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

To: Don Earl who wrote (15016)	11/26/2008 12:24:19 PM
From: Robin Plunder	2 Recommendations Read Replies (1) \| Respond to of 71484

"Loan a bunch of money to Joe Deadbeat at a rate likely to be attractive to investors, mix Joe Deadbeat's loan in with some other better stuff to rate the bundled loans higher than they deserve, and as long as housing prices are going up 25% per year, Joe will keep paying the predatory interest rates as long as it keeps looking like easy money for Joe. Joe Deadbeat didn't buy the house because he's the kind of guy to make payments for ten years while waiting to break even on the investment. Joe bought the house because it cost him a fraction of what he'd have to put down up front to rent, and because he was subjected to less scrutiny than what he'd have to put up with from a potential landlord. Joe didn't buy a house. He got a house for free. You're probably right that Joe will keep the house as long as you keep giving Joe free stuff. If you let Joe stay in the house for free, or at least for less than what Joe would have to pay for rent, he might even stay there for awhile - even with negative equity in the house. That's just the kind of guy Joe is. And, what if the market does recover in 10 years and Joe can sell the place at break even? Will the house be in marketable condition, or will the house be in the same kind of condition as Joe's credit rating? I spent last weekend cleaning my gutters and spraying the roof for traces of moss that were starting to show up. I also spent half a day on yard work so the landscaping will look good come Spring. What do you suppose Joe did last weekend? There ain't no such thing as a free lunch. I bought my house. I don't want to buy a house for Joe. I don't want to cover the losses of those who gave money to Joe. I want to keep what's mine and be left alone." yes, and i've been renting for 6 years to protect myself from Joe and his buddies....do i want to pay for joes mortgage? Im kind of pissed at Joe and the bankers and our politicians, and our voters for making me adjust my lifestyle in this way... robin