Housing Bailout???

Annu Kumar said:
Hey Prof your na old Cat. Remember the savings and loan Fraud in the eighties. Budget Defecits in the early 90's. Than A major recession. Do you think its worse this time Or It was Inevitable. I want your Opinion Since your So liberal toward this.
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This current financial difficulty is going to be relatively short term...18 more months is what some of the people I read say. I am not an economist...but I have a much larger concern about the national debt that has soared from $4 trillion dollars (and declining) at the start of the current Bush administration and what looks to be a $10 trillion dollar debt when he departs office.

I am very concerned that we have mortgaged our future to the extent that you young folks will be saddled with so much debt (about $30,000 for every man woman and child in the country right now) that we will not be able to grow the economy. When economies stop growing, depression is the result.

The national debt is my biggest concern. I worry about just how much my children and grandchildren will suffer because of our current spending patterns.
 
Kevan said:
Dude, there's nothing to debate.
What Prof stated is CORRECT.
Fact.
Done.

And what you said about "never pay off my home", is a load of crap. Put down the bong and check this out:

- On a 30 year loan, if you make ONE extra mortgage payment per YEAR (write "TOWARDS PRINCIPAL ONLY" on the check), you will pay off your home in just over SEVENTEEN years!!!


That, my friend, is how you do it.
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Easier said than done. But your right Prof is right the Traditinal method of buying home Is over. The Income to home prices dont make sense Brother. And I know you guys agree with me on that. Income to home prices are way out of whack.
 
Annu Kumar said:
Easier said than done. But your right Prof is right the Traditinal method of buying home Is over. The Income to home prices dont make sense Brother. And I know you guys agree with me on that. Income to home prices are way out of whack.
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No. I don't agree with you on that.
BUY WHAT YOU CAN AFFORD.
Not MORE than you can afford.

There is no 'traditional' method to buying a home.
There's only the SMART method.
 
Kevan said:
Dude, there's nothing to debate.
What Prof stated is CORRECT.
Fact.
Done.

And what you said about "never pay off my home", is a load of crap. Put down the bong and check this out:

- On a 30 year loan, if you make ONE extra mortgage payment per YEAR (write "TOWARDS PRINCIPAL ONLY" on the check), you will pay off your home in just over SEVENTEEN years!!!


That, my friend, is how you do it.
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Thats right! Or you could get a 15 yr note and pay 13 payment a year and be paid off even sooner.:D
 
Prof said:
When economies stop growing, depression is the result.
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My grandfather, God rest his soul, used to always say "this country needs another depression". I'm not even a novice economist, so I can't say if that's an intelligent thing to say or not. He used to say a lot of things that didn't make much sense to me. "I shit about a peck" is another quote of his that comes to mind.

What I do know is, most of those people who lived through the great depression seem(ed) to be pretty good with budgeting their money. They all seemed to live very comfortably within their means. Maybe the memory of the hardships of the depression had something to do with it. It seems like so many people today are living "extreme" in all aspects of life, including spending and debt. I'm not one to talk either..I'm guilty of it too. Although I'm not nearly as bad as some people. I'm also running a business that's rather young and poised for a good future.

But some of these people making 30 grand/yr driving an H3 and living in a 300k home..come on. That's retarded. They're getting themselves into debt with no end in sight. And these interest-only mortgages are the biggest scams I've ever heard of. Only a mongoloid would think that's a good idea.
 
sleeper said:
Yes its very bad here right now.:(
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It is beyond Bad, it is a disaster, so many hard working folks that are going to lose it all, mostly from a no job market caused by the Ripple affect. All this is causing unprecedented low wages as businesses struggle to stay afloat from the fast food joints , to well every type of business. The whole situation Sucks:( :( :(
 
sleeper said:
Yes its very bad here right now.:(
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I've got an ex-girlfriend who lives in Burbank, and we've remained friends over the years. She used to live in this area (PA). She says the house she grew up in , which recently sold for 175k here, would be close to a million dollars where she lives now. Who the fk can afford that? I know damn well everyone in California isn't a millionaire.

I've also got a buddy who moved to Santa Rosa last year. His house cost 400k. It's about as big as an oversized 2 car garage, and might fetch around 60k in PA. It's also in what's considered the "poor" part of town. Unreal.
 
At this current juncture, I have absolutely zero faith in anything our president says he's "going to do".
 
sealalot said:
At this current juncture, I have absolutely zero faith in anything our president says he's "going to do".
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Actually, it still has to pass the Senate. ..... ;) And, judging from their record thus far, it will never pass. :nurse:
 
I wonder if Roy boy is gona respond to post #81 America is waiting:burnout:
 
Prof said:
This current financial difficulty is going to be relatively short term...18 more months is what some of the people I read say. I am not an economist...but I have a much larger concern about the national debt that has soared from $4 trillion dollars (and declining) at the start of the current Bush administration and what looks to be a $10 trillion dollar debt when he departs office.

I am very concerned that we have mortgaged our future to the extent that you young folks will be saddled with so much debt (about $30,000 for every man woman and child in the country right now) that we will not be able to grow the economy. When economies stop growing, depression is the result.

The national debt is my biggest concern. I worry about just how much my children and grandchildren will suffer because of our current spending patterns.
Click to expand...
I'm glad you mentioned this. This is a reflection of who we are. The interest on the national debt is the third largest federal expenditure behind Defense and Medicare/social security. It increases about 1 million dollars a minute. (mind boggling isn't it)..... And really, much like many American's today, when our elected representatives, run out of money, they borrow more. Except one thing, we are now borrowing money ONLY to pay the INTEREST! Just like your credit card bill balooning so high, that interest is all you can pay. Well, if Countries that lend us money, stop, there will be a global financial collapse. How did we get into this mess? Simple. Same way my brothers! Your trusty leaders in Washington simply spent more (and continue to do so) than we gave them. They just vote in a higher credit limit, when they need too. Imagine if we could extend our own credit limit? Guarantee exact same results.
 
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I wonder if David Rockefeller and his New World Order have something to do with all of this ;)
 
sealalot said:
I wonder if David Rockefeller and his New World Order have something to do with all of this ;)
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Well, after being subpoenaed (The Trilateral Commission) to congress in the mid 70's to be questioned about Their intentions they were quoted as saying We are going to raise the living standards of the 3rd world countries by lowering the USA's standards of living. When pressed for answers they (The Trilateral Commission) members refused further comment except for the statement" You will have a one world Government weather you like it or not" then left in Contempt.

Looks as though their plans are right on track thanks to people like Kissinger, Ford, Reagan, the Bushes and many more. F'in traitors:mad:

And guess who controls Chase Bank(who just borrowed big moneys from their foreign Buddy's @ 11% interest) and donated the land that the United Nations is standing on???????? THE Rockefeller's, How convenient, and what is Gorbachev doing with his Headquarters in the Frisco area????????????????? Treason surronds us all, and we are being sold out as we type.
 
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I guess this thread is more about subprime loans and the government bail out.

But, I have a problem with the fact that there are many hard working people out here who have been displaced from jobs due to no fault of their own and are now facing foreclosures also.

There is no bail out or help for the prudent people who did all the right things and had their savings depleted while trying to become gainfully employed again.

I know, I am one of them. I have a fantastic interest rate, fixed for 30 years at 5.125% which is not subprime - I had a fantastic job, in the same field for over 28 years.

We had our home paid for in total until the time Jerry became disabled (on a job) and the battle with the worker's comp system started the ball rolling down hill for us. It lasted for years. In the meantime, we were down one complete income for our household, relying on the disability policy that we had prudently purchased in the event there was a major illness or injury. Those run out after a few years.

Fortunately due to my higher income we were able to bounce back fairly well and life went on (in a slightly different fashion), but still doing ok nevertheless.

Then came the day I was laid off with a 24 hour notice due to the current real estate "Market". Unfortunately that doesn't give one alot of time to restructure their life and make a new plan .... in the meantime (a year later) the housing market worsens, the job market worsens, and there is no bail out for the hard working people who did make good choices.

I'm not whining or looking for sympathy, but I have been told several times this last week on job interviews that I am overqualified and would not be happy with the salary the company pays or I am underqualified and don't have the degrees needed for the job being offered, plenty of experience, just no degree (while those jobs still only pay 1/2 or so of what I was making) before the housing market fell on it's face -

Needless to say, I am frustrated. We have worked very hard the 29 years we have been together, saved, planned and did the best we could with the means we had, and all for NOT :mad: ??????.

I feel used by the decision makers of our Country who obviously are no better at economics than the so called "idiot" who signed a sub prime loan paper with the legitimate excuse of being uneducated in the loan product that his lender and real estate advisor failed to properly explain to him, because you can bet they did not care if he understood it or not, they made their money ...... well, you get it

What excuse do the federal reserve, the politicians and the lenders/bankers and policy makers who allowed those sub prime loans to be made in the first place have for their bad decisions? They should be held criminally liable for offering the product to the consumer in the first place and causing this wonderful housing fiasco that we will ALL suffer from in one fashion or another. if not directly, probably a family member will be affected and what chance do our children even have for ever owning a home or getting ahead ???

Mimimum wage in CA is around $7.50 or so per hour - who out there can live on that??? I don't care if you have three jobs, you cannot meet your needs and possibly have a penny to spare for savings. Something is very wrong. :mad: :mad: :mad:

As the saying goes the rich get richer on the backs of the working man.

There are only about 20% of the American people who fall in the so called Upper Class .... then there is the middle class while unfortunately most fall in the poverty level.

Thank you for listening everyone, I needed to rant :(

I won't even go into the unemployment statistics, they are so innacurate it isn't even funny ......................
 
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Wifey said:
I guess this thread is more about subprime loans and the government bail out.

But, I have a problem with the fact that there are many hard working people out here who have been displaced from jobs due to no fault of their own and are now facing foreclosures also.

There is no bail out or help for the prudent people who did all the right things and had their savings depleted while trying to become gainfully employed again.

I know, I am one of them. I have a fantastic interest rate, fixed for 30 years at 5.125% which is not subprime - I had a fantastic job, in the same field for over 28 years.

We had our home paid for in total until the time Jerry became disabled (on a job) and the battle with the worker's comp system started the ball rolling down hill for us. It lasted for years. In the meantime, we were down one complete income for our household, relying on the disability policy that we had prudently purchased in the event there was a major illness or injury. Those run out after a few years.

Fortunately due to my higher income we were able to bounce back fairly well and life went on (in a slightly different fashion), but still doing ok nevertheless.

Then came the day I was laid off with a 24 hour notice due to the current real estate "Market". Unfortunately that doesn't give one alot of time to restructure their life and make a new plan .... in the meantime (a year later) the housing market worsens, the job market worsens, and there is no bail out for the hard working people who did make good choices.

I'm not whining or looking for sympathy, but I have been told several times this last week on job interviews that I am overqualified and would not be happy with the salary the company pays or I am underqualified and don't have the degrees needed for the job being offered, plenty of experience, just no degree (while those jobs still only pay 1/2 or so of what I was making) before the housing market fell on it's face -

Needless to say, I am frustrated. We have worked very hard the 29 years we have been together, saved, planned and did the best we could with the means we had, and all for NOT :mad: ??????.

I feel used by the decision makers of our Country who obviously are no better at economics than the so called "idiot" who signed a sub prime loan paper with the legitimate excuse of being uneducated in the loan product that his lender and real estate advisor failed to properly explain to him, because you can bet they did not care if he understood it or not, they made their money ...... well, you get it

What excuse do the federal reserve, the politicians and the lenders/bankers and policy makers who allowed those sub prime loans to be made in the first place have for their bad decisions? They should be held criminally liable for offering the product to the consumer in the first place and causing this wonderful housing fiasco that we will ALL suffer from in one fashion or another. if not directly, probably a family member will be affected and what chance do our children even have for ever owning a home or getting ahead ???

Mimimum wage in CA is around $7.50 or so per hour - who out there can live on that??? I don't care if you have three jobs, you cannot meet your needs and possibly have a penny to spare for savings. Something is very wrong. :mad: :mad: :mad:

As the saying goes the rich get richer on the backs of the working man.

There are only about 20% of the American people who fall in the so called Upper Class .... then there is the middle class while unfortunately most fall in the poverty level.

Thank you for listening everyone, I needed to rant :(

I won't even go into the unemployment statistics, they are so innacurate it isn't even funny ......................
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God Bless you Denise. You are a champ in my eyes. And I am surprised by this post...I didnt know you had it in ya!:dontknow:

I wish I had a solution to this problem that afflicts so many Americans. Unfortunately, it seems no one does because that 20% you speak of is so greedy they dont care if they drive up the prices while you struggle to make ends meet. Only the wealthy sleep pleasantly...the rest of us just sleep.

Whether it be Oil, Housing, Corporate, Textiles...it just doesnt matter anymore.How does the average Joe(ette) make a livving anymore...:dontknow:
 
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