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The NEW YORK TIMES WARNED US 9 YEARS AGO

By
Real Estate Agent with Coaches Corner Radio...The Real Estate Guy

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For all of you in the enlightened class please check out the link to an article published in Sept. 1999 warning us about the impending mortgage melt down that would come during bad economic times.  I will refrain from political commentary but even the NYT had to describe the origins of the mess and as you probably know, it all started with the enlightened political class telling certain businesses what and how to do their jobs.

http://query.nytimes.com/gst/fullpage.html?res=9c0de7db153ef933a0575ac0a96f958260&sec=&spon=&pagewanted=all

 

Comments (6)

Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

In addition to the warning of the American Enterprise Institute in this piece, I was interested to learn that the 30-year fixed rate was 7.76%.  That was the market rate.  Now people are crying the blues at 5% and still can't qualify for a mortgage.  Of course, the home price escalation fueled by the Fannie/Freddie loosening of credit standards might have something to do with it.

5% of $500,000 is still more in absolute dollars than 5% of 200,000 and there's the rub.

Mar 02, 2009 12:56 PM
Tim Rogers
Coaches Corner Radio...The Real Estate Guy - State College, PA

Ken,

You are right about your comparison and the credit markets continue to grind to a halt.  So much for TARP 1,2,3 and 4.  It's an amazing thing to be a part of.

Tim

Mar 02, 2009 01:07 PM
Tchaka Owen
Galleria International Realty - Hollywood, FL

Ken - I too shake my head when people decline a 5% rate because it's "too high".  My first home was purchased in early 1999 at 6.625% (I got lucky because the prevailing rate was 7.000%).  I remember being elated. 

Mar 02, 2009 02:48 PM
Alice Linahan
Voices Empower - Argyle, TX

Tim,

It is crazy that so many are completely unaware of how this happened. Amazing!!!

Thank you for helping to educate. I reposted this article on my facebook.

 

Mar 02, 2009 04:47 PM
Tim Rogers
Coaches Corner Radio...The Real Estate Guy - State College, PA

Alice,

The artilce fails to mention the role of several senators in the lead up to the housing bubble.  Barney and Chris played key roles and they are setting policy and telling businesses how to operate.  It's the Keystone Cops and it would be funny but this is real life and is very sad.

Tim

Mar 02, 2009 10:03 PM
Alice Linahan
Voices Empower - Argyle, TX

Tim,

I need you help. Can you get the word out about this post!! Read and you will understand!

 

http://activerain.com/blogsview/965349/I-have-an-amazing-story-to-share-with-you-and-I-need-your-help-The-12th-Medallion-is-calling

Have a great day!!!

Mar 04, 2009 02:29 AM