Think we're rid of the suprime mortgage fiasco, think again.
- Thread starter Mia.Colpa
- Start date
The US economy won't rebound for a decade or more, if ever. America is bankrupt and the ideas being implemented to solve their economic problems are bankrupt, and citizen's free-for-all lifestyle is bankrupt. The America that we've known for the past 50 years has officially ceased to exist.
But that's just my opinion and my opinion isn't worth shit.
But that's just my opinion and my opinion isn't worth shit.
The main problem is that people live above their means. I want it now and don't care how I pay for it later Philosophy. As long as you don't live above your means, you will be better off than 90% of the population. The media always try's to scare their viewing audience, it's not as bad as it seems. Plain and simple, don't live above your means and you will be okay and not be stressed out about making mortgage payments. If your smart, this is a great time to invest in the stock market and the housing market.
and who do you think is to blame?
The banks and their smash and grab policy for profits.
They, the economy, the investors, the "funds" would all benefit from a renogiation plan that would keep people in those homes. Sure the banks might only make 1000% profit instead of 5000% but at least they'd turn a profit.....
The thing is, lenders think (oddly enough) "all or nothing" and now their dealing with that attitude......(because they are ending up with nothing).
actually, it really isn't like that when it comes to homes. Yes, people might be buying the next house up the scale but that is what drives the economy. If no one moved up, no one could enter into the market. If no one can enter into the market, houses wouldn't be built, builders wouldn't build, framers wouldn't get paid, etc etc etc.
If everyone lived within their means (which is what is happening now) then the economy would stagnate. People have to spend money in our society, those with money, and those without......
The BIG factor in all this is the need for greed. The dynamic of our economy has changed and over the past few years, I've noticed it dramatically. Gone are social responsibility by big business, it is all about profit. HUGE profit. Take our Canadian Banks. We're in a recession. People are losing jobs in record number yet they are recording record profits. Take Rogers as another example (and all telecom companies). They have been hosing us for years. Sure companies have to make money. Sure profit is good but GREED is bad.
I learned marketing from one of the most successful companies in Canada. The founder's attitude was: to provide good value for the money, provide jobs for Canadians, give back to the community, and insure a prosperous economy using the "buy Canadian" idea. (Canadian Tire)
Here's a number for you: I think over the past 10 years the US economy has grown by something like $100 billion. 90% of that growth went to 1% of the population. The next 9% went to the next 2%. 1% of that growth was shared by the remaining 97%.
I think the media is downplaying how bad it is, Americans leveraged their houses up to 105% of their value, assuming they would always increase in value, then the bottom fell out, leaving massive debts. Sure some people are starting to buy houses because they're so cheap, but what about the people on the other side of those houses that owed twice what it was worth.
I think it's going to get much worse once the stimulus wears off, if it ever does, I think there will be civil unrest against their government, many aren't happy about having to pay for the bailouts.
Sorry Ballz, the bottom didn't fall out, it was ripped out by the lenders....they repossessed so many houses THEY ripped the bottom out.
Picture a house of cards (no pun intended) it is fragile but will stand unless someone starts pulling the base cards out. Pull enough cards out and it collapses which is exactly what happened.
60 minutes did a segment on Bakersfield CA. They were seizing 10,000 houses a week. One couple interviewed approached the bank and said "I can't afford to pay this, but I can pay this...." the bank said F you, we're taking your house....so now they have (at that time) 100,000 houses on their hands worth 1/4 of the paper on them and less than it cost to build.
As I said: if the lenders had agreed to take 1000% profit instead of 5000%, they'd be sitting pretty.........
Picture a house of cards (no pun intended) it is fragile but will stand unless someone starts pulling the base cards out. Pull enough cards out and it collapses which is exactly what happened.
60 minutes did a segment on Bakersfield CA. They were seizing 10,000 houses a week. One couple interviewed approached the bank and said "I can't afford to pay this, but I can pay this...." the bank said F you, we're taking your house....so now they have (at that time) 100,000 houses on their hands worth 1/4 of the paper on them and less than it cost to build.
As I said: if the lenders had agreed to take 1000% profit instead of 5000%, they'd be sitting pretty.........
but is most likely right.