"We're not about to go into a situation where (real estate) prices will go down. There is no evidence home prices are going to collapse."~~Alan Greenspan, May 21, 2006
The damage from the subprime market has been largely contained. Fortunately, the financial system and the economy are strong enough to weather this storm.~~Richard Fisher, Federal Reserve Bank of Dallas President, Apr 4, 2007
"All that said, given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system."~~Fed Chairman Ben Bernanke, May 17, 2007
I think this is total bullshit. I saw homes in my neighborhood that were WAY out of any conceiveable budget being bought by families who can not possibly have believed they could afford them. I don’t care who wants to claim lenders were greedy and lied - no fricking way someone driving a beater car thinks they can live in a $450K house. The lawns were destroyed in one summer, landscaping died, some of the houses look years old instead of new. How the heck a brick home can look worn after just a short time is beyond me.
The fact that this is being proposed by the Bank of America makes it all the more suspect to me.
They were about the first to jump on the bandwagon of giving bank accounts, free transfers of funds to Mexico, and loans to illegal intruders.
With as many persons involved in a no-proof-of-income loan, from the seller’s agent to the appraisers to the title companies and the builders, it would be hard to place blame.
If we really step back from it all, I think we would find that a great number of these loans have been sold to people under 30, who think that anything and everything they WANT is the same as what they NEED. There are 2+ generations of USA children out there who are losing their homes to adjustable loans and won’t sell the $50,000 boat they use once or twice a summer, and won’t EVER think of looking at a car as something they could drive for 7-10 years instead of 24 months.
They insist they have to have plasma HD tv sets costing $5000 and all the latest and greatest sound equipment in their homes and cars. Eating out-”entertainment”-I could go on and on.
I know a couple that is in trouble with their house. She recently quit her job, and is dragging her feet trying to get another closer to home. They own a boat they spent over $30,000 on, and I think it hasn’t been in the water more than 4 times in 2 summers. She says she wants to spend time with her totally spoiled child until it goes to kindergarten half days this fall. Then she cries about having to pay $30/day for child care. I ask her if she would watch any child for 10 hours a day for $3/hour, and she is horrified at the thought. But she expects someone else to do that.
She talks about just walking away from the house and going to another part of the country and renting and “starting over”. I cannot convince her that this will follow her for a number of years, and that she may never own her own home again. There are a large number of tax deductions this couple has with their current home. I cannot get her to look at her tax return and see how much less they would have in discretionary income if they bolt.
Spoiled kids raising more spoiled kids and not having a clue why or how they got into this mess.
Adults they know have tried to help them go over their expenses and teach them how to cut down, but they reject every offer given them on the topic.
This country has gone so far off the rails, its not even funny. It seems our leadership are like brain dead zombies, falling all over themselves to make sure the irresponsible don’t suffer the consequences of their actions. And, once they get their bailout, the banks will be back to their newly learned tricks. Despite the FED cuts, consumer interest rates have gone up while CD rates have gone down.
I paid for my home- don’t want to pay for someone else’s.
F the banks and F the borrowers who now can’t pay their mortgages....if they get a break.....I who have paid on time forever....should get one first!!!!