Thread: ITT We figure out how to save the US Financial market.

Originally Posted by DickStivers

what kind of debt are we talking here? have you actually talked with a lender to see what they would actually require you to pay off in order to qualify for a mortgage? it might be worth your time to do so. go FHA so you only have to come up with 3% down and then ask the seller's to pay all your closing costs, escrows and prepaids so you don't have to come up with an additional $4000 or so on top of of your 3% down. FHA allows up to 6% seller concessions, so they can pay all your closing costs and give you a credit for carpet or appliance upgrades if you like too. i'm seeing mortgages in the less than 125k price range here including principal, interest, taxes and insurance come in at like a grand a month, which is about what it costs to rent a shit 2/2 apartment here.

you are absolutely right about the buyer's market and interest rates are sick low right now

I am aware of that and while it would technically be financially feasible, I would not be comfortable with the risks associated with only having 3% down on a house. We've got our cars paid off but still have my credit card and we both have student loans. The gameplan is we'll start saving for a house once we get everything but the student loans paid off, which should be here in a next few months. I am not interested in either the risks associated with a 97:3 ratio of debt-to-equity or paying money for PMI by having less than 20% down.

Originally Posted by Mr. E

Well this is an overreaction if I've ever seen one. America is nowhere near being so financially unstable that it would collapse. Nowhere near.

Im sorry, i was being kind of lethargic. If you read the wall street journal as much as i do, you would get a headache from all of the holy shit! headlines, so i was kinda spewing the stuff filled in my head. I do think that things are very bad. I do think that if we did not have the controls in place today that it would be another great depression. I do not think that it will get that bad. I do however, think that the more we intervene, and throw off the natural mechanism in the future, the harder further crises will be to stabilize in the future. I think it will be a few years coming out of this, (which is why i hope to go to grad school to wade this out). I do think things will be rough for a while, and we will see some rising unemployment in the next year. It shouldnt be anything we cannot handle though. I doubt it will exceed 9 percent, probly level off around 8

Which do you think sells more newspapers - headlines of shock and fear, or plain boring ones?

Love

Acid in the water. If everyone would just drop acid we could get this stuff figured out. But wait... Didn't the hippies become democrats? Rub that idea out.

Steal from China.

Question: Are we in a recession?

Answer: Nope.

Originally Posted by Atmosfear

Question: Are you guys iin a recession?

Answer: Nope.

Fixed.

In the eyes of a large portion of the American public.....yeah.

This same portion also happens to be barely above the voting age.

Originally Posted by Vengeful Scars

GO into another great depression.

Oh wait, we are in another one atm.

Shit.

QUIT FUCKING SPENDING MONEY YOU DON'T HAVE!!!!!

lol, if you think this is another great depression you need to take a walk through US history one more time

Don't let banks use morgages for collateral. Don't give speculators as much power as they do.

Buy guns and V8 muscle cars.

Give up. Accept Jesus Krist as your Lord and Savior for truly these are the end of times.

Originally Posted by djwolford

It's certainly not a Great Depression level event. You'd have to be smoking crack to seriously believe that the US(and most of the world) in not experiencing a major recession though.

That being said, it's being overhyped. I mean really, this shit happens, it'll stop soon.

Yeah......I study economics and finance.....

We're not in a recession, and I'm not smoking crack. The fact that you think we are means one and/or two things. #1: You don't know what a recession is, by definition #2: You are unfamiliar with the most recent American economic data

But if you ignore what recession means, and all relevant data, then yeah, we're in a recession.

Even if we end up in a recession, it is just defined as two back-to-back fiscal quarters of negative growth. We don't have that now (yet, anyway) and even if we do have that it is not the end of the world. If McDonalds had two quarters in a row when they were backward on growth they wouldn't be closing their doors, they would just need to rethink their gameplan.

Originally Posted by Rick Scarf

Even if we end up in a recession, it is just defined as two back-to-back fiscal quarters of negative growth. We don't have that now (yet, anyway) and even if we do have that it is not the end of the world. If McDonalds had two quarters in a row when they were backward on growth they wouldn't be closing their doors, they would just need to rethink their gameplan.

Indeed Scarf, you said it nicely. People are acting as if America falling into a recession would mean that the country is going to collapse. Not only has America seen many much worse periods of economic strife, look at other countries. There are countries that have been in a recession for 40 or 50 years that are still there, countries a lot less resourceful than America would be in their place too.

Not to mention that the US has no nations within it (as in, no German nation, Irish nation, Hungarian nation, etc. sine we're all integrated) alienated or not with the exception of the various Native American nations which are alienated but incapable of sustaining themselves at the moment as independent states. Even during the Great Depression where both Fascism and Communism were at their heights popularity-wise there was no talk of dissolving the USA. Even in Canada where there are stronger separatism movements you don't see any serious attempts except in Quebec which is pretty isolated from the rest of Canada. The strongest separatism after that is in Alberta which distrusts the rest of Canada due to economic policies in the 1970's but even then no real serious attempts that can remotely compare to the FLQ, Bloc Quebecois, etc.

Originally Posted by Mr. E

Yeah......I study economics and finance.....

We're not in a recession, and I'm not smoking crack. The fact that you think we are means one and/or two things. #1: You don't know what a recession is, by definition #2: You are unfamiliar with the most recent American economic data

But if you ignore what recession means, and all relevant data, then yeah, we're in a recession.

Precisely.

The economy has slowed. It has not recessed.

Of course, this is why journalists are absolutely the most soulless fucks on the planet. Their motivation lies solely in sales and they have no obligation to investigate or test the truth of their theories so much as they have motivation to churn out them with maximum sensationalism and revise or apologize later.

It doesn't matter who the journalist is or what the publication, if you're reading it in mass media, it's probably not credible.

Originally Posted by sycld

To be fair, I have not seen or heard a single mainstream news outlet call the current economic situation a "recession." I would hazard to guess that this is the poster's own analysis and not anyone in the media's.

I have

Originally Posted by Vengeful Scars

Maybe I just look to much into the fact that some of the largest lenders in the world are going under.

Also many, many, many real estate and title companies are non-existent now (I can name 5 multi-million dollar companies in middle Tennessee alone that are no longer in operation)

Do it.

I haven't been paying close attention to local businesses lately.

Originally Posted by Vengeful Scars

Maybe I just look to much into the fact that some of the largest lenders in the world are going under.

Also many, many, many real estate and title companies are non-existent now (I can name 5 multi-million dollar companies in middle Tennessee alone that are no longer in operation)

If they can't properly underwrite and maintain acceptable risk levels by accounting standards then it's better off for everyone that they closed their doors, IMO.

We aren't even in a depression, much less the great depression.

save the cheerleader, save the US financial market

Obama said that the United States was facing its worst financial crisis since the Great Depression in the debate tonight. Obama fails American History. McCain wins!

yeah all that's understandable and if there's a chance of relocation i see where you're coming from.

ITT WE TALK ABOUT A LOT OF SHIT I DONT UNDERSTAND

Legalize weed and tax it.

duh

The 2 parties, Democrat and Republican, are clearly different. Quit acting like you know what you're talking about Scarf.

Originally Posted by MMMMMMMMMMMMMMMMMMMMMMMMM

The 2 parties, Democrat and Republican, are clearly different. Quit acting like you know what you're talking about Scarf.

How many degrees do you have in political science again? I have one, so I am going to guess that is one more than you do.

Originally Posted by Rick Scarf

How many degrees do you have in political science again? I have one, so I am going to guess that is one more than you do.

You should have said 3 and that would have really trumped him.

sycld, it's just as bad when they constantly report factual falsehoods coming from politicians/talking heads/analysts without correction. We simple are not in a recession, but you won't find that explicitly stated in any news media report because it won't sell papers.

uh scarf why are you bragging about a political science degree

lol political science

Much like philosophy, political science is pretty much a dead-end.

Originally Posted by Atmosfear

uh scarf why are you bragging about a political science degree

That quote and reply I made was the only chance I would ever HAVE to brag about it, did you really think I would pass on that opportunity to validate 4 years worth of out-of-state tuition?

Valid point, Scarf.

Unite as a nation and work together to try and salvage what we can while being Americans instead of being Democrates or Republicans?

Hey it could happen!