Dow Jones plummets

[bsdaddict]

It was down 8 %...not a ton.  The market is up 3% now.

The DJIA is back to where it was like 2 weeks ago...  seriously, this drop was nothing to get excited about...

[FrodeMk3]

The DJIA is back to where it was like 2 weeks ago...  seriously, this drop was nothing to get excited about...

No, it's down from 2 weeks' ago. But Today's rally helped bring it back up a little shy of half of yesterday's losses.

[Nwbie]

just put all back into cash reserve fund
total now above last wednesdays close

please start sending emails to your congressmen and senate to not pass a bill again today

thank you

[Captain Virgil Hilts]

just put all back into cash reserve fund
total now above last wednesdays close

please start sending emails to your congressmen and senate to not pass a bill again today

thank you

On this, we agree.

[BTW]

This is what going on. Yesterday, the neurotic people took losses in the market because Katie Couric told them to. Today, those seasoned blasphemists in the market,  those who realize the fundamentals of the economy are sound (WHAT????), scooped up the good values dropped by the neurotic people. There will be other sell off days and value buying. In the end the market will be leaner and healthier and have less neurotic people. Thats only if congress keeps its grubby little fingers out of it.

See, the market is not going to plummet because the fundamentals are strong (WHAT?????). When stocks drop below their true value ( not their current casino, P/E ignoring, inflated value) value hunters will scoop them up. Neurotic people consistently lose money in the market.

[crockett]

You can thank the Government forcing banks to lend money to minorities who couldn't afford the payments for that.

I've went over this before, in countless other topics.. The loans that you are talking about are a very "small" group of mortgages and they didn't cause this issue. If you know anything about the lending industry you will know that the most profitable loans are the ones in which the person getting the loan is considered "high risk".

Go back and look at the history of these bills and you will learn that it's wasn't congress forcing anyone to making anyone issue loans to low income people. You will find out it was the banking industry that pushed congress to relax the regulation to allow them to lend to these people.

Do you understand it was the banking industry that actually wrote the bill you are talking about? It was lobbyist paid for by these very companies whom are in trouble now. Now one twisted their arms and made them do anything. They wanted to do it and had been lobbying Congress for years to get the regulations relaxed just so they could get govt insurance on high risk loans.

The largest group of people having mortgages defaulted on, are not low income families. The largest groups are middle class people who bought much more than they could afford. These are the people that could afford a $100 to $200k house but were given loans for 250k or more.

It wasn't low income people buying $200k to $500k houses it was the middle class. The simple fact is by the deregulation of the markets in which the lending companies pushed for, they were able to get people into mortgages they had no business being in. That most certainly wasn't Congress twisting any one's arms forcing them to loan. That was the lending industry pushing bad loans because it made them more profit as long as the ball kept bouncing.

[Captain Virgil Hilts]

I've went over this before, in countless other topics.. The loans that you are talking about are a very "small" group of mortgages and they didn't cause this issue. If you know anything about the lending industry you will know that the most profitable loans are the ones in which the person getting the loan is considered "high risk".

Go back and look at the history of these bills and you will learn that it's wasn't congress forcing anyone to making anyone issue loans to low income people. You will find out it was the banking industry that pushed congress to relax the regulation to allow them to lend to these people.

Do you understand it was the banking industry that actually wrote the bill you are talking about? It was lobbyist paid for by these very companies whom are in trouble now. Now one twisted their arms and made them do anything. They wanted to do it and had been lobbying Congress for years to get the regulations relaxed just so they could get govt insurance on high risk loans.

The largest group of people having mortgages defaulted on, are not low income families. The largest groups are middle class people who bought much more than they could afford. These are the people that could afford a $100 to $200k house but were given loans for 250k or more.

It wasn't low income people buying $200k to $500k houses it was the middle class. The simple fact is by the deregulation of the markets in which the lending companies pushed for, they were able to get people into mortgages they had no business being in. That most certainly wasn't Congress twisting any one's arms forcing them to loan. That was the lending industry pushing bad loans because it made them more profit as long as the ball kept bouncing.

I suppose you never heard of the disaster known as "Community Re-Investment". I spent this weekend with a fellow racer who had been in the banking industry for 30 years (although I'm sure you know far more about banks and lending than he ever will) and he actually laid out how that little disaster worked. If you REFUSED to loan money in that area, regardless of how bad the risk was, the regulatory agency simply shut you down. So, yes, Congress used "Community Re-Investment" to FORCE the industry to write those bad loans and mortgages. I've known this guy for those same 30 years, he saw this coming, and he got laid off early this year, about 4 months before his brother, one of my best friends and customers, died. So, he's got no reason at all to lie, it won't help him at all. He's had a tough year, it tends to bring out honest reflection. He was however smart enough to see this coming, and is out of debt, his wife still has her teaching job. He's in a tough spot though, he's at the age where few want to hire him, and his chosen profession is not showing a lot of promise for him, either.

[crockett]

I suppose you never heard of the disaster known as "Community Re-Investment". I spent this weekend with a fellow racer who had been in the banking industry for 30 years (although I'm sure you know far more about banks and lending than he ever will) and he actually laid out how that little disaster worked. If you REFUSED to loan money in that area, regardless of how bad the risk was, the regulatory agency simply shut you down. So, yes, Congress used "Community Re-Investment" to FORCE the industry to write those bad loans and mortgages. I've known this guy for those same 30 years, he saw this coming, and he got laid off early this year, about 4 months before his brother, one of my best friends and customers, died. So, he's got no reason at all to lie, it won't help him at all. He's had a tough year, it tends to bring out honest reflection. He was however smart enough to see this coming, and is out of debt, his wife still has her teaching job. He's in a tough spot though, he's at the age where few want to hire him, and his chosen profession is not showing a lot of promise for him, either.

What I was saying is that wasn't the cause of this mess. He said that it was Congress forcing lenders to loan to low income which was the cause of this problem. What I was saying was the lending companies have always wanted to lend to high risk people. They just wanted it to be federally insured which reduces their own risk. Sure there might have been some they didn't want to lend too, but that was the price they had to take to get the other stuff they wanted.

Forcing them to lend in a undesirable area wasn't what caused this mess. Sure some of the bad loans likely came from those area's but most of them came from the average middle class neighborhood. Not some low income high risk areas. Most of the defualted loans are in the $150k to $300k range and that is middle class working America.

[john9001]

Most of the defualted loans are in the $150k to $300k range and that is middle class working America.

how do you know that?

[Nwbie]

October will be a difficult month for tens of thousands of homeowners as a record number of adjustable rate mortgages reset for the first time.

Credit Suisse says borrowers with more than $50 billion worth of loans will see the low initial interest rates they've been enjoying replaced with a new higher rate -- and higher payments.

After that the investment bank says more than $30 billion worth of ARMs will reset each month until October 2008.

How serious is that? Just a couple of years ago Credit Suisse says only a few billion dollars worth of ARMs reset each month.

If you have one of those loans, click here for lots of ideas on how to cope with higher mortgage payments.

http://www.interest.com/content/trends/index.asp

"We've Only Just Begun" plays softly in the background

[Charon]

Most of the defualted loans are in the $150k to $300k range and that is middle class working America.

In the Chicago market you are talking entry level housing at those price points. I wonder if you can get a $150k free standing house within 30 miles of the city.

[Nwbie]

In the Chicago market you are talking entry level housing at those price points. I wonder if you can get a $150k free standing house within 30 miles of the city.

http://real-estate.nextag.com/q2_robbins-IL/homes-html

http://real-estate.nextag.com/q2_Harvey-IL/homes-html

http://real-estate.nextag.com/q2_Hometown-IL/homes-html
http://real-estate.nextag.com/q2_Steger-IL/homes-html

[Dos Equis]

I suppose you never heard of the disaster known as "Community Re-Investment". I spent this weekend with a fellow racer who had been in the banking industry for 30 years (although I'm sure you know far more about banks and lending than he ever will) and he actually laid out how that little disaster worked. If you REFUSED to loan money in that area, regardless of how bad the risk was, the regulatory agency simply shut you down. So, yes, Congress used "Community Re-Investment" to FORCE the industry to write those bad loans and mortgages. I've known this guy for those same 30 years, he saw this coming, and he got laid off early this year, about 4 months before his brother, one of my best friends and customers, died. So, he's got no reason at all to lie, it won't help him at all. He's had a tough year, it tends to bring out honest reflection. He was however smart enough to see this coming, and is out of debt, his wife still has her teaching job. He's in a tough spot though, he's at the age where few want to hire him, and his chosen profession is not showing a lot of promise for him, either.

Your friend is an idiot and a liar.

Simply no two ways about it.

[Hangtime]

way outta line, Dos. -5 respect points.

[Captain Virgil Hilts]

Your friend is an idiot and a liar.

Simply no two ways about it.

Listen Dunce Estrus, my friend knows more about the banking industry than you are likely to ever learn. He's been in the trenches since the seventies. I'll take his 30 YEARS experience over your disrespectful bloviating bravo sierra any day. The only thing there is no two ways about is your arrogance and ignorance. Not to mention your blatant disrespect and stupidity. You personal attack on a man who served his country in a time of war and then worked for three decades in the banking industry shows everyone what you REALLY are.