Sub-prime mortgage

[Herb Schaffler]

When problems like these come up, you can be sure that it's the government or a quasi-governmental agency like the Fed that are responsible. People havn't all of a sudden started acting irresponsibly on their own. The Fed's easy money policies are largely responsible. The high cost of energy is also largely responsible. Our useless war in Iraq is greatly responsible for that. With people paying higher energy bills, it makes it more difficult to make their mortgage payments.

[nohil-billy]

I agree with you Herb, but for an entirely different reason.

I am a conservative, and therefore a Republican, but my patience is growing thin with our so-called leadership. I came of age during the Reagan Revolution. I campaigned for the man while in the Navy in San Diego and had the good fortune of shaking his hand at a campaign rally there. Reagan cared abouut America and the American people. All of them.

Today's conservative, (and I use the term loosely) only seems to care about using his economic freedom to enrich himself and to hell with everyone else. Hence the mortgage debacle. But it doesn't stop there.

Back in the late seventies and early eighties when we had another oil shortage, our middle class was larger and our upper class was smaller. We defeated that shortage by buying smaller more fuel efficient cars. Today, fat cat (so-called) conservatives like Rush Limbaugh brag about having the largest SUV's made. Well Mr. Limbaugh, I'm glad you and the Hummer owners have made it and can therefore afford a vehicle that gets 8mpg, but you are part of the reason energy demand is so high and less fortunate conservatives are struggling to make it day to day. Maybe it's people like you that are driving the conservative base to McCain and Huckabee, who seem to give a #### about the little
guy.

I'm for the free market, but the Conservative Republican Movement will not survive if the only compassion lower income conservatives receive is from the liberal arm of the party or, God Forbid, the other party.

[PeroW-Cheney]

Originally Posted by hrdman2luv

There are a lot of factors involved with the loss of a home. Inflation, fuel cost, loss of a job, divorce, and not being able to re-locate after the loss of a job.

What you think isn't any more unimportant that what anybody else thinks. I'm obnoxious enough not to care if I'm the only one who thinks like I do, so I'm not sure why you would say that.

Inflation, however, is a not a good reason to lose a home. Inflation will drive the value of your house up. Any financial planning text book will tell you that homes are an inflation hedge.

Also, you can't keep interest rates lower than inflation rates. Inflation will lift interest rates above your fixed rate mortgage. You could have a 5% 30 year mortgage during a time that no banks offer loans under 15% (like 1980's). The difference in percentage actually goes into your pocket as points if you transfer the mortgage to the new owner. You put a price on a 14 percent loan that is less than the 15% for the market. 14%-your 5% is 9% you can collect as points on the outstanding balance of your loan.

The buyer will pay you that because it is one percent cheaper to assume your fixed rate loan than it is to get a new bank loan.

A five percent fixed rate mortgage IS AWESOME when you have inflation higher than five percent.

[Herb Schaffler]

"I came of age during the Reagan Revolution. I campaigned for the man while in the Navy in San Diego and had the good fortune of shaking his hand at a campaign rally there. Reagan cared abouut America and the American people. All of them."

I greatly admire Reagan. I worked for him as early as 1976 in his race against Ford. Reagan continued to work for the Republican Party after his defeat. I met him at a $100 a plate dinner. No, I'm not a fat cat. My dates' ticket and my ticket was paid for by Jack Pew of Sun Oil Company where I was working at the time. Jack Pew had earlier given me a $1000 donation for Reagan. He saw that I was interested in Reagan so he paid for the tickets. It's too bad the Republican Party doesn't have an inspiring leader like Reagan now. That's what Obama meant when he praised Reagan. Reagan was sincere, unlike the corrupt Clintons. Character has a lot to do with how I vote. That's the major reason I'm opposed to Hillary, because she's nothing but a crook. I've had enough of the Clintons, I don't want anymore of them. I feel Obama has a lot of Reagan's sincerity, although his viewpoint is different. I will be voting for Obama against Hillary in the Democrat primary, even though I would love to vote for Ron Paul. If Obama makes it to the general election, I havn't decided yet if I will vote for him or the Libertarian candidate, but one thing for sure, I'll never vote for Hillary over anyone.

[hrdman2luv]

Originally Posted by PeroW-Cheney

What you think isn't any more unimportant that what anybody else thinks. I'm obnoxious enough not to care if I'm the only one who thinks like I do, so I'm not sure why you would say that.

Inflation, however, is a not a good reason to lose a home. Inflation will drive the value of your house up. Any financial planning text book will tell you that homes are an inflation hedge.

Inflation is a very good reason to lose a home. It can be a huge part in one's inability to continue to pay your bills. If you can't pay your bills, then you lose what you were paying. If you have a family, then you have kids to feed, gasoline to buy, credit cards to pay, clothes to buy, insurance to keep up, and on and on.

Also, you can't keep interest rates lower than inflation rates. Inflation will lift interest rates above your fixed rate mortgage. You could have a 5% 30 year mortgage during a time that no banks offer loans under 15% (like 1980's). The difference in percentage actually goes into your pocket as points if you transfer the mortgage to the new owner. You put a price on a 14 percent loan that is less than the 15% for the market. 14%-your 5% is 9% you can collect as points on the outstanding balance of your loan.

The buyer will pay you that because it is one percent cheaper to assume your fixed rate loan than it is to get a new bank loan.

A five percent fixed rate mortgage IS AWESOME when you have inflation higher than five percent.

The fed is responsible for the intrest rates. So no matter what inflation is doing, the fed can still cut the rate. There is no oversite on the fed. (especially not with this administration) Used to, when inflation went up, so did the interest rates.

But, back to an "un-debatable subject.
When a community loses a plant, or a few small business's, and those jobs can't be filled because of the lack of jobs already.
So therefore, you have several people in one community that can't sell their house's, but those same people can't move either. So they are stuck struggling until a miracle comes along. Then you tac on all the other bills......and it just gets worse.

[Sean]

I would like to see some statistics on how many home foreclosures are attributed to VAWA. Most men wouldn't continue to pay for a mortage after being forcefully evicted from their home by the courts especially when another man frequents the home. Don't let politicians blame all foreclosures on sub prime lending...

In my case, my immigrant wife made false abuse claims to expedite her immigration process. I was not found guilty of abuse or assault in a court of law, but my wife was still granted a home that was solely in my name for one year and we are not even divorced yet. She made a fraudulent VAWA self petition to secure U.S. residency in lieu of residency through marriage. We had been in country exactly two years to date and had been married for 14 months when she made the false claims. What boggled my mind was how a judge ordered me to surrender my car to my wife even though she had no driver's license or insurance. She was not able to acquire a driver's license either as an immigrant seeking residency. Minnesota is immigrant friendly enough for immigrants to drive without a license.

Anyway, I learned my lesson about marriage and marriage with immigrants. I apologize for bringing another Hillary Clinton supporter into the country. Please forgive me.

Kind Regards,

Sean

In FY 1996 (Clinton Era) a few hundred foreign women claimed abuse with the INS.
In FY 2003 5,300 I-360 abuse petitions were filed with the INS.
In FY 2004 6,800 I-360 abuse petitions were filed with the INS.
In FY 2005 8,300 I-360 abuse petitions were filed
In FY 2006 9,500 I-360 abuse petitions were filed
In FY 96-06 47,500 I-360 abuse petitions were filed against USC
No stats for FY 2007

[PeroW-Cheney]

Originally Posted by hrdman2luv

The fed is responsible for the intrest rates. So no matter what inflation is doing, the fed can still cut the rate. .

Let me slap you with a John McLauglin trademarked, "Wrong!"

Interest rates cannot be less than inflation. Are you kidding? You want to put every bank out of business? You want George Soros to own Fort Knox? Do you even know how Soros got rich in the first place? Find Adam Smith's Money World from the early 1990's if you want to learn what happens when idiots running treasuries let George Soros rob them blind. "Giving away Billions" is the name of the episode. The episode pre-dates the EEU, but it can happen again with Euros and Dollars instead of Marks and Pounds.

When inflation starts to kick in, the Fed's only move is to raise interest rates. That is the only way to stop inflation. My point was this: sub-prime mortgages have the adjustment for inflation built into the mortgage payment. It is a stupid mortgage to get at a time when fixed rate mortgages are at lifetime lows.

If you think interest can be less than inflation, look at the inflation rate versus interest rate in the late 70's up to 1980. Why didn't they cut the interest rate back then? You can't do that. This is just a fundamental rule of the way things work. If you think about it more, you'll understand.

Or maybe I should be borrowing money from you.

[PeroW-Cheney]

Originally Posted by hrdman2luv

But, back to an "un-debatable subject.
When a community loses a plant, or a few small business's, and those jobs can't be filled because of the lack of jobs already.
So therefore, you have several people in one community that can't sell their house's, but those same people can't move either. So they are stuck struggling until a miracle comes along. Then you tac on all the other bills......and it just gets worse.

Okay. That is undebateable because what you describe affects any person with any type of mortgage. It even affects those who don't have mortgages but pay rent. It even affects people who own their homes and have them paid off free and clear. What if the robots all revolt, kill all humans and take over the world? All those people who took out sub-prime mortgages will feel pretty dumb if that happens, right? Didn't think of that one, did you?

I started this topic thread about the specific financial instrument called sub-prime mortgages. It carries the discussion off topic to throw in all the macro-economic factors that would hit everybody the same way even in a world where sub-prime mortgages never existed.

[PeroW-Cheney]

Originally Posted by Sean

In my case, my immigrant wife made false abuse claims to expedite her immigration process. I was not found guilty of abuse or assault in a court of law, but my wife was still granted a home that was solely in my name for one year and we are not even divorced yet. She made a fraudulent VAWA self petition to secure U.S. residency in lieu of residency through marriage. We had been in country exactly two years to date and had been married for 14 months when she made the false claims. What boggled my mind was how a judge ordered me to surrender my car to my wife even though she had no driver's license or insurance. She was not able to acquire a driver's license either as an immigrant seeking residency. Minnesota is immigrant friendly enough for immigrants to drive without a license.

B I T C H !
Speaking as a suvivor of domestic violence, I say this woman has some justification for her false claims coming her way. You should run for a state seat. You could get elected with that story. Just collect the signatures, pay 250 bucks filing fee and wait for any media source to interview you. You may even get invited to debate in a public forum. I half think about running for office myself simply to get back at the snitch in children's services who let the phone in our house ring one time (tip-off) whenever she saw our family's case file was re-opened.

[hrdman2luv]

Originally Posted by PeroW-Cheney

Let me slap you with a John McLauglin trademarked, "Wrong!"

Interest rates cannot be less than inflation. Are you kidding? You want to put every bank out of business? You want George Soros to own Fort Knox? Do you even know how Soros got rich in the first place? Find Adam Smith's Money World from the early 1990's if you want to learn what happens when idiots running treasuries let George Soros rob them blind. "Giving away Billions" is the name of the episode. The episode pre-dates the EEU, but it can happen again with Euros and Dollars instead of Marks and Pounds.

And George Soro's is making the sky fall too. Right? Here we go with the Right wing caonspiracy BS. Are you sure your not connected to Alex Jones?

When inflation starts to kick in, the Fed's only move is to raise interest rates. That is the only way to stop inflation. My point was this: sub-prime mortgages have the adjustment for inflation built into the mortgage payment. It is a stupid mortgage to get at a time when fixed rate mortgages are at lifetime lows.

If you think interest can be less than inflation, look at the inflation rate versus interest rate in the late 70's up to 1980. Why didn't they cut the interest rate back then? You can't do that. This is just a fundamental rule of the way things work. If you think about it more, you'll understand.

Or maybe I should be borrowing money from you.

You should catch up on the fed, interest rates and inflation. And get back to me.