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Discussion in 'Political Discussion' started by Terry Glenn is a cowgirl, Jan 18, 2008.

  1. Terry Glenn is a cowgirl

    Terry Glenn is a cowgirl Banned

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    The US, UK and a few other western countries are presently
    experiencing an unprecedented meltdown in real estate. US
    foreclosures are at an all time high. American and other banks have
    been hit with real estate losses well into the tens, if not hundreds
    of billions of dollars, with the worse yet to come! UBS (think
    Switzerland) and the mighty US' Citibank have taken tens of billions
    of dollars in losses due to this debacle. And it is only just
    starting! Both banks have been forced to sell off their assets
    (shares,) to several United Arab Emirate countries, as well as to the
    government of Singapore, which paid 11bn US Dollars for a good size
    number of UBS' shares. I wouldn't be surprised to see these once
    great banking institutions taken over by foreign government in the not
    too distant future!

    I was watching a Bloomberg news report during the holidays and was
    shocked when they reported that the USA alone had experienced a 1.2
    trillion dollar (read that TRILLION,) loss in home equity values during
    November 2007. That is an unprecedented sum of wealth which is
    certain to cause considerable consternation for many an American and
    businessman, especially bankers. Something is amiss and the doo doo
    is certain to hit the fan shortly.
     
  2. scout

    scout Veteran Starter w/Big Long Term Deal

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    #15 Jersey

    I was watching Hardball and Mathews was asking Jim Cramer a question, and the guy went bonkers. Said if the government doesn't jump in soon, these company's that are holding mortgage insurance are going to go under and if that happens there will be a major meltdown. If anyone else saw that show I'd be interested in your thoughts.
     
  3. PressCoverage

    PressCoverage Banned

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    and of course, pigheaded Howie Carr made up a new term during a segment of his show the other day regarding the mortgage crisis: "Predatory Borrowers"...
     
    Last edited: Jan 18, 2008
  4. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #24 Jersey


    does he still talk to drunks on the show? I used to like him when he was on in Providence like 15-20 years ago. I hear he has changed a bit now.

    wtf is "predatory borrowers" ...
     
  5. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Howie Carr is just another angry man who uses the airwaves to promote his one sided agenda, while sucking on the big boob of corporate america.. is everyone amused???
     
  6. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    Poor people who want to own a house, not the "welfare junkies" but poor people that work hard and never seem to make it and can never get by on what they make, the fault isn't all theirs a lot of the blame goes to the scumbag slimey mortgage company's who give them a mortgage Howie should mention them they are called "Predatory Lenders" (Maggots)

    :bricks:
     
  7. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #24 Jersey


    I remember he was like a local sometimes national politics hack 20 years ago. I used to like when he talked the drunk guy "Giles".
     
  8. Real World

    Real World Moderator Staff Member

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    Cramer is a half a moron. He's got the patience of a 2 year old on speed. The government has no business bailing out ANYBODY. People need to suffer whatever losses they have too. While a Recession, or downturn in the economy is generally bad for the individual, it is a benefit in the long term to the system. Simply put, it's a market correction. When the fed comes in and bails people out, you empower more stupidity, and don't let the market balance itself out. I have no problem with tinkering interest rates, or enabling the 3 year ARM's to extend for 5 years, but a bailout would be the wrong route.
     
  9. wistahpatsfan

    wistahpatsfan Pro Bowl Player

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    #75 Jersey

    What's the difference?
     
  10. wistahpatsfan

    wistahpatsfan Pro Bowl Player

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    #75 Jersey

    Prices still disconnected from fundamentals. House prices are still far beyond any historically known relationship to rents or salaries. Yearly rents are 3% of purchase price. Mortgage rates are 6.5%, so it costs more than twice as much to borrow money to buy a house than it does to rent the same thing. Worse, total owner costs including taxes, maintenance, and insurance are about 9%, which is three times the cost of renting. Salaries cannot cover mortgages. Anyone who buys now will suffer losses immediately, and for the next several years at least.

    http://patrick.net/housing/crash.html
     
  11. Real World

    Real World Moderator Staff Member

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    The difference is that such maneuvers don't involve a government subsidy. Letting people pay their mentally retarded interest only payment for another 5 years costs me & you nothing. The fed coming in and paying 6 months of their mortgage does. The fed handing cash to a bank is even worse. If I open up a business and don't know how to run it, should the fed take your money and pay me to stay in business? No. If I buy beyond my means, should the fed take money out of your kids mouth and pay my bills? No again.
     
  12. Real World

    Real World Moderator Staff Member

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    So, for the purpose of discussion, who's fault is that? The governments, the individuals, or the people who loan money? I'm 33 and have been a home owner since 2001. Most of my friends have been getting married in the last few years. I've told them all the same thing over the last 4-5 years. Don't buy, rent, and if you have to buy, don't overspend, or go beyond your needs. None of them listened to me, and most of them are whining about the position they're in. Who's fault is it? I lay the blame on them. No one told my buddy to buy a $450k home with $40k down in Middleton. No one told my other buddy to buy a $300k townhouse in Chelsea with no money down on an interest only. Stupid, stupid, stupid... Had both rented for a couple of years, like I told them too, they'd be sitting pretty right now, and in a position to buy a nice home, at a reasonable price. People are simply stupid. They act on emotion, and not on sense. What's funny is, this is when the rich get richer, or when anyone with half a brain willing to make sacrafices, can set themselves up for a long time to come. A 3 decker was going for anywhere between $400-700k over the last 5+ years. Now you'll see them at less than half that in the next 1-3 years. If you lived within your means, put some money away, or are simply smart with your money, you should look into buying some rental property real soon. I know I am.
     

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