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

To: d[-_-]b who wrote (454665)	2/6/2009 1:31:06 PM
From: michael97123	Read Replies (1) \| Respond to of 1574714

"Zero down financing played a large part." you are looking in rear view mirror. Happened already, not happening now. Probably not such a bad idea now at the bottom of the housing market than it was at top.

To: d[-_-]b who wrote (454665)	2/7/2009 3:09:23 PM
From: tejek	Read Replies (1) \| Respond to of 1574714

If they admit its demand stupid, their arguments all fall apart. Hardly - you need to look at why the demand died off not how do I create more temporary demand. While some government spending might be called a stimulus you need to fundamentally address the reason why people can't handle the natural ups and downs of the housing markets. Zero down financing played a large part. That was a small part of the problem. The real problem is that people were put in houses by artificially reducing payments in the first two years and then resetting them 3-4 time higher after the two year period was up. Many of these people went into those houses with shaky credit ratings and had little hope of growing their salaries. So when the resets occurred, they were fukked. Some blame can be assigned to them....why did they allow themselves to get into such a mess? However, the majority of blame lies at the feet of greedy bankers, real estate agents, appraisers, hedge funds etc who encouraged this crap in order to sustain the natural boom conditions that existed in the early years of the 21st century.