[cr]

Thanks XBox that helps.

So as long as the banks can repay the money the FED is essentially loaning them to float their operations, then everything will be hunky dory? That of course assumes the FED does that in a timely manner, and that the banks can repay the loans.

Enter the mortgage crisis

So if banks need borrowed liquidity to operate as a result of deliquent loans, and those loans continue to go bad, the borrowed money is virtually gone, right? Do the banks go under, or is that considered a bailout?

I view lowering rates as adding fuel to this fire. People need to be encouraged to curtail their spending to fit within what they can afford. Heresy! I know, saving money?!? Lowering rates may help banks, but once consumers are out of money and buried in hopeless debt, the economy will be toast anyway.

Thanks again.

[cr]

Thanks XBox that helps.

So as long as the banks can repay the money the FED is essentially loaning them to float their operations, then everything will be hunky dory? That of course assumes the FED does that in a timely manner, and that the banks can repay the loans.

Enter the mortgage crisis

So if banks need borrowed liquidity to operate as a result of deliquent loans, and those loans continue to go bad, the borrowed money is virtually gone, right? Do the banks go under, or is that considered a bailout?

I view lowering rates as adding fuel to this fire. People need to be encouraged to curtail their spending to fit within what they can afford. Heresy! I know, saving money?!? Lowering rates may help banks, but once consumers are out of money and buried in hopeless debt, the economy will be toast anyway.

Thanks again.

[cr]

At least there haven’t been any spillover effects.

[cr]

At least there haven’t been any spillover effects.

[cr]

At least there haven’t been any spillover effects.

[cr]

AA,

People have been making estimates, or “predictions” as you claim, since this site started. They are based on data, historical trends, and economic conditions.

If you’d actually read the info on here you would see it’s not thin air. Don’t sarcastically criticize people for interpreting the data and then ask them for answers that you don’t want to hear.

I find it ironic that those most negatively affected by the housing correction point the finger at “nostradamus’s’s’s’s'” who’ve been saying all along it wasn’t a smart choice.

[cr]

AA,

People have been making estimates, or “predictions” as you claim, since this site started. They are based on data, historical trends, and economic conditions.

If you’d actually read the info on here you would see it’s not thin air. Don’t sarcastically criticize people for interpreting the data and then ask them for answers that you don’t want to hear.

I find it ironic that those most negatively affected by the housing correction point the finger at “nostradamus’s’s’s’s'” who’ve been saying all along it wasn’t a smart choice.

[cr]

AA,

People have been making estimates, or “predictions” as you claim, since this site started. They are based on data, historical trends, and economic conditions.

If you’d actually read the info on here you would see it’s not thin air. Don’t sarcastically criticize people for interpreting the data and then ask them for answers that you don’t want to hear.

I find it ironic that those most negatively affected by the housing correction point the finger at “nostradamus’s’s’s’s'” who’ve been saying all along it wasn’t a smart choice.

[cr]

I think I am going to contact the FED and ask for money to buy a house. I figure if they are going to pump billions of dollars into the market for the patehetic financial decisions millions made in the last 5 years, why wouldn’t they give me some money for a sound one?

Anyone care to join me?

http://www.federalreserve.gov/feedback.cfm

I wonder if this will put me on a hit list…

[cr]

I think I am going to contact the FED and ask for money to buy a house. I figure if they are going to pump billions of dollars into the market for the patehetic financial decisions millions made in the last 5 years, why wouldn’t they give me some money for a sound one?

Anyone care to join me?

http://www.federalreserve.gov/feedback.cfm

I wonder if this will put me on a hit list…

[cr]

I think I am going to contact the FED and ask for money to buy a house. I figure if they are going to pump billions of dollars into the market for the patehetic financial decisions millions made in the last 5 years, why wouldn’t they give me some money for a sound one?

Anyone care to join me?

http://www.federalreserve.gov/feedback.cfm

I wonder if this will put me on a hit list…

[cr]

Are we supposed to feel sorry for these people? I am sorry for not being more empathetic, but just because there is a lot of fine print, you don’t just ignore it. A credit card app, or even car insurance, okay, maybe, but a home? Come on…

This is just one concentrated pocket of what is and will continue to happen all over SoCal for several years to come.

The closing line sums up the problem…

“I never sell. I never refinance,” Zambrano said. “I don’t take money out of my house to buy a car or take a vacation. I’m not stupid.”

[cr]

Are we supposed to feel sorry for these people? I am sorry for not being more empathetic, but just because there is a lot of fine print, you don’t just ignore it. A credit card app, or even car insurance, okay, maybe, but a home? Come on…

This is just one concentrated pocket of what is and will continue to happen all over SoCal for several years to come.

The closing line sums up the problem…

“I never sell. I never refinance,” Zambrano said. “I don’t take money out of my house to buy a car or take a vacation. I’m not stupid.”

[cr]

Are we supposed to feel sorry for these people? I am sorry for not being more empathetic, but just because there is a lot of fine print, you don’t just ignore it. A credit card app, or even car insurance, okay, maybe, but a home? Come on…

This is just one concentrated pocket of what is and will continue to happen all over SoCal for several years to come.

The closing line sums up the problem…

“I never sell. I never refinance,” Zambrano said. “I don’t take money out of my house to buy a car or take a vacation. I’m not stupid.”

[cr]

China is balking.

If they do that, they can kiss 75-90% of their exports goodbye.

It is politics, and Congress is ignorant. If we stop buying from China people will have to pay more for nearly all commodities, and that will stifle our spending. Can you imagine that?

The dollar is about 5% down to the RMB from a year ago, and shows no signs of stopping. As China develops and the dollar continues to weaken we will buy less imports. Add to that the VAT reduction we just had and may have again before years end, China may start selling those bonds off anyway.

Either way, China US interdependence is fading, and it’s only a matter of time before we stop buying goods, they stop buying dollars, we both go to war and blow the entire planet up.

Enjoy it while you can.

[Author]

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