Here we go again…..

[Coronita]

here we go again…

https://finance.yahoo.com/news/bofa-opens-debate-lowering-mortgage-down-payments-222515832–sector.html

It’s coming… It will come..even more lower down payments…And eventually, reduced lending standards… For people that can’t qualify to own normally… Things that got people into trouble a couple of years ago, as folks end up borrowing and paying a lot more than they could normally attain…. Not yet here, but it will come eventually….

[quote]

(Reuters) – The head of Bank of America Corp , the United State’s fourth-biggest mortgage lender, said on Thursday banks would be able to supply a bigger share of funding for home purchases if the standard down payment for buyers was cut to 10 percent from 20 percent.

“Our goal – going back to regulatory reform – is should you move the down payment requirement from 20 percent to 10? It wouldn’t introduce that much risk but would actually help a lot of mortgages get done,” Chief Executive Officer Brian Moynihan told CNBC in an interview Thursday.

[/quote]

HA HA HA…

$$$$$$$ I can’t wait $$$$$$$$

[spdrun]

Aren’t there plenty of loans that don’t require 20% down anyway? “Standard” in this case just means “doesn’t need PMI.”

This being said, this bubble is getting long in the tooth. Here’s to more chaos in DC, maybe another bad recession, before this happens.

[The-Shoveler]

IMO still a long way to go.

I think they figured out how to cause wage inflation even in the age of globalization (just force it from the bottom).

That will keep it going awhile IMO.

[spdrun]

$15/hr doesn’t help you if your McJerb has been replaced by a touch screen.

People should keep buying stocks on margin. The more margin debt, the more chance of a small shock making the entire thing unravel in a melodic chorus of margin calls.

[The-Shoveler]

If your job can be automated it will be automated regardless of wages.

[spdrun]

Not necessarily — equipment maintenance, installation, etc, aren’t free. It’s a cost balance between McJerb wages and automation.

[The-Shoveler]

In most of Europe you cannot even order from a human at Mcdonald’s.

They just look at you annoyed and point to the order taking machine.

[FlyerInHi]

[quote=The-Shoveler]IMO still a long way to go.

I think they figured out how to cause wage inflation even in the age of globalization (just force it from the bottom).

That will keep it going awhile IMO.[/quote]

I’m not seeing wage inflation at the bottom so much.

There’s a lot of money at that top and low interest rates are what is fueling price appreciation.

It can last a long time because of increasing urbanization to large metros. Look at the appreciation in NYC, SF, or Hong Kong over decades.

Interestingly, the internet is causing people to want to move to large metros, not retreat to small villages.

[The-Shoveler]

I don’t know 20% then eventually 50% (100% in some states) seem fairly big to me.

[kev374]

history always repeats, it’s the nature of our times these days to foster greed which of course drives everyone blind.

The whole 2008 financial crisis is repeating, except this time the bad mortgages are going to be insured by the government rather than sold to private investors.

Now, how that will end I can’t tell you but we already have $19 Trillion in debt and this joker wants to have “massive tax cuts” with seriously questionable assumptions (“It will unleash growth” LMAO! – the reality is it makes the top 5% richer than they already are!)

Shame that the system is run by these conmen and it’s a shame that people at all levels just want what they want whether it’s houses, car, vacations or electronics with utter disregard whether they have to go into serious debt for it.

[spdrun]

I’m actually hoping impeachment happens, not because Pence is better than Trump, but because uncertainty nudges people away from spending.

[FlyerInHi]

To me, debt is a just a contract between borrower and lender. If borrowers don’t pay back, lenders lose. What’s important is that money was put to use building things and improving living standards.

Money should be put to use and not sit idle. That’s the beauty of capitalism.

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