2007-08-09 11:10:40 · 5 answers · asked by todandy 1 in Business & Finance ➔ Renting & Real Estate
sub-prime and ARM loans are just a part of the problem.
The economy has suffered through weeks of volatility triggered by concerns about tight credit and bad subprime mortgages.
Today Banks in Europe announced that they are also locking some accounts of american mortgage companies due to their inability to accuractely show correct numbers.
This is creatinga mini-panic. All the things that had been denied up until this point are unraveling. On top of this, retail sales were mediocre, which shows that indeed, the housing collapse is affecting the consumer.
Bush, indeed is going to attempt to protect the economy but is coming after the realtors and mortgage companies that put this in motion. Bush has also said he will not give financial assistance to the poor foreclosed homeowner...instead he says they need more education.
are we done yet? no where even close.
but remember, we have seen this scenario before ----its just the people who are 35 and below who do not remember what happened in the 80's and it affected the economy negatively then also.
thanks for asking...also there are lot of articles on net about this....yahoo.com has one on its banner page right now about how this affected the stockmarket drop today.
good luck and thanks for asking :)
2007-08-09 11:34:39 · answer #1 · answered by Blue October 6 · 0⤊ 0⤋
Greed/Fear Cycle
We're now in the fear cycle.
Think housing could not possibly get any worse?
Think again.
Look at the mortgage resets for the subprime mortgage market next year.
Aug (07) 52 Billion Dollars
Sep 58
Oct 55
Nov 52
Dec 58
Jan (08) 80
Feb 88
Mar 110!!! WOW
Apr 92
May 72
June 75
July 50
2007-08-09 19:44:20 · answer #2 · answered by Terry S 5 · 0⤊ 0⤋
lmfao..is that what you think..READ THE NEWS STORY..its still up for the week. the only thing damaging to the economy is the pelosi/reid regime and the ridiculous tax and spend schemes.
2007-08-09 18:13:51 · answer #3 · answered by koalatcomics 7 · 1⤊ 1⤋
predatorial lending companies that dont care about the person applying for the loan... all they see is $$$. and bush said on the news he isnt going to bail these companies out either no federal funding!
2007-08-09 18:18:46 · answer #4 · answered by vicky 5 · 0⤊ 2⤋
my theory is exactly this: mortgage brokers oversold mortgages to people that didnt really qualify, just to get their cut.
2007-08-09 18:14:39 · answer #5 · answered by Noone i 6 · 0⤊ 2⤋