Hope none of you good Puna folks are effected..

[loffelkopffl]

http://www.reuters.com/articlePrint?arti...0620070314

[aprild]

Jared,

I think that wishing a depression upon yourself (and others) shows a huge lack of experience in the world. There is no way that you will not be affected. You may be less affected than many, but, to me, the pain and suffering and the general malaise in the country feels horrible. I hate recessions--no one is having any fun and my general feeling of well-being is severely compromised even if, personally, I am o.k. The last one in 1990-91 inconvenienced me because I wanted a little job while I was getting my Masters degree and I couldn't find one! That had NEVER happened to me before. Luckily I had savings, so I could keep going to school.

My mother went through the Depression in Chicago. She had to get a job at a young age to help her family and they lost their home. She has been shell-shocked her entire life by this experience (and a bit twisted by it) and not a little of it affected me because of her behaviors and beliefs about the world. I think that some of her reactions have been beneficial to me: I hate credit or owing money for anything. I never rack up credit card debt and I don't even have a mortgage. On the other side of this coin is lost opportunity because of my unwillingness to invest in anything I can't afford to buy outright.

You forget: not everyone is as smart as you. Even intelligent people can be dumb about money and finances.

You also forget that not everyone has the opportunity you have had--perhaps due to the intelligence factors, but also due to the serendipity of the timing of your birth.

You remind me of my son, who is about your age. His timing has been impeccable--he graduated from college into a booming economy and has been soaring ever since. He doesn't know how it feels to not be able to find a job or not have money for a cup of coffee. He doesn't know how it feels to be poor--he's always had everything he ever needed or wanted and more. He's had opportunity in spades and a family behind him with the means to fund his education, travel, and a support system if he should need it.

I am sure that you, like him, have worked hard to achieve your status and lifestyle. And all credit and kudos to you; I admire my son greatly. He works his butt off and deserves everything good in life. But you and he haven't a clue what can happen to a hard-working individual who didn't get the breaks that you both have.

Be careful of what you wish for.





april

[Jared I]

First I dont think there will be a reconvience for subprime mortgages for several reasons which I dont wish to go into in depth. Freddie and Fannie are govt sponsored entities (not the govt) with certain coventants and are publicly trade companies. In the past they have offered programs to help buyers in trouble, but the buyers still owned the full amount and if they couldnt pay the RE was foreclosed on. Should the stock price fall significantly F/f would have to reduce portfolios, the bond market would suffer horribly, sending interest rates up. Just think how may pensions have F/f in their holding, and how it will hurt pensioners. Senators from MA and NY are looking for some kind of bail out which would only really help WS banks (who contributed to their campaigns), push the national debt higher and the economy deep into economic straits. I think the banks and buyers are going to have to eat this one, leaving everyone else and the economy to suffer. How could these people afford fixed rates when they can barely afford ARMs without refinancing every year? And why should we reward their stupidity, which adds to everyones suffering? Shouldnt we be blaming these people for the troubles they are causing everyone else and the economy?

Wishing for a depression is silly, it was a bit of sarcasm mentioned earlier.

I couldn't find a job in my field in 1991 after putting myself through school, so I went in to the USMC for a few years and found it to be an excellent choice. I worked at a crane company cleaning and mucking up at night so I could go to school during the day. Did I ever say I was smart or better than anyone? I would admit I have been fortunate (not lucky), but I have also had bad times too including losing a business and having to pay back money to investors. Opportunities are made, they just dont come along.

Where is the outrage at people that took out these stupid loans? Or should we give everyone an pass on everything, including drunk drivers that kill because they made a stupid choice to drink a little too much, etc, etc, etc?

[aprild]

Jared,
Ah, yes, sarcasm. Sorry, I didn't get that over the written page. I'm glad you didn't mean what you said.

That reminds me of a University English prof I had who exhorted us repeatedly to "say what we mean and mean what we say." But I digress.

Yes. There are a lot of people who play fast and loose and they are to be blamed for their irresponsibility. I guess I was just thinking of the little guy who maybe bought a home when, you're right, they couldn't afford it. I totally agree that people should be more responsible. Heck, I think huge corporations should be more responsible, too. (Thinking of the S&L bail out.) This country seems to reward the white collar criminals who make off with huge money,e.g. Michael Milkin and those of his ilk.

But the mortgage biz has the biggest share of the blame, I think. A friend of mine who is about your age was a mortgage broker and I was looking for a loan for my boss. Of course, I went to Brian. But Brian refused me, saying that he wouldn't advise me to do business with his company. !?!

I see your point now that you have elucidated it.

I see that you have paid your dues and I salute you.






april

[Francesca]

Jared, I'm shocked, you finally said something that I agree with.

When people were taking out adjustable rate loans that they could barely get into, many of us could see the writing on the wall. It was a no-brainer that in a few years, they would be in trouble in mass, there would be a lot of foreclosures, and in time the cost of homes would come down.

I agree that the people who really couldn't afford to buy a home without risky financing are responsbile for their own actions. As you said, as a drunk driver is (and this one I feel very strongly about since we lost a family member to a drunk driver going down the freeway on a sunny day in LA, the wrong way). Simply put, we're all responsible for our own actions.

Frequently, the people who go out on a limb with an ARM, or interest-only loan are the same people who have bad credit, lots of credit card debt and generally manage their money in an irreponsible manner. Perhaps the mind set is that they don't have anything to lose. Certainly not their good credit rating, or large down payment. Many went in with zero down. These are the same people who declare bankruptcy as a way to bail themselves out of situations that are a result of poor money management and the inability to say no to themselves when it comes purchases. You see more of this on the mainland. They are maxed out and have a credit house of cards keeping them going. One false move and it all falls apart.

I'm not saying that everyone who takes out an ARM is irresponsible. Only saying that we are all responsible for our own decisions good, or bad.

[bystander]

Back in 2001 I was in sort of financial hole. My mortgage was an ARM and I had over $10K in credit card debt. I also had a high rate second mortgage. I tried refinancing for a year with different companies but they all told me my property value was too low at around $80K. Low and behold the lord answered my prayers when my property value almost tripled within two years. I've refinanced twice since then at succesively lower fixed rates. Now I have just one mortgage with a low monthly payment, lower than if I was renting. Now I don't care if interest rates go up or property values come down.

[Jared I]

It nice we are finally getting along.

Take a look at this:

http://www.opensecrets.org/politicians/contrib.asp?CID=N00000581&cycle=2006

Then this:

http://www.city-journal.org/html/eon2007-03-16ng.html

Do you will understand why CT Senator Dodd wants a bailout of subprime and WS bankers. The senators and congressmen of the NE owe alot to these people that donated to their slush funds. Why do you think Hillary is making noise about this too?



Edited by - Jared I on 03/16/2007 10:22:51

[aprild]

P.S.

Jared,

I am the one who decided you were intelligent. And knowledgeable about the market and finances. I was the decider.

I meant to cast no aspersions nor say hint that you were declaring yourself better than anyone else.

Oprah doesn't attribute any of her success to luck, either.

Um, I looked at Hillary's PAC contributions and financial firms seem to be under 4% of total. What is her position on this issue?

BTW, there a term in Rhetoric for what you did by linking drunk drivers with mortgage defaulters. I can't remember it, though.

I was always getting along with you. Just saying...

Can I use Aloha? (Looking around for Momi... Is this a misuse?)

Aloha,


april

[Jared I]

April,

I would rather have everyone admit I have the bone structure and looks of the top male supermodels than have people think I is smart.

I lumped in Hillary because she is more favored in NYC than upstate, should the markets down trend causing NYC to revisit bad times, NYC voters have often thrown out everyone they could out of office. She is for recourse loans to protect the poor fools from subprime decisions already made, fortunately many of her constits are WS bankers.

[aprild]

To the creme de la creme of womanhood, (and manhood, too with regard to women), intelligence is THE sexiest attribute. If you've got cheekbones, too, well, good for you.


april