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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (14899)	11/25/2008 1:30:50 AM
From: Gary Mohilner	2 Recommendations Read Replies (1) \| Respond to of 71475

Don, I must in part disagree, I have substantial investment Real Estate, my Personal Banker convinced me that as often as I refinance 7/1 ARM's would be a great loan. She assured me that when they were due to adjust I could roll over into a new one if I choose. The problem with so many loans adjusting and going into foreclosure was the banks pulled all the vehicles that might help the borrower through. Look at the ARM's today, they're a joke, in some cases they actually are at higher interest rates than the fixed. What I'm suggesting is a way to give people a chance to either improve their earning capacity enough to handle the loan they agreed to, or refinance to something they could afford without the threat of foreclosure. It's the banks failure to work with people that brought on what's happened, but then they had no incentive to do it, they no longer owned the loans, Fannie, Freddie and others did, frankly the banks didn't care, at least not until it was too late. Even today with all the money the Govt. put into the banks, they're closing the tap, not opening it. People everywhere are hurting, but instead of putting the money the government wanted to be put to work to work, the banks are sitting on it. A year or two ago when I didn't need to refinance, a day hardly went by when I didn't receive offers to refinance. Now when people need to refinance, the offers have dried up in spite of $700 billion being poured into those banks. I suspect the Bankers have a plan on how to use the $700 billion, they'll divvy it up among all the CEO's as bonuses for the great jobs they've done, isn't over a billion each in bonuses fair. While this is intended to be at least a little humorous, there is too much truth in what our CEO's have done. Of the management courses I've taken one thing was consistent, the higher you went in management, the further out your thinking should be. Would companies like GM be in the position it is if the CEO's were thinking about what will happen and plan for 5 to 20 year ahead, but no, they're thinking about what they can do to make things look good now, after all they've got to consider this years bonuses. Gary