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Post by jeffolie on Jul 30, 2007 17:26:37 GMT -6
Jim Cramer goes very negative on housing.
"Its smart to walk away if your house declines 20%."
"100% of the 2/28 mortgages will default."
more...
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Post by jeffolie on Jul 30, 2007 17:36:15 GMT -6
[Oh, and plow under the Inland Empire - California]
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Post by unlawflcombatnt on Jul 30, 2007 19:18:06 GMT -6
Cramer's right on target about the housing market collapsing.
All areas of the country are doing poorly.
However, I don't know why he thinks the Fed's dropping of the short-term interest would bail out the housing market.
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Post by graybeard on Jul 31, 2007 7:13:16 GMT -6
If I were holding one of those loans, I would be negotiating with the lender to extend the low interest rate indefinitely. That would be a better deal for the lender than a foreclosure. My niece did that on their house in Wyoming when the oil production collapsed a dozen years ago and there were abandoned houses everywhere.
GB
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Post by blueneck on Jul 31, 2007 8:24:20 GMT -6
Cramer is actually right about something? ;D
Dropping the Fed rate makes no sense - the artificially low interest rates are what caused the housing market collapse in the first place
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Post by beachbumbob on Aug 1, 2007 4:58:47 GMT -6
Jim Cramer goes very negative on housing. "Its smart to walk away if your house declines 20%." "100% of the 2/28 mortgages will default." more... cramer just let reality hit him in the ass???
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Post by Ken on Aug 1, 2007 7:01:43 GMT -6
much of this credit problem began in the early 90's when the first credit crunch hit us from the reagan debt. Greenspan made Treasury debt no risk therefore no reserve. That allowed for expansion of MS and all was well as the 90's economy expanded with little inflationary pressure. Of course the money from that dereg later went into riskier credit and bit us in the ass. All things have repurcussions or externalities that are tough to predict especially with greed as a motive.
Getting back to the topic, I dont think cutting interest rates would have a big impact at this point because the real bad practices were "mortgage innovations"
without those innovations ownership rate would have remained at historic levels.
The Bush admnistration had every opportunity to reblance the economy considering what he had. Shrinking deficits. Falling debt ratios and 40 year low mortgage rates, The elected to follow the 80's ideology despite the economic conditions that persisted and that led us right where we are now.
There is no way to fix this without some serious pain.
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Post by blueneck on Aug 1, 2007 17:06:37 GMT -6
80's supply side ideology that didn't work then and isn't working now. When o when will people get the clue?
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Post by Ken on Aug 1, 2007 20:17:13 GMT -6
whenthey have bilked every dime of wealth out of the middle class i america and moved on like locusts to the next developing nation.
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