Comments on: Foreclosure Avoidance: A Society that is Psychologically Bent On Avoiding the Brutal Facts. http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/ How I Learned to Love Southern California and Forget the Housing Bubble Fri, 08 Aug 2008 18:14:53 +0000 http://wordpress.org/?v=2.2.2 By: Sue http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-5297 Sue Wed, 09 Jan 2008 11:12:16 +0000 http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-5297 Housing related stocks are up and with the prospect of further rate cuts, all seems well until you start facing the brutal reality of what is occurring. Housing related stocks are up and with the prospect of further rate cuts, all seems well until you start facing the brutal reality of what is occurring.

]]> By: Catherine http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3348 Catherine Sun, 16 Dec 2007 11:10:13 +0000 http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3348 Hi! I work at CurrentForeclosures.com a <a href="http://www.CurrentForeclosures.com" rel="nofollow">foreclosures</a> site. I agree with your analysis. For many years our culture has been “loan or credit-card-culture”, that is spend first before having the money to pay for the purchases. Analysts have reported that before the foreclosure crisis, people with marginal income were offered sweet-rate deals so they can easily avail of housing loans. Amortizations were computed against their capacity to pay and there was no room for unexpected increase in the amount to pay. When the bubble burst, as expected most of the borrowers were unable to pay. Therefore lenders are equally responsible for all these mess, not only the borrowers. It takes a lesson like this foreclosure crisis to teach people to shift the mentality from spending to saving. As credit services are becoming easier to avail, many people are abusing these facilities. Hi! I work at CurrentForeclosures.com a foreclosures site. I agree with your analysis. For many years our culture has been “loan or credit-card-culture”, that is spend first before having the money to pay for the purchases. Analysts have reported that before the foreclosure crisis, people with marginal income were offered sweet-rate deals so they can easily avail of housing loans. Amortizations were computed against their capacity to pay and there was no room for unexpected increase in the amount to pay. When the bubble burst, as expected most of the borrowers were unable to pay. Therefore lenders are equally responsible for all these mess, not only the borrowers. It takes a lesson like this foreclosure crisis to teach people to shift the mentality from spending to saving. As credit services are becoming easier to avail, many people are abusing these facilities.

]]> By: Nick http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3251 Nick Wed, 12 Dec 2007 18:39:22 +0000 http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3251 Well there's the parasite economy in practice presented in graphs. The dumbing down of American culture through public schools and television (two sides of the same coin), easy credit expansion driven by contracts with language impervious even to the most trained legal experts, the shipping of jobs and raw materials overseas and the importation of poor quality, dangerous finished goods with little, if any, accountability for manufacturers. And now - Super Government Intervention Man to the rescue! "..like asking a drug dealer what is the best way for a person to recover from an addiction." Well there’s the parasite economy in practice presented in graphs. The dumbing down of American culture through public schools and television (two sides of the same coin), easy credit expansion driven by contracts with language impervious even to the most trained legal experts, the shipping of jobs and raw materials overseas and the importation of poor quality, dangerous finished goods with little, if any, accountability for manufacturers. And now - Super Government Intervention Man to the rescue!

“..like asking a drug dealer what is the best way for a person to recover from an addiction.”

]]> By: Al http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3248 Al Wed, 12 Dec 2007 13:03:24 +0000 http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3248 It really makes me sick seeing how Wall Street behaves. They are completely out of touch with reality. They need the rate cuts to stimulate the stock market to keep their paper profits coming in. I really couldn't care if the traders don't get their bonuses this Q. Meanwhile the cuts do little for the economy and less for individuals. We're headed for recession, and likely a nasty one. If the Fed keeps cutting rates we can add inflation to the mix, which will hurt everyone. I'll take a recession over stagflation any day. It really makes me sick seeing how Wall Street behaves. They are completely out of touch with reality. They need the rate cuts to stimulate the stock market to keep their paper profits coming in. I really couldn’t care if the traders don’t get their bonuses this Q. Meanwhile the cuts do little for the economy and less for individuals. We’re headed for recession, and likely a nasty one. If the Fed keeps cutting rates we can add inflation to the mix, which will hurt everyone. I’ll take a recession over stagflation any day.

]]> By: drhousingbubble http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3239 drhousingbubble Wed, 12 Dec 2007 04:15:17 +0000 http://www.doctorhousingbubble.com/foreclosure-avoidance-a-society-that-is-psychologically-bent-on-avoiding-the-brutal-facts/#comment-3239 You guys will love this: <i>Dec. 11 (<a href="http://www.bloomberg.com/apps/news?pid=20601103&sid=aOupRn349CpI&refer=us" rel="nofollow">Bloomberg</a>) -- Wells Fargo & Co. Chairman Richard Kovacevich said he expects the Federal Reserve to cut its discount rate today by as much as <b>three-quarters</b> of a point and guide the economy through 2008 without a recession. The central bank will lower its benchmark lending rate by a quarter of a percentage point and reduce the discount rate by half to three-quarters of a point to reassure markets that credit will be available, Kovacevich said during an interview in New York today. If the Fed takes both of those actions today, it may not need to cut rates again, he said.</i> As we all know, the Fed cut both the fed funds rate and the discount rate by 25-basis-points. My question to you all is do you think places like CNBC and the WSJ think they can will the Fed to drop rates simply because they want to? In fact, Bernanke is walking a very tight rope and all projections aside, the market was expecting a .5 basis cut. Since it didn't get this, it got hammered and once again demonstrates how dependent we are on credit. For crying out loud he cut rates! Which means there will be more liquidity but the credit drug fiends are looking for more and the dosage must be upped. The Fed understand that they need to save some ammunition for the biggest battle which is 2008. That is when you know what will hit the fan. There will be plenty of time for more rate cuts. You guys will love this:

Dec. 11 (Bloomberg) — Wells Fargo & Co. Chairman Richard Kovacevich said he expects the Federal Reserve to cut its discount rate today by as much as three-quarters of a point and guide the economy through 2008 without a recession.

The central bank will lower its benchmark lending rate by a quarter of a percentage point and reduce the discount rate by half to three-quarters of a point to reassure markets that credit will be available, Kovacevich said during an interview in New York today. If the Fed takes both of those actions today, it may not need to cut rates again, he said.

As we all know, the Fed cut both the fed funds rate and the discount rate by 25-basis-points. My question to you all is do you think places like CNBC and the WSJ think they can will the Fed to drop rates simply because they want to? In fact, Bernanke is walking a very tight rope and all projections aside, the market was expecting a .5 basis cut. Since it didn’t get this, it got hammered and once again demonstrates how dependent we are on credit. For crying out loud he cut rates! Which means there will be more liquidity but the credit drug fiends are looking for more and the dosage must be upped.

The Fed understand that they need to save some ammunition for the biggest battle which is 2008. That is when you know what will hit the fan. There will be plenty of time for more rate cuts.

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