Quote:
Originally Posted by Modification Specialist
I find it hard to believe what we pay at the pump
is less than 1 percent of that comes from Libya.
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It doesn't matter if it's 1% or 60% - like Italy.
Once the other customers start looking to buy elsewhere, they will
be willing to bid up the price from Canada, Mexico, whatever ...
Think of it like a big swimming pool with hoses going in from suppliers
and hoses going out to customers. Once the hose is in the pool,
everyone gets effected just about the same.
Quote:
Originally Posted by Modification Specialist
What I do believe in the future - as value returns, ...
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I'm glad you are an optimist. Optimists tend to have better mental health.
As you probably know, I'm a rabid pessimist.
Suppose in the future -
as value deteriorates further ... what are your
scenarios then? ... Foreclosures, modifications, short sales ... just curious.
Let's say we go from about 25% of mortgages under water to 35-40%???
What if the Muslim revolutions spread to Saudi Arabia - I'd love it! We'd be looking at
$10/gallon gasoline though. Most "experts" I'm seeing interviewed are saying $5/gallon
is going to send us into the dreaded "double-dip." I tend to agree because I don't
believe there is a "recovery" anyway. If that happens, and I think that's getting priced
in to the market now, it's not impossible for 50% of mortgages to go under water.
If you have been reading the WSJ, I suppose that you know that, at least,
one of the Fed governors is looking to break up the big banks and separate
out their "non-banking" functions. That adds a whole additional angle.