housing crises: Four Concrete Steps To Stop The Slide In Housing Values
- 01/17/08 04:49 AM
The honest truth of the matter is that the US economy is in a world of hurt. The fiscal policies of the last 7 years have painted the Fed into a corner. If they cut interest rates, the dollar is in danger of tanking. If the dollar tanks, inflation is likely to raise it's ugly head. If they don't cut rates, then the economy stagnates. The worst case scenario is when we have both, inflation and stagnation at the same time. This happened in the 70's and the term "Stagflation" was coined to describe it. This is how come the Fed hasn't … (7 comments)
housing crises: Is It Too Late To Save The Empire?
- 01/16/08 04:26 AM
This post is the follow up to my post, "Take Two Fed Cuts And Call Me In The Morning" where I compared the Bush administration's economic policies to those of college students with their first charge cards. In it, I painted a dire economic picture that I feel accurately reflects the current state of our economy. In this post I'm going to suggest some concrete measures that we, as a country, can implement that can restore our economy. Bob, Is There Anything That We Can Do To Help Our Economy Recover? Yes, there is. As bad as it is, there are self-correcting mechanisms … (6 comments)
housing crises: Take Two Fed Cuts And Call Me In The Morning
- 01/16/08 03:29 AM
If you watch the talking heads on the various business/news shows on a regular basis, you might have noticed that they change their tune to fit whatever the realities of the day are. A couple of years ago when the economy was slowing they would say that housing was keeping the economy afloat. When the sub-prime flu hit and the housing market got sick, consumer spending was what was keeping the economy afloat. Now it's over seas investors who are going to keep our economy afloat. What or who is it going to be next? The Martians coming to our rescue? The fact … (0 comments)
housing crises: Stop Blaming The Mortgage Broker II
- 01/08/08 04:25 PM
I recently got a comment on one of my posts, "Stop Blaming The Mortgage Broker" from a member of the general public, who was, shall we say, not convinced by the arguments that I made in that posting. Her specific comment was, "Interest only loans, and some ARMs ought to have never been allowed. Whoever allowed these frauds to be perpetrated on the unsuspecting comsumer should be in jail. Is it the baby's fault he chewed on a poisonous toy from China? You Cowards." And while I understand the frustration that her and many like her have with the whole mess, I … (10 comments)
housing crises: Home Ownership Is Too Important To Do Nothing!
- 11/26/07 04:25 AM
Much has been written about who should bear the blame for the current real estate and mortgage crises. Some have levied blame at the borrowers while others have levied blame at unscrupulous mortgage brokers. I for one have levied most of the blame on the big Wall Street Investment houses that bundled non conforming mortgages into something called "Collateralized Debt Obligations" (CDOs) and then put makeup on this pig by getting them rated investment grade by companies such as Moody's. Some have expressed opinions that we shouldn't be worried about who's "fault" it is, that we should worry about what to do about … (7 comments)
Related Links:
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
A Blog about real estate and real estate finance by Bob Mitchell who has been in the business since 1984 and who comes at the business from a different angle.
The honest truth of the matter is that the US economy is in a world of hurt. The fiscal policies of the last 7 years have painted the Fed into a corner. If they cut interest rates, the dollar is in danger of tanking. If the dollar tanks, inflation is likely to raise it's ugly head. 
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