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at that figure? Probably none.
It was blathering to you because of you inability to rationally understand anything related to common sense. Its not splitting hairs its defining what really happened which clearly you have no concept of.
You didn't stipulate what you were talking about and at 15 an hour they would have only qualified for a 120k house under the past guidelines. Even with a radical ARM you could only push that to maybe 140k.
Your a dumbass and always will be.
at that figure? Probably none.
you go amaze yourself with that answer.
B2B just said it was zero.
I don't find that amazing. I expected it.
At 140k with a low low low ARM starting at 3.99 which isn't that likely you're looking at a payment of just under 700 before insurance and taxes. 4 times the annual earning was a consideration. At 15 an hour they would likely try to set you up with a 124k or less house. Which is mammoth for that low an hourly worker. Hence the trouble because thats about half of the monthly earning going to the house payment.
My point was to partner that with a higher cost of living to the tune of 3,4 or 500 more a month just pushed the guy over extending himself off the bridge.
Viva probably didn't understand any of that.
I was making less then $15 an hour when I bought my house.
I concur but did people really think they could afford a $100K home? Or did the banks tell them they could?
Well thats a tough question but the short answer is that quite a few people were lied to and quite a few less intelligent people like Viva didn't comprehend ARMs even when they were explained to them.
I'll give you a good example
Finance guy: Here you go sir 594 dollars a month on the house and see how affordable that is...fits right in your budget.
Customer: WOW how did you do that...sounds grrrreat.
Finance: Well sir you quailified for are special A...R...M program and we got you into this wonderful introductory rate of 3.99%. Now with an A R M the rate may move from time to time. These means you might even get a lower rate which would drop your house payment by a few dollars or heck even a few hundred dollars.
Customer: Sounds awesome.
Finance: Sign right here.
and that would be the honest way of selling it. Some didn't even get told the rate could fluctuate.
That is just stupid. I learned years ago NOT to go with an ARM regardless of the low rate. Buyer beware. IT doesn't take a genius to know that buying a home with a A.R.M. could cost you an arm and a leg if rates went up.
Before all this happened most people didn't even know that loans like that existed. You underestimate how little the average American understands. Lots of people have the mentality that someone else is their to protect them or that no way could you ever get screwed like that because I'll sue and blah blah blah.
I don't get how people could be so careless on such a major investment in their future.
As a matter of fact, I think I learned about A.R.M.'s in a basic economic business class in high school.
Damn close. What a crazy day. I don't think I've ever seen the market act this strangely. Somehow this didn't feel like a "bottom feeder" rally, but someone (Treasury? The Saudi's?) dumping a massive amount of money into the market at the last minute to prevent a total meltdown and further destabilizing the world markets. I'm no conspiracy theorist, but that market was going straight off the cliff and accelerating till it "hit" 9600 and bounced straight back up 400 points in the last 45 minutes.
I don't think that's conspiracy thinking. The CNBC guys were running around like chickens with their heads cut off two hours before the close specifically because they hadn't seen the kind of injection you described. I agree the rally was too big for just bargain hunters.
Talk about being out of touch with reality . . .
Unless it hit some floor that triggered a lot of automatic computerized buying.
From what I understand, losses more than 2% trigger a lot of automatic trading/selling, so it would stand to reason that there is some kind of opposite effect for losses.
On a semi-related note, I stumbled across a thing of beauty today:
http://finance.yahoo.com/q/bs?s=WFR
Compare cash on hand vs. long-term debt.
I have some idea why the company was off a bit from it's high, but it seems to be VERY cheap. (PEG ratio is .23!)
Just thought I would throw that in for the finance types.
Disclosure:
This is the ONE stock that RG's wife has in her very small IRA.
I really wish I had the cash to double up on this one. It's long term price seems waaaaaay cheap.
A lot of people didn't go to high school, or have a high school that offered a 'basic economic business class'.
Some of those poor bas s took out escalating negative amortization loans, all because the loan shark/real estate slime told them "it's no problem, your house will never go down in value so you'll be building equity without paying a penny of principal and in five years you will be able to sell for a huge profit.' And that kind of crap is one big reason the housing industry is in the mess it is today, leading to the current economic situation.
It's just like politics -- too many people hear only what they want to hear. Logic is overcome by emotion and greed.
Didn't go to high school in today's age? Then that is truly sad. I think I took the class in 1978. 30 damn years ago.
A few years ago when we bought our lot, the bank told us very excitedly that we qualified for a $380k LOT loan. I could have bought most of West Texas with that!
Crazy.
LOL!The funny thing about this false stat is some dumb probably repeated it like phyzik did. 1 out of 4 people do not have a job!!!!!!!!!!!!!!!!!!!!
re: ARMS..
they ALL ing knew.. it is easier to claim ignorance though. homes are most peoples largest investment. there is a load of paperwork and other you go through to buy.. you don't just accidentally buy a house!
I don't think they all knew. There are some pretty stupid homeowners out there.
Some are posting on ST as we speak . . .
Question:
Does the carpet match the drapes?
Glad to see that the absurd credit bubble is finally bursting - had to happen sooner or later, and the longer it lasted the worse the pain.
So, those of you with cash in your accounts:
1) when are you going to get back into the market, and,
2) what are you going to buy (ie. what do you buy during a recession/depression)?
I'm thinking get in in about 6 months, and buy food, energy and water stocks, because they are the things no-one can do without, and for which the world has pretty much reached (or exceeded) its maximum sustainable supply.
Also, for you guys who obviously dabble in the stock market, what are the 5 or 10 things you'd check on before buying into a stock?
Last edited by RuffnReadyOzStyle; 10-07-2008 at 04:03 AM.
Bonds
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