feds cut again

[Super Star!]

http://biz.yahoo.com/ap/080318/fed_credit_crisis.html

are they just delaying the truth??

[CampY-Buttercup]

What, in your opinion, is a better way to help the economy?

[Super Star!]

Well not the tax rebates... not cutting the rates... they should have never done all those high risk home loans and credit cards. And on top of it all, all the lending for things. There is nothing you can’t buy and get financing for now days.  Banks are the biggest employers of them all. Most everyone is working for the bank to make there car, house, boat, ATV, furniture, credit card payments. It has been way too easy for people to buy things that do not have the money to buy them. Now days when someone buys something they say how much is it a month not how much total. Some don’t even care what interest rate they have. They just want want  want. I say if you do not have the cash for it you do not need it. unless its a house but you still should put atleast 20 % down. not pull a second for your down payment.


i do not know the answer but what they are doing is not good. they are just delaying reality in my eyes. and in the long run we will all have to pay for it in some way. 

[Fish Guide]

Go fishing more :)

[Ryan]

It would be nice if everyone could put 20% down on their house, but with the out of control prices that just isn't possible.  I know I would still be waiting to buy a house if that were the case.  Every situation is different though and you are right, there were probably a lot of home loans that should not have been made.

[GRIZ]

Well I have been looking now for awhile. What I have found is allot of overpriced property. I have talked to many realtors . They agree with me on asking prices being too high. They have told me it is fueled by 2 groups of people. The ones that over paid when the economy was better thinking they could do it but now can't afford it, so are now stuck with a mortgage they can't afford. Problem is the property isn't worth what they owe on the mortgage. So who is going to take the kickin?

The other group is the ones who have it paid for and really don't want to sell. If they get their asking price they will and they'd be a fool not to. It cost them nothing to list a piece of property and if they get it prices just go higher. I have seen 40 acres of hunting land with an asking price of 25,000 an acre. I was shocked and asked the owner. They said they didn't expect to sell it for awhile. I'm thinking by the time my kids retire.

I kid you not. Most of the places I look at I ask the realtor if I should insult them with an offer or not. Most of the time they tell me it's mortgaged for more than that. If it isn't mortgaged they believe it's worth more than what it is. Both realtors and bankers have agreed with me on my offers as being more than fair. BTW they have been tween 60-70% of the asking price.

The problem the way I see it is when we have low interest rates people think they can afford a higher asking price. Then they get caught in an AMR down the road. It isn't just a problem of the people but the banks also. The banks will not lose in the long run.