One thing that many people will not admit to is the true total cost of owning a home vs. renting. While anyone can say, "hey for the price you are paying for rent you could have a mortgage", that is only part of the cost of home ownership. There are the taxes, maintenance and repairs, insurance and other costs that a renter is not responsible for. Many people who bought homes comparing only the rent vs. mortgage payment were already at the limits of their income. When any additional costs came up such as increases in taxes and insurance, they were not able to keep up. Add any of the foolish practices such as the balloon payments and you have a recipe for disaster. This type of American is the same person that will trade their car in at a loss when it needs new tires and brakes. They do this because they don't have the money to pay for the repair but if a dealer can just roll them in to the next monthly payment on another car without too much of an increase they do it. That's been one of the biggest problems in the auto industry, it caught up to them.
Fact is Americans do not save any money, they spend every last dollar they get every week and then some by living off credit cards and home equity loans and they did this before all of this crisis. Times will get tough for another 15-20 years until we pay down that debt. In a country where we don't produce anything, all we are doing is circulating money we never really generated from any raw materials and products. It's finally caught up with us and we have to rectify that imbalance. It's going to be a painful lesson. The good thing is though it should create another "greatest generation" of people who lived through it and vowed not to let it happen again. They will teach at least one and maybe two generations that lesson. Then it will fade in to the past as just a statement in history books where nobody really remembers how bad it was and the cycle will start all over again. Thank You, Brian Webster -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org]on Behalf Of Eje Gustafsson Sent: Friday, February 05, 2010 11:11 AM To: 'WISPA General List' Subject: Re: [WISPA] Common Carrier or what: The FCC'srole inregulationofnet-neutrality On issue here is Carters "dream" in the 70's that every American should have a house or right to have a house of their own. This was for much laying dormant but Bush era brought this back. To own a house is not a right. It's a privilege, not everyone should or are suitable to own a house the idea a house for every American is seriously flawed. This was what started the housing boom in the 70's out in California that quickly spread across the nation. Creating over time hyper inflated prices but was a slow progress but was once again flared up during Bush era and the push was one once again raising house prices even yet higher and in a push for this idiotic loans was designed to make this happen. Balloon loans that was design to get you in a house, sell that house after 10 years to get you into a bigger house since you now was supposed to have a better job, bigger family and your current house would be worth lot more. There are two fundamental flaws with this thinking. 1) the new house you buy will obviously be much more expensive as well and this Balloon loan was design to pay minimal principal on your current home until 10 years ahead. 2) it assumes your salary does not only keep up with inflation but advancing a head of it not taking into consideration of cyclic economic down turns, layoffs and failures. Loans created with a rose tinted glasses on never looking at worse case scenarios or even any bad scenarios. Then you have the other kind of loans like Lending Tree and Quickbooks started offer among others. Lower your monthly payment plans, in the fine print you discover that your only paying interest and NO principal. That sure helps people get out of debt. Even worse yet was some loans that Countrywide extended where the payment people made on their loans didn't even cover the full interest so the loan only grow. Bank of America ended up paying a steep fine over these loans (BoA bought Countrywide in 08). The current and past credit rating system in general is at fault at large. To get credit you have to have credit and the more credit you have the more credit you can get. Of course this is slightly better than it once was when a collage kid could get $10k credit card credit with no steady income. What makes sense to me on a credit system is. You have a steady income, no credit then your credit is good. The more you earn and the less credit you have the better your credit rating is. Once you start getting open credit your rating goes down. Ohh well. Just me being sensible I guess.... ;) Dang it. Stop talking politics guys back to wireless now.... lol / Eje -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Jeff Broadwick Sent: Friday, February 05, 2010 9:39 AM To: 'WISPA General List' Subject: Re: [WISPA] Common Carrier or what: The FCC's role inregulationofnet-neutrality I'm really not interested in getting into a big hairy argument with you on-list Matt. The CRA DID have an effect, and the market created by Fannie and Freddie allowed the whole thing to happen. There are certainly other factors, but those are the two biggest. I will agree with you that there were plenty of stupid people with Cs in their titles that bellied up to the trough. Regards, Jeff Jeff Broadwick ImageStream 800-813-5123 x106 (US/Can) +1 574-935-8484 x106 (Int'l) -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of Matt Liotta Sent: Friday, February 05, 2010 10:13 AM To: WISPA General List Subject: Re: [WISPA] Common Carrier or what: The FCC's role inregulationofnet-neutrality On Feb 5, 2010, at 10:06 AM, Brad Belton wrote: > The underlying point still holds true; big government imposing rules > on lenders forcing them to lend to those that wouldn't have normally qualified. > No, it in fact does not hold true. Since CRA mortgages were only a fraction of the bad mortgages it is logical to conclude the other bad mortgages would have still been made if there were no CRA mortgages. Further, it is reasonable to assume that if no CRA mortgages were made even more non-CRA mortgages would have been made given the additional available capital. There is plenty of blame to go around; trying to pin it on one thing is a waste of time. -Matt ---------------------------------------------------------------------------- ---- WISPA Wants You! Join today! http://signup.wispa.org/ ---------------------------------------------------------------------------- ---- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ ---------------------------------------------------------------------------- ---- WISPA Wants You! Join today! http://signup.wispa.org/ ---------------------------------------------------------------------------- ---- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/ ---------------------------------------------------------------------------- ---- WISPA Wants You! 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