Posted on 08/27/2007 4:06:37 AM PDT by Notary Sojac
Not at all.
Better to support restructuring of the loan industry and government-sponsored mass refinancing for at-risk homeowners.
This moron Mariel Garza gets nothing.
Agreed.
I ahve said it before but if you can not afford 120% of the total monthly cost, on a 30 year fixed, and put at least 10% down you need to seriously rethink buying that much house.
I think that’s solid advice.
You want wiggle room in your bills. My wife and I ahve about 10% of our gross going to savings. We are building it up, but there have been bumps, example last year I had to have transmission completely rebuilt, cost us $2k. We had money in the bank to pay for it. Like Dave Ramsey says, when you buy a new home chances are Murphy has already picked out a room. Also I would not buy a house unless I had at least $5K in savings to cover any unexpected expenses with moving and setting up the new house.
“That can and will recover if the fed acts and minimizes the downturn.”
The Fed has a much bigger job than just the mortgage market.....with the dollar at historic lows already, and debt of all sorts being looked at with a jaded eye, I’m not sure the Fed has any room to ease in the long term.
But then again, I’m not an economist, I just play one on the internet.
You are right about one thing the FED is backed in the corner with now were to run. I doubt there is much they can do now to turn this around.
It depends on motivation and circumstances.
A greed-motivated speculator who submitted fraudulent applications and "owning" 12 houses and 7 condos ==> Highly amusing
A young couple with three small children who got swept up in the nonsense and didn't have the benefit of experience ==> Not amusing at all
Okay, you are pessimistic, right?
I want you on record.
How bad will the recession / depression / total economic collapse be, and by what date may I say your prediction has been undermined?
A dirty word in America.
BUMP
I think we will be in recession in the next 12 months. I hope I am wrong.
You are now on record. Would you like to add any more information to the prediction? Unemployment rate, severity of recession, etcetera?
That I don’t know, to many variables for my worms eye view.
Here’s my take:
1) It’s a ‘buyer beware’ economy. That means you must read the fine print on anything that you buy. This includes mortgages.
2) Americans have been living beyond their means for a decade and a half, perhaps more. I agree with other posters that bailing out the little guy now will only encourage the bigger companies that offered these loans. The bigger companies and Wall St. all had golden parachutes and new exactly when to liquidate assets to retain exceedingly large profits.
3) Banks will have little choice but to take less risks for housing and that trinkles down into business banking. My bank had a letter of intent to fund up to 25% of my companies post-tax revenues. Now they have limited it to 15% causing a cash crunch to the business. I can blame all those greedy real-estate and oil speculators for the coming mammomth recession but truth is, it’s a free market and we all take the good with the bad. The bad is coming en masse, but the good will be at the end of 2008 when I buy such assets for pennies on the dollar. Does it make me feel funny I will be profiting off other people’s stupidity? NO! That is how free markets work, the smart folk with access to accurate information and a spreadsheet will always win economically.
Do I feel bad Joe, his wife and three kids will have to live in a dumpy two bedroom apartment when he had the 52’ plasma in the McMansion in 2006, driving the new BMW while I had a modest home and drove my used F-150 truck? NO! I do not feel bad.
http://money.cnn.com/2007/08/27/news/economy/temp_workers/index.htm?postversion=2007082710
Temp hiring falls for 6th straight month
Trend raises concern because last significant decline in temporary hires preceded a major drop in overall employment, according to a news report.
I came across this earlier today.
This guy gets at least some of it - he does understand that when you engage in financial risk, which was the case in the over-inflated real estate business, you should not feel sorry for those involved.
There is a little too much class envy in this article for me though, which is what I think when some liberal loser uses the word "McMansion". However, a correction in this market is looooongg overdue.
Well I am not a senior but 30 something going close to 40. Let me be frank on my opinion and state that the American majority is going to suffer at this point for the decisions of the minority (it’s a big minority).
However you feel I can relate to it, considering I am likely paying your Social Security and Medicaid benefits that will not be available to me or my family when I am your age.
We all take the good with the bad and unfortunately, the next 3-4 years are likely to be ugly economically.
Hey, there's no need to save when my tulip bulbs Beanie Babies Pets.com shares condos in Sarasota are guaranteed to triple in value in two years.
So much of this fueled by over-specualation, and MASSIVE mortgage fraud, especially in the inner-cities...
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