irondoor91

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  • Profiting from the $700 Billion Bailout
    Re: logicalthought. You are correct and that was what I observed when reading through the piece. I haven't thought through all the ramifications of the bailout yet (who can know the future?), but at some point the government is going to own a lot of homes. Until the average price of those homes (now around $215,000) declines to 3x the median family income ($50,000) there is not going to be stabilization. That would be with stabilized employment, which isn't happening. In addition, we know that the free flow of mortgage money is shut down now and if banks are going to avoid this disaster in the future, they have to demand more downpayment, higher FICO scores, higher income to debt ratios, etc from borrowers. It seems to me that all those good people are probably already in homes. Why would they want another one? Do you really believe that there are millions of folks just sitting around in apartments with $40,000 in the bank, no credit card or auto debt and good secure jobs who are patiently waiting for home prices to come down? I don't know of any, but maybe somewhere in Iowa. Not in California, Nevada, and Florida where the problems are. People are leaving those states for financial survival.
    Sep 25 11:04 am |Rating: 0 0 |Link to Comment |View article

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