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N.Y. Times to the rescue……

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The government got us into this mess by allowing every broke dick in the country to have a house. It’s the affordability index, stupid. In Idaho a house sells let’s say for 185000. I can afford 135000 on my income. No buy this year. Or next. Until I and millions of average income people can afford it, the economy stays in the tubes.
   In the past few years  I could have bought a home and by now been paying 50% of my income to keep it. Might as well rent a house. Or as I’m doing, buy a mobile home and have it paid for in a couple of years. That’s the plan. Why spend my old age slaving for these crooks in the finance industry, hmmm?
    What’s your plan to get through the depression? By the way all this printed money, 2 trillion and counting will cause the boom to reignite. The next bust will even be worse. Keep your eye on China. There economy has dropped to 9 % growth. Break even so far. Disaster if it falls below 5%.

May you live in interesting times. Pay off your bills. Keep your lines of credit open and save cash. Then if you want to buy something you’ll have your choice. I’m thinking buying older mobile homes in retirement parks, remodeling and flipping them. Being able to finance them is the key. No one will lend money on them and everyone has to have a place to live.

Economic Scene – With Rescue Money Available, Who Wouldn’t Line Up? – NYTimes.com

The idea of helping Main Street has an undeniable appeal. Housing is at the root of the financial crisis, and preventing foreclosures could bring a double-barreled benefit. It would allow families to remain in their homes and could also help keep the housing market from spiraling out of control. The more foreclosed homes that are dumped on the market, the more home prices will fall.

But before any of the various rescue plans reaches the point of inevitability — and these days, ideas can go from unlikely to inevitable in about 48 hours — I think it’s important to stop for a moment and consider how complicated any such plan would be. Every one of them, in fact, faces an inherent conflict: coming up with a large-scale homeowner bailout without also helping millions of people who don’t need help is almost impossible.

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Written by mrcauser

October 22, 2008 at 7:25 pm

Posted in Uncategorized

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