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Sports Maven asked:
We are seeing the subprime shake out, and if we are in a cyclical cycle, businesses have to close behind.
We are seeing the subprime shake out, and if we are in a cyclical cycle, businesses have to close behind.
Tags: Banks, Mortgage Foreclosures, Small Businesses, Subprime
July 22nd, 2007 |
Tags: Banks, Mortgage Foreclosures, Small Businesses, Subprime
July 24th, 2007 at 4:45 pm
It’s not the banks that are hiding the truth…It’s the government.
Read the truth here:
July 26th, 2007 at 3:35 pm
The “mortgage crisis” exists because individuals borrowed money with a variable rate build in. They purchased houses that would normally been out of “reach” based on the economic status. Now the variable rates is going to become effective and the mortgage payment will significantly increase. The crisis was created by their own greed and stupidity - couple with lending companies that saw an opportunity and granted loans to people that didn’t really qualify.
Now the people that made stupid decisions want the American taxpayer to “bail them out” - just another example of lack of personal responsibility.
July 27th, 2007 at 7:44 pm
Your concerns are my concerns.
I have been arguing this issue starting about a year ago.
The stock market never gave the sub prime and subsequent credit problems much consideration, seeing how the Dow Jones just forged ahead while big banks were reporting loan problems.
I often refer back to the early 1990’s, when banks were dropping like flies and their loans were deteriorating.
It’s possible we can see a replay of the early 1990’s now, but I can’t say for sure or if it will be as severe.
I do know that many banks are now reporting losses and shoring up capital for loan loss provisions, etc. When I hear these same terminologies as they’ve used in the early 1990’s, I have to be cautious on the outlook for the entire stock market.
Problems like these don’t simply go away in a flash.
I do know first hand of people who have bought homes priced way out of their means, are now facing foreclosure, and are ignoring letters being set to them.
If enough people do this, it has to have a harmful effect on the entire market, because housing and credit play a big part in the market of stocks.
Whether the banks are reporting true figures today is also cause for concern, because so many have scaled down operations while combining with other banks, that it’s conceivable that they are not in tune with reality anymore, and may very well be caught up in an Enron type of mismanagement.
Caution, my friend. I am very cautious, and very happy that I moved my money recently into safe, low yielding bonds.
I now can sleep like a baby.
Most likely, when everyone gets their next statements soon, they may not be able to sleep as well as I do.