who killed the economy?!?!

[Flipx99 5,000+ posts]

so the fed's have an obligation to "bail" out the lending institutions who many of themselves were part of the preditory lending, but they do not have the obligation to "bail" out any of the victims of the preditory lending.

That is the question. I personally believe neither party should be bailed out.

 

[mcsoul 10+ year member]

I hate when people call it predatory lending, as if the banks are wrong to charge people higher interest rates for crappy credit. Then there's all these dumass borrowers who thought they could pay interest only for a few years, see 20% appriciation, sell it and move on with 6 figures in thier pocket. Someone gets left holding the bag, why should it be the tax payer?

 

[jmanpc 5,000+ posts]

clipping killed the economy

Truth.

 

[Flipx99 5,000+ posts]

I hate when people call it predatory lending, as if the banks are wrong to charge people higher interest rates for crappy credit. Then there's all these dumass borrowers who thought they could pay interest only for a few years, see 20% appriciation, sell it and move on with 6 figures in thier pocket. Someone gets left holding the bag, why should it be the tax payer?

ehh, it is predatory lending.

Check cashers or deferred presentent who charge people 1000% interest...that is what I have an issue with. I don't expect John Q Citizen down on their luck trying to make it next week to understand the ins and outs of finance.

 

[mcsoul 10+ year member]

ehh, it is predatory lending.
Check cashers or deferred presentent who charge people 1000% interest...that is what I have an issue with. I don't expect John Q Citizen down on their luck trying to make it next week to understand the ins and outs of finance.

OK your talking about the check cashing stores, yes that is bad practice, taking advantage of the ignorant. But people equate predatory lending with high interest mortages or adustable ARMS and 5/1 loans.

 

[duece212 5,000+ posts]

ehh, it is predatory lending.
Check cashers or deferred presentent who charge people 1000% interest...that is what I have an issue with. I don't expect John Q Citizen down on their luck trying to make it next week to understand the ins and outs of finance.

I have no issue with that, I'm for personal responsibility

If you don't see and understand the sign that says "your 200 hundred bucks today will cost you 500 hundred next week" your destined to fail in the first place.

Too many people want an easy way out and want to blame somebody else...the sooner you accept responsibility for your situation and realize that hard times and hard work are the only way out, the better off you will be.

 

[Flipx99 5,000+ posts]

OK your talking about the check cashing stores, yes that is bad practice, taking advantage of the ignorant. But people equate predatory lending with high interest mortages or adustable ARMS and 5/1 loans.

I see.

I have no issue with that, I'm for personal responsibility
If you don't see and understand the sign that says "your 200 hundred bucks today will cost you 500 hundred next week" your destined to fail in the first place.

Too many people want an easy way out and want to blame somebody else...the sooner you accept responsibility for your situation and realize that hard times and hard work are the only way out, the better off you will be.

But you have to start somewhere....ya know. Most of us got clothes on our back to begin with...what if you had no clothes, no food, nothing. I don't know anyone like that, but I believe it is possible for a person to have nothing. We shouldn't prey on those who have nothing TRYING to make it out of a hole.

 

[duece212 5,000+ posts]

But you have to start somewhere....ya know. Most of us got clothes on our back to begin with...what if you had no clothes, no food, nothing. I don't know anyone like that, but I believe it is possible for a person to have nothing. We shouldn't prey on those who have nothing TRYING to make it out of a hole.

I agree, those are the people that need help. Just because they don't have clothes on their back doesn't make them dumb and unable to understand ***-rapin payday loans though....hell they might not even have paydays so how they even gonna get the loans.

I think payday loan places pray on idiots that should know better but turn the blind eye on for a one week fix of money...Do they know better, yes, yet they still go for it.

 

[RangerMan Premium Member]

He's asking a question for which there is no answer. I don't know how to explain that there is no answer, no one knows the answer...and I don't think anyone can know the answer personally.
But even if they raised the rates today, IIRC the lag is what 18 months before we can determine the effects...

Agreed. There is nothing that can be done in all honesty. Its just a cycle, and unfortunately, we are on the bottom end of it right now. Things will get better eventually...same thing that happens with a recession happens with a recovery; there is no way to determine when the recovery period has started. Like you said, it could have started today, and we wouldn't know for at least another 8 months to a year. Thats just the way it is.

Recessions/Recoveries will always happens, its just a matter of how severe they are...

 

[Banana Balls 5,000+ posts]

yes as Ranger said, but typically no cause they will have more disposal income -but just because you have yet to be impacted or affected does not mean the US is not in a recession; I have not been impacted to a high degree, but i can see what is going on and I hate to say it, but yes we are.

In teh great depression didn't rich people end up with nothing too?

Ummm...have you seen what has been happening pertaining to personal finance?

I gave it some more thought last night. My personal portfolio has plateaued but it isn't going backwards. Technically, I can see how that can impact play money for some but I would imagine that in order to call a time frame a recession, it would have to have a lasting impact. A period of time where my portfolio is stagnant will not even be noticeable in 30 years.

Therefore I should conclude that either we are not in a recession, or a recession is meaningless. Right?

 

[RangerMan Premium Member]

In teh great depression didn't rich people end up with nothing too?
I gave it some more thought last night. My personal portfolio has plateaued but it isn't going backwards. Technically, I can see how that can impact play money for some but I would imagine that in order to call a time frame a recession, it would have to have a lasting impact. A period of time where my portfolio is stagnant will not even be noticeable in 30 years.

Therefore I should conclude that either we are not in a recession, or a recession is meaningless. Right?

The Great Depression was before the FDIC...nobody got shit back. Fortunately, there is protection against that kind of thing happening again.

And just because your portfolio is good, doesn't mean everyone's is. For instance, a portfolio can include real estate, and there is no doubt that the housing market is bad. In my opinion, the housing market is the single best indicator as to how the economy is performing...that is not a fact, just my opinion.

 

[duece212 5,000+ posts]

This thread was brought back from the dead so I feel like I should say something profound...unfortunately I've got nothing //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

 

[Banana Balls 5,000+ posts]

The Great Depression was before the FDIC...nobody got shit back. Fortunately, there is protection against that kind of thing happening again.

I know. I was just seeing if you guys were comparing this to that era as far as seriousness.

And just because your portfolio is good, doesn't mean everyone's is. For instance, a portfolio can include real estate, and there is no doubt that the housing market is bad. In my opinion, the housing market is the single best indicator as to how the economy is performing...that is not a fact, just my opinion.

But I on the other hand think real estate right now is phenomenal. I'm a buyer, not a seller. So yes, I'm getting great deals right now, but I'm still pumping hundreds of thousands of dollars into the economy that I would not have done otherwise.

So on that note, isn't it as fair for me to say that we are not in a recession, as it is for you to say we are?

Note: Not being a smart ***. Just trying to get to the bottom of this thing we've labeled and why we've labeled it.

 

[RangerMan Premium Member]

I know. I was just seeing if you guys were comparing this to that era as far as seriousness.


But I on the other hand think real estate right now is phenomenal. I'm a buyer, not a seller. So yes, I'm getting great deals right now, but I'm still pumping hundreds of thousands of dollars into the economy that I would not have done otherwise.

So on that note, isn't it as fair for me to say that we are not in a recession, as it is for you to say we are?

Note: Not being a smart ***. Just trying to get to the bottom of this thing we've labeled and why we've labeled it.

Most are unwilling to buy real estate right now, because there is no telling how long the housing market will be down. Recessions are determined by already existing purchases, and how they are performing, not by what is currently being done. By you buying real estate during this recession, you are however helping (however little it is) to build the economy back up: the recovery. I'm not trying to be an ***, but I just don't see how you can't view what we are currently in as anything but a recession. Business are dropping like flies everywhere, unemployment is up, and the housing market is terrible. Stock Prices are going down somewhat as well, just not severely. I mean, if it walks like a duck, and quacks like a duck...

I think you are looking at this solely from your point of view, not what is happening as a whole.

 

[richierich75 10+ year member]

I know. I was just seeing if you guys were comparing this to that era as far as seriousness.


But I on the other hand think real estate right now is phenomenal. I'm a buyer, not a seller. So yes, I'm getting great deals right now, but I'm still pumping hundreds of thousands of dollars into the economy that I would not have done otherwise.

So on that note, isn't it as fair for me to say that we are not in a recession, as it is for you to say we are?

Note: Not being a smart ***. Just trying to get to the bottom of this thing we've labeled and why we've labeled it.

where is this "hundreds of thousands of dollars" getting pumped back in to the economy? are you paying cash or borrowing?

are these new construction homes you are buying?

what about those cases where the rate of inflation has people $200k in the whole because of things correcting themselves now.