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Stock Markets Bombing!
Comments
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Still got a lot of ARMs to reset yet so if what has happened so far has caused prices to fall then what is another 2 years of ARM resets going to do. :eek:..... The problem in the US is not really caused by sub-prime any longer - it is caused by house prices falling and people who have mortgages worth more than their properties now refusing to pay, moving out and renting, letting the banks foreclose......A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
First, I think they can take action against you in a number of states, certainly the ones I'm keeping tabs on. Secondly your credit score will be well stuffed. Third, although there are technical and practical reasons why they don't chase people who hand back the keys and walk away, I think they give you a 1099 for the "benefit" of all the money you have had written off. e.g. buy at $400,000 with 100% mortgage, give back keys 2 years later when ARM resets and you are in deep do-do. Mortgage company forced to sell eventually say by auction. Goes for £325,000 at auction plus closing costs, legal fees and anything else they can stick on the bill. Say $25,000 for easy reckoning. They write off $100,000 total, but can only do so if they issue you with a 1099. That 1099 says you have effectively made $100,000 because you've had that written off by the mortgage company. Mortgage company gets to write off $100,000 so someone has to pay the tax on it and it's the homeowner. So in a tax year or two's time you get a $100,000 1099 and you have to pay the tax on that "income". The IRS don't take excuses only money.....One thing that is different about the US though is that apparently in many states (not all), you literally can just give the keys back to the lender and walk away. If the house doesn't pay the balance of the mortgage loan they can't take further action......A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
Whats happend to the crash (blip) ?
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The inevitable appears to have been temporarily delayed by an injection of money that doesn't exist (it's just been made up)....we'll that's about as much as I fully understand about what's just happened.
What exactly were you expecting? Everything to fall apart overnight or something?
The events of last week might take another 12 months to be fully appreciated, it really depends how many companies and particularly banks are "doing an Enron". that'll take a while to come out in the wash.0 -
it's still down about 8% over the past 30 days despite the fed doing everything it can to keep the metaphorical titanic afloat on the murky waters of sub prime debt re-sellingIt's a health benefit ...0
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Dodgy lending in the UK is nowhere near as bad as the US, mortgages have been heavily regulated by the FSA for nearly 3 years and prior to that, the voluntary regulation by the MCCB was as tough.
Sorry to hammer you into the ground further but...
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_lynn&sid=axWmsMHJDjiQ0 -
Sorry to hammer you into the ground further but...
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_lynn&sid=axWmsMHJDjiQ
And the bets are that BoE is still set on raising rates:
http://www.bloomberg.com/apps/news?pid=20601102&sid=aJ8E65p5gDIM&refer=uk
There goes my GBQuid 6.0 -
Who was the loser in world at one calling for the European central banks (inc. the BoE) to lower rates - it's artificially low rates that have caused this problem."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0
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