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10/11/2008

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Tammy Nowotny

3% of all mortgages is a lot, actually. If you figure (using totally guesstimated numbers) that 2/3 of all houses have mortgages, then that means roughly one house in 50 has been foreclosed on. That's about one house every two suburban blocks--- one house which is not being maintained, one house which is owned by some sleazy bank-like object, one house whose occupants have been kicked out onto the street. That's more than enough right there to do noticeable damage to the fabric of a neighborhood.

Prokofy Neva

It's not 3 percent of all mortgages; it's 3 percent in those hardest-hit states. It may be a "lot" and affect a lot of people, but it's not the majority of the situations.

I realize it's fashionable now to organize 15 minutes of hate for greedy evil bankers. The people to whom we returned this hard-earned condo may have been opportunists, may have been bureaucratic, but greed isn't what people do when they take back from you worthless property, that, had everything gone better, you could have been paying interest on to them for 25 years. No, greed isn't the word for that, sorry.

Here's the link to the article Fleep found, it's on the impeccably PC National Palestinian Radio, even!

http://www.npr.org/templates/story/story.php?storyId=9085408

Harry Henderson

The answer to "where does the money go" is right there in the photograph. It goes to the people buying stocks, houses etc. on the cheap.

Ciaran Laval

I have no idea what a subprime mortgage is, I probably should because it has been in the news a lot but I just haven't looked it up.

However, I know in the UK that house prices spiralled out of control on the back of bankers lending too much money. I know that people were told to lie about their income and informed "They'll only check up if your profession is something like a dustman".

There's no way that the average wage in the UK ties up with the average house price. However still, we've managed to avoid the house price crash we had in the 90's after the milk snatcher's policies went tits up, but even her own party had ousted her by then.

Back in the mid 80's when I was 15/16 I'd read in the papers of old people having their life's savings robbed from their homes and I'd wonder why the heck they didn't put it in the bank and plenty of old people would tell me "I don't trust banks", but they'd been through this before, they'd seen it in the late twenties early thirties.

Why do we buy rather than rent, I was reading recently that even the French have took to buying when for years they rented and thought us Brits were mad for buying.

As with anything patience is the key here, there's panic and it's causing more panic, people just need to take a step back and get real, the markets will calm down, history has evidence of this.

The money will come back, but as in your situation it's extremely painful being in the wrong place at the wrong time. Hence why handing your parents place back is the sensible solution at this moment in time. In a few years time people will say you were mad to do that, but they're not living in the here and now, people have short memories.

The idea that Professor Bloomfield can come up with a fix is quite frankly ludicrous, I have more time for him than you, but no one person can save the world, it's not a save the cheerleader save the world situation.

I have stocks and shares, some of which have tanked badly but I'll hold onto them because they'll recover, I might even buy some more at these low prices, we're just in a period of temporary adjustment.

Taran Rampersad

'Subprime' is WallStreetese for 'junk', or more aptly, 'crap'.

What is rather disturbing is that debt is being socialized even as profit is being privatized.

I suppose now credit cards give membership to socialist debt. Heh.

Cocoanut Koala

Some of these people seem to have been living in the ether of the internet too long.

They forget their butts are planted in actual chairs.

It's like they get the notion of "virtual" and think not only is everything virtual real, it is actually more real than the non-virtual.

coco

Matthew

Despite all the scary news and stats about layoffs, there are still millions of jobs posted on employment sites...

www.linkedin.com (networking)
www.indeed.com (aggregated listings)
www.realmatch.com (matches you to jobs)

Good luck to those looking for work.

Rob

They sold a house after we kids left, for more than they had paid, and for more than the mortgage, and moved into a small apartment -- and saved. They had a summer house -- and they paid off the mortgage on that house on the Cape, which was cold in the winter.

Ann Otoole

Perceived value doesn't exist.

The only time there is actual money involved is when you sell something.

Smart people bailed out a year ago as the market started to decline.

Now it will soon be time to buy in again.

Anyone, especially a so-called professor, that claims to be able to fix something after it has broken is a scammer. If they are so freaking smart then why did they allow the problem to happen in the first place. No. Such people should not be allowed to fill student's brains with turd theory.

The truth is out there. It is called Buy Low Sell High.

Yumi Murakami

I can only say that you're simply right, Prok. The value of something is only determined by the willingness of people to give up other things in exchange for it. Something which is often forgotten by SL people, as well as new media people.

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