Not so great depression...
- Thread starter BOSS
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In Trouble
you are right Boss. we (usa) are in really bad trouble with our financial institutions and large lenders. during the hey day, the last ten years, the big lenders threw the rules out the window and lended money to all who would apply. remember all those HUGE profits and bonuses they made. everything that goes up comes down. and we are in for alot worse than Bear Stearns i fear.
you are right Boss. we (usa) are in really bad trouble with our financial institutions and large lenders. during the hey day, the last ten years, the big lenders threw the rules out the window and lended money to all who would apply. remember all those HUGE profits and bonuses they made. everything that goes up comes down. and we are in for alot worse than Bear Stearns i fear.
I find this very interesting also. And something else that is not hitting the news is the federal reserve's buy out of the forclosed properties of these banking institutions blunder. If they except the feds proposal, 200 billion for all the forclosed real estate, and the feds telling them they have to loosen up on lending. Does anyone else see this as a vicious circle we are in.
This is big news, the fed reserve has our gold, now they want as much real estate as they can get their hands on for "maybe" pennies on the dollar.
JFK wanted the feds out of our lives, I think he was spot on. But we will never know why now.
This is big news, the fed reserve has our gold, now they want as much real estate as they can get their hands on for "maybe" pennies on the dollar.
JFK wanted the feds out of our lives, I think he was spot on. But we will never know why now.
Could bring a huge shift
I think we are seeing a huge shift in the American way of life. The old idea was to use leverage to maximize whatever. Hedge funds, businesses and even everyday people when they bought homes used leverage.
But today all that is being turned on it's head. My crystal ball has been hazy in the past and I really hope it is not looking at things too clearly now because if it is right, we are in for some very different times.
We have for the most part lived our lives, with a expectation of getting ahead. With that premise, we bought homes that were just a little more expensive. We bought cars that were just a little more expensive and we were very willing to shop for designer brand name products.
But over the last decade, we have seen an untotaled number of good paying jobs, move overseas. But for the most part people just continued to live their old lifestyle, they just borrowed more and used their credit cards more.
The bubble was kept alive by bringing in more and more people. the majority of these people were getting in over their head right from the start, but that old adage that you can't lose money on property and the fact that they watched so many others live the life, that they just jumped in.
Now that it is coming unwound, leverage is working against the system and like Boss posted even the likes of Bear Stearns are being swept up in the crash. The real question is....will our old way of life come back?
Home values are falling and more and more people are being caught up in the crash. Just yesterday, I got a letter from a homeowner, (I am treasurer of our homeowners association) stating that after trying to sell his house for over two years, he just turned over the home to the bank and is walking away. The real sad part is that the amount that is owed on the home is about 40% less that what the that home could have sold for not too long ago.
The experts keeping saying that we are turning to a service oriented economy, but I am really having a hard time understanding how that is going to work. Let's say you are an electrician. The prices that were charged in the past were based on their skill and what the market could bear. But today with more and more of the population overextended, if your own income has fallen and your networth has fallen, how can you afford to pay the price that an electrician charges. And for the electrician, he has a choice to make, keep charging his old rate and watch the work dry up, or work for less, which in turn makes the cycle grow. The government can only do so much, so really I hope I'm wrong and I am misunderstanding how things will work out.
And we as business owners, in a luxury item business, are being swept up in the tide. I don't think too many of us have ever seen anything like this. We are in for some very interetsing times.
I think we are seeing a huge shift in the American way of life. The old idea was to use leverage to maximize whatever. Hedge funds, businesses and even everyday people when they bought homes used leverage.
But today all that is being turned on it's head. My crystal ball has been hazy in the past and I really hope it is not looking at things too clearly now because if it is right, we are in for some very different times.
We have for the most part lived our lives, with a expectation of getting ahead. With that premise, we bought homes that were just a little more expensive. We bought cars that were just a little more expensive and we were very willing to shop for designer brand name products.
But over the last decade, we have seen an untotaled number of good paying jobs, move overseas. But for the most part people just continued to live their old lifestyle, they just borrowed more and used their credit cards more.
The bubble was kept alive by bringing in more and more people. the majority of these people were getting in over their head right from the start, but that old adage that you can't lose money on property and the fact that they watched so many others live the life, that they just jumped in.
Now that it is coming unwound, leverage is working against the system and like Boss posted even the likes of Bear Stearns are being swept up in the crash. The real question is....will our old way of life come back?
Home values are falling and more and more people are being caught up in the crash. Just yesterday, I got a letter from a homeowner, (I am treasurer of our homeowners association) stating that after trying to sell his house for over two years, he just turned over the home to the bank and is walking away. The real sad part is that the amount that is owed on the home is about 40% less that what the that home could have sold for not too long ago.
The experts keeping saying that we are turning to a service oriented economy, but I am really having a hard time understanding how that is going to work. Let's say you are an electrician. The prices that were charged in the past were based on their skill and what the market could bear. But today with more and more of the population overextended, if your own income has fallen and your networth has fallen, how can you afford to pay the price that an electrician charges. And for the electrician, he has a choice to make, keep charging his old rate and watch the work dry up, or work for less, which in turn makes the cycle grow. The government can only do so much, so really I hope I'm wrong and I am misunderstanding how things will work out.
And we as business owners, in a luxury item business, are being swept up in the tide. I don't think too many of us have ever seen anything like this. We are in for some very interetsing times.
Yes Gentlemen... you are all right, and I so wish we were wrong...
Speaking to my dad, who remembers the years immediately following the Great Depression of 1930-31 and forward, and his words on gasoline rationing, food shortages, and the housing collapse of that time, things to him look even more bleak this time around.
Something about, "The bigger they are..the harder they fall"...meaning that our own nation is much bigger than it was then, there are many more contributing factors in place these days that will lead to a much harder fall....
The number for February 2008 is 63,200...just for February...that number is the "real number" of job losses across the US. It takes into account new jobs as a plus (+) and loses as a minus (-) for an actual 63,200 loss...in just one month.
Homeowners, as sfox mentioned, are giving back their homes to the bank, they can not make the payments...others still like several mentioned on CNN Saturday are resorting to arson of their own dwelling, going to court and stating that YES I DID BURN MY HOME and are receiving very light sentences from the courts...
Why the Fed would want the homes I have no idea, other than to launch a low rate mortgage feud...but as we have seen with Fema, maybe they just want to get rid of those asbestos filled trailers...
JFK was right, the Fed has no clue usually as to what to do in the publics best interests...they tend to make things worse...
Again I say...get rid of your debt...as fast as you can...the road ahead is going to be very rough, and we're still on the entrance ramp to the freeway(free fall)...the real crash is up the road a piece...
Speaking to my dad, who remembers the years immediately following the Great Depression of 1930-31 and forward, and his words on gasoline rationing, food shortages, and the housing collapse of that time, things to him look even more bleak this time around.
Something about, "The bigger they are..the harder they fall"...meaning that our own nation is much bigger than it was then, there are many more contributing factors in place these days that will lead to a much harder fall....
The number for February 2008 is 63,200...just for February...that number is the "real number" of job losses across the US. It takes into account new jobs as a plus (+) and loses as a minus (-) for an actual 63,200 loss...in just one month.
Homeowners, as sfox mentioned, are giving back their homes to the bank, they can not make the payments...others still like several mentioned on CNN Saturday are resorting to arson of their own dwelling, going to court and stating that YES I DID BURN MY HOME and are receiving very light sentences from the courts...
Why the Fed would want the homes I have no idea, other than to launch a low rate mortgage feud...but as we have seen with Fema, maybe they just want to get rid of those asbestos filled trailers...
JFK was right, the Fed has no clue usually as to what to do in the publics best interests...they tend to make things worse...
Again I say...get rid of your debt...as fast as you can...the road ahead is going to be very rough, and we're still on the entrance ramp to the freeway(free fall)...the real crash is up the road a piece...
BamaE4U
New Member
So that means. . . .
Hillobama for you?
This should probably go into marketing, but I like the way these guys think.
Hillobama for you?
This should probably go into marketing, but I like the way these guys think.
LOL..thats funny...more like Obamaton...maybe... I do know it won't be McCain!!
I did change my registration to ignorant twit, they asked me if I was in the Senate...
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