Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
but do you not see that we all will be paying for his lack of morals?
A large piece of wealth has vanished. The exact distribution of that loss is left to the hard core economists. The Gross product however must stand the loss regardless of how it is accounted. "We" have already lost the value.
A large piece of wealth has vanished. The exact distribution of that loss is left to the hard core economists. The Gross product however must stand the loss regardless of how it is accounted. "We" have already lost the value.
and you can feel good about yourself every morning?
Elated. It was a bad decision to buy the house anyway. Morality? Oh for goodness sakes - don't be naive. It's business. That's the way business works. If we were in 16th century England, they would put you in debtor's prison. That's why bankruptcy laws exist.
Did Trump pay off the billions that he lost? No way. It was a bad deal - so he walked. Look at him now.
I used to think exactly that way you do.
This was one big ponzi scheme and I admit that I was financially naive and got caught up in the frenzy. Every one was saying "If you don't lock in the price of a house now, you'll rent for the rest of your life".
Have you any idea how much it costs the builders to put up these cardboard houses?
The value lost in the house will not be made up for decades. Do I feel bad? NO. I feel educated.
When I tell my co-workers, friends and even total strangers what I am about to do, a good many sheepishly admit they did the same and were so relieved when it was over. I don't think there is any way to convince you otherwise but here is a link to the WSJ that reflects my thinking The Rise of the Mortgage 'Walkers' - WSJ.com
I don't blame someone for walking away. It's the rational decision. I blame a central bank funneling cheap money on a phoney bubble when we should've suffered a real recession to purge the excess of the dot com mania and post-9/11. Now we have to pay in spades. Well, at least based on my portfolio, it's likely not me. But most of us do.
It'll be funny to look back on thread like this just like I look back at dot com stories and Nasdaq 5000 when few thought the punch bowl would go empty.
The Chinese, Saudis, Japanese, and Germans will refuse to buy up our securitized mortgage crap in the future. As a result of the exodus of credit, I suspect a large part of the housing sector will be cash only, after a failed attempt to completely socialize the mortgage process (post-fannie mae bankruptcy). I wonder what that'll do to prices?
Yes FNMA can go bankrupt, even with taxpayer infusion. There is no obligation for the company to remain in operation, just to make good on its existing obligations.
Hehe...I thoroughly enjoy having debates with people thinking "that's never going to happen" just like when people thought $100+ share prices were normal for etoys.
Not that you probably can't get a mortgage in the future. Just that Joe Blow bank 'round the corner might want 25% on a 30-year deal.
It'll be funny to look back on thread like this just like I look back at dot com stories and Nasdaq 5000.
The Chinese, Saudis, Japanese, and Germans will refuse to buy up our securitized mortgage crap in the future. As a result of the exodus of credit, I suspect a large part of the housing sector will be cash only, after a failed attempt to completely socialize the mortgage process (post-fannie mae bankruptcy). I wonder what that'll do to prices?
Yes FNMA can go bankrupt, even with taxpayer infusion. There is no obligation for the company to remain in operation, just to make good on its existing obligations.
Hehe...I thoroughly enjoy having debates with people thinking "that's never going to happen" just like when people thought $100+ share prices were normal for etoys.
Not that you probably can't get a mortgage in the future. Just that Joe Blow bank 'round the corner might want 25% on a 30-year deal.
God help us.
Yup - Every time we let those damn capitalists loose without tight regulation this is what happens. Greed screws us all. Maybe we should lean a little more to the regulated side.
Yup - Every time we let those damn capitalists loose without tight regulation this is what happens. Greed screws us all. Maybe we should lean a little more to the regulated side.
Disagree, but we are all entitled to our opinion.
Read America's Great Depression by Rothbard for a real perspective on the failed policies of FDR's "New Deal" and how sheeple like to blame unbridled capitalism for causing the GD.
The only sucky part about democracy is that it's populist in nature. Normally this wouldn't be a problem, except when the population is fat, dumb and addicted to NASCAR/American Idol. Athens knew it. Now we know it.
"Although foreclosures make up a fraction of the total housing market, it would be a mistake to underestimate the socionomic significance of the repudiation of debt and credit manifest in homeowners voluntarily choosing to walk away from their mortgages. The fact people are walking away from their mortgages is not a moral failure, but a warning sign that this type of credit unwind is extraordinarily deflationary. The fact an increasing number of people are not interested in protecting their ability to access credit, their credit rating, is a harbinger of how bad things have yet to get. That means, socionomically, that people have already repudiated credit and are no longer interested in accessing it.
That is bad news for the Federal Reserve because at the end of the day it doesn't matter how much credit is made available; it matters how many people are willing to take it."
In reference to the above quote - We aren't buying anything we don't absolutely need. We got our financial education all in a bunch. Remember - over 70% of this economy is consumers and credit. GAME OVER MAN!
The article also mentioned a new plan from the Office of Thrift Supervision (Where the hell were they when this all went down?). The plan would have lenders reduce mortgage balances, but let them collect the difference later. Oh goody - a postponed loan
And for the guys that put this all together - this year's bonus pool for Wall Street executives hit $23.9 billion, the New York State Comptroller's office estimates.
If you're gonna walk - do it now. Another way to save the bank A**es and keep the little guy in chains.
Last edited by Coop01; 02-21-2008 at 10:17 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.