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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (441131)12/17/2008 11:37:02 PM
From: tejek  Read Replies (1) of 1584951
 
And the mortgage refis....there's talk rates will get into the 3s.

But does it help if only 10% qualify? Would you, personally, lend somebody $450K of your own money with $90K down for 30 years with housing prices plummeting and the risk of a depression? And with your personal balance sheet pretty much unknown.

Why not? If they have a good income, good credit and a good down, nothing is changed from what banks have been doing every day of the year for decades. Prices don't always go up in every metro area every year. There are places where prices are trending down but people still get loans. Its not unusual at all. That was true in 1980; in 1990 and in 2000.

John, housing sales were up YoY for the past two months in CA, FLA and one other state. Do you really think people are paying all cash for those houses?

The banks are hording cash in self-defense. Millions may get laid off near term, with all the foreclosures that implies. Their "insurance" (CDSs) have proved to be worthless. Credit card debt is huge. The whole world is saying "WTF, why were you so reckless?".

What the policies announced by the fed yesterday will do is encourage the banks to start lending. It will be a slow process but it will happen.

These guys will do anything to limit their exposure. Self preservation. Can you blame them?

Yes. They are idiots. I blame them for a lot......now they need to get over it and move forward.
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