Nov 2011 08
Tue November 8, 2011 10:58:45 am
For the last decade the Fed had kept the interest rate so low even in good times that borrowing is better than saving. Banks very soon run out of qualified mortgage borrowers so they go after the people who can\\\'t afford to buy a house by offering Adjustable Rate Mortgages, additional home equity loans to cover down payment and No Doc and Low Doc application process. That way BANKS DON\'T CHECK THAT PEOPLE HAVE SUFFICIENT INCOME TO PAY FOR A MORTGAGE. Cheap credit allow people to get the house, run up credit card bills to buy things to fill up the house, put a pretty car on the lawn. Then when people found out they can\'t make the payment when some people are out of a job, the whole system collapse like a domino. First, a low number of people can\'t pay. Then those mortgage holders lose money. Wall Street packaged these bad mortgages for sale to investors. The investors lost money. Derivatives that were based in these mortgages went bad. Bad news went out. Others panicked. Market crashed. Credit froze up. Corporations and individual hoard cash and sold out. Market slid lower. Business sees a recession coming, starts to cut jobs EVEN IF THEY ARE STILL MAKING MONEY. More people lost jobs and missed debt payment. More bank loses. Market goes lower. The cycle continues. Then Government wants you to spend MORE, and RUN UP MORE DEBT. Extend unemployment benefits and want to increase income tax. Thus promoting no work, just spend. With all this going on, HOW THE HELL WILL THE ECONOMY IMPROVE?
Tue November 22, 2011 01:34:59 pm]
The economy SUCKS, pure & simple. Government doesn't care because the lawmakers in this country get their fat 6-figure paychecks with full benefits so the rest of us can just all go to hell in their eyes.
Tue July 31, 2012 08:44:01 am]
) Mortgage: Paid off with proceeds from flpinipg multiple houses in Phoenix which are now all sold as of Feb 2007. Holding 65K in CDs(5.37%) for capitol gains taxes I will incur for 2007. 2) Cars:4/$0 3) Credit cards:6/ pay off at end of month $0 (approx 4500/MO)4) Student loans: $05) Other debt: $0 I max out 401K and flow most of my income into various investments. Now.. My sister in law.Recently separated.Her husband should be committed and spends most of his time curled up in the fetal position and suffers from acute depression. Moved out of the house and is living with his brother in another state.She owes 59K in Student loans.She is 3 months behind on her mortgage. Owes 25 more years on a 220K mortgage/ 30yr fixed.Her roof leaks and a badly started room addition is in disrepair and needing completion.Her 2 used cars are paid for but need about 8K in repairs.She has maxed out 3 credit cards and owes approx 18K on them.She has a credit line home equity loan maxed out at 32K.Her 3 children are basically fatherless and in need of dental work, clothing and basics. They have no health care coverage.She is a teacher in AZ and makes about 41K a year.The state regards her has having too high of an income for assistance.There are 6 homes for sale on her block that have been on the market for over 8 months so selling in not a good option. The neighborhood has deteriorated with blight and 2 streets over, an infestation of termites rendered one home useless and was torn down where an empty gap now remains. Her kids are beginning to have social interaction goes on and wife takes her paycheck and is basically giving it to her sister where ever there is a shortfall. We are floating them but I fear the tension being created and the possibility of any number of medical situations would force a worse situation which I am not prepared to pay for out of my pocket.The TV went on the fritz, I gave them one of mine. Refrigerator needed replacing, I bought them one, garage door opener broke, I paid for and installed the replacement.Her dryer broke, I took it apart and replaced worn parts. What's a brother in law to do?I didn't sign up for this, but I am paying the price.