Nightmare Scenario Building??

[OC Burns]

“Lets not forget either, the Fed is a PRIVATE BANK and their PRIMARY directive is PROFIT, so no return on their investments while underwriting the federal debt is NOT part of their plan.”

It is my understanding that the profits earned by the Fed are returned to the US Treasury. So unless their “profits” are hidden as operating expenses, it would seem to me that their primary motivation would be power, not money.

Do I misunderstand?

[Allan from Fallbrook]

Rational expert: The problem at Isandlwana was not bad ammo, but rather a lack of ammo. The British quartermasters were refusing to release additional ammo until their officers ordered it. As a result, the British riflemen were overrun by the Zulus when their ammo ran out, and their bayonets proved no match for the Zulus’ assegais.

The Martini-Henry rifle was extremely effective against indigenous forces, as was the Maxim machine gun, but both are worthless without ammunition.

The 150 man contingent at Rorke’s Drift held off 4,000 Zulus and attributed their success to the Martini-Henry rifle “with some guts behind it”.

[Allan from Fallbrook]

Rational expert: The problem at Isandlwana was not bad ammo, but rather a lack of ammo. The British quartermasters were refusing to release additional ammo until their officers ordered it. As a result, the British riflemen were overrun by the Zulus when their ammo ran out, and their bayonets proved no match for the Zulus’ assegais.

The Martini-Henry rifle was extremely effective against indigenous forces, as was the Maxim machine gun, but both are worthless without ammunition.

The 150 man contingent at Rorke’s Drift held off 4,000 Zulus and attributed their success to the Martini-Henry rifle “with some guts behind it”.

[Allan from Fallbrook]

Rational expert: The problem at Isandlwana was not bad ammo, but rather a lack of ammo. The British quartermasters were refusing to release additional ammo until their officers ordered it. As a result, the British riflemen were overrun by the Zulus when their ammo ran out, and their bayonets proved no match for the Zulus’ assegais.

The Martini-Henry rifle was extremely effective against indigenous forces, as was the Maxim machine gun, but both are worthless without ammunition.

The 150 man contingent at Rorke’s Drift held off 4,000 Zulus and attributed their success to the Martini-Henry rifle “with some guts behind it”.

[Allan from Fallbrook]

Rational expert: The problem at Isandlwana was not bad ammo, but rather a lack of ammo. The British quartermasters were refusing to release additional ammo until their officers ordered it. As a result, the British riflemen were overrun by the Zulus when their ammo ran out, and their bayonets proved no match for the Zulus’ assegais.

The Martini-Henry rifle was extremely effective against indigenous forces, as was the Maxim machine gun, but both are worthless without ammunition.

The 150 man contingent at Rorke’s Drift held off 4,000 Zulus and attributed their success to the Martini-Henry rifle “with some guts behind it”.

[Allan from Fallbrook]

Rational expert: The problem at Isandlwana was not bad ammo, but rather a lack of ammo. The British quartermasters were refusing to release additional ammo until their officers ordered it. As a result, the British riflemen were overrun by the Zulus when their ammo ran out, and their bayonets proved no match for the Zulus’ assegais.

The Martini-Henry rifle was extremely effective against indigenous forces, as was the Maxim machine gun, but both are worthless without ammunition.

The 150 man contingent at Rorke’s Drift held off 4,000 Zulus and attributed their success to the Martini-Henry rifle “with some guts behind it”.

[DoJC]

I might now add a new one:

10. Loan to income ratios will NEVER, EVER get as high as they are now, or in the recent past. Up until about 2006 ratios were over 12:1. A person with $100,000 could assume a mortgage loan of $1.2M. Even with this recent bust things are still coming out to 11:1 on average. No bank in the world will give out a loan at that ratio, and likely won’t in the foreseeable future.

With this in mind, how can CA support such high prices? Aliso Viejo, where I rent an apartment, has a median income of around $90K/year, with homes running close to $900K+. San Clemente, where I’d like to buy is even worse with median incomes at about $110K, and homes running well over a $1M. Who can afford to buy a home in this market? And, conversely, what bank would make that loan without a HUGE downpayment of 10-20%?

Maybe things are looking up for buying a home afterall?

– Doug

[DoJC]

I might now add a new one:

10. Loan to income ratios will NEVER, EVER get as high as they are now, or in the recent past. Up until about 2006 ratios were over 12:1. A person with $100,000 could assume a mortgage loan of $1.2M. Even with this recent bust things are still coming out to 11:1 on average. No bank in the world will give out a loan at that ratio, and likely won’t in the foreseeable future.

With this in mind, how can CA support such high prices? Aliso Viejo, where I rent an apartment, has a median income of around $90K/year, with homes running close to $900K+. San Clemente, where I’d like to buy is even worse with median incomes at about $110K, and homes running well over a $1M. Who can afford to buy a home in this market? And, conversely, what bank would make that loan without a HUGE downpayment of 10-20%?

Maybe things are looking up for buying a home afterall?

– Doug

[DoJC]

I might now add a new one:

10. Loan to income ratios will NEVER, EVER get as high as they are now, or in the recent past. Up until about 2006 ratios were over 12:1. A person with $100,000 could assume a mortgage loan of $1.2M. Even with this recent bust things are still coming out to 11:1 on average. No bank in the world will give out a loan at that ratio, and likely won’t in the foreseeable future.

With this in mind, how can CA support such high prices? Aliso Viejo, where I rent an apartment, has a median income of around $90K/year, with homes running close to $900K+. San Clemente, where I’d like to buy is even worse with median incomes at about $110K, and homes running well over a $1M. Who can afford to buy a home in this market? And, conversely, what bank would make that loan without a HUGE downpayment of 10-20%?

Maybe things are looking up for buying a home afterall?

– Doug

[DoJC]

I might now add a new one:

10. Loan to income ratios will NEVER, EVER get as high as they are now, or in the recent past. Up until about 2006 ratios were over 12:1. A person with $100,000 could assume a mortgage loan of $1.2M. Even with this recent bust things are still coming out to 11:1 on average. No bank in the world will give out a loan at that ratio, and likely won’t in the foreseeable future.

With this in mind, how can CA support such high prices? Aliso Viejo, where I rent an apartment, has a median income of around $90K/year, with homes running close to $900K+. San Clemente, where I’d like to buy is even worse with median incomes at about $110K, and homes running well over a $1M. Who can afford to buy a home in this market? And, conversely, what bank would make that loan without a HUGE downpayment of 10-20%?

Maybe things are looking up for buying a home afterall?

– Doug

[DoJC]

I might now add a new one:

10. Loan to income ratios will NEVER, EVER get as high as they are now, or in the recent past. Up until about 2006 ratios were over 12:1. A person with $100,000 could assume a mortgage loan of $1.2M. Even with this recent bust things are still coming out to 11:1 on average. No bank in the world will give out a loan at that ratio, and likely won’t in the foreseeable future.

With this in mind, how can CA support such high prices? Aliso Viejo, where I rent an apartment, has a median income of around $90K/year, with homes running close to $900K+. San Clemente, where I’d like to buy is even worse with median incomes at about $110K, and homes running well over a $1M. Who can afford to buy a home in this market? And, conversely, what bank would make that loan without a HUGE downpayment of 10-20%?

Maybe things are looking up for buying a home afterall?

– Doug

[Anonymous]

If a couple brings in roughly 200k/year, you get a 5:1 income ratio for a $1M home.

[Anonymous]

If a couple brings in roughly 200k/year, you get a 5:1 income ratio for a $1M home.

[Anonymous]

If a couple brings in roughly 200k/year, you get a 5:1 income ratio for a $1M home.

[Anonymous]

If a couple brings in roughly 200k/year, you get a 5:1 income ratio for a $1M home.

[Author]

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