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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (370075)	2/5/2008 10:59:37 PM
From: TimF	Respond to of 1578501

I am not saying bail them out; rather I am saying lower the interest rate on their ARM resets so they can continue to make their payments. That is a bailout at least a partial one. They got money at a discount because they assumed the risk that the price for it (the interest rate) would go up. Now you enforce that things remain at a discount, and let them welsh on part of their promise. Now it might sometimes be better for all involved that the interest rate doesn't go up as much as originally planned, but in that case the lender has an incentive to allow better terms. There is no good reason for the feds to cancel a valid contract in most of these cases. The major markets where the bubble, as you call it, took place are in FLA, CA, NV and maybe AZ. What has changed that will make those markets less desirable in the future. If they remain as desirable as I expect they will, then in ten years, last year's prices will look cheap. Could they hit the peak prices in 10 years? Maybe, I have my doubts they would be so much beyond the peaks as to make the old peaks look cheap. And in 5 years I seriously have my doubts. (your original statement was 5-10) You might add DC to that list. New York also had prices go up a lot but it is a different market (I understand its much healthier now than most of the bubble or semi-bubble markets)