This Is Not Going To Be Good

[Kaiser]

This is not going to be good for the economy:

http://www.msnbc.msn.com/id/25644988/

 

[WildBB]

I am REALLY curious to see how this turns out!

 

[confuzed_guy2000]

This is not going to be good for the economy:

http://www.msnbc.msn.com/id/25644988/

LOL, this is nothing but a way to hide the mortgage "ponzi" scheme a little longer. The economy will be tanking soon enough, they are just trying to prolong it until they are ready.

 

[mooshue]

If there had been any kind of lending regulation we wouldn't be in this spot this badly, and fuck everyone who is crying because they cant read the fine print, bought houses they couldn't afford, and helped the lending industry shoot it all to shit. No help for them in my opinion, its their own fault, its their signatures, if they didn't understand how an interest only loan worked, they shouldn't have signed it.
However, its a great time to buy right now, property is dropping back to where they probably should be at this point in time, i just bought new for a great price compared to this time last year. We are considering building another new one and renting this one out. The rental market is awesome because the housing market is shit right now.

 

[abadseal]

That happened Friday, a lot of the damage has already occurred.

 

[supertrucker212]

If there had been any kind of lending regulation we wouldn't be in this spot this badly, and fuck everyone who is crying because they cant read the fine print, bought houses they couldn't afford, and helped the lending industry shoot it all to shit. No help for them in my opinion, its their own fault, its their signatures, if they didn't understand how an interest only loan worked, they shouldn't have signed it.
However, its a great time to buy right now, property is dropping back to where they probably should be at this point in time, i just bought new for a great price compared to this time last year. We are considering building another new one and renting this one out. The rental market is awesome because the housing market is shit right now.

Well put mooshue. We need regulation, but you gotta be responsible with your own money. Know the bottom line when getting any loan!

 

[tatteredxangelx]

looks like the terrorists are winning ....

 

[Rob Roy]

Ouch!!!

To hell in a hand basket we go! Damn, it's just starting to heat up. It's about to get scary!

 

[maldorf]

Time for us all to take our money out of the banks and bury it in the backyard in a jar.

 

[Pekkerwood]

I didn't exactly go to a jar in the back yard, but I spent time this morning reducing account balances in three accounts at a national bank to get below the FDIC limits. Moved to another national bank. The bank I am afraid of has had their stock cut in half in a short amount of time and they are about to big for anyone to buy them.

Pekkerwood

 

[bulldog21]

This is not going to be good for the economy:

http://www.msnbc.msn.com/id/25644988/

This is one of the reasons why I have my money in money market funds and AAA rated govt insured bonds.....The FDIC is taking over and they say that they have PLENTY of money if there are more lending institutions that go under but I doin't believe that for ONE SECOND...

"The captain has put the fasten seatbelt sign on as we are exprieincing some turbulence..." LOL...

 

[mooshue]

thats why you put your money in a global bank in time of shit local economy. HSBC for example, has a pretty good return rate, over 3% or more on all accounts right now, and is in no type of trouble whatsoever. You can do it all online.
Another thing to check out is what the banks who hold your mortgage note are doing, what are their stocks/earnings sitting at currently. You can find info on the net about banks and their ratings, fdic insured limits, etc..
Again its all about being smart with your money.

 

[mooshue]

This is one of the reasons why I have my money in money market funds and AAA rated govt insured bonds.....The FDIC is taking over and they say that they have PLENTY of money if there are more lending institutions that go under but I doin't believe that for ONE SECOND...

"The captain has put the fasten seatbelt sign on as we are exprieincing some turbulence..." LOL...

there is money to cover the losses , but only up to the amounts whatever the bank agreement the policy was for.
Even if you are covered, it would be years before you saw your money again.

 

[Phidias]

How much spent in Irak everyday?

 

[abadseal]

How much spent in Irak everyday?

Hundreds of millions. You only see half of what is really getting spent by the way.

 

[OuchThatHurts]

Freddie and Fannie gotta bite the dust too. That will be the nail in coffin. But look at the bright side...


AT LEAST WE'RE NOT IN A RECESSION!!!

 

[WildBB]

Are they really still saying we are not in a recession? Is it not obvious enough yet?

It might be the fact that once they announce it, the shit will probably go downhill a lot quicker...

That is just my .02

 

[mooshue]

I heard an interesting quote by a local radio guest this morning
"successful people do the opposite of what everyone else is doing"
apparently im successful at this point in my life because i've never been better of than i am right now. Everyone else is saving money, im spending. Everyone else is taking money out of banks, im putting it in safe banks, everyone else is renting and being forclosed on, im buying buying buying. Keep the recession going!!!
dont get me wrong, ive been at rock bottom, damn near homeless before (thanks to the crazed ex wife) it just takes something like that to make you be smart about things, not live beyond your means. It really is quite simple.

 

[dancinfool]

I am on the front lines of one of the largest independent banks in MA. By front lines, I mean to say that I am not a teller, but I am in the branch. Anyway, we have fielded literally dozens of FDIC questions since yesterday. Our highest dollar customers are looking to move money but aren't sure what is safest for them. Speaking from a bank rep stand point, I can say that FDIC coverage is a valuable thing to have and one can structure their accounts in ways which offer more protection than just the 100k the news has been talking about. With regards to how the future looks, several BIG banks could be in deep stuff here...Imagine if Citibank and all of its affiliates were to come under government control...it's not that far off, their stock dropped in the neighborhood of 86% last year Time will tell, but do yourselves a favor and ask someone who knows about FDIC for their opinion...

 

[mung]

If there had been any kind of lending regulation we wouldn't be in this spot this badly, and fuck everyone who is crying because they cant read the fine print, bought houses they couldn't afford, and helped the lending industry shoot it all to shit. No help for them in my opinion, its their own fault, its their signatures, if they didn't understand how an interest only loan worked, they shouldn't have signed it.
However, its a great time to buy right now, property is dropping back to where they probably should be at this point in time, i just bought new for a great price compared to this time last year. We are considering building another new one and renting this one out. The rental market is awesome because the housing market is shit right now.

A better part of me feels this way, supported by my feelings of the government not doing its job, then trying to look as though they are stepping up and saving us from evil. Don't insult us...again.

It is hard to imagine Fannie Mae will qualify someone up to 64% of their gross income, you read that right, 64%. All things being equal, a lender cannot decline someone based on this measure alone. Who in their right mind would want to live with 64% of their gross income going only for their mortgage...evidently a few thousand. Shame on them, as Mooshue has pointed out. Where is the regulatory body here. Granted banks can decline you for a variety of reasons, this illustrates the thinking/theory of the regulatory body.

They are also going to eliminate SISA, stated income stated asset. This simply means a borrower, meeting the appropriate guidelines, can walk into a lending institution and simply tell the lender what they earn and what they own...without documentation. And this has been an ongoing acceptable banking practice for years. Shame on them again.

I'm not in the banking industry, but lenders are my clients. IndyMac was a client and anyone who worked for/with them could see this coming a mile away in the dark. Nothing was upfront or seemingly honest with this company...there was always an angle or twist.