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Status:
"Mike Johnson stand your ground"
(set 1 day ago)
Location: Glen Mills
939 posts, read 1,227,773 times
Reputation: 617
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How did we get here? The old fashioned way "fast and stupid". You couldnt see it? Oh but you could and there was nothing you could do about it. It felt good. It's a repetitious visit that we frequent. Here is what I am babbling. Lending is not a science it's an art. The steadfast rules evaluates certain elements of an application: ability to pay, paying habits income. Indebtedness, employment condition, job security and security. Now come 1970's a new fellow called credit score. Let's take one type lending - Mortgage Lending. It seems many mortgages are for 30 years. 30 year relationship. We judge soundness by a credit score. How about we apply credit scores to a marriage now going in we know the marriage has a 50% possibility of survival. What would it be if we applied credit scores say 580 and he or she is kicked to the curb. Never happen well hope not far worse how about St Peter at the Pearly gates. Let me tie this together. Our economy will be slipping. Easy creates availability. Easy creates qualifying. Qualifying creates surge in mortgage Appications. Easy creates more qualified buyers. Easy creates more home sold. Easy creates bidding up the home values. Easy creates artificial fluff in home values. Easy creates unsustainable bubbles in home prices. Easy causes eventual failure. Easy can cause disaster. Let get back to sensible and reasonable discount rate control. Its easy. Not done. Relevance of discount rate stability. It's a faucet. You can impact the economy either way you travel. Raise or lower. Too long in one direction can give to expansion but at times and before out of hand tightening should be done. Here it goes light up the board. The "Greenspan" approach. I think the Fed must predetermined an outcome then set up a meeting to appease the public. Then have coffee or well maybe drinks. Mortgage lending get back to basics. This shuddering and reopening with a new name and better idea is not new. Sound business decisions be made not always in Sync with credit scores may have a better outcome. Sound lending, sound discount rate control could result in a healthier economy.
Last edited by Norm Barnes; 09-08-2022 at 07:33 AM..
How did we get here? The old fashioned way "fast and stupid". You couldnt see it? Oh but you could and there was nothing you could do about it. It felt good. It's a repetitious visit that we frequent. Here is what I am babbling. Lending is not a science it's an art. The steadfast rules evaluates certain elements of an application: ability to pay, paying habits income. Indebtedness, employment condition, job security and security. Now come 1970's a new fellow called credit score. Let's take one type lending - Mortgage Lending. It seems many mortgages are for 30 years. 30 year relationship. We judge soundness by a credit score. How about we apply credit scores to a marriage now going in we know the marriage has a 50% possibility of survival. What would it be if we applied credit scores say 580 and he or she is kicked to the curb. Never happen well hope not far worse how about St Peter at the Pearly gates. Let me tie this together. Our economy will be slipping. Easy creates availability. Easy creates qualifying. Qualifying creates surge in mortgage Appications. Easy creates more qualified buyers. Easy creates more home sold. Easy creates bidding up the home values. Easy creates artificial fluff in home values. Easy creates unsustainable bubbles in home prices. Easy causes eventual failure. Easy can cause disaster. Let get back to sensible and reasonable discount rate control. Its easy. Not done. Relevance of discount rate stability. It's a faucet. You can impact the economy either way you travel. Raise or lower. Too long in one direction can give to expansion but at times and before out of hand tightening should be done. Here it goes light up the board. The "Greenspan" approach. I think the Fed must predetermined an outcome then set up a meeting to appease the public. Then have coffee or well maybe drinks. Mortgage lending get back to basics. This shuddering and reopening with a new name and better idea is not new. Sound business decisions be made not always in Sync with credit scores may have a better outcome. Sound lending, sound discount rate control could result in a healthier economy.
Please learn the art and rules of paragraphs. Lots of verbiage.
Status:
"Mike Johnson stand your ground"
(set 1 day ago)
Location: Glen Mills
939 posts, read 1,227,773 times
Reputation: 617
Ok. You got me. I thought this area concerned economics. I stand corrected it's for English Majors so wealthy that have no concern about our economy. Period!!!! and LOL.
Ok. You got me. I thought this area concerned economics. I stand corrected it's for English Majors so wealthy that have no concern about our economy. Period!!!! and LOL.
What is it they say in real estate? Location, location, location? Fairly simple concept, right? Well, it's sort of like that. When you wish to engage other posters about complicated financial and economic issues, you should worry about presentation, presentation, presentation.
Status:
"Mike Johnson stand your ground"
(set 1 day ago)
Location: Glen Mills
939 posts, read 1,227,773 times
Reputation: 617
Financial Decisions to Consider
Economy is likely to downturn. Excess consumer debt is a mighty concern for households whose wage earners are vulnerable to layoff or income cutback. Many have had alternative financial planning but the bliss of a booming economy caused them to give little attention to their spending. A sound decision now would be to take action to look for methods of reducing payment outgo as well as offers of lower rate accounts and consolidate what you can but do not close that paid account it has an impact on your credit score. When was last time you made a shopping list? Now might be the time. Inventories deplete out of panic buying. You should be prepared but overdoing it may intensify the problem. Careful investment today should be a sight to any plan and protect your financial position by analyzing those vulnerable components of your plans. This calls for intelligent planning not "the sky is falling" panic. We got through the other and this also can be weathered. My Hope's are the Fed does not tighten the screws too much and when relief does come we temper our wants and buy accordingly. Anyway I hope.
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Financial Decisions to Consider
