State government is now trying to reduce the Principle and interest rate on Default Mortgage Loans. What about the people that paid their mortgages on time? Where is our reward?
State government is now trying to reduce the Principle and interest rate on Default Mortgage Loans. What about the people that paid their mortgages on time? Where is our reward?
Lol, reward...
If you have enough equity in your home then the bank knows you'll keep paying.
The incentive is for those poor folks who got scammed into mortgages they couldn't afford. Its a way to keep them paying and salvage *some* portion of those mortgage debts.
If you have equity, your reward is that you'll be able to afford buying one or more of these abandoned homes at a good price.
If your mortage is payd and you don't owe anything, whats the problem? People never stop whining. What about something that happened 100 years ago?
Don't expect anything.
I don't think the people that paid their mortgages on time (or could afford them) are really going to be affected.
It's the idiots that did the no-down-payment and sub-prime mortgages that are going to get hit, and rightfully so. As far as I'm concerned, those people couldn't afford their homes in the first place and didn't deserve them. Might teach them to go and work and actually earn their assets.
Once upon a time you had to have 25% down on your home to qualify for a mortgage. People just expect something for nothing these days. Then they bitch when it gets taken away from them. Boo hoo.
Live as if you were to die tomorrow. Learn as if you were to live forever. - Mohandas Gandhi
I'm sure that ppl in rural China, SA, or Africa are really worried about their retirement cottages. LOL.
The dives are likely from futures folk dumping their investments according to their loss schedule & others panicking and pulling out. It will stabilize soon as ppl start to reinvest & buy up the good deals. When the stock market dives, it brings down the good w/the bad. Strong companies *do* recover, this happened a couple decades ago. It takes a few years but historically, the market has always recovered.
I think now is a good time to pick up really nice properties for a killer price (if you have the money)
Don't cry, don't regret and don't blame
Weak find the whip, willing find freedom
Towards the sun, carry your name
In warm hands you are given
Ask the wind for the way
Uncertainty's gone, your path will unravel
Accept all as it is and do not blame
God or the Devil
~Born to Live - Mavrik~
The housing market hasn't tanked just yet, tho its coming. Ppl tend to dump their more liquid assets first (like stocks) before dumping property, which is more work.
I think its better to buy stocks right now, actually. Those with the stomach for it are buying on margin.
Last edited by IndiReloaded; 10-10-08 at 10:43 AM.
People who sell their stocks now deserve to take the loss
Ppl don't need to sell their stocks now. Just buy. The price has come down enough, IMO for companies that will rebound. As more ppl buy into valuable companies, their stock price will go up. Its not zero-sum like some aspects of investing are (where someone has to buy the contract you purchased for you to get rid of it).
I'm looking at getting into some stocks pretty quickly here, since I don't have the money for investment property (which would be my preference). It'll take a few years to really reap the rewards, but I'm thinking they will be pretty nice.
Live as if you were to die tomorrow. Learn as if you were to live forever. - Mohandas Gandhi
To the people who are thinking of buying stock at the moment:
How much money to you plan to invest and in what portfolios?
(Just out of curiousity)
Don't cry, don't regret and don't blame
Weak find the whip, willing find freedom
Towards the sun, carry your name
In warm hands you are given
Ask the wind for the way
Uncertainty's gone, your path will unravel
Accept all as it is and do not blame
God or the Devil
~Born to Live - Mavrik~
Hehe...I'm glad I sold my shares last year. 300%+ profit in fedex, bought it before the internet was cool years ago. Although it all went to tuition.
I'm saving up to buy myself a place. I dumped pretty much everything I've got in a CD so I can't touch it and I'm going to be saving up every summer. If housing hits the floor at the right time I might be able to buy myself a nice condo near the beach.
Well, we started moving stuff into GICs a while ago when it looked like shit was going to hit the fan. One of the things we have is whats called a Self Directed RRSP account (Blue will be able to explain). We are basically looking at companies that we have some knowledge about (in science, energy & tech) that we knew were good buys but were just too overpriced a year ago. I wouldn't blindly buy stocks, one needs to do some research. The rule is: the more risk, the more time you need to spend on research and maintenance. Those futures guys have brass balls, IMO.
Tho, I'm seriously thinking we should just pick up our new retirement sailboat now, while ppl are dumping luxury items. Its not an investment, but they don't usually depreciate much. Its a good opportunity.