Financial Mkt Meltdown

chanson · Since 31 Jan 2006 1873 Posts WISCONSIN Chimey

OUCH!! Gabe, low-blow..!

gabe · Since 16 May 2005 490 Posts Obsessed

Ha ha! I don’t personally care, and no offense, but the issue is that almost everyone else higher up in the chain can say the same thing: “ I was just selling what other people were willing to buy”. Everyone involved seems to have just been acting rationally on their personal incentives, but at some point both the short term and the pesonal nature of those incentives becomes apparent.

If anything, it seems like the rating agencies were most at fault, because their entire value is to accurately evaluate whether the stuff is garbage or not. But my understanding is that even they had to inflate it by telling their clients what they wanted to hear, or else they would lose business.

Anyways, at the bottom of the chain, the actual loan officers who gave out the actual no money down, no income stated type loans, certainly had a pretty privileged view into how risky these borrowers must have been. I heard some first person accounts of this customer facing work that were pretty crazy sounding, but I don’t fault them for doing what everyone basically wanted them to do. I wish I played in that bubble myself.

pkh · Since 27 Feb 2005 6549 Posts Couve / Hood Honored Founder

Portland area is pretty mild as bubbles go... City-Data.com is a fun site (2006 data):

Portland, OR
Median Income: $44,273
Median Home Price: $266,800
Income / Home Price: 16%

Davis, CA (my home town)
Median Income: $53,200
Median Home Price: $640,100
Income / Home Price: 8%

Seattle, WA (Gabe town)
Median Income: $58,311
Median Home Price: $447,800
Income / Home Price: 12%

I think California still has a long way to fall.

Mark · Mon Sep 22, 08 7:36 pm

Good data Phil!

blowhard · Since 26 Dec 2005 2028 Posts Windward

Think,, SO.CAL.(Temecula) Rancho
subdivisions of 3000-10,000 houses at a pop
many in default
the banks are asking people to resume payments for half just to keep someone in the house until it sells
some homeless are moving into and some just look like they are falling apart
a few other popular areas are in the same boat
Las Vegas,Phoenix,,

The best news is that many places do not have the draw for livability
and were not overbuilt

If you go downtown PDX it looks like a building boom still,,
there are houses still being built in Eug and Flo
but the junk is back where it belongs ,

pdxmonkeyboy · Tue Sep 23, 08 9:56 am

I think the best solution is to blame it all on Jake. Smile

colby · Since 23 Apr 2005 613 Posts Celebrity Photographer

found a reasoned explanation (podcast) that makes some sense of all this...

http://www.npr.org/templates/story/story.php?storyId=94686428

registered · Since 12 Jul 2005 1319 Posts tsunami Sandbagger

global warming has to melt something eventually Wink

Good time to invest in real estate.

pkh · Since 27 Feb 2005 6549 Posts Couve / Hood Honored Founder

Colby - that's a great commentary on the situation, I don't think I really understood until after hearing that.

colby · Since 23 Apr 2005 613 Posts Celebrity Photographer

that makes two of us then! Very Happy

I just couldn't let go till someone spoon fed it to me.

Kitesail · Since 23 Jun 2006 108 Posts The Gorge Stoked

This is just a thought.
I'm against the $85,000,000,000.00 bailout of AIG.

Instead, I'm in favor of giving $85,000,000,000 to America in a We Deserve It Dividend.

To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.

So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a We Deserve It Dividend.
Of course, it would NOT be tax free.

So let's assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes. That sends $25,500,000,000 right back to Uncle Sam. But it means that every adult 18+ has $297,500.00 in their pocket ….. a husband and wife has $595,000.00.

What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage -- housing crisis solved.
Repay college loans -- what a great boost to new grads.
Put away money for college -- it'll be there.
Save in a bank -- create money to loan to entrepreneurs.
Buy a new car -- create jobs.
Invest in the market -- capital drives growth.
Pay for your parent's medical insurance -- health care improves.
Enable Deadbeat Dads to come clean -- or else.

Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces.

If we're going to re-distribute wealth let's really do it...instead of trickling out a puny $1000.00 ("vote buy" ) economic incentive that is being proposed.

If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG -- liquidate it! Sell off its parts. Let American General go back to being American General …. sell off the real estate. Let the private sector bargain hunters cut it up and clean it up. Sounds good to me.

Here's the rationale. We deserve it and AIG doesn't.

Sure it's a crazy idea that can "never work." But can you imagine a Coast-To-Coast Block Party!

How do you spell Economic Boom? I trust my fellow adult Americans to know how to use the $85 Billion …. “We Deserve It Dividend” more than I do the geniuses at AIG or in Washington DC.

And remember, this plan only really costs $59.5 Billion …. because $25.5 Billion is returned instantly in taxes to Uncle Sam. Idea

cosmodog · Since 06 Oct 2005 204 Posts Stoked

Love the plan, but I think your math is wrong, I come up with $425 per person instead.

Gman · Since 11 Feb 2006 4911 Posts Portland Unstrapped

THink your math is off 200mil * $425 person = really big number

Diggy · Since 25 Nov 2006 342 Posts Gorge to Coast Obsessed

$700 Billion Bailout

200 Million US Adults

That $3500 per person, add the AIG $425.

Damn, if I personally get that it would be helpful but I would much rather my share be given to the super rich so it can trickle down to me.

LMAO

Reality is stranger than fiction.

Kitesail · Since 23 Jun 2006 108 Posts The Gorge Stoked

For the record –
I just want to say I’m not the one who originally came up with this plan; however it is brilliant and I totally support creative solutions to the problems we have created….

Thank god for the math-keepers of the world

jahmbi · Fri Sep 26, 08 6:48 am

WE WILL ALL BE LIVING IN A DELIVERANCE STYLE OF LIFE , THE BANKS WILL CLOSE , WE WILL ALL HAVE TEETH LIKE FOREST , BIG SALE ON CANOES AT REI..DISTILLERIES WILL POP UP IN THE WOODS , ALL BOOZE SALES WILL STOP ...MARSHALL LAW WILL BE IN AFFECT ...GRAB YOUR RICE AND BEANS CAUSE THATS ALL THE FOOD WE WILL HAVE ....TROLL

Sol-flyer · Fri Sep 26, 08 7:36 am