Good news on the interest rate front

[SHELLY]

. All the money tied up in the stock market at the bubble pales in comparison to the debt that is wrapped around housing market. And a whole heck of a lot of that debt is tied up in the U.S. banking system, 401Ks, nest eggs of grannies everywhere, and in 69% of the Americans who are "Home-OWERS."


Quantify the stock market losses globally (2000-2002) as compared to speculative loans on housing (2001-2005) please...

Sure...

Stock Market Crash: $1.7 Trillion

Housing Bubble Equity Withdrawl: $2.8 Trillion


Mortgage Market and Bonds Supporting that Market: $7.6 Trillion

``Froth'' in housing markets may be spilling over into mortgage markets, Fed Chairman Alan Greenspan warned an American Bankers Association convention in September. A rise in interest- only loans that initially don't pay down principle and the introduction of ``exotic'' variable-rate mortgages ``are developments that bear close scrutiny,'' he said.

(NOTE TO AL: The horses have rushed out of the stable, you can close that door now.)

 

[redfisher]

Sure...

Stock Market Crash: $1.7 Trillion

How can an article written in Nov of 2000 possibly quantify cumulative losses that didn't end until 2002 and why do you limit your response to only tech stocks (which were down another 55% from Nov 2000-to bottom)...I seem to remember liquidity draining from most indices worldwide


http://www.cbsnews.com/stories/2006/04/03/opinion/main1464727.shtml

The article states that only 1/2 the 2.5 trillion w/dn was spent on consumer items...

http://www.bloomberg.com/apps/news?pid=10000103&sid=aDSB370ItSJU&refer=us

Do you truly believe that the 7.6 trillion dollar market didn't exist before r/e became spec...The article clearly states that of 7.6 trillion only 476 billion were to high risk borrowers (6.26%)

Forgive mispellings, I'm lunching @ the moment...Red

 

[SHELLY]

Sure...

Stock Market Crash: $1.7 Trillion

How can an article written in Nov of 2000 possibly quantify cumulative losses that didn't end until 2002 and why do you limit your response to only tech stocks (which were down another 55% from Nov 2000-to bottom)...I seem to remember liquidity draining from most indices worldwide


http://www.cbsnews.com/stories/2006/04/03/opinion/main1464727.shtml

The article states that only 1/2 the 2.5 trillion w/dn was spent on consumer items...

http://www.bloomberg.com/apps/news?pid=10000103&sid=aDSB370ItSJU&refer=us

Do you truly believe that the 7.6 trillion dollar market didn't exist before r/e became spec...The article clearly states that of 7.6 trillion only 476 billion were to high risk borrowers (6.26%)

Forgive mispellings, I'm lunching @ the moment...Red

:roll: Is that your best shot?

Here's something to read while you're Out to Lunch.

Ghost Housing Market: By a Florida Realtor

 

[redfisher]

I was hoping for a logical rebuttal...Did you even look at the date of your first article before you threw it up?...Regards, Red

What are Mike Morgan's credentials?

 

[Indigo Jill]

Add what an oil crisis will do to the economy on top of the housing bust and...:shock:

THE COMING OIL CRISIS
http://finance.yahoo.com/columnist/article/richricher/3721

 

[SHELLY]

I was hoping for a logical rebuttal...

And I didn't expect one....

Well, I've exceeded my quota of dalliances for the day, gotta run....but I'll leave it open to others who find your arguments sound.

 

[redfisher]

Bye...

 

[6thGen]

Add what an oil crisis will do to the economy on top of the housing bust and...:shock:

THE COMING OIL CRISIS
http://finance.yahoo.com/columnist/article/richricher/3721

Does this idiot offer any substance to his platitudes? Renting copy machines doesn't qualify one to offer an educated opinion on economics. Remembering that oil used to be expensive and we used to be in an unpopular war is not the same thing as showing that crude oil supplies are at their highest levels since 1998. Gas prices will always go up, just like real estate. Or is it that higher prices slow consumption and encourage investment? Does this best selling author have any other banal nonsense to back up what he says or is he going to ride the coattails of the surfer wallet craze a little bit longer?

 

[Mango]

Sure...

Stock Market Crash: $1.7 Trillion

Housing Bubble Equity Withdrawl: $2.8 Trillion


Mortgage Market and Bonds Supporting that Market: $7.6 Trillion

``Froth'' in housing markets may be spilling over into mortgage markets, Fed Chairman Alan Greenspan warned an American Bankers Association convention in September. A rise in interest- only loans that initially don't pay down principle and the introduction of ``exotic'' variable-rate mortgages ``are developments that bear close scrutiny,'' he said.

(NOTE TO AL: The horses have rushed out of the stable, you can close that door now.)

I read the housing bubble article and it states that of the 2.8 billion borrowed, half of that was funneled back into the economy, so that would make that 1.4 trillion. This 50% figure matches what I said in earlier post. So let's put ther correct #.?

As far as Greenspans' warning who is employed by the Government, he should have been giving that warning to the government agencies, Fannie Mae and Freddie Mac- which compete with each other to buy loans from Banks, that offering 100% financing and also approve interest only loans. The banks will only offer products that are saleable to these agencies and follow their guidelines. Banks don't portfolios these loans.
The only loans that these agencies do not buy are the exotic ones which is one called an Option arm which quite often if the equity was low enough and the Borrower had decent enough credit scores, could get that loan as a no income check. (BTW- I never placed this loan)

 

[Indigo Jill]

Does this best selling author have any other banal nonsense to back up what he says or is he going to ride the coattails of the surfer wallet craze a little bit longer?

Probably ride the coattails of the surfer wallet craze a bit longer but he'll continue to laugh all the way to bank as he does so. His simplicity has worked in his favor, although I too am annoyed at how he ties his personal stories into his "advice". But, he paints it simple for us simple folk and has been right on about pretty much everything he talks about of late which works for me. I also don't have expensive degrees or a lofty title to protect so I'm not intimidated by his approach and can read his column with an open-mind and perspective.

P.S. For the record, I haven't ever read this guy's books - just happened upon his column a month or so ago and what I've read has made sense to me.