How will the housing and credit markets crisis affect yours or your kids future?

Question

is the housing and credit markets crisis just another form of terrorism or is it cannibalism, and why is the government not responding to the needs of the people effected by the crisis meaning the familys that are loosing there homes? Why does the government alow these so called Preditorial mortgage companys to abuse the human race. Is there a cure for the problem and if so WHAT IS IT?

Answer 1

I am making lemonade!

This is a great opportunity to make yourself some serious long term profit. I am buying as much property as I can now, while the getting is good.

My children and my grandchildren should be set up for a pretty cushy life. There really is no excuse for people not to see this as a positive experience.

Answer 2

the Fed started the whole thing rolling by lowering interest rates to next to nothing, so if you want to blame anyone, blame Alan Greenspan.

but the banks and mortgage companies did only what companies normally exist to do, which is to provide a wanted product/service and make a profit. their lending terms may seem now to have been overly easy, but the folks who took the loans also thought they would be making way more money down the line. and for those who didn't read the contracts, how can you legislate against irresponsibility, laziness and stupidity?

and now with house prices falling like a ton of bricks, that simply tells me that there are now TOO MANY houses, so no one is going to be homeless. the people who lose ownership of their homes will now just become renters, like they should have been all along.

there's still some grand myth (perpetrated no less by government itself) that owning a home is the "American Dream". what a pile of CRAP. there is no shame in renting, and frequently you're much better off.

Answer 3

No one got abused in this situation. There are two parties to every transaction, in this case, the lender and the borrower. The lender offered the product and the borrower accepted it. So the government should bail out those who accepted a stupid product which they could not afford ?

Do be aware that, if this sub prime situation had never been offered to borrowers, they would never have had a home to lose. They would STILL be renting, which is what they should have done instead of signing stupid ARM mortgages.

Answer 4

The government should not do anything.

All these morons who got these gimmicky loans were told that their payments would go up later.
They didn't care, because they were greedy and thought even if that happens "I can just flip my house and make tons of cash"

All that's happening now, is that the prices are going back down in the direction of what the houses are actually worth to someone who buys a house to live in - not to "flip for a profit".
The banks and the speculators made tons of cash on the run-up, now they should take the hit and suck the loss.
Unfortunately, a lot of stupid people are going to get stung along with them, but it's not fair for ME (my taxes) to bail out these idiots.

Answer 5

in part and to a element. I additionally blame merely easy greed and the domicile builders. they save development those rattling McMansions that ordinary human beings merely can't locate the money for.How some proportion of recent properties with basically one tale? How some first rate length backyard too? once you think of that a severe high quality domicile fee around 20,000 in the 50's-and an identical suitable domicile now is going for around 3 hundred,000, you comprehend that something is heavily tousled!

Answer 6

Um, because a smart government lets the markets work it out. Government intervention only leads to more problems.

Answer 7

Who is being abused? People were given money and they spent the money. They are refusing to repay their debts. They are NOT victims!

This "crisis" is assuring my children of a bright future! I am now able to purchase more then ever before.