Are we headed for another 2008?

[arock]

They live by monthly affordability, not price tags.

Can’t afford the truck? Extend the loan by a year or two. Can’t afford that purchase? Do it in 4 easy payments.

I believe the 40 yr mortgage is just around the corner to keep the van moving along.

People are financially illiterate like never before.


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No one expects you to pay off debt - only to service it.

 

[CorbLand]

The problem is that as pricing on everything goes up, some people are forced to use the longer financing periods. Not because they want to, or they just look at the monthly payment but because they don't have a choice.

 

[ben h]

The all cash offers for properties will definitely keep values stable if the ecconomy does tank unlike 08. I think many of the "cash" offers are using cash from lines of credit from loans on other properties that have appreciated significantly. This is still better than 110% LTV loans on stated incomes, but I think most are colateralized on other property and they just need the offer to say "cash" to compete with other buyers. Some are literaaly cash, in which case those buyers are in no risk for forclosure and lenders blowing the homes out, thereby decreasing values for others in the area. The area I live in has a lot of homes that have been owned for a long time or very little loaned against them and in 08, my value only went down I'd guess 10%. Friends of mine in areas where most of the homes were 100% financed saw their values 1/2 because of all the forclosures.

 

[Doc Holliday]

People are financially illiterate like never before.


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Or they have been taught by the federal government that poor decisions (including getting over leveraged) no longer have consequences.

 

[*zap*]

Yes, society and govt teach that bad decisions will have no consequences...road rage is evidence of that.

 

[WRM]

FBN just reported ARMs have hit a 14 year demand high. 14 years--hmmm, what was 14 years ago? Oh yeah--it was 2008! If it was "just" ARM demand, maybe not such a big deal. But, the pressures are all over now.

Government is going to do whatever it can to keep the housing market moving. Once it tanks, it's a catastrophe on the economy writ large.

Had some clients buy a "manufactured home" the other day (what we called a mobile home, in the day). It was nearly $300K!! Twenty year financing provided by seller. Not sustainable.

 

[*zap*]

Lots of this stuff has not been seen before.....including a sitting potus that is illegitimate, thus the administration is the same...now we see dhs/doj also the same.

I think it will not be a pretty ending.....maybe going to all digital currency with a huge devaluation? Maybe a ministry of money to go with the truth ministry?

 

[WRM]

maybe going to all digital currency

You can bet that will happen. Solves (theoretically) too many problems for government (i.e. the untaxed "grey market"). They won't be able to keep their dickskinners out of it. The only real barrier right now may just be optics. Thus,....the minister of truth.

 

[S.Clancy]

I love this end of days talk. Helps get me through the day

 

[*zap*]

Prepare....

Just ask anyone who needs baby formula if that is good advice.

 

[WRM]

love this end of days talk

Oh we're not that close. They'll be lots of misery and tribulation before "end of days".

I am glad my kid's grown and I'm not trying to rustle up formula. Had a hard enough time affording it nearly 30 years ago.

 

[BuzzH]

Prepare....

Just ask anyone who needs baby formula if that is good advice.

I have a good idea, let's force a 15 year old girl, knocked up by her uncle, to have the baby...that should help with the formula shortage.

Oh wait...that's what we're about to do.

Sounds "reasonable".

 

[DWBMontana]

I have a good idea, let's force a 15 year old girl, knocked up by her uncle, to have the baby...that should help with the formula shortage.

Oh wait...that's what we're about to do.

Sounds "reasonable".

As if you know reasonable....

 

[zion zig zag]

I mostly hope the market crashes in CA and TX so they quit coming here.

I have a good idea, let's force a 15 year old girl, knocked up by her uncle, to have the baby...that should help with the formula shortage.

Oh wait...that's what we're about to do.

Sounds "reasonable".

We care about all human life. Until you're born, then bootstraps and all that....

And thread closed in 3,2,1.....

 

[ScottR_EHJ]

No one expects you to pay off debt - only to service it.

Debt free is the way to go. Pile up the cash and it works great.

 

[browning2480]

I have a good idea, let's force a 15 year old girl, knocked up by her uncle, to have the baby...that should help with the formula shortage.

Oh wait...that's what we're about to do.

Sounds "reasonable".

Who is pushing for that? With all your legal talk I would assume you would understand what leaving decisions to the state actually mean. Plenty of states will allow a 15 year old to abort at 9 months of pregnancy. Don’t worry.

 

[BuzzH]

Who is pushing for that? With all your legal talk I would assume you would understand what leaving decisions to the state actually mean. Plenty of states will allow a 15 year old to abort at 9 months of pregnancy. Don’t worry.

Pretty tough to do when they can't afford to cross state lines, have no vehicle, no drivers license, and even if you had all that, can't afford $4.40 a gallon fuel to get you there, etc.

Wouldn't you agree?

 

[JasonWi]

Debt free is the way to go. Pile up the cash and it works great.

I totally agree with Scott. The benefits of being debt free go so far beyond the obvious financial stability. The reduced stress on a person's life and the ability to not be a slave to any one company allows a sense of freedom to come over a person. Knowing I could leave this job and be able to cover my rent/utilities for over a year with zero issues is so comforting.

I'm genuinely concerned for the vast majority of the people I work with as they all live for the now and have zero planning going into the eventual retirement years. Our job puts 6% of our gross income into a retirement account for us and not a single one of them contribute above and beyond that! Yet they are have big diesel trucks, horse trailers, mortgage payments and CC bills through the roof.

 

[browning2480]

Pretty tough to do when they can't afford to cross state lines, have no vehicle, no drivers license, etc.

Wouldn't you agree?

No I don’t agree. If the situation you mentioned actually happened, I am sure someone would be willing to assist her with the issue. Especially early on. But you chose a pretty extreme example and not at all what represents the actual abortions that are going on in the US today. Typical response really.

I know of several kids that came out of that type of situation. One was a star running back for The Ohio State. He was pretty happy his Mom decided to allow him to live.

 

[CJ19]

I have a good idea, let's force a 15 year old girl, knocked up by her uncle, to have the baby...that should help with the formula shortage.

Oh wait...that's what we're about to do.

Sounds "reasonable".

Yikes super weird example / response.