Hey Guys, Suddenly there is a huge financial crisis in USA . Wonder whats the main reason for this.. Its taken down big bank like lehman brothers wonders whats going to happen next I Am quite interested in knowing more about the reasons
I'm no financial analyst but apparently everyone believes that the U.S. economy will fall into somewhat of a depression state. Here is what I've learned so far (some facts may be wrong so anyone please correct me if they are): 1. The banks are falling in debt. Apparently, if the $700 Billion bill isn't passed then banks will slow or totally stop lending because they don't know what the risks are. 2. The $700 Billion will be used to purchase mortgage-backed securities using (apparently) taxpayers money. How this benefits US I have no idea but hey, we pay the government in everything else right. That's all I know so far. What they need to do is overhaul the economy (meaning work on the damn gas prices while their at it.) And if anything, this is a perfect time for anyone who is interested in private mortgages! Research it...
Some say it may not be enough,reports are saying it could take a few years to recover.Bush is not really worried is he as he is leaving in November.
Something needs to be done because this unemployment thing is bullshit. I'll be honest with you, they need to imply that these jackoff banks stop lending to those with no jobs or bad credit. Pardon the language but that is a BIG f*** up on Wall Street's part. In either case, I like how we citizens get a share of the companies as security and that the executives lose some money as well. Just my unbiased self.
It goes beyond the United States, its a global issues, which isn't surprising since the big mortgage company sold bonds globally to get access to money to buy local mortgages. The main cause of the problem is that banks are holding assets that are falling in value causing them to need to more to offset those laws.
I blame the banks, not anyone else... I mean, they were to trust worthy, lending to people with no credit or jobs... And when those people couldn't pay them back they went under... I guess you could put the blame on the people who took out the loans, but the banks shouldn't have given them out in the first place...
What about the banks that sold off their mortgages, why would they care if you were able to pay back the loan? Also, the banks never forced anyone to seek an interest only loan, or a variable interest rate loan, they have a bunch of loans and at the end of the day the person lending from the bank has to share in part of the blame.
I think very few people actually who bought a home in the last two years actually want to stay in it, especially if it lost half of its value. I think the homes going into foreclosure are largely from people who couldn't flip them for a profit the people who bought them as investments, so no second job would save those homes.
The people around me that are losing their homes are not trying to flip them, they are losing their primary residence..........
It's a global situation not just the US. Henry Paulson is begging Europe just like the us to pass a bill . Its uplifting to see more and more people asking questions and seeking information. All we get is this crap from televisions that only relates to our country and not the full global scale. What I think we're witnessing is a shockwave if you will from a key event that happened with the top money controllers. What is was, I have some ideas but then again, don't we all? Something big is going on there's no denying that! I just watched a movie called Zeitgeist 2 - Addendum that was just released yesterday. Its about money and our current situation. It might be interesting if you want to go down the rabbit hole. The link goes to my personal blog were I put the vid up.
Did they buy their homes in the last two years? Did they choice no down payments, interest only loans. Did they buy homes they couldn't afford? There are a lot of variables that effect the foreclosures
I am doing great, I am not sure what everyone is fussing about. Gas increased a bit but I increased my prices and business has never been better.
Yes there are many variables, they however are not trying to 'flip them' in most cases in my area. Most are primary residences.