[roccman]

http://www.belowthecrowd.com/photos/ackman.jpg

Now throw in massive layoffs in Q2/Q3

Rationed gas - 2 weeks and counting

a market meltdown in Q3/Q4....

This is gonna end so very badly.

Popcorn please.

[vision-master]

Just refinance.

[roccman]

"Just refinance."

I think ALOT of homedebtors were counting on this option.

Too bad house values are tanking.

One borrowed $300K last year...now it is worth $270K.

With sub primes and alt A liar loans sharpening the pencil or closing the doors...even the best "credit risks" are being turned away from the refi option.

Nope...

More and more and more and more keys are going to be left on the kitchen table.

[vision-master]

Oh, I don't know. Why would the bank want the house back if it's gone down in value?

[roccman]

Ur kidding right?

I don't think the bank has a choice.

Blood from rock and horse/water/drink...

come to mind.

[Micki]

The re-set loans will of course be at a higher interest rate and given the amount of loans being sub-prime (of the total) and the already rapidly increasing number of foreclosures are guaranteed to increase in number.
No, I think this will be a good punch to the economy in general.
The Fed Reserve is getting painted into an smaller and smaller corner.
Deflation or sacrifice the US$ or both...

[mmasters]

$this->bbcode_second_pass_quote('vision-master', 'O')h, I don't know. Why would the bank want the house back if it's gone down in value?

[PraiseDoom]

$this->bbcode_second_pass_quote('roccman', '
')
Now throw in massive layoffs in Q2/Q3
Rationed gas - 2 weeks and counting
a market meltdown in Q3/Q4....
This is gonna end so very badly.
Popcorn please.

[mlit]

And those that do manage to stave off foreclosure will do so by cutting back in other areas.

[NEOPO]

There is no one way.

If you really care you will drop the reality bombs every time you get the chance and even if it does result in alienation.

[some_guy282]

Gideon,

I think I know what you mean. I started a thread not long back titled "Your friends, your family, and your money" that kind of alluded to the issues related in your story. Primarily I was concerned with a situation where the person in question then comes to you for financial help. But even if they don't come to you for help - it's hard. It's hard to watch someone you know making such big mistakes when you can envision the kinds of consequences they will be facing in the relatively near future...

You want to smack them across the face, hold them by the shoulders and shake them violently while screaming "CAN'T YOU SEE WHAT YOU'RE DOING!?!?" Well, I know I do. But you know what? They can't. They just can't. All this PO stuff is so counter intuitive to everything they've known and thought for their whole lives and they can't imagine the kinds of changes that are coming.

What does your neighbor know about your perspective about debt and the economy that you've told him so far? Have you mentioned PO to him specifically? I'm wondering if he'll come calling when things do implode for him, with his ears open and eager to listen to your advice the moment it's too late. What do you say to him then?

edit: Just looked back and saw that you did post in my thread.

[roccman]

How does that little saying go??

Recession when someone else loses their job ...depression when you do...??

http://online.wsj.com/article/SB1179964 ... ts_news_us

Naw really? overstated numbers...?? but...but...they said....

[mlit]

No link just saw it on CNN but someone in Clackamas County ,Oregon trashed their home and moved three pigs inside as he was upset at being foreclosed upon.

Wonder what the wolf will think when he blows the house down

[cynicalheretic]

consider me an idiot, but where are you getting your facts that it is going to reset and that this is the outcome

[mlit]

Link to pig story

Pigs found trapped in vacant, foreclosed Oregon home

[some_guy282]

$this->bbcode_second_pass_quote('mlit', 'L')ink to pig story

Pigs found trapped in vacant, foreclosed Oregon home

[Micki]

$this->bbcode_second_pass_quote('', 'c')onsider me an idiot, but where are you getting your facts that it is going to reset and that this is the outcome

[roccman]

http://www.signonsandiego.com/uniontrib ... mokes.html

"Economists from Wall Street to the Federal Reserve are scratching their heads trying to parse the future of housing in light of worsening default and foreclosure rates."

[perdition79]

$this->bbcode_second_pass_quote('roccman', 'h')ttp://www.belowthecrowd.com/photos/ackman.jpg

Now throw in massive layoffs in Q2/Q3

Rationed gas - 2 weeks and counting

a market meltdown in Q3/Q4....

This is gonna end so very badly.

Popcorn please.

[static66]

You are soooo right... Except you are forgetting one thing.... RETAIL! The big box stores are absolutely stuffed to the rafters with all sorts of goodies that the American public can no longer afford because the HATM's have dried up... Think about it for a second... Home Depot orders huge amounts of merchandise from China on a quarterly basis and is in the process of cancelling... (yes cancelling!!!) huge orders that were booked months and months ago. All of the big retailers are running scared and the CFO's are trying to come up with ways to report the quarterly losses so as not to spook wall street into a panic sell-off of their stock!! Best Buy, Circuit City, Lowes,Wal-Mart etc... all on the brink... I give it 3-6 months at best before TSHF....
I am going down with the ship though as I have a mortgage and two car payments myself!!!!! Oh well, it was a fun ride living at the top of Hubberts Peak!