Bank Dilemmas / Economy Downfall

[LBKEN41]

i actually think that what's happening with the housing market right now is, in a way, a good thing... people have been far too dependent on credit and living in debt, hence spending money on things that aren't in their price range with the expectation that it will get paid off... maybe if someone's house gets repossessed, they will be more careful with their money next time

Although your point has validity, it would be fair to mention those who were given very bad financial advise and were put into a home by aggressive lenders who basically committed fraud. Ranging from hidden fees, finagled financials and incorrect information about pricing (rates such as ARM's and Ballon loans). Not to mention the fact that the housing market (especially in SoCal) has been so crazy. Some people out there thought they were getting in a situation they could afford and then all of a sudden the rug gets pulled from under them (see sub-prime mortgage).

 

[Jax$MkV]

Although your point has validity, it would be fair to mention those who were given very bad financial advise and were put into a home by aggressive lenders who basically committed fraud. Ranging from hidden fees, finagled financials and incorrect information about pricing (rates such as ARM's and Ballon loans). Not to mention the fact that the housing market (especially in SoCal) has been so crazy. Some people out there thought they were getting in a situation they could afford and then all of a sudden the rug gets pulled from under them (see sub-prime mortgage).

Yeah, especially those young "hotshot" mortgage brokers that just flat out FAILED.

 

[LBKEN41]

Yeah, especially those young "hotshot" mortgage brokers that just flat out FAILED.

:word: I like to think of them as filth.

 

[rcnu71299]

Although your point has validity, it would be fair to mention those who were given very bad financial advise and were put into a home by aggressive lenders who basically committed fraud. Ranging from hidden fees, finagled financials and incorrect information about pricing (rates such as ARM's and Ballon loans). Not to mention the fact that the housing market (especially in SoCal) has been so crazy. Some people out there thought they were getting in a situation they could afford and then all of a sudden the rug gets pulled from under them (see sub-prime mortgage).

true... when a situation gets to the point like the current status of the financial market, it's never really one thing that causes it... usually things have a way of snowballing

 

[LBKEN41]

true... when a situation gets to the point like the current status of the financial market, it's never really one thing that causes it... usually things have a way of snowballing

I absolutely agree...it'll be an interesting time with the election and all. Who knows what'll happen to the economy.

 

[julito04]

Although your point has validity, it would be fair to mention those who were given very bad financial advise and were put into a home by aggressive lenders who basically committed fraud. Ranging from hidden fees, finagled financials and incorrect information about pricing (rates such as ARM's and Ballon loans). Not to mention the fact that the housing market (especially in SoCal) has been so crazy. Some people out there thought they were getting in a situation they could afford and then all of a sudden the rug gets pulled from under them (see sub-prime mortgage).

Very true. I have to reorder BPO's all the time due to the fact that California and Florida's value keep on dropping weekly. A BPO that I did a month ago or later will no longer be valid due to the drastic decrease in property value.
We just have so many bad loans out there due to the loans that were pushed out without legit income verification, asset confirmation, pushy realtors that lied, immigrants that dont speak english that were put into a HORRIBLE situation. It pretty much comes down to how the fuck could someone get a $750,000.00 house making minimum wage? Lies lol, Either the broker, Realtor or customer lied on the application. I deal with so many people everyday that say "I still dont know how got into this house but I went for it because it was offered" and then you look at their Loan app and it says they had $XXX,XXX in assets when they say they dont even own a toothbrush lol. Its sad how people can get taken advantage of so easily.

 

[LBKEN41]

Very true. I have to reorder BPO's all the time due to the fact that California and Florida's value keep on dropping weekly. A BPO that I did a month ago or later will no longer be valid due to the drastic decrease in property value.
We just have so many bad loans out there due to the loans that were pushed out without legit income verification, asset confirmation, pushy realtors that lied, immigrants that dont speak english that were put into a HORRIBLE situation. It pretty much comes down to how the fuck could someone get a $750,000.00 house making minimum wage? Lies lol, Either the broker, Realtor or customer lied on the application. I deal with so many people everyday that say "I still dont know how got into this house but I went for it because it was offered" and then you look at their Loan app and it says they had $XXX,XXX in assets when they say they dont even own a toothbrush lol. Its sad how people can get taken advantage of so easily.

:word: Serious, I used to work for a different lender about three years back out here in SoCal when things were good. The market was growing so exponentially high that we all knew it was going to come to screeching halt. Luckily that lender was doing things correctly and focused on refi's rather than new purchases. I know they're probably hurting because of the dramatic downtrend, but at they're afloat because they didn't write bad loans. If they would have finangled financials I know they would be under.

 

[ShadowGLI]

its so very nice to know we're in the Saudi Royalty and Chinese Government's pockets. There should be a public execution to make an example of Bush and Cheney, I know its against the bill of rights but so are they

Why start following the bill of rights, this administration put those to the side long ago. :thumbdown:

 

[kdude]

I actually think that what's happening with the housing market right now is, in a way, a good thing... people have been far too dependent on credit and living in debt, hence spending money on things that aren't in their price range with the expectation that it will get paid off... maybe if someone's house gets repossessed, they will be more careful with their money next time

The problem with that is that no one is going to learn a thing. Not the sub prime jokes that tried to play "housie" when they knew full well they would not be able to afford it going forward. Not the vicious lenders who lied or finagled to get their commissions. Not the banks. Not anyone.

The reason is the government is now bailing everyone out everywhere, in both private lives and now public lives (businesses). This disastrous government behavior has effectively had a psychological impact over decades and that it is eliminating the fear, or risk, of investing. Many people believed buying a house is/was an investment and would only go up, up, up. So it's just going to spurn new ways for these morons all across the board to take even higher risks, because they know a government bailout is coming.

The government assumes we are stupid and that we don't know that if Fannie and Freddie and other banks fail, that the whole system is at risk. Well the bad parts of it need to fail because it was a corrupt system for a long time now. This entitlement culture has got to go, big time.

But the government will keep subsidizing housing and everything else, so I'm off to work to go pay for all of the lowlifes that make bad decisions. They are subsidizing converter boxes for god sakes.

Welcome to the United States of Socialism.

 

[Myfast_GTI]

Welcome to the United States of Socialism.

I agree with everything you said... but your last sentence I quoted above scares the hell out of me! The worst thing is it's becoming truer everyday.

 

[brekdown29]

The problem with that is that no one is going to learn a thing. Not the sub prime jokes that tried to play "housie" when they knew full well they would not be able to afford it going forward. Not the vicious lenders who lied or finagled to get their commissions. Not the banks. Not anyone.

The reason is the government is now bailing everyone out everywhere, in both private lives and now public lives (businesses). This disastrous government behavior has effectively had a psychological impact over decades and that it is eliminating the fear, or risk, of investing. Many people believed buying a house is/was an investment and would only go up, up, up. So it's just going to spurn new ways for these morons all across the board to take even higher risks, because they know a government bailout is coming.

The government assumes we are stupid and that we don't know that if Fannie and Freddie and other banks fail, that the whole system is at risk. Well the bad parts of it need to fail because it was a corrupt system for a long time now. This entitlement culture has got to go, big time.

But the government will keep subsidizing housing and everything else, so I'm off to work to go pay for all of the lowlifes that make bad decisions. They are subsidizing converter boxes for god sakes.

Welcome to the United States of Socialism.

While a lot of what you say is true and valid, a big reason we got into this mess that we are currently in is because our government put too much faith into free market capitalism. None of this stuff would have happened had there been an inkling of government oversight and regulation on the hedge funds and conduits. Government is a necessary evil as most people would agree. So since it must exist it's up to American citizens to elect officials who will practice good government which is a subjective statement. Most reasonable people prefer a limited government that is still effective and we've strayed very far from that unfortunately.

 

[boaz]

is there a good chance of wamu closing down? if not is it a good idea to buy wamu shares? as in there is nowhere to go but up? (if optimistically viewed)

 

[LBKEN41]

^Eh, it's a hard one to gauge but if you really are looking into buying shares I would wait for it to come up a little more. I don't know if their decline is complete just yet. Keep a close eye on it and once you notice it consistently climbing, it might be a good time to buy.

 

[RedRabidRabbit]

best bet right here. or if you have $600k in an account, it would be time to invest in a $2k safe and store the $498k in it at your crib or somewhere nice and hidden.

Really, that is a pretty retarded way to keep your money.

500k @ a modest 6% is 30k a year in interest, and it compounds each year... So the next years is 31,800, then 33,708, etc, and that's not even touching it, just leaving it be.

Lots of money to lose by leaving it in a safe.