enough of interest rate cuts.

enough of interest rate cuts. (Full Version)

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pahunkboy -> enough of interest rate cuts. (4/15/2008 10:15:12 AM)
http://online.wsj.com/article/SB120822025943314699.html?mod=opinion_main_commentaries i coulda told "them" that.... what is with these experts? dont they grocery shop? dont they buy gas? dont they see a problem with this picture and how trickle down hasnt worked? rates down 3% mortgages drop 1/2 %- tho not from who did nmy mortgage- that rate is up 1/2

UtopianRanger -> RE: enough of interest rate cuts. (4/15/2008 11:36:06 AM)
quote: ORIGINAL: pahunkboy http://online.wsj.com/article/SB120822025943314699.html?mod=opinion_main_commentaries i coulda told "them" that.... what is with these experts? dont they grocery shop? dont they buy gas? dont they see a problem with this picture and how trickle down hasnt worked? rates down 3% mortgages drop 1/2 %- tho not from who did nmy mortgage- that rate is up 1/2 http://www.counterpunch.org/whitney07052006.html http://www.informationclearinghouse.info/article19401.htm I'll just say that most folks have no idea that they're being gouged right now by a hidden tax just to save the speculative interests on Wall Street and the banking industry. If were up to me.....I'd seize the banks/brokerage houses/hedge funds that were in trouble, wrap their assets up and force them into compulsory liquidation. Then I'd throw the corporate hierarchies behind them into an alligator pond in Florida. But let me end this by saying - You think things are bad now......wait till the deflationary{see the article about Cheney} aspect of the cycle hits : Then you'll see all ''the little mortgage people'' go out of business. Anyone remember the end of the Nixon/Beginning of the Carter regime? Interest rates were at 14 -22 percent. And that was when an expensive home was 50k. Imagine what a payment will be like on 400k loan at say 16 percent..... Yeah....you guessed it...they won't be making any loans! HAR!!! - R

Archer -> RE: enough of interest rate cuts. (4/15/2008 12:19:10 PM)
Anyone remember why the sub prime market got started? Investigations by Congress on banks redlineing of loans to low income minorities, ring a bell? Sub Prime- Loans made to folks who are already thought to be credit risks beyond what the banks want to take. Thus they get less generous terms on their loans because there is more risk. I'm all for letting the majority of the banks take one for the team on this one and eat their losses. But I'm not for bailing everyone buying the houses out of it and letting them keep the house either. Banks took the risk and they need to suffer the losses for making bad decissions on who to loan how much to with what assurances, buyers knew the terms of the loans when they signed on the dotted line. I'm sorry but I just have to say "You fu&^5(^ liar" when I hear folks saying they didn't know their rates could go up, or that the price of the house could go down and thus they could be stuck. The lawyers at closing hammer that point home as well as the issue of PMI. Didn't take the adjustable rate when I bought last year about this time even with a 7 years of fixed before it could adjust, specificly because I pretty much expected the rates to rise back into the 10% range within a couple years. They can only artificially keep rates low and inflation staved off for so long.

cyberdude611 -> RE: enough of interest rate cuts. (4/15/2008 12:38:14 PM)
Dont forget that part of the problem with the sub-prime mess was investors who were buying up muliple properties with the sole intention to flip it and turn a profit and not living a day in that house. Some companies were making a business out of this type of thing and are now going bankrupt. When the market went into a downturn....many of those investors got caught and that made the foreclosure mess even worse. And yes, the other part of the problem was people were being given loans that they could never repay. Banks made many stupid decisions here as well. But when we talk about bailouts.....remember you will not only be bailing out the buyers but also the lenders that screwed up. No one learns a lesson of basic economics. Real estate is an investment. You can earn money at it. But you can also lose money. Any investment is a risk. If you cannot afford to lose money, you need to step back and think very hard before investing it.

Archer -> RE: enough of interest rate cuts. (4/15/2008 12:42:51 PM)
The loans made to speculators those need to be left completely alone to bankrupt the speculators and or banks as it happens. I would certainly predicate any assistance with the idea that it is available to those who have lived on the property as their primary residence for a year.

pahunkboy -> RE: enough of interest rate cuts. (4/15/2008 12:53:52 PM)
if one "spends " 3 apples, and one only has 2 apples- then "one" is short 1 apple. how did we go from this to something so esoteric that the experts cant understand the profit and loss sheets?

Archer -> RE: enough of interest rate cuts. (4/15/2008 1:22:23 PM)
But If I can convince you that next year I will have 200 apples you might loan me one apple to make up the shortfall this year.

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