We don’t need smart ass posts like that!
We are solving the worlds problems, can’t you see that?
OMG the ignorance!
There is no room for humor here, we are CPAs dammit!
Listen, if American society were more fically conservative, cutting spending from the bottome up, then the economy would be shit by comparison to the last couple decades. People spending too much of their not so hard earned money is what drove corporations to such profits, which lead to job growth, which lead to larger payrolls, which fed the consumer spending.
Home values & loans simply fed :tspry: into the cycle. While they are both great financial tools, as with any other tool, it has to be used “properly”… but there in comes the personal responsibility & judgement.
Are you going to teach kids in grade school a fiscal responsibility course?
i think a lot should be done, both on the consumer side, and on the lending side.
preliminarily, i think lenders should be required to force applicants to take some kind of baseline test that assesses their awareness of the risks associated with the lending products they have chosen. if for some reason they fail that test, then they should have to take an educational seminar that informs them on how their loan will be structured, what could happen if interest rates fluctuate, and what could happen if they have hiccups in their personal income. obviously how that cost would be covered is up for debate.
i though you were above personal attacks? didnt we put that to rest? :lolham:
Well if it goes to banks then its a bailout for the, if it goes to delinquent people then it is a bailout for them. Either way i see it BAILOUT!!! Hell you could even just say its an economy bailout if all else fails.
LOL QFT!
I knew spending was down but are you speaking of a recent massive hit or the lack of spending over time being the massive hit. Forgive my ignorance i havent been too up on this recently.
Retail reports were lower than expected today
BLAST!!!
When me shit turns purple and smells like rainbow sherbert. As they say.
Personal story I may have mentioned before…
When I got my home construction loan in 2006, it was insane what they put me through.
I was waiting for a request for a spinal tap or urine test.:biglaugh:
I had a credit score of 819 and a long standing excellent business account!!!
It is very hard for me to fathom how some of these people even got loans.
you’re self employed & were taking out a construction loan… that will invlove ALOT of underwriting wether the loan is $400k or $40k.
Trust me.
^ I forgot to mention I owned the land valued at $100,000 and I was putting $200,000 of my own money into it, so there was ton of equity.
Some of the stories I have heard about these people make it sound like they walked in with a handful of magic beans and the bank threw large amounts of money at them.
I guess that is the media spin.
I hear you though Nikuk.
I wished the media would call it what it is… but then they wouldn’t be able to sell ad’s for as much money (sounds like a something a bank would, right…)
Subprime: weak credit / income / ltv, etc, so the app is a lil tougher, and the interest a lil higher.
No Doc: Decent to great credit, No proof of income.
The problem started with no doc… then rolled into “slim” doc subprimes… and ARMs in that arena basically lit the fuse.