Posted on 09/24/2008 10:34:43 AM PDT by HAL9000
Obviously if someone has 90% of a 250K mortgage paid, they will have no trouble refinancing. Even in this market.
I am making the point that people who got these homes on zero down, have the least to lose. People who worked hard to save a down payment should be given a little help.
If they are not in the foreclosure process already.
I was thinking the exact same thing. Ramsey is tough but he’s right.
He got us, or should I say, we got ourselves out of a mess by following his plan.
We bailed out the big banks in 1983, over the ojections of libertarians, conservative organizations such as the Conservative Caucus, liberals like Ralph Nader, and others. The result was that we got this even bigger failure.
As long as we keep socializing risk, we’re going to keep getting riskier and riskier behavior. We have to stop this.
Say no to the Big Bank Bailout.
What did he say?
No, it’s not.
Na.
How the Democrats Created the Financial Crisis: Kevin Hassett
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0
The Diversity Recession, or How Affirmative Action Helped Cause the Housing Crisis
Maybe I'm just not keeping up, but I haven't seen any articles/comments on what to me has become obvious; the Dims, in cooperation with "community organizers" and others like Obamessiah and the like are intimately tied to this financial market meltdown:
Congress Tries To Fix What It Broke
Unbelievable!
LOL, good grief.
What’s with old dead guy?
Go grab his kids and hang them if you want blood.
In the meantime........I’ll stick with the live ones.
Andrew Cuomo and Fannie and Freddie
How the youngest Housing and Urban Development secretary in history gave birth to the mortgage crisis
By Wayne Barrett
published: August 05, 2008
There are as many starting points for the mortgage meltdown as there are
Andrew Cuomo, the youngest Housing and Urban Development secretary in history, made a series of decisions between 1997 and 2001 that gave birth to the country’s current crisis. He took actions that—in combination with many other factors—helped plunge Fannie and Freddie into the subprime markets without putting in place the means to monitor their increasingly risky investments. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no money down, and he legalized what a federal judge has branded “kickbacks” to brokers that have fueled the sale of overpriced and unsupportable loans. Three to four million families are now facing foreclosure, and Cuomo is one of the reasons why.
http://www.villagevoice.com/content/printVersion/541234%3C/p%3E
“Would some knowledgeable FReeper please suggest to me what the heck is going to happen now, and what I might possibly do? I am NOT a financial genius...obviously.”
Well, my personal suggestion is that you start listening to Dave Ramsey. His podcasts are on itunes and one hour a day is free. He has a refreshing, anti-debt philosophy that is based Christianity. He’s fun to listen to as well. His books are available at the library. Local churches in your area probably offer his “financial peace university.”
You might want to take a hard look at that car loan. I don’t see how you’re able to swing it on your income; you can get a beater for $1000 that will get you from point a to point b.
You also have an income crisis. Like I’m telling you something you don’t know, eh? Might want to start thinking about doing jobs on the side to get out of debt. As Dave Ramsey is fond of suggesting: delivering pizzas or mowing lawns to make extra bucks.
“I expect derision, but if some kernel of truth can come out of it, so be it.”
Why would you expect derision? FReepers are generally good folks. We might throw the furniture at each other over politics, but rarely will someone in need be turned away, scorned, or otherwise ill treated. I expect that you’ll get a lot of useful suggestions and support.”
You are right about that - I remember how many people here extended their hearts to the Chinese people (some of whom were posting valuable info on FR) after the big earthquake there this summer.
So, I’m going to throw the following out: My own situation is that I’ve been laid off after almost 20 years at the same company, and basically my whole life at the same thing. I am darn good at what I do - but most of the industry has moved to China. I have a wife and a 2-year old (but am in my 50’s myself.) My parents are both alive and need some physical help (not financial help, at present) from my family, and I am the only child near enough to provide that. So, working in China is not an attractive option (as if it would be anyway!) I have a little savings, and my own little business that used to be “on the side”, but is now our best shot at the future, it would appear. Or maybe I just think that because I love what I do. I have quite a bit of inventory, but I don’t forsee becoming profitable in under a year, even if the economy is good. Some further investment is needed. My retirement plan was rolled over into my own IRA before I was laid off (basically the company I worked for could not afford to keep contributing to it, anyway.) I do some repair type work in my business, and am thinking that expanding that might make more sense than developing new products, on the theory that in a bad economy, people may try to save money by having their old stuff repaired, rather than buy new — if I can keep repair prices below the prices of new Chinese junk, that is... On the other hand, I KNOW I can make better stuff than most of the Chinese products: Is it possible to push quality in a poor economy?
Additionally, is it better to keep some money in the bank (not that I have a huge amount), or go for broke with the business? Is it possible that money in the bank could be at risk? I would not think so — it’s all covered by the FDIC, but, some posters here seem to be postulating a bigger meltdown than I ever would have guessed. And I’ll admit the current situation has gone further that I would have guessed. What IS the best place to have one’s money in this type situation?
Now, I have my own thoughts and opinions on all of the above. And, yes, I have been listening to Dave Ramsey “on and off”, many years, and follow his principles. (I have been debt free for over 15 years.) But, I’d like to hear some opinions from others.
I’ll check back on this thread tomorrow — it’s getting late and I’ve gotta work on my website a bit now! Thanks.
Machinery, tools to work the earth, and structural improvements to enable production of a victory garden are a good investment.
I'm in a similar situation.
Me too.Relationships you can depend upon are also a good investment.I have a great deal of respect for the community relationships I see in the heartland where my wife grew up:
IMHO, it's time to put the Heartland back in the Homeland.=Bill
I’m sorry to hear about your situation.
About your business. The first question I would ask is whether or not it’s actually making money. If it is, is it making enough on an hourly basis (i.e. amount cleared divided by hours spent) to somewhat approximate what you were earning, or failing that, enough to support you and yours? If so, then I think the obvious answer is to continue with your business. If not, then I think it’s time to stand back and take a hard, objective look at whether this is something you’re actually going to be able to make a living at.
If you’re so passionate about what you were doing that you wanted to do it as a hobby/side business as well, then it’s obvious that this is something you want to do. But it can’t just be a full time hobby. It needs to be something that you can earn a living at.
As for your IRA, you listen to Dave Ramsey and I would echo his advice to a point. You don’t cash in an IRA except as a last resort. The tax implications are horrible. Where I differ with Dave Ramsey is in his investment strategies. I’m just not a fan of the stock market or stock market mutual funds right now.
Predictions of the demise of the banking system are overblown in my view. Even if we end up in a financial armageddon, FDIC insurance will probably still be there. The government still has the power of the printing press when it comes to money. The problem you run into there is with dollars being devalued.
If you’re concerned about your bank, here’s an observation I’m not seeing elsewhere. Credit unions have their own separate insurance fund (NCUA) that is insured by the government under the same terms as the FDIC. However, the credit unions for the most part didn’t get involved with the rotten investments that the banks did in order to improve their bottom line. A well capitalized credit union may be a better bet for those who are concerned about their bank.
Finally, my standard disclaimer: I am not a lawyer, professional investment adviser, or anything else. I’m just some schmoe on the internet. The advice is free, and that may well be more than what it’s worth! Follow it at your risk.
Anyway, good luck.
My advice.....concentrate on the living UnAmerican Democrat Party.
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