spin on 'California Dreamin' ' or maybe 'L.A. Blues' or perhaps 'Lost In Hollywood' ... oh, perfect! ... a montage of 'To Die in L.A.', 'Desperadoes Under the Eaves', 'Los Angeles is Burning', and 'Hooray for Hollywood'!

www.latimes.com/entertainment/cl-socal-
songbook-sg,0,3931328.storygallery