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sdduuuude
ParticipantI’m on track to make a move-up purchase in 2 or 3 years. I’m very content with that. If I had to do it this year, I would be very nervous. I’m glad to wait that long.
ParticipantI’m on track to make a move-up purchase in 2 or 3 years. I’m very content with that. If I had to do it this year, I would be very nervous. I’m glad to wait that long.
ParticipantI’m on track to make a move-up purchase in 2 or 3 years. I’m very content with that. If I had to do it this year, I would be very nervous. I’m glad to wait that long.
Participant[quote=UCGal][quote=HiggyBaby]
Okay, for tomorrow – rebound, flat, or furuther declines. Any predictions?[/quote]
I’m notoriously wrong with this stuff… but I have a feeling that we’ll probably be down tomorrow, and definitely down for the week. It feels like late 2007/early 2008 all over again.[/quote]If it’s really like 2008, it’ll be back up about 15% in a week, then back down below it’s current level after that. The lead-up to the big drop was extremely volatile.
Participant[quote=UCGal][quote=HiggyBaby]
Okay, for tomorrow – rebound, flat, or furuther declines. Any predictions?[/quote]
I’m notoriously wrong with this stuff… but I have a feeling that we’ll probably be down tomorrow, and definitely down for the week. It feels like late 2007/early 2008 all over again.[/quote]If it’s really like 2008, it’ll be back up about 15% in a week, then back down below it’s current level after that. The lead-up to the big drop was extremely volatile.
Participant[quote=UCGal][quote=HiggyBaby]
Okay, for tomorrow – rebound, flat, or furuther declines. Any predictions?[/quote]
I’m notoriously wrong with this stuff… but I have a feeling that we’ll probably be down tomorrow, and definitely down for the week. It feels like late 2007/early 2008 all over again.[/quote]If it’s really like 2008, it’ll be back up about 15% in a week, then back down below it’s current level after that. The lead-up to the big drop was extremely volatile.
Participant[quote=UCGal][quote=HiggyBaby]
Okay, for tomorrow – rebound, flat, or furuther declines. Any predictions?[/quote]
I’m notoriously wrong with this stuff… but I have a feeling that we’ll probably be down tomorrow, and definitely down for the week. It feels like late 2007/early 2008 all over again.[/quote]If it’s really like 2008, it’ll be back up about 15% in a week, then back down below it’s current level after that. The lead-up to the big drop was extremely volatile.
Participant[quote=UCGal][quote=HiggyBaby]
Okay, for tomorrow – rebound, flat, or furuther declines. Any predictions?[/quote]
I’m notoriously wrong with this stuff… but I have a feeling that we’ll probably be down tomorrow, and definitely down for the week. It feels like late 2007/early 2008 all over again.[/quote]If it’s really like 2008, it’ll be back up about 15% in a week, then back down below it’s current level after that. The lead-up to the big drop was extremely volatile.
ParticipantThe arsonist starts a fire.
The fireman says “we need to put water on it.” So he puts water on it. But he doesn’t put enough water on it and the fire continues to burn.
Therefore, the fireman started the fire.
ParticipantThe arsonist starts a fire.
The fireman says “we need to put water on it.” So he puts water on it. But he doesn’t put enough water on it and the fire continues to burn.
Therefore, the fireman started the fire.
ParticipantThe arsonist starts a fire.
The fireman says “we need to put water on it.” So he puts water on it. But he doesn’t put enough water on it and the fire continues to burn.
Therefore, the fireman started the fire.
ParticipantThe arsonist starts a fire.
The fireman says “we need to put water on it.” So he puts water on it. But he doesn’t put enough water on it and the fire continues to burn.
Therefore, the fireman started the fire.
ParticipantThe arsonist starts a fire.
The fireman says “we need to put water on it.” So he puts water on it. But he doesn’t put enough water on it and the fire continues to burn.
Therefore, the fireman started the fire.
August 8, 2011 at 9:32 AM in reply to: OK, we are down graded: AA+ (Still a long way from F+ guys) #716784Participant[quote=davelj]A thought experiment.
You work at a bank. A woman comes to borrow money from the bank. Here are the basics of her financial situation (admittedly incomplete, but in the ballpark):
She earns $140K/year after-tax. She’s a consultant and her job is very stable. In a really bad year her income might dip 5% (as it did recently), but it rarely increases by more than 3% in real terms. But, again, over the long term her income is quite stable. The current outlook is that her income will be basically flat for the next 5-10 years. She has been spending a bit more than her income for the last several years but says that she’s gotten this under control. She has $360K in debt. About half of that – or $180K – is a mortgage fixed at 4.5% for 30 years. She has no equity in her house, however. Although clearly there’s plenty of income to cover the mortgage. The other $180K in debt is a revolving credit line (interest-only) at 4% that matures every five years. The current five year term is up and she’s looking to renew it through your bank.
Now, from a collateral perspective, she doesn’t look too great – not much net worth there. On a cash-flow basis, however, she looks pretty good because her income is very stable and her ability to cover her fixed payments is good. Also, with a little discipline, she should be able to reduce her spending to a break-even level as well.
How do you feel about this borrower from an underwriting perspective?[/quote]
Just one question. If I loan her money, will the Fed backstop the loan ? If so, I’m in.
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