Comments on: Federal Reserve and U.S. Treasury Don’t Like You, Nothing Personal: 3 Emerging Economic Trends; Adjustable Rate Mortgages Disappearing, Federal Reserve Wants More Money, and Financial Honor.

By: Ricky Rojo Jam

Ricky Rojo Jam — Sat, 17 Jan 2009 15:22:01 +0000

I am starting up a new company. If I can get 10 investors each contributing a million each and then we can borrow another 10000000 from a bank. We the start loaning the money to anyone we want without any proper due diligence and secure the loans with mortgages. We make 9000 on each loan we make and then sell the loans to Fannie Mae, Freddie Mac or some investment bank who will pay us back in full our monies expended on the loan so we can make another 9000 per loan. Oh oh, people aren’t paying back the loans. Huh, we have just loaned another 20 million to consumers who are buying 800 sq. ft. homes for 750000 with no docs. We cant sell those loans? We cant pay ourselves 1000000 a year. Oh, the Federal government will bail us out in full cause if we go under the system will fail.
Well the system did fail and my question to you is how much does the government have to bail us all out? Eventually their will be inflation if we continue to print money without any stability.
When the books are written you will read that 2001-2006 real estate price run-up was a dream to the people that bought before 2000 and didnt sell prior to 2007 and a nightmare for those did purchase during that period. Prices are going back to 1999 levels before this is over. Trust me I know and so does this the good Doctor on this site. Dont buy unless the numbers work for you.

By: bong

bong — Fri, 16 Jan 2009 17:54:25 +0000

Great blog, is the answer foreign wealth funds?

By: Sabin Figaro

Sabin Figaro — Fri, 16 Jan 2009 01:42:28 +0000

@ Rose — Very nice writing. Sorry it is such a rant toward despair, but that is indeed our lot.

By: Sabin Figaro

Sabin Figaro — Fri, 16 Jan 2009 01:37:40 +0000

I think America has become a saloon. People around the world come here, party, play the financial system, and then leave. Players here and around the world know that there is no accountability and they have no God. They are merely egotistic, immature fools who have no regard for the damage they have created.

Just like the baby boomers overwhelmed the social norms in the 60’s, the dollar doomers of the 2000’s have overwhelmed the world financial system. Nobody knows where we go from here, but you can bet it will never be the same world again. Most people can feel the tension and that the dam is about to break. It won’t just be McMansions that are underwater….

By: DAve

DAve — Thu, 15 Jan 2009 23:57:36 +0000

I forgot to mention the effect all this debt is gonna have on the rates we (as a state and nation) pay to borrow and on the kids and grandkids of the next generations.
Michelle Malkin calls the proposed stimulus package the “Intergenerational Theft Act” and THAT’S as honest assessment as you’re ever gonna get-