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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (44486)	12/30/2008 6:15:44 PM
From: prosperous	Read Replies (1) \| Respond to of 217542

The last set of home buyers that govt may be counting on to buy will not be attracted by lower interest rates but mostly lower prices on houses (many of those who were driven by low interest rates already have bought and are about to sell); unless the prices fall enough (not by looking at them in the bubble time frame of last 3 years but in traditional sense over a longer historical period) it will fail to entice the remaining folks to buy. The prices in many areas need to fall further to make house buying attractive under this level of economic uncertainty which the govt is trying to avoid; until that time, the only hope to stimulate anything in the housing market is minimizing foreclosures but its not clear that process is working either. The consequences of a lot of govt actions on housing are at odds wrt to their goals and many are poorly conceived and being implemented in a hurry.

To: TobagoJack who wrote (44486)	12/30/2008 8:09:30 PM
From: posthumousone	Respond to of 217542

<<Financing Trends – Plenty of Money, Not Enough Qualified Borrowers Lenders (aside from the government) are not going to bring back the lax underwriting standards of the toxic loan era. The transition back to sensible underwriting is absolutely necessary. What would the government push for? How would the lenders respond? Would 2009 be the end of the agency conforming loans? >> While i'd like to be believe this...how can this be true when just today we see GMAC lowering their lending standards 621 FICO???!!!!???

To: TobagoJack who wrote (44486)	12/30/2008 8:27:30 PM
From: Cogito Ergo Sum	Respond to of 217542

Most of the fixes do seem based on the Dire Straits principle of .. Money for Nuthin'.. There is some merit in infrastructure.. but anyone with half a brain will repairing and or buttressing their personal balance sheets with any economic benefit gain.. not stimulating the economy... Another poster pointed out to me (correctly I think) on John Pitera's thread that the Chinese save due to little faith in government support in hard times.. ie little social safety net like in NA.. Maybe Americans will get the same attitude from the other direction.. well the smart ones will I guess.. TBS