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US National Debt approaching 9 Trillion dollars.
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| Lilith |
Tails already wagging there in the subprime loans area of the US economy on the adjustable rate sections, this is a little bit of a worry considering the very strong labour market and unemployment being fairly low. Mind you the percentage of home ownership is also quite bad compared to the last 2 decades and people spending more than they're earning on credit and loans.
I would be really hesitant to say there's going to be a recession in the next 8months because it's just one little blip on the lower end of the loans spectrum but I reckon by about this time next year it'll start creeping into the fixed rate subprime loans and the prime mortgages and you might want to be wary of shares in finance around that time.
Lot can happen between now and then :)
(Like getting some more regulation into the loans market! Quick!) |
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| pmoisse |
| quote: | Originally posted by Lilith
(Like getting some more regulation into the loans market! Quick!) |
Regulations hurt Freedoms!!! :p
Freedom to get in way over your head financially it would appear...
I can't blame the average person in all this though since the advertising for low-interest initial credit is insane. People get beat over the head with it and sold the magic beans that they can actually afford a mortgage while working at Wal-Mart. |
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| Lilith |
Yeah it's fairly nasty with lots of sharks running around giving more or less anyone with a heartbeat a loan in poor areas and coming back and skinning them for all they're worth after they default. Horrific interest rates on them too, assuming they manage to survive that they might actually qualify for a prime loan though, so many do it.
Usually after they're utterly screwed with credit card debts, bills out the wazoo and a credit rating that looks like someone took a gauge to it a few times.
No, they really want to start regulating that a bit more as it's not exactly inspiring confidence in it's current shape. |
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