Investor Sentiment

[Dave the Canuck]

Just had this sent to me and, in the current financial environment, I thought I'd share.

[GMac]

A common sentiment I would think and I'd almost go are far as to say, probably very highly deserved.

[GordMay]

Warning: Linked picture may contain strong or potentially offensive language.
Don't go there, if you're easily offended.

PS: I agree with the expressed sentiment.

[anotherT34C]

...and may they land on the deregulators.

[Therapy]

Originally Posted by anotherT34C

...and may they land on the deregulators.

LOL........

[David_Old_Jersey]

Originally Posted by Dave the Canuck

Just had this sent to me and, in the current financial environment, I thought I'd share.

Is that why I have heard that some in Canada are "looking at" the Euro / far closer trading ties with the EU? (if not more ).

[Dave the Canuck]

Originally Posted by David_Old_Jersey

Is that why I have heard that some in Canada are "looking at" the Euro / far closer trading ties with the EU? (if not more ).

I understand that we're looking at some sort of free trade agreement with the EU.

The U.S is our biggest (by far) export market and, as such, when they have a recession, we slow down as well. If I can quote one of our previous Prime Ministers on an address to the Press Club in Washington in 1969, "Living next to you is in some ways like sleeping with an elephant. No matter how friendly and even-tempered is the beast, if I can call it that, one is affected by every twitch and grunt".

It'd be wise to have more and freer trade with the EU.

Love you, man.

[Liberty28]

Good one!!! Now put up another sign in front of Congress!!

[Ex-Calif]

Well I hope this thread doesn't go south with this comment but I for one disagree that "predatory lending" and "evil home builders" are the entire culprits in the sub-prime problem.

Mr. & Mrs. consumer were buying houses with basically zero equity, ridiculous finance terms - 1 year arms, 30 year interest only loans etc. - You can say these people were victimized but people buying 300-600k homes are not idiots. They were just greedy, trying to live in something they could not afford.

Don't buy what you can't afford. And if the deal looks too good to be true it is.

[svcattales]

Originally Posted by Ex-Calif

Well I hope this thread doesn't go south with this comment but I for one disagree that "predatory lending" and "evil home builders" are the entire culprits in the sub-prime problem.

Mr. & Mrs. consumer were buying houses with basically zero equity, ridiculous finance terms - 1 year arms, 30 year interest only loans etc. - You can say these people were victimized but people buying 300-600k homes are not idiots. They were just greedy, trying to live in something they could not afford.

Don't buy what you can't afford. And if the deal looks too good to be true it is.

Don't forget the contribution of Washington in this debacle. They made laws to reduce income levels and documentation for home loans. Fannie Mae & Freddi Mac were the "money launderers" who financed this "house of cards" and "fenced" the bogus securities to Wall Street. Lots of blame to go around.

[David M]

It started when Washington changed the laws forcing lending institutions to lower their lending standards in an attempt to get more people into homes. The Kiplinger Letter has a very good description of what happened.

[anotherT34C]

Originally Posted by Ex-Calif

Well I hope this thread doesn't go south with this comment but I for one disagree that "predatory lending" and "evil home builders" are the entire culprits in the sub-prime problem.

Mr. & Mrs. consumer were buying houses with basically zero equity, ridiculous finance terms - 1 year arms, 30 year interest only loans etc. - You can say these people were victimized but people buying 300-600k homes are not idiots. They were just greedy, trying to live in something they could not afford.

Don't buy what you can't afford. And if the deal looks too good to be true it is.

I'm not so sure. Was it really that people were suddenly switching to more upscale houses, or was it that the prices of houses were rising much faster than income levels?

[anotherT34C]

I'd also like to add that from conversations I've had with neighbors and coworkers, there was a very strong sense that this is simply what you had to do to get a house these days (ARM's today with the intention of refinance tomorrow). I guess it doesn't seem so crazy if you see all the neighbors doing it. Comfort in numbers, I suppose.

Yep, I was called a fool for not cashing in on equity. Have the smallest house on the block, because I didn't remortgage and build on it like everyone else. Now... I'm not in arrears, but I'll bet I wind up bailing out my neighbors bank to help let them refinance and keep their big house. Guess I am a fool, eh?

[Ex-Calif]

T34C - I think you are answering your own question. Both was going on - People were refinancing to make additions and buy Hummers. I lived next door to them as well. Bled all their equity out in 4 years.

When I returned to the US after Japan I was pre-approved for a $750k mortgage. I bought a $250k house and sold it 5 years later for $285. Could I carry a $750k mortgage? Frankly it scared the crap outta me.

I made my own decision and lived in a perfectly adequate mid-west house. Admittedly the same house on the West coast was $400k but that's regional variation in my opinion.

[Boracay]

From where I am it looks like it's all a case of bad risk assessment.

Those who did the job professionally were paid to do it badly.

Those who brought thought that the party could last forever.