5 posts tagged “banks”
Bloggers,
journalists, reporters, interviewers, and the like often express their
own side of things and often can not take criticism.
- say things in the midst of a group and sometimes within the mask of alcohol
- can quickly flip on their own words when they don't receive support
- banter with illogic and without data to be backed up with
- having a group as your vocal backups, a group who does not have a clue as to the issues
- send their criticisms as generalities within discussion boards
- often do not post their criticisms as comments to a particular posting
Critics: Many of your posts are not positive, Go USA, Pro-American, anti-leadership.
Response: I agree, many of my posts are not positive. It goes back to my feelings, and the state of how things are right now. It has not been a positive experience lately in this country and it does come out in the posts, no doubt about it! One can be optimistic to overly optimistic, but eventually, even that will not be supportable. Not unless you want to PAY me to be so. Like those on CNBC and such media sites that pump up the excitement where none exists. Like newsletter publishers who are paid to pump up a stocks irregardless to the facts. Irregardless to the financial risks to investors and traders looking for easy money. These are many who don't have the time to look into these claims that the company stock is gonna Pop! or will deliver xxx% if you get in now...
I'm not Go USA? I am concerned that we are loosing our edge as a country and I say so. Is this me not being pro USA? In fact, that these posts are concerned that we are loosing out to other countries who are tuned into the oncoming business opportunities that we should be focused on, is in fact Go USA. I'm supporting getting back our business edge, to look beyond oil and other carbon based businesses. I'm supporting not letting go of advancements in technology, in corporate investments in alternatives. It is obvious that this direction has been so in other countries and not here in the USA...why? Because of oil? because of certain people that are trying to protect their source of income despite how it holds back our future and threatens it? Sure I question these things because it affects our ability to make money now and in the near future and future. Not pro-American...same thing as go USA.
I am anti-leadership? I am for having leaders that are not corruptible. Leaders who represent the people and not represent only the interests of the lobbyists with money from big business, often environmentally dirty, immoral and corrupt themselves. I am for leaders who listen to the people, their situation and their needs. In this country, leaders are supposedly put into their position because they were voted in by the majority and not by the interest minority. In this country, leaders are supposed to be the representatives of the people, they are not then to become representatives of the interest minority. In this country, the leaders are supposed to be working for the people, not then to be puppets working for the interest minority. In this country, leaders are supposed to be in their posts to work for the people, for the good of the people and the good of the country. I am for strong, un-corruptible, forward-thinking leaders who work for the citizens and taxpayers of the USA.
Critics: You blog about eco stuff like global warming? There is no such thing as global warming.
Response: I blog about alternatives to the current status quo. I see these as investments that we must focus and make actionable in order to make money. And in order to prevent our children and their children from living in a dirty desperate future. No such thing as global warming? Short Response: I guess then if there is no such thing as global warming that the oil businesses have been using a GIGANTIC ICE VAPORIZER and that is the reason they have opened up new territory on the sea bed between the U.S., Canada, Norway, Russia? The statement that there is no such thing as global warming makes me so sick because of the rediculousness of the statement in general. I just see those people as lost in a dream that they may never wake up from.
Critics: You are against the free banking system. You are against mortgage bank bail outs and against helping home owners.
Response: I support ethics in banking. We should not allow any financial business to take advantage of people looking for the American dream. It is criminal that so many people where encouraged to take out the kinds of loans they did and in doing so where put into jeapardy. People that weild the power of money in this way have a fiscal responsibility. By them offering people "easy" loans and supposedly "easy terms" when in fact they did so while seeing additional dollars for the business and not the welfare of the borrower...yeah that is criminal.
What is fiscal responsibility? Here are six descriptions:
- reducing the debt (dollars)
- completely eliminating the debt (dollars)
- balancing the budget (i.e., keeping the dollars of debt constant)
- reducing the debt burden (growing GDP faster than debt)
- maintaining a constant debt burden (GDP growth=debt growth)
- keeping unemployment low and inflation under control (...forget debt, it doesn’t matter as long as those two stats are in good shape)
Against bailouts? Against helping mortgage holders? Yes, I am against bailing out businesses that hurt those looking for the American dream. That did so without fiscal responsibility for the borrower.
In
fact the latest so called bill that is touted as a bill to help people
stay in their homes is absurd. I think it is a front to help the fiscal
irresponsible banks, continue to take advantage of borrowers. Here is
what is in place to help those mortgage holders:The American Housing Rescue and Foreclosure Prevention Act of 2008 (H.R. 3221), was signed into law last week by President Bush. The bill provides a $300 billion plan for helping some 400,000 homeowners to pay off sub prime mortgages, and replace them with more affordable FHA loans. But the catch is that the lender must agree to reduce the principal of each loan to 90% of the current appraised value in order to refinance them, and the borrower must agree to share 50% of all future appreciation with FHA!
The congressional budget office has estimated that as many as 35% of the refinanced loans could end up in default again. That means U.S. taxpayers may be picking up the cost of this twice!
You may have heard that another feature of this bill is to provide a tax refund to first-time home buyers, worth up to 10% of a home's purchase price, but with a cap of $7,500. Sounds like a great deal for first time home buyers, right? What you may not have heard however, is that this tax refund is really an interest free loan that has to be paid back to the IRS in $500 installments over 15 years. Uncle Sam has become like one of those automobile dealers, where the ads make the deal sounds fantastic, until you read the fine print!
So now tell me, how does this help anyone but the banks? Money continues being printed for the purpose of giving yet more to the banks so that they can buy up more of your assets while keeping you on the hook for having signed their fiscal irresponsible loans!
Credits: Ethan Roberts for the catch in bill H.R. 3221
The existing home sales report that came out on May 23rd show an average loss of $1500 per month for the median US Home price over the last year. Most people have no conception how this is impacting their lives.
If you had $200,000 in equity last year, you just lost 7% of your equity. In California, it was probably more. If you had sold your house last year and moved into a rental, you would have zero cost for living in the rental. If you had moved into 2 specific real estate purchases, you could have increased your capital and retained your mortgage deduction. You would actually be further ahead.
Losses in home equity will accelerate for the next year. If you become underwater in your present equity, you could be stuck in your present property for many years or have to come up with substantial separation money to preserve your credit rating.
The foreclosure bailout proposed by the congress is just window dressing in order to forestall a panic. What is going to happen is that this will only delay the panic, not forestall it. If you read the fine print, the lender has to agree to provisions of the bill. How likely is that?
What you see happening in the market today is that 25% of the sales are due to sale of foreclosed homes. Because of the banks holding back inventory, there are at least 4 bids for every sale.This will change shortly.
The subprime loans that are supposed to reset this summer, meaning that the houses are really going to be back on the market by June 2009. The logic goes like this. The notice of reset for August 2008 have already gone out. In August , the owner of the subprime loan is going to do his/her best to make the payments. He/She will get a 2 or 3 jobs in some cases. In any case, the owner uses up his savings and cannot make the payments. This takes 2 months, on average.
The owner realizes it is impossible to continue and finally stops making the payment. His savings are exhausted, and now he has to acquire money to be able to move. He needs the mortgage payment to restore his savings, so he can move. Minimum average move is going to cost $5000 or more.
The lender now starts the foreclosure process. Sometimes the lender takes more than 6 months to prosecute the foreclosure.
Then there is another month or 2 in which to prepare the property for sale.
So, let's see how this all adds up. 2 + 6 + 2 = 10. 10 months from August 2008 is June 2009.
So the majority of the resets will not even hit the market until June 2009. And the average length of time to sell this property will be 11 months, if not longer. So the minimum time for the market to hit the bottom will be after May 2010.
The average price decline, in California for example will be more than $2000 per month. If you invest in property today, you will lose almost all of your equity.
What no one says today, is that the property that has an equity line of credit will also reset to a higher interest rate once the property falls below 110% of the initial loan amount. This is a huge overhang to the market, and could make these loans now subject to default.Who knows where this will end?
Based on this scenario, what is the best way to make money in real estate today?
Sell any real estate that you have, even into today's declining market. Then wait for the turn in the market to buy back, better than ever. That time is more than 2 years away.
>Thanks to Michael Weir a real estate agent, for this article
Due to the irresponsibility of the Federal Reserve...18 months before
they reacted to the loaning of money to those who should not have
qualified. All for the side of the financials making more money. All
for the purpose of taking advantage of U.S. consumers.
In the previous video, the Fed and banks are referred to as a cartel.
The definition of cartel is: A formal organization of firms in the same
industry acting together to make decisions.
Starting this week, the mouths of experienced traders world wide are now telling us that we have to get ready for the fact that "taxpayers will be on the hook whenever people default on Fannie and Freddie’s mortgages, and if the government doesn’t want to raise taxes, pumping up the money supply is the only way to pay bondholders their due. The result of this money creation will be a much weaker dollar and much higher prices for oil, food, and everything else."
They go on to say: "...almost all commodities whether abundant or not, will no longer be cheap. In fact, their costs will become so prohibitive, that it will finally force industry to seriously develop new alternatives, like renewable fuels, and new industrial materials made from bio and nano-materials. But until that time comes, commodities will rule the day.
Commodities will impact almost every area of your life. Whether you want to be invested in them or not, they are going to affect your assets…your lifestyle…your costs of living…the kind of car you drive… what kind of house you live in…your investments. They’ll determine the fate and fortunes of companies, countries and individuals." So as a proponent of changing our lives for the better, why wait for the inevitable? Why not yell out loud for government to do the right thing and show massive support measures for the implementation of alternative energy development and deployment. Tell your leaders you want it now, and not tomorrow. Tell them that tomorrow is too late, that they've been saying "tomorrow" every day for far too many years.Call for swift reforms in how government is controlled by the current big finance, oil, drug, and insurance giants. Tell them you want real leaders not puppets. Tell them you want equal representation for all Americans, not abuse and lies to support the few who are puppeteers.
I thought that I was good at correlations, but for those of you who know of Don Harrold, he is a great one. He has taken our current situation and shown the exact relationship to The Great Panic of 1907.
U.S. Economic Forecast: Another Panic Of ‘07?
The financial markets marked the centennial of the great panic of 1907 by holding another panic. Indeed, this one seems likely to affect the economy less than its predecessor did because the central banks have learned to handle liquidity squeezes better than in the past. The 1907 panic was one of the major reasons for the founding of the Federal Reserve System, as Congress decided that it could not rely on the good will and ability of bankers like J.P. Morgan to coerce cooperation. Will Chairman Ben Bernanke do a better job than Mr. Morgan?
Is it an accident that these crises often seem to occur in years ending in "7"? Financial turmoil struck in 1957, 1967, 1987, 1997, and 2007. It is hard to tell about 1977 because the whole decade was one long crisis (so maybe just having a "7" is the problem). Going back further, 1937 was a bad year, as were 1897, 1907, and, of course, 1917, with America's entrance into World War I.
Although the current turmoil began in the subprime mortgage market, it has extended far beyond that to a general crisis of confidence. What's happening now is a classic run on the bank, except that the banks have been disintermediated by the short-term money markets, which have become a virtual bank. A central bank's role in fighting bank runs has been well established: provide adequate liquidity so that the panic does not bring down the solvent banks. This principle needs to be extended to the money markets that now support the banking system.
Part of what is happening is a reassessment of risk. For at least the last two years, Standard & Poor's Ratings Services has noted that credit spreads were too narrow to justify the risks inherent in the instruments investors were buying. Recent credit problems have usually run their course within about three months, and we expect this one to do the same. However, that does not mean that spreads will return to the extremely narrow range of three months ago; rather, they'll likely stabilize.
We had thought that except for the housing market, the problems would have little effect on the economy. However, the drop in employment in August and the downward revisions to the previous two months of job
data—together with the earlier downward revision to recent GDP—suggest less momentum than we had thought. Consequently, the danger of recession is more severe than we had thought.
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