How many are losing their house and will it be harder to buy a car on time?{payments?{ How long will this last?
2007-07-26 11:35:10 · 5 answers · asked by Gypsy Gal 6 in Business & Finance ➔ Credit
OK, the first poster is nuts.
The Fed has done a great job of controlling the interest rate that they charge the banks.
The problem has not been due to Republicans or Democrats, it has been because of people spending money to buy seasoned trade lines so they could raise their credit scores to qualify for loans that they really did not deserve, compounded by appraisers saying homes were worth a lot more then they were so people could get approved with no money down and people taking out adjustable rate mortgages thinking that the housing market was going to bail them out when their payments started to go up. Major dumb.
All of the above has led to foreclosures all over the Country and the sub-prime lenders are tightening up their guidelines to make getting loans more difficult.
This will last until things start to even out and then things will go the other way again. It happens every few years for mortgage lenders and vehicle lenders.
2007-07-26 12:01:09 · answer #1 · answered by ? 7 · 2⤊ 0⤋
Looks like it. This is NOT a good time to have alot of debt; credit card- or otherwise. The HARD part, from NOW until the next President takes Office, will be "holding onto" the new stuff you HAVE (the new HOUSE, car, etc.). It's gonna get TOUGH to get a bank loan with a decent interest rate for awhile. Things SHOULD start to get better- by the Summer of 2009.
2007-07-26 18:47:04 · answer #2 · answered by Joseph, II 7 · 0⤊ 0⤋
No, we are just in a certain cycle.... because the republicans spend too much money, the inflarion-corrected yield on T-bills needs to stay at least at 2%, meaning that yield is now hoovering at 4-5%. This in turn makes noninvestmentgrade bonds more expensive to issue and thus needs and higher interest rate.
In normal words it means that the current administration has caused the inflation to rise and thus the nominal interest rates which practically shakes up the subprime market.
For ur average Joe it means that you will have to wait until the government (and corporate America) needs to straighten up its balance sheet.
It takes a few years I think until we are back to lower interest rates.
Dont forget that we had hyperinflation in the 70s and 80s.... turned back to normal a few years later
2007-07-26 18:44:35 · answer #3 · answered by uvtstudents 2 · 0⤊ 0⤋
I have to agree with Spifiman
2007-07-26 20:38:02 · answer #4 · answered by echo 7 · 0⤊ 0⤋
yes your right.
unless they are making over $30000 a year or more.
2007-07-26 23:13:33 · answer #5 · answered by robert p 7 · 0⤊ 0⤋