As the price of oil hits 80 bucks a barrel, we have spent
all our money on foreign oil. Yep, our Equity Markets, Banks,
Mortgage Companies and Institutional Finance Groups are dry
as a bone! Oh, Country Wide is only laying off 12,000 people
or approximately only 20 percent of their work force. Hey and
all those Foreign banks and Exchanges are going down too. The
English have had to intercede to the tune of billions and billions
of British Pounds….trying to prop up their disreputable Hedge
and Derivative funds that bank all the Pension and Health funds..
that bank all the Mortgage Companies and fluid Investment and
Insurance Markets.
Yep, this baby is ready….nothing is selling….except really
good bargains right now. Try to sell a collectible in this nasty
market….you probably will have to give it away…if you are
looking for cash. Remember all those wonder re-fi deals where
you could pull out equity out of your house or business….days
gone by. It’s going to work out eventually. Maybe we will all
have to wait till the Iraq war is over. Maybe we will all have to
wait until Hillary gets Impeached for real. Maybe we will have
to wait…til we run out of water, all our corn gets turned into
bio-engineered fuel or all our politicians turn themselves in for
lying without a license!
The word is out that the requirements for re-fi requires a much
higher FICO score than ever before. The word is word is out that
when you offer that score…they request an even higher score.
It’s a trick….and all those so-called bail-outs of sub-prime
stupidity…are just renegotiated notes…that wind up charging
the poor saps that got them…..double what they wanted in the
first place. So where are all our terrific electeds in this big
fall down process? Vacationing perhaps? Sending their kids back
to school and are just too busy? Trying to negotiate with the
“other party”….when “they” won’t!
Hey, we are open for answers here. What should we do…offer
Hugo Chavez…all of Orange County…..if he bails us out? Or
maybe he can joint venture with that other cool guy from Iran?
Vladimir Putin….seems cool….he even likes to walk around
the beach without his shirt..but maybe, he has already Lost
His Shirt? All in all, we need some help..that sinking feeling
is creeping around with a whole bunch of political uncertainty!
It is so bad they even have “The Real Orange County” television
show! We even hear…that even Disney is now doing Reality TV
programming! Things must be a fright!
What was going on in the housing and real esate market is the equivalent of buying on margin in the stock market. A lot of loans were made that could not be repaid – the lenders knew it and so did the borrowers. All were betting on prices going up so the home could be sold at a profit and pay off the loan, just like buying stock on margin. Guess what? It works some times, but not forever. Bringing in corrupt Venezuelan money is not the answer either. Letting this situation play out as business decisions should, is the way to go. Yes, some lose their jobs as the industry shudders and retrenches, and yes some who were betting on the come will lose the house they could not really afford in the first place, and yes the rest of us will see the market value of our homes significantly reduced as the market adjusts. It happens.
Pretty soon the County Assessor will be overwhelmed with requests from homeowners to have their assessed value lowered to reflect what is happening in the market. This happened in the early 1990’s and the Assessor was swamped – it was a mess for quite a while. Wonder if he is better prepared this time?
Bravo….great answer! Just goes
to show that an honest, intelligent
and concise statement of truth can
still occur in our society!
You sent a high bar…and we are
humbled!