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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (70868)	10/3/2006 6:36:21 PM
From: ild	Read Replies (3) \| Respond to of 110194

<<<if they save 10% of gross>> Saving? What for? -g/ng-

To: Wyätt Gwyön who wrote (70868)	10/3/2006 6:43:04 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 110194

I half agree with you, its just that I remember when I was trying to buy a house in the early 90s with a high income, in those days these DTI ratios actually were observed and I thought it was total BS. I don't need the government telling me, a single person at the time, that I need 10K/mo leftover for my personal needs. I had zero expenses and viewed my situation as favorable to the highest mortgage possible. In retrospect I would have been better off had I been able to mortgage 75% of my income, then. I was only 28! I understand that bubbles are problematic but this 35% DTI has got to go, it discriminates against high income singles, and is a sweeping judgement on lifestyle. Maybe a higher DTI like 50% along with FICO would work. Anyway jmo.

To: Wyätt Gwyön who wrote (70868)	10/3/2006 7:08:24 PM
From: Lizzie Tudor	Read Replies (3) \| Respond to of 110194

do you think the average Clownifornian making 16K a month has a monthly CC bill under 2K? Yes I do actually. I think every single in silicon valley making between $120-$180K per year (these are the uber-geeks at Google and Cisco) have virtually NO expenses. Their work is their life. We're talking millions of people. I don't think high income professionals should be penalized to the degree that you paint. Yes there are families out there who can't control their expenses. Workaholics have no problems with spending at all.

To: Wyätt Gwyön who wrote (70868)	10/3/2006 7:32:21 PM
From: UncleBigs	Read Replies (1) \| Respond to of 110194

why should the government regulate DTI at all? Banks and other institutions should be free to lend to whoever they want. There should also be no deposit insurance. That way depositors would do a little homework before they deposit their money with Countrywide or Downey Savings. Government has created the mortgage moral hazard. Depositors have no fear and neither do the shareholders because they believe the Fed will come to the rescue with free money again before bad loans get out of hand.