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| quote: | Originally posted by djGT
"we be broke" now and "we be more broke" later.  |
yeap 
feds should know dropping the rate only postpones the inevitable and actually increases inflation, which will cause for an even more devastating recession :<
....but this does make for more liquid and better a-paper conforming rates which increases my business (which i really needed!) 
in the end though the 'credit bubble' will burst along with 2.4 million people that face foreclosure next year, dragging property down another 20%. this is a fact the whole country has to face and will affect almost all areas of the economy. the feds can't stop the recession they can only ease the air out of the bubble. the next few years are going to be very hard.
and to think we all have to pay long and hard for a housing boom that made only a small percentage of the country rich (ie, mortgage lenders, hedge funds, brokers, realtors, etc) and was caused by Greenspan lowering the rates way to low (down to 1% in 2003 and was unnecessarily low because the economy and stock market already rebounded from 9/11) and himself along with the entire federal reserve and rating agencies asleep at the wheel while unregulated hedge funds and 'mortgage lenders' popped up like wild fire and raped the equity of America, most of which was done with illegal and unethical practices.
...and to top it all off, this subprime greed is dragging soooo many countries down with us:
"Debt storm likely to head west and engulf Japan"
http://www.telegraph.co.uk/money/ma.../15/ccom115.xml
/me pisses on greed.
speaking of greed, angelo mozilo (countrywide ceo) was in the news announcing that every employee selling subprime is fucked (along with a handful of friends of mine):
Countrywide CEO says "out" of subprime business
(reuters.com)
2007-09-18
"We are out of the subprime business," Mozilo said at a Bank of America investment conference in San Francisco. "The only subprime loans that Countrywide will originate will be GSE-eligible, period." -- How noble and prudent of Mozilo to get out of subprime when they can no longer fund the loans...
http://www.reuters.com/article/bank...WEN105420070918
as for the stock market, its very high stakes right now meaning if you put in and pull out of the right stocks you can make a buck but in the long run you will be fucked. leaving your money in or investing in the stock market is as good as burning it.
EDIT:
oh God, just as i post this i read the following on mortgageimplode.com:
House approves bill helping mortgage borrowers
(marketwatch.com)
2007-09-18
Here you have it, folks. The plan is to re-fi borrowers out of unsustainable loans into what will effectively be government subprime loans (and keep inflated home values going a little longer). The new limits will be 0-down; up to $730k for FHA backing. The general public will pay dearly for this. We are blown away by the gall and stupidity of this move. Intervention was the poison; and we are to believe that more intervention (towards the same end) is also the cure.
http://www.marketwatch.com/news/sto...91DFE996EDBC%7D
wtf is the gov't thinking, i know there are over 2 million facing foreclosure in the next year or so but lets not inadvertently throw us into the next great depression just to throw them a lifeline and drag the over inflation on longer 
EDIT 2:
as if this post wasn't long enough, i thought i'd throw in the fact that the value of the dollar is getting demolished with the fed rate cuts:
Dollar Gets Slammed on Rate Cut
(fxstreet.com)
2007-09-18
"The dollar sank versus the euro, but surged against the yen, after the Fed cut rates by 50 bps, to stem economic pressures from a struggling housing market and alarming credit problems"
http://www.fxstreet.com/technical/m...2007-09-18.html
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Last edited by ninetyninej on Sep-19-2007 at 06:36
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