American Dream Rant.....

[HomeBrew2]

Eric, I live what you're saying every day and I know you do too. It a shame that most people don't understand the situation and how they are fed.

VERY WELL SAID!!! I am NOT in your situation ... mostly because I don't have "what it takes" (honest evaluation), though, I admire, celebrate, and invest in those that take measured risk, "invest" in themselves to live the REAL American dream, ie, enterprise! Some folks simply do not understand capitalism. "Investment" and "speculation" are two different words for a reason. One that lives such a sheltered life, where the two words are equal, simply rides on the coat-tails of those that make this country great.
Nuff said, but, cheers to you and 40kchicks, his farmer friend and all the millions of others that take caculated risk, invest in themselves and actually produce something from nothing.

 

[Kubotasrking]

So, let me see....... Banks and Lenders raise rates, some lenders put people on the edge (stretch to get that dream!). Now a lot of people cannot make it, property taxes, insurance rates, adjustable rates, so foreclosure rates are rocketing.

Are the banks and lenders greedy? They are bringing this in themselves.
Unreal.

-Mike Z.

I'm certain that the buyer of the property isn't responsible at all.

 

[Kubotasrking]

Actually that was the savings and loan crisis not a bank crisis, S&L followed a different set of regulations and the oversight was much looser.


By the way, this new so-called crisis, is due to people who take out loans with ZERO % downpayments on homes they can't afford. Or those who are addicted to credit cards like a crack ***** is addicted to drugs. Individual responsibility is a forgotton concept in this nation.

The press is reporting this as the "sub-prime" lending problem. Sub-Prime means, in simple English, that these loans suck because they are risky. People are taking too much risk. They choose to do it to themselves.

I think I agree w/ Bob. First time for everything.

 

[Kubotasrking]

Mike, this is irrelevant. It matters not what you buy, it matters what you can afford to buy. If you overextend, you will likely end up in trouble of your own making.

Amen Bob. I feel like I've been struck by lightning. 2x in one day...

 

[riptides]

I'm certain that the buyer of the property isn't responsible at all.

Bah.hhh... Of COURSE the buyer is somewhat responsible. In all these comments responsibility, accountability, knowledge come to mind.

But then there is the dark side of lending practices, and of course "market" trends.

I repeat my curiosity of lenders and bankers raising rates in a slow economy knowing that foreclosures are on the upswing. But I guess that is one way to get housing affordable again.

-Mike Z.

 

[riptides]

People are taking too much risk. They choose to do it to themselves.

Yes, but it is really all parites involved in the process.

With great risk comes great reward.

.......hides as he knows the other side of this saying.....

-Mike Z.

 

[Bob_Skurka]

I repeat my curiosity of lenders and bankers raising rates in a slow economy knowing that foreclosures are on the upswing.
-Mike Z.

Do you not realize that the lenders and banks are not the ones responsible for raising the rates? The Federal Reserve sets the rates and has been raising them for the past couple of years because of fears of inflation. It is only now that they are slowing down the raising of the rates. The Fed raises the rates and the lenders must follow or they lose money.

Yes, but it is really all parites involved in the process.

No. Just because people are willing to take a risk to lend you money does not mean that the people borrowing the money SHOULD borrow beyond their means. Remember, the lender is taking a calculated risk.

With great risk comes great reward

No question, and that is how businesses are founded and grow. So if the borrower is taking a calculated risk then it is based on a large pool of loans it makes and it is betting that only a certain small % of those will default. If the lender is correct and the defaults stay within their tolerances, then the lender took his risk, and the lender gets his reward.

But this thread is all about houses and being able to afford one. Living in a house doesn't generate income, it consumes income. You better be able to afford ALL the costs of the house when you sign the mortgage, if you can't do that then you are buying too much house.

 

[scott_vt]

The Federal Reserve sets the rates and has been raising them for the past couple of years because of fears of inflation.

Mornin Bob,
And just when I think that we havent heard from Alan Greenspan for awhile, he comes out of retirement , and sends the markets into a dither ! I think Bernanke needs to put a gag order on him !

 

[BobRip]

Mornin Bob,
And just when I think that we havent heard from Alan Greenspan for awhile, he comes out of retirement , and sends the markets into a dither ! I think Bernanke needs to put a gag order on him !

I agree. Greenspan is the most powerful man on the planet. His statements have always been carefully worded and he used his power well. But now, after retirement, I don't think he realizes that people still hang on his every word. He really needs to shut up.

 

[Bob_Skurka]

Well Greenspan retired and Bernanke took his place.

By the way the Federal Reserve meets next week, at that time they may choose to continue along with the interest rate increases that they have been following for the past couple of years.

Their concern has been that the economy is humming along at a good clip and they are keeping inflation down by raising the rates, or so that is their claim.