The boat turns slowly

[socrattt]

[quote=briansd1][quote=gandalf]This is my point. ‘Government’ is not bad. It’s the people in our current government who sold out to corporate America and gutted conservative and time-tested Depression-era banking regulations. The answer is to get involved and change out the people who made these stupid decisions.

For my part, I think fundamental change requires reducing the role money and fundraising plays in our political process.[/quote]

I agree.

The real estate bubble was made possible by Wall Street “innovation” and lack of government regulation.

Had the government not allowed toxic loans, we would not have had the bubble nor the crash. Bubbles happen because of financing and leverage.

And jpinpb would be happily growing a vegetable garden and orchard in her affordable own house in PB. 😉

But the downtown towers would not have been built so I wouldn’t be happily renting downtown for a bargain when compared to cost of ownership (for those who don’t know, $700 – $1,000 HOA downtown is very common).[/quote]

Brian, no need to state the obvious. We all know your views and beliefs on government intervention and how you perceive it to be a great thing. We also know that you and Gandalf rarely disagree.

Your comment about bubbles happening due to financing and leveraging is sort of misrepresented. Carter and Clinton did their fair share of enabling a portion of the bubble factor. No need to get into that, but there’s definitely much more to the bubble equation than just financing and leveraging. And now we are creating another bubble with continued intervention.

[(former)FormerSanDiegan]

bearishgirl – I guess I have been using the word “reset” loosely, to mean the rate adjustment (recast), not a reset triggered by negative amortization.

As far as I can tell the only difference between the COFI loan you have and the ARM I used to have is the index used and tha margin. Both had rate adjustments after 60 months and adjust annually.

I purchased my rental in 2002 and I’m actually pretty happy with my current fixed rate. but yes I wish I hadn;t refied multiple times. I’m at about 40% equity today and would be closer to 50% if not for refinancing. Live and learn.

[(former)FormerSanDiegan]

bearishgirl – I guess I have been using the word “reset” loosely, to mean the rate adjustment (recast), not a reset triggered by negative amortization.

As far as I can tell the only difference between the COFI loan you have and the ARM I used to have is the index used and tha margin. Both had rate adjustments after 60 months and adjust annually.

I purchased my rental in 2002 and I’m actually pretty happy with my current fixed rate. but yes I wish I hadn;t refied multiple times. I’m at about 40% equity today and would be closer to 50% if not for refinancing. Live and learn.

[(former)FormerSanDiegan]

bearishgirl – I guess I have been using the word “reset” loosely, to mean the rate adjustment (recast), not a reset triggered by negative amortization.

As far as I can tell the only difference between the COFI loan you have and the ARM I used to have is the index used and tha margin. Both had rate adjustments after 60 months and adjust annually.

I purchased my rental in 2002 and I’m actually pretty happy with my current fixed rate. but yes I wish I hadn;t refied multiple times. I’m at about 40% equity today and would be closer to 50% if not for refinancing. Live and learn.

[(former)FormerSanDiegan]

bearishgirl – I guess I have been using the word “reset” loosely, to mean the rate adjustment (recast), not a reset triggered by negative amortization.

As far as I can tell the only difference between the COFI loan you have and the ARM I used to have is the index used and tha margin. Both had rate adjustments after 60 months and adjust annually.

I purchased my rental in 2002 and I’m actually pretty happy with my current fixed rate. but yes I wish I hadn;t refied multiple times. I’m at about 40% equity today and would be closer to 50% if not for refinancing. Live and learn.

[(former)FormerSanDiegan]

bearishgirl – I guess I have been using the word “reset” loosely, to mean the rate adjustment (recast), not a reset triggered by negative amortization.

As far as I can tell the only difference between the COFI loan you have and the ARM I used to have is the index used and tha margin. Both had rate adjustments after 60 months and adjust annually.

I purchased my rental in 2002 and I’m actually pretty happy with my current fixed rate. but yes I wish I hadn;t refied multiple times. I’m at about 40% equity today and would be closer to 50% if not for refinancing. Live and learn.

[Nor-LA-SD-guy]

The housing Bubble would never have happen had they not changed the CPI to owner equivalent rent in 1981 i think.

[Nor-LA-SD-guy]

The housing Bubble would never have happen had they not changed the CPI to owner equivalent rent in 1981 i think.

[Nor-LA-SD-guy]

The housing Bubble would never have happen had they not changed the CPI to owner equivalent rent in 1981 i think.

[Nor-LA-SD-guy]

The housing Bubble would never have happen had they not changed the CPI to owner equivalent rent in 1981 i think.

[Nor-LA-SD-guy]

The housing Bubble would never have happen had they not changed the CPI to owner equivalent rent in 1981 i think.

[UCGal]

[quote=Arraya]It’s not an option under our economy. Over consumption and little to no savings is a policy for a reason.

Less consumerism and saving would collapse employment and require massive government intervention to spur demand and keep it from falling into a deflationary spiral.

One family saves, good for the family. All families save, the economy collapses.[/quote]

Is it good for the economy long term if we continue to spend more than we make. If we continue to consume with no plan for paying for our consumables?

mass consumption based on debt is kicking the can down the road… it may work in the short term -but at some point the debt becomes unweildy. It will be painful either way.

[UCGal]

[quote=Arraya]It’s not an option under our economy. Over consumption and little to no savings is a policy for a reason.

Less consumerism and saving would collapse employment and require massive government intervention to spur demand and keep it from falling into a deflationary spiral.

One family saves, good for the family. All families save, the economy collapses.[/quote]

Is it good for the economy long term if we continue to spend more than we make. If we continue to consume with no plan for paying for our consumables?

mass consumption based on debt is kicking the can down the road… it may work in the short term -but at some point the debt becomes unweildy. It will be painful either way.

[UCGal]

[quote=Arraya]It’s not an option under our economy. Over consumption and little to no savings is a policy for a reason.

Less consumerism and saving would collapse employment and require massive government intervention to spur demand and keep it from falling into a deflationary spiral.

One family saves, good for the family. All families save, the economy collapses.[/quote]

Is it good for the economy long term if we continue to spend more than we make. If we continue to consume with no plan for paying for our consumables?

mass consumption based on debt is kicking the can down the road… it may work in the short term -but at some point the debt becomes unweildy. It will be painful either way.

[UCGal]

[quote=Arraya]It’s not an option under our economy. Over consumption and little to no savings is a policy for a reason.

Less consumerism and saving would collapse employment and require massive government intervention to spur demand and keep it from falling into a deflationary spiral.

One family saves, good for the family. All families save, the economy collapses.[/quote]

Is it good for the economy long term if we continue to spend more than we make. If we continue to consume with no plan for paying for our consumables?

mass consumption based on debt is kicking the can down the road… it may work in the short term -but at some point the debt becomes unweildy. It will be painful either way.

[Author]

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