Rusty W


Everyone that has purchased a home in the last 10 years is in for a rude awakening when this new derivatives crises hits. The boys on Wall street placed your homes debt (mortgage) in a big basket of dissimilar loans to spread out the RISK across a wide, diverse bunch of nations that were in better shape. Now these baskets of debt are not only coming due, but they are coming due with the equivalent of a $2000.00 loss for every $1.00 ( yes $1.00) invested. With billions of dollars being lost, home values going down, credit being crunced, jobs being lost, Wars being paid for and et.c, etc., …HOW are we going to get out of this? If you don’t have your shelves stocked tonight, you better go tomorrow night and start getting as many non perishible goods as possible and sticking them in your closets. Maybe you will be one of the lucky ones that won’t have to “walk away” from your home. My wife and I are safe. May god bless and good luck to all !!!!!!!
I used to be a commodities broker !!!!

4 Responses to “Can we reverse the mortgage crisis that is coming upon us.and how do we do it?”

1. Dont_taze_me_bro on April 9th, 2009 7:08 am

   I wondered where you where, I hadn’t heard from Chicken Little in such a long time.

2. Huba on April 11th, 2009 7:57 pm

   Those who have a mortgage need to make their payments or refinance to a lower rate, if possible. If the companies that hold the debt go belly up, the average consumer is still protected.

   This is not to say that this country doesn’t have a debt problem. The current administration has squandered the surpluses they were given at the start and plunged us further into debt – a hole we may not get out of without the support of the countries we are in debt to. Like it or not, more taxes need to be collected and less tax money spent so we can pay down the country’s debt. We’ve seen that a cut in upper level tax rates have actually increased tax income. We should figure out how to make that work for all of us. Instead of looking at every incoming dollar as something to be spent, we need to do what we tell families to do: save some of it or pay down debt.

3. Laissez-Faire Guy on April 12th, 2009 11:35 am

   Wow! Why not throw in locusts and pestilence for good measure?

   $2,000 loss for ever $1 invested? Hogwash!

   95% of homeowners are able to pay their mortgage each month, on time, just fine.

   If you’ve lived through the 70s, you know we’ve gone through a hell of a lot worse. And even that was a drop in the bucket compared to the Great Depression.

   We’ll be battered and bruised, and take some losses, but we’ll come through in the end OK.

4. James D on April 12th, 2009 7:32 pm

   Actually, I am totally impressed with how well things have held together.. I really thought the systemic risk from Bear was going to take out the entire market all at one time…Hank and Ben have things held together with duct tape at the moment – Fisher is looking things over noting the leaks and cautioning that it may not hold w/o higher rates…..
   Fed policy aside – [they are not a solution - they are just a buffer from certain and sudden real shocks]…This market got bent up good in Q4 06′ – got worse in mid 07′ fell apart Q1 08′ – patched back in Q2.. and you ask – what is next.?
   Well – we are in this jamb b/c Gov. via GSEs and Tax policy and Modernization Act – pushed home ownership to an end … THUS – the USA directed LIMITED RESOURCES [time, money, energy, etc] into building more SqFt per person then ever before – that now requires lots of energy and continued resources to maintain [and that would have been fine w/o India and BRICs growing wealth. So - we [our policy makers] made a big mistake in telling “the people:” to live large – rather then promoting productivity gains by investing limited resources in say nuclear power plants and a bullet train network or tele-commuting programs and national high speed networks that are free using analog TV signals. So- you spend on HUGE items like military, lavish homes and SUVs and etc -w/o investment in productivity gains – it’s going to happen…you can not have CEOs making 30xs employee base and taking private Co’s at any price tag – Credit is too cheep too long – and its being held down [thanks Ben] to prevent a sudden shock to the Realestate market [and municipal tax bases]. Good news – if we get our act together [politically] – we certainly have the k base to build on – and establish productivity improvements – that bring back living standards. It really all comes down to central efficient policy that organizes and deploys resources to the best use – that results in productive gains. In the end – when living standards are depressed too far [Germany post WW1], etc – the real issue is political order [civil order] – we just had a bit of a mismanagment of our resources for @7yrs….. oh well.
   Go LONG canned goods – FWIW Smith and Wesson [the product] is a better buy then the stock right now .

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