Date registered: Sep 2004
Vehicle: 83 Astral Silver 280 SL
Location: Planet Houston
Mentioned: 0 Post(s)
Quoted: 8 Post(s)
Originally Posted by theonlybiker111
we are in a pickle!!!
the situation was brought about by constant speculation of a housing boom.
flipping houses. and pure unadulterated greed.
I almost got in on it when I started eye balling property in an urban city in N.J.
coulda made 100K per lot.
woulda got in too late..
now they're stuck with houses that they listed for 449K listing them at 299K
so, we have to ride it out.
if you think about it, 4 yrs ago is where we are now in the market.
if you haven't over extended yourself since then. you're ok.
I lost 39% in the market so far.
it's only money.
when I die, it'll be someones bonus.
if I don't die, it'll be mine someday.
we only "rent" what we have acquired.
no matter how long we live , we don't take it with us.
That is pretty much on the money from what our studies are showing. Lots of people got the bum's rush from the banks to take out the ubiqutous "Home Equity Bill-payer Loan", but what they did not know was that in many cases the banks weren't selling the loan, they were either acting as an agent or planning to immediately dump you to an investment house. The collateral for the loan was the rise in the home's value, which under strict banking regulations was only eligible for a percentage of the value and also required the lender to increase it's loan/loss reserves, good banks didn't want that kind of "subprime" crap - so this second mortgage business went to the investment banks, who have none of these requirements. The investment houses then bundled these highly risky loans in securities, somehow (which is the current mystery, how did they do it?) got these securities AAA rated which made them attractive to the Chinese and the Arabs, and sold them by the trillions worth. When housing prices collapsed, the whole thing collapsed. If one was to paint a picture of the average defaulter in this mess, it's not some Acorn client, who generally purchase homes thru Acorn for about 80k and $850 a month, its a New Yorker living in the burbs whose loaded a 200k house with 300k worth of debt, or a Californian who gambled that his house was going to make him a millionaire and lost. The idea this is made up of CRA loans is a load of crap.
Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.
-President Barack Obama, 1st Inaugural address