youtube.com— "HE HAS NO IDEA HOW BAD IT IS OUT THERE! HE HAS NO IDEA! HE HAS NO IDEA! I HAVE TALKED TO THE HEADS OF ALMOST EVERY SINGLE ONE OF THESE FIRMS IN THE LAST 72 HOURS..."Thanks Federal Reserve...
Aug 6, 2007View in Crawl 4
Cramer sure is slow. Many people have been telling us for a long time that we are headed toward the next Great Depression. I've been saying it for three years. Alex Jones has been telling us the government is going to tank the economy so it can control us better. Every other article online is about the housing bust or the gap between the haves and have nots. After the economy tanks the government will start another war and put us under martial law.
This is just so BIG and so NOW and it is way too big to cover with a blankie. This is the perfect bubble and the perfect storm--an economic Katrina hits the markets and nowhere to hide and look who we have to protect us--GW HOOVER BUSH
Banks will pretty much do anything they can to avoid foreclosing on properties. They don't make a "tidy profit" because, as they aren't in the business of selling real estate, they short-sell these houses, usually at auction. (That's why, if you have extra cash, it's better idea to put it in an IRA, for instance, than to let it sit as unavailable equity, because that spread makes it easier for the bank to have room to short-sell and break even.) The problem actually lies with the intense pressure placed on bankers to bring in new loans, no matter the lending environment. The job of bankers has fundamentally changed in the past 20 years. Couple that with the volitile combination of unethical mortgage brokers (the jokers of this industry) and financing from builders and, Houston, we have a problem.The builders, especially, would sell new-builds to people at half-taxes on a 2:1 buydown. In English, that refers to the graduated property tax schedule given to many people buying new homes: just the land for the 1st year, the land plus 50% of the improvement for the 2nd year, then the full value from the 3rd year on out. "2:1 buydown" loans are priced at a 2% discount for the 1st year, 1% below for the 2nd, then the standard rate for the rest of the loan. So when you combine a courteous practice of county auditors (it's a pretty unaggressive way to treat new members of the tax base) with an aggressive way to make more life-of-loan interest than standard 30-year-fixed would, you're going to have people qualified for the wrong reasons. In other words, the 1st year of one of these loans could, FOR EXAMPLE, be $600/mo (Principle-Interest-Taxes-Insurance); the 3rd year could easily be double that. Now let's say you're a young attorney buying your 1st house or condo: 24 months after landing that great job, you could very well bring home a lot more cash. The problem here parellels the general hyperconsumptive attitude of your typical American. Think that's exaggerated? Read "The Millionaire Next Door" to see how easy it is for even the wealthiest to burn money like it's going out of style. Or, hell, watch some daytime TV commericals. If you want a lending predator to rant about, try the check-cashing/pawn-shop industry. Buydowns and ARMs may have been sold with reckless abandon, but 90% junk loans (or, I'm sorry, "advances") keep the poor right where they are. Individuals & families will get ahead by planning finances together, spending prudently, and saving & investing. It's not brain surgery. It's just math.
As at today Sep 17, 2008 over a year after his rant, he has been proven right. AIG taken over, Merrill Lynch sold out, Leman and Bear Sterns are belly up. Damn, whose next. He crazy but he right!
siszamAug 7, 2007
Cramer sure is slow. Many people have been telling us for a long time that we are headed toward the next Great Depression. I've been saying it for three years. Alex Jones has been telling us the government is going to tank the economy so it can control us better. Every other article online is about the housing bust or the gap between the haves and have nots. After the economy tanks the government will start another war and put us under martial law.
retop56Aug 8, 2007
EVERYONE!!! IT IS NOW THE TIME TO MOVE TO CANADA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
dillibobAug 8, 2007
he makes me want to yell
nakaniAug 8, 2007
uh.... Jim Kramer?
starrychloeAug 8, 2007
where is my comment?
thecoolestguyAug 9, 2007
The Federal Reserve system is a giant piggybank for the international bankers courtesy of the American population.
texmantooAug 12, 2007
This is just so BIG and so NOW and it is way too big to cover with a blankie. This is the perfect bubble and the perfect storm--an economic Katrina hits the markets and nowhere to hide and look who we have to protect us--GW HOOVER BUSH
mebcuaosuAug 20, 2007
Banks will pretty much do anything they can to avoid foreclosing on properties. They don't make a "tidy profit" because, as they aren't in the business of selling real estate, they short-sell these houses, usually at auction. (That's why, if you have extra cash, it's better idea to put it in an IRA, for instance, than to let it sit as unavailable equity, because that spread makes it easier for the bank to have room to short-sell and break even.) The problem actually lies with the intense pressure placed on bankers to bring in new loans, no matter the lending environment. The job of bankers has fundamentally changed in the past 20 years. Couple that with the volitile combination of unethical mortgage brokers (the jokers of this industry) and financing from builders and, Houston, we have a problem.The builders, especially, would sell new-builds to people at half-taxes on a 2:1 buydown. In English, that refers to the graduated property tax schedule given to many people buying new homes: just the land for the 1st year, the land plus 50% of the improvement for the 2nd year, then the full value from the 3rd year on out. "2:1 buydown" loans are priced at a 2% discount for the 1st year, 1% below for the 2nd, then the standard rate for the rest of the loan. So when you combine a courteous practice of county auditors (it's a pretty unaggressive way to treat new members of the tax base) with an aggressive way to make more life-of-loan interest than standard 30-year-fixed would, you're going to have people qualified for the wrong reasons. In other words, the 1st year of one of these loans could, FOR EXAMPLE, be $600/mo (Principle-Interest-Taxes-Insurance); the 3rd year could easily be double that. Now let's say you're a young attorney buying your 1st house or condo: 24 months after landing that great job, you could very well bring home a lot more cash. The problem here parellels the general hyperconsumptive attitude of your typical American. Think that's exaggerated? Read "The Millionaire Next Door" to see how easy it is for even the wealthiest to burn money like it's going out of style. Or, hell, watch some daytime TV commericals. If you want a lending predator to rant about, try the check-cashing/pawn-shop industry. Buydowns and ARMs may have been sold with reckless abandon, but 90% junk loans (or, I'm sorry, "advances") keep the poor right where they are. Individuals & families will get ahead by planning finances together, spending prudently, and saving & investing. It's not brain surgery. It's just math.
russjamSep 17, 2008
As at today Sep 17, 2008 over a year after his rant, he has been proven right. AIG taken over, Merrill Lynch sold out, Leman and Bear Sterns are belly up. Damn, whose next. He crazy but he right!
Closed AccountSep 23, 2008
I am not scared, because I am already broke, ha!
aabjoraDec 28, 2008
No one would like him to be right....but this guy is too good in economics everything he said about mortgage mess was true. my space:<a class="user" href="http://www.mortgagerefinancingloanz.com/">http://www.mortgagerefinancingloanz.com/</a>