OT: When is the bubble going to pop?

The Federal Reserve was created in 1913, dumbass.

Reply to
manny
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Pour vodka on your breakfast cereal and you'll see Hunt's version of history.

Reply to
JoeSpareBedroom

I can't speak on state laws regarding canceled mortgages. But mortgage brokers don't lend money. They get the lender and the borrower together. They are to loans what a real estate broker is to homes. The lender is almost always a bank (or a savings & loan bank). The bank will write the paper, lend the money and do the paper work and then sell the loan (an S&L bank will hold the loan and collect the payments).

In our neighborhood, a lot of mortgages were written 5 to 7 years ago the had really low payments. They would pay only a portion of the interest charges for the term of the mortgage and at the end of the term, the borrower was presented with a bill for the entire amount of the loan, plus unpaid interest. He would usually have 30 to 60 days to pay it off or loose the house.

Adjustable Rate Mortgages are limited in most states. The rate can only change by a certain amount, determined by the state. But they can be adjusted each and every year by the maximum amount.

Jack

Reply to
Retired VIP

ARMs, you mean (re: balloon mortgages)? I could never figure out - still can't - why on earth people take out ARMs if they aren't planning on reselling before the window of the locked interest rate's going to expire. A disaster waiting to happen if one plans on staying in the house longer than a few years.

Cathy

Reply to
Cathy F.

It's not true in Chicago. I live in an apartment building that was made over into condos 2 years ago. He still hasn't sold them all, despite increasing the price from 120, 000 to 150,000 for the smallest units. They delivered the same number of phone books as the year before and we've got LOTS of leftovers. Chicago is slowly dropping and this punk kid that owns this condo is living in some cuckoo cloud land. Chicago is glutted with condos and houses, prices have been falling for close to 2 years now.

Just what market do you live in?

Charles the Curmudgeon

Reply to
CharlesTheCurmudgeon

Holy Cow, some common sense in this group!

The Democrats say they're all for more exploration, but when some interest group cries, they lock the whole thing up in court for years. Also, the oil companies don't really want to build new refineries (nor can they for the same litigations) because they're running full capacity now, and full capacity means money in the bank. Like you said, Free Market; more people driving more SUVs means more demand, and with limited capabilities, this means higher price. Get the government, the Sierra Club and GreenPeace out of the way and maybe we can get somewhere.

Until then, there's nowhere to go but up. I can't wait to see Exxon/ Mobil's balance sheet for this quarter...

Reply to
Hachiroku

This means it's OK for brokers and bankers to take advantage of them?

Reply to
Hachiroku

Holy Crap! Jeff and I see eye to eye on something?!?!?!

This is it, 'Lizabeth!!!

Reply to
Hachiroku

Jeff hit this one on the head, dbu. The mortgage lenders did some pretty sleazy things, made people think they could afford more than they could and gave them misleading information.

A LOT of people were told, Oh, don't worry! By the time the interest rate goes up on this mortgage, the house will be worth so much more you'll be able to refinance with some equity, and get a lower fixed rate.

Problem was, by that time so many people had defaulted that property values went down.

There are a lot of people who should be jailed because of this...

Reply to
Hachiroku

A lot of people were told that before the interest rate went up they would be able to refinance with equity, because the value of their home would have increased by that time. Unfortunately, that wasn't the case, and in a lot of cases the actual value of the home had declined, and there was no equity, and no bank would refinance.

Reply to
Hachiroku

The last big increase was caused by the Chinese bidding up the price, according to the BBC. That was at $65/BBL

Reply to
Hachiroku

Reply to
Mike hunt

This is only because, for once, you're right about something!

Reply to
Jeff

Seems to me warning bells should've gone off in their (buyers') heads... if it sounds too good to be true, it's... too good to be true. A mortgage is

*way* too big of an investment/expense to mess around with when the math & future possibilities are guesswork & 'iffy'. A modest reading up on the subject of ARMs & buyers would know they're a problem waiting to happen, no matter the state of the housing market at the time of purchase - unless they truly plan to live in the house for just a few years before selling & moving on.

Cathy

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Reply to
Cathy F.

Hey! I'm not saying I'm always right...

but I'm never wrong...

Reply to
Hachiroku

Most people are so thrilled with getting their own home, and usually a home they have picked and want, and also don't know enough about How Things Work, that they get overwhelmed and will sign away without reading the Fine Print.

Also, the brokers were telling them they could afford more by cutting initial interest rates so the buyers would buy more home than they could afford.

I went for a Fixed rate and settled for less of a house.

Reply to
Hachiroku

I am not sure how much of this is due to increased demand and decreased supply and how much is due to speculation: .

Perhaps I was incorrect about the effect of speculators on crude oil prices.

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Jeff

Reply to
Jeff

Next time I tell you something, just say "Yes". I never lie and I'm always right.

"In Washington, meanwhile, the Commodity Futures Trading Commission revealed that it is six months into a wide-ranging investigation of U.S. oil markets, with a focus on possible price manipulation. The CFTC also announced a handful of initiatives designed to increase transparency of the energy futures markets."

Reply to
JoeSpareBedroom

You may not be lying, but you are not always right.

Reply to
Jeff

I am always right. I have knowledge you can only dream of. Another 40 years and you may catch up if you pay attention.

Reply to
JoeSpareBedroom

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