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.
Freddie Mac and Fannie Mae were both founded by the government to absorb the risky mortgages. Both were privatized. Both bundled mortgages into investmnet bonds. Those bad mortgages were in thaose bundles. the mutual funds that bought those bonds, bought bad mortgages. I dont; see how a third government entity, that will eventualy be privatized will help. It may help in the short term, but not in the long run. I think we will still be on a huge roller coaster.
Ahhh..I see! Californian! You guys are just doomed period! If this market doesn't kill you, you going to eventually sink into the pacific so I would just increase your homeowner's ins. and wait for door number 2
Yep California. Exactly where all this crazy loans and mess started about 5 years ago. 2 years ago people were saying 'its only happening in CA and thats it'. LMAO
Hummm..I'm starting to think that the rest of the country has been hit worse than NJ? Things are moving again..slowly but moving.
The growth of house prices in Albuquerque only slightly slowed during this real estate slow down and now, what was a buyer's market, appears to be returning to a seller's market. This comes just in time for me to sell my Albuquerque home and buy a rural retirement home on the west Texas southern High Plains, an area where prices have remained steady during this national slowdown. The big difference in Albuquerque and the Texas High Plains is that Albuquerque enjoyed the nation's tremendous growth in housing prices in the last few years where west Texas has remained somewhat steady for several years. I'm hoping I may actually live to say I was in the right place at the right times but time will tell.
I was glued to CNBC earlier this evening and it was all about the "Big Fix".
This plays well to most people who want to believe they will wake up and it will all be over. It took RTC 5 years to unload most of the bad debt they ( we) acquired from the S&L crisis. That was a blip compared to this magilla.
It's going to be another wild toad ride on Wall Street, tomorrow. My money says GS and MS will soar.
I'm trying to wrap my head around this. So if the government buys up the "bad paper" (what a nice euphemism), does that mean the government owns the house if it forecloses?
If the government owns thousands of houses, what the heck are they going to do with them? Was RTC I a precedent for this? What did they do then?
As much as it pains me, I wonder if this will indeed keep prices from falling. With such a repository created, won't banks be tempted to continue the bad lending with the probable knowledge that that they can keep what the buyer pays on the mortgage until the buyer goes bankrupt and the bank can then just unload any losses into this permanent repository? Can't these toxic products just sit in this new "agency" indefinitely?
Isn't this kind of what happens when you run an antivirus program on your computer and the program doesn't get rid of the virus--it just quarantines it permanently, so out of sight out of mind, and you go on with your life and never have to worry about that virus again--it's just sitting there?
In other words, isn't the government just creating a way to wipes all slates clean, and constantly so, to keep real estate prices up and banks technically solvent?
You haven't been around long, have you? Any time anyone expresses optimism on the behalf of sellers around here, you get eaten alive....... lol (but hey, I hope you're right, although unfortunately it's doubtful )
Judging from the number of posts the OP has verses yours, it looks like you are the one who hasn't been around too long. It's time for someone to be a litttle positive around here.
The growth of house prices in Albuquerque only slightly slowed during this real estate slow down and now, what was a buyer's market, appears to be returning to a seller's market.
Only slightly? My dh's best friend lives in Albuquerque. He's dropped his home price to the value it was appraised at in 2000 (approx $125k less than 2006), and after 9 months on the market, still no offers. They've got 6 more weeks- if they don't sell by then, they lose the excellent job and relocation offer in Missouri.
Seller's market? Well, for your sake and theirs, that would be nice. But not likely.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,590,499 times
Reputation: 677
I don't think the rally on Wall Street will get buyers to get off the fence. Far from it. The market is very volatile.
I'm not a doomer, but after reading on this board for a couple of years, I have learned alot. I personally think this country is headed for the Greater Depression. People are holding onto their money like you wouldn't believe. I know I am.
With that being said, I just bought a house. Why? I was able to negotiate a good price and I couldn't rent an equivalent house for what my mortgage payment will be. And we needed a place to live...
My prediction is that the country will have to do away with it's "irrational exuberance" mentality. All people (except the super wealthy) will learn to live frugally and well within their means. Middle class folks won't be buying the McMansions and the 3000+ sq ft homes anymore. Upkeep and electricity alone costs too much for the new world order. Folks will be stretching every dime they have, living green, and it will be a major adjustment from the easy money lifestyle we have had these past 7-8 years.
That's not doom, that's just my prediction. I could be wrong. For the sake of our economy and middle class Americans, I hope I'm wrong....
Judging from the number of posts the OP has verses yours, it looks like you are the one who hasn't been around too long. It's time for someone to be a litttle positive around here.
I was being sarcastic, but whatever you say......
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.
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.
