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Hello Recession


Casper

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So we will be in the same boat at the end of Bush's 2nd term as when he came in on his 1st Term. Sweet.

 

This problem has been hiding for decades. Companies have been loaning people retarded amounts of money to people who had no chance of making the payments. It finally caught up. Bank loans you 50k for a Escalade, 6months you beat it up, put 10k miles on it, its worth 30k and you cant make the payments so the bank takes it but cant get their money back is just an example of the 100,000 caddies out there for sale. Thats not the only reason but a huge factor (over the past 20 years), I'd say close to as much as the current war impact.

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This problem has been hiding for decades. Companies have been loaning people retarded amounts of money to people who had no chance of making the payments. It finally caught up. Bank loans you 50k for a Escalade, 6months you beat it up, put 10k miles on it, its worth 30k and you cant make the payments so the bank takes it but cant get their money back is just an example of the 100,000 caddies out there for sale. Thats not the only reason but a huge factor (over the past 20 years), I'd say close to as much as the current war impact.

 

The housing market and the war hurt the most. The housing market has been ridiculous. Joe Blow makes $35k/yr. Let's loan him $250k to buy a house. That makes fucking sense. The war has caused the country to be grossly in debt to other countries. The value of the dollar is dropping every day. At what point does China just say fuck it and buy us? Laughing? They've been buying up all of our debts for years now. That's not good. So, where will this leave us in five to ten years? Learning Chinese? Possibly if this shit isn't brought under control. We need to get our soldiers home. All of them. We are spread so thin in the US right now we couldn't defend ourselves against an attack from Canada. We're spending so much money overseas, but we need to be spending it here in our own country. The quality of American products sucks just about as bad as Chinese products these days, minus the lead. No wonder nobody buys American anymore. But why are so many Americans buying Chinese products? They're cheaper. We've become this money hungry country. I want the biggest and best for the cheapest. Oh, I can't afford that $250k house right now but I'll be able to in five years. Yeah, go ahead and give me that 5 to 1 arm loan. Fucking idiots. We're drowning ourselves in debt and nobody cares. I still get several pieces of junkmail each day, offering to refinance my house or give me a credit card. Do these people not realize they're just adding to the problems? Yes they do, but they don't care. Its all about the money. Its always just about the money.

 

http://www.ohio-riders.net/images/smilies/rant.gif

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They're gonna cut the interest rate 2 days after I close on my home loan. That sucks!!

 

I'm looking forward to it, I'm going to refi from my 6.5% 30 yr fixed down to a 5.375% 30 year fix, score for me!!

 

But I agree, its a scary thought of what's going on in america, people got so used to debt its sad.

 

I work in a bank and can't count how many people each day I see making the MINIMUM payments on their loans/credit cards that are in the $10's of thousands of dollars. I try and laugh but its not funny anymore, its scary.

 

But its ok, they've got that nice big house, sweet new car, and life is good.......

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Markets move up and down and markets have trended upwards since the end of the true recession (late 70's to early 80's for anyone who remembers or will look at a chart.) Just look at a 100 year chart. I see no problem at all until the bottom falls a lot more. All the investor forums I read have been "praying" for the type of correction that we may be on the edge of now. Most all smart investors have had 80% or more of their funds in cash accounts since the 1st quarter of last year and have been waiting for the correction to come so they can pick up stocks at bargains. Just read some forums and see.

Sorry about the 401K's guys, but this is why the guy in the 401K meetings preach about staying up to date on your account and making changes as necessary. You can move all the money from the regular stocks into something safer such as bonds any time you want to make the call. Then you can move it back to its usual growth stocks when you feel the market has starting moving upwards again. This type of thing needs to be accessed at least every 6 months and quarterly would be a great idea for the average person. The least you could do is call from time to time and ask the broker if there is anything better you could be doing at the moment.

 

Evan

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For the record the Fed lowering the discount rate does not directly effect mortgage rates. The discount rate is a short term rate vs long term for mortgages. Mortgages generally trend in the same direction but not in a 1/1 ratio and not immediately.
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