Georgous George and his gredit crunch?
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Posted on Mar 17, 2008 06:28 pm
JDOD
Brother Number One
Member Since: Jan 22, 2008
How is it affecting you guys? Its starting to spread to the UK. And to be honest, having only had a Mortgage a few years, i.e. still haveing a good hundred odd thousand quid still to repay on it, i'm starting to feel like I'm going to **** blood soon. Have there been any repercussions in the States yet? I'm getting nervous now?.
On the plus side, I've just taken up playing darts and I'm really enjoying it
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TallChapAnswer:On a good day, lipstick.Member
Since: Jun 24, 2004
Mar 17, 2008 07:05 pm Darts. Do you remember the "Alas Smith & Jones" skit where they were scored on the drinks they were getting rather than the actual game of darts?
Lots of bad loans here. Borrowers without any real credit were being given 125% mortgages on homes that devalued heavily and quickly. Consequently they couldn't pay even the interest and had no equity. Foreclosures abound. The residential construction industry has now ground to a halt, so the suppliers are hurting, the construction companies are laying people off.
Still, oil is $107 a barrel, so George is just fine. Thank you for asking.
JDODBrother Number OneMember
Since: Jan 22, 2008
Mar 17, 2008 07:07 pm When you say 125% Do you mean they loaned 125% of the value of the property? What nutcase would do that? I loan 90% of the value of mine and I was shitting myself about it.
TallChapAnswer:On a good day, lipstick.Member
Since: Jun 24, 2004
Mar 18, 2008 06:08 pm Exactly. They loaned 125% of the value of the property to people who would not normally qualify. Then the homes de-value. Now they have no equity, can't pay the interest - let alone the principle - and they foreclose. Criminal how the lenders were allowed to do that.
zekthedeadcowEat Spam before it eats YOU!!!Member
Since: May 11, 2002
Mar 18, 2008 08:21 pm well... I'm changing up my 'trade' in my self employment so I don't expect to be too well off this year... however never did great at landscaping... I'm just getting to the point of my knees hurting too much to continue... Trying to get a job by after you've been self employed so long, I think companies realize hey can't deprogram you :)
So, well, am I feeling the effects... yes... but the outcome is mixed...
One of my current 'schemes' to make money is to set up an ebay store... I've recently started looking into buying jewelry and sterling at estate sales and selling it on ebay... this does very well if I can get the volume high enough... but it's very time consuming...but it's also fun as hell. :)
Ebay buyers are rabid for precious metals and paying 10%-20% above market for silver... I think it's an anonymity/convenience thing instead of sheer stupidity. :)
I'm not a home owner, however abandoned and foreclosed housing pricers have completely collapsed... so if I was looking to buy this would be a great time - but I don't have a job so I doubt I could get a non-sharky home loan. I have a friend looking at a house that basically just needs new plumbing and bathroom for $30K...on a nice property.
Some abandoned houses are $4k here in central ohio. I think this will be a very good thing for people who kept a leash on their credit. However, my parents are among those with a double mortage...$1200 a month not including insurance and utilities for the property I'm staying at (they have two houses one was a rehab that the moved into a couple years ago and they used this one to finance the repairs but now they can't sell it... I think they're going to dump it this spring, might even go to auction... which I think is a really really bad idea... As a rental they want the rent to cover both mortgages and tax ... so they're not viewing it as a long term investment, but a debt... of course the other house is clear :)
Investment wise I'm doing ok, in a pharmaceutical company already made money but I'm waiting to see if it'll go up more this spring before/after some test results... but as usual I haven't got enough equity to make a difference.
As a regular income the precious metals is probably much better... but it does in part rely on other people's stupidity, or atleast lack of effort... ie I bought a box of silver plate for $5... in it there was about 6 ounces of sterling worth about $20 an ounce... so I'll ebay the sterling and garage sale the left over plate...
As far as business outlook goes... I'm quiting landscaping because of my knees... I help my dad in handyman repairs... but well... I get electrocuted a lot... always in unexpected ways too :) ... last time was cleaning out a vacuum while sanding floors... it built up a huge static charge and I was like a cartoon character levitating off the ground with the aura :) ... so that's getting old too.
...however... that business is picking up... a lot... my dad is even doing work while on vacation in Florida... with recent regulation locally a lot of the 'fly-by-night' companies left town (Columbus now requires a permit for even basic external home repairs)... that bled into internal repairs and the surrounding community... as it was easier to just leave central ohio than pick and choose jobs...
I'm also working on a couple film projects... doing sound for one film in the next couple weeks and then will hopefully shoot my first 'film' film in june or july.... so that's picking up.
but to generalize :)
Something needs to be made clear, Money IS NOT a commodity. It is a tool to facilitate trade... it's not intended to be 'saved.'
I really think it would be in everyones best interest to purchase equity. Most 'large cash holders' buy gold and silver... but there's lots of other things that are worth spending money on. But saving cash, in order to retire on the cash, is a losing proposition IMO.
The Federal Reserve just cut rates again...by a lot... inflation is going to go insane (easily over 5% I think) This is going to make 'current debt' worse for creditors... because credit companies 'value' is based on their outstanding loans... with high inflation those loan lose value... so this can make the low interest 'good loans' into BAD investments because the 'worth' of them may decrease too fast... this however will be good for those who took out the loans as it will be easier to pay off the debt. However new loans will have to be at a higher interest rate which will cause them to lose consumer interest... if you're going to pay 25% interest on a home loan you might as well not buy one, etc.
My take, I think recession is being optimistic. I really think this is going to be a major global depression... we have a lot of baggage to shed.
Mar 18, 2008 09:08 pm The economic crunch here in Philadelphia is getting really bad. I am not a home owner, I am a renter. With the way things are going here, I think I will be for quite some time.
I know a lot of my friends that have these huge mortgages. 90% of them are looking to get out from underneath of them. Most bought in to the idea of the flexible rate mortgage. 35% of them our in danger of being foreclosed on. Not surprising since the average price for a home in this area is 450k and above. By the way, these homes have less then a 10th of an acre of land around them.
But this is only one part of the problem here. The taxes in this small corner of the world, are HUGE! Property tax here is around 2k year. School tax is around the same. Any exterior improvements to the home, is immediate reevaluation of your property tax. Now add in the privilege for living in the city tax, and your normal income tax, with the normal repair bills, and utility bills, and everyone is in the red. The banks have stopped foreclosed, because they have so many now, that they can not even begin to sell the ones they already have.
So, are we feeling it here? Oh yeah we are. And you got to love paying over $3.20 for a gallon of gas. Using public here is not much better. Average token for the trolley cost around $2.00. And no free transfers.
How many days does Bushie have left? Anyway we can get rid of him early?
