| StockFetcher Forums · General Discussion · A Radical Problem Requires A Radical Solution | << 1 2 >>Post Follow-up |
| johnpaulca 12,036 posts msg #71287 - Ignore johnpaulca |
2/10/2009 1:46:54 PM Source: BigTrends It's February 2009, and the housing/credit/mortgage crisis is still making waves. Optimistically, I thought this would have been snuffed out by now...or at least some 'working' solution would be at hand. But we know lawmakers, and their reaction seems too slow and prone to lengthening the process. Below is a possible resolution, but take a big gulp first before you read it...because you won't believe your eyes. Leaving the Past Behind Us Blame...it's passed around, we all know that. Too many foreclosures, too much bailout, too many lies, too much deception. Everyone deserves some blame for the housing mess we're in, ok? Bankers, brokers, mortgage companies, appraisers, buyers, homebuilders, politicians....if you've been living under a rock for about 10 years, you may be blameless. I've probably left out a few groups, too. But when do we stop blaming and start looking for answers? Do we stew in our mud and pout forever? I say NO. The Solution This monster needs to be dealt with not using a butter knife, but a giant sword. Let's get to the heart of it: * Take a look at EVERY mortgage in the US. * Government offers to payoff the ENTIRE mortgage, but takes a 35% stake in the property, only to be paid back if the home is sold * Government offers to payoff HALF the mortgage, but takes a 25% stake in the property, only to be paid back if the home is sold. * Government offers to payoff QUARTER of the mortgage, but takes a 15% stake in the property, only to be paid back if the home is sold. Morally wrong? Perhaps...but how about the sub primes? That borders on ridiculous...and the stories that have come about. What does this solution accomplish? Many things: * Takes bad/toxic mortgages off the market for good * Banks get paid back their principal balances without any recourse from taxpayers, they can loan out again * Foreclosures will stop or slow down significantly, and if the homeowner loses his/her job...won't get thrown out of their home. * Puts a floor under housing prices * Income meant to pay mortgages can be used to spend in the economy, invest or save If you're into golf vernacular, this is called a 'mulligan'....or a do-over. Yes, it seems wrong...but we'll never get out of this crisis without some serious action....and until the powers that be are willing to put blame behind, then we'll continue to be trapped in this web for as long as it takes. |
| petrolpeter 439 posts msg #71308 - Ignore petrolpeter |
2/11/2009 4:45:29 AM Might as well,those Yo-Yos have already did that with most of the banks,then we can all play a big game of Obamanopoly.LOL.There is a silver lining to this housing debacle,that is that there are now many new and refurbished homes here in America and those homes aren't going anywhere.The housing market will take care of it's self when prices reflect a new market and if the eager banks that created way over stretched contracts get crushed,so be it.There are 5 banks for every 1 waiting in line to pick up the pieces and take over when the price is right anyway.I remember working my tail off to fully own our home/property 2 years ago and at the same time (investment?)banks and their sidekick appraisers ran home prices up triple value while giving limitless credit to ensure that they get purchased.Now the value drops off a bit and they start crying in which I have no pity for whatsoever.So the greedy bank looses it's money and the thrifty bank down the street gets a real mortgage and a real homeowner via price correction?So what.This could get much worse when the Bush tax cuts run out and the tax piper comes calling for his trillions along with a bump in interest rates,the new game in DC might be Shoots and Ladders. |
| johnpaulca 12,036 posts msg #71311 - Ignore johnpaulca |
2/11/2009 9:02:40 AM Too many houses on the market...ha, I made two cash offer on houses almost 1 year ago and they were 10% above asking price...I am still waiting for an answer from the bank. |
| petrolpeter 439 posts msg #71322 - Ignore petrolpeter |
2/11/2009 1:03:26 PM Kinda makes you wonder if all this daily fear mongering by the Obamians is ulterior motive,something projected in the future or what?I remember purchasing a decent farmstead with buildings back in the early 90s recession for 34K when interest rates were much higher.The equivalent these days I suppose would be getting a shot at a 600K home for 250-300K.As an example be careful not to pay the 450K they may ask because if interest rates moving up is going to be bad for home prices and could leg down again.Interest rates are on one end of the teeter-totter and home and building material values are on the other.When interest rates are dropping home prices scream higher but when they may rise?I hope you get that deal JP. |
| bpmiller1 26 posts msg #71328 - Ignore bpmiller1 modified |
2/11/2009 5:25:48 PM The global financial crisis has been called the 100 year storm, The finest minds in the world are trying to solve it but the truth is there is no solution. It reminds me of the Alchemists whose job was to turn metal into gold or so they convinced the King.(steady work , and they got to live in the castle ). There are no answers but for people who throw out “Obama is going to screw things up “ Is just laughable. I heard that before the election and it really magnifies the mental pigmies who either think there is a definite solution or dont think things are as messed up as they can be pre Obama, Maybe they think their team has the answer and that all that has to happen is for Obama to implement their plan to make things better . What can be said to those folks? There are no solutions but they know where to find them. Nice conundrum you’ve manufactured and there are as many answers to the problem as there are questions. One solution is just as wrong as the next but i like Obamas answer, "I was the one elected" or in other words I get to make the mistakes here not you. That's what leadership is all about so go ahead and point the finger at Obama, he can take it and it makes you feel better without thinking it through. The finest minds dont know what you know. |
| petrolpeter 439 posts msg #71482 - Ignore petrolpeter |
2/17/2009 1:58:54 PM JP,check this out.Just reported on FOXFinancial about foreclosures in Surprise,Arizona near Phoenix talking to a man facing foreclosure;$265,000 homes going for $104,000.Really nice looking homes in arguably one on the nicest areas in the country.Just had an awesome AZ vac past April,cannot believe these recessionary prices,almost the price of a nice campsite! |
| johnpaulca 12,036 posts msg #71483 - Ignore johnpaulca |
2/17/2009 3:35:01 PM I think these houses are listed at sucker prices. They are listed low to create a pseudo auction. Why when you agree to pay the asking price or greater you never hear from them. Last year was great to buy because our dollar was higher than the green back. |
| petrolpeter 439 posts msg #71501 - Ignore petrolpeter |
2/18/2009 1:13:45 PM Guess all a guy can do is fill out an offer to purchase/deed transfer form and staple a check to it. |
| johnpaulca 12,036 posts msg #71502 - Ignore johnpaulca |
2/18/2009 1:24:50 PM Exactly what I did...waiting...waiting. |
| petrolpeter 439 posts msg #71503 - Ignore petrolpeter |
2/18/2009 1:56:17 PM Poke em in the ribs a little like the banks did to their customers a few years back.Tell them your offer is aging every day and prices may have declined more since and if they don't hurry you will have to re-evaluate that offer.Cash is not only King but Queen,parliament,and keys to the whole kingdom these days. |
| StockFetcher Forums · General Discussion · A Radical Problem Requires A Radical Solution | << 1 2 >>Post Follow-up |
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