Your Thoughts on the Economy?

What do you think... Whether you're in America or other parts of the world (I do think it's a global recession) do you think the economy will get a lot worse before it gets better, or is an upswing on the horizon?

 

Sadly yes. The problem is the banks' unwillingness to lend. In the UK the interest rates would normally mean that people would be snapping up houses but no one can get a mortgage. I really don't think anything that the various governments do will make too much of a difference, it's all up to the banks. I think it shows that it is really the banks that are running the country!

 

I think the economy is about to be reshaped. There's been a problem with the way we run our economy. We don't look to the future, we just think about short-term profits. That's a problem. We are seeing that with our cancer rates, health problems, and environmental problems. We have to create something more sustainable, or it's not going to work.

 

I don't think we will be having serious money problems in future. There is lots of money around; why else would be banks literally beg me to take a loan when I don't need one? One the other hand, with the scarcity of jobs around, I wonder if it is possible to make both ends meet as easily as we once used to. I think the only solution to the problem is to live as simply as possible.

 

Very good points here... if you're not a member of the cabinet, maybe
someone should nominate you. I agree, and pulling up by the bootstraps
only to turn around and make the same mistakes again would be pretty
foolish indeed!

 

I'd say because you're a good risk to them. It sounds like you have your finances in order.

But there seems to be lots of people in the US and other countries who are facing foreclosure and bankruptcy who don't have access to the money you mention.

 

Interesting... are you from the US, Woodpecker? Oh... I may have read you wrong here... does your "we" refer to your country or to your personal family finances?

 

This depends on the region of the US. IN Colorado, things are a little better than they are in other places.

Which banks are trying to loan you money?

Are these banks or those high interest lenders that are swooping in on everyone?

These fellows are actually looking to rack up pepple paying for loans at a higher interest rate, anticipating that the government will put a cap on how much interest can be charged in 2010.

I keep getting offers too, but it looks like someone is trying to lock as much in to preserve profits later on!

 

Yep, that's what they do... making the whole problem even worse because even more people get in over their heads with loans carrying high interest that they can't possibly pay off.

 

The problem here in the Pacific Northwest (Oregon) is that property values rose so quickly that a lot of folks took out loans to do home improvements that were not truly prudent long term enhancements, and now a lot of them are upside down on their loans with little real equity left because of the loans they took out.

 

Yes, I can see how that would definitely be one of the big problems when it
comes to real estate. One of many, I know. And now it's probably difficult
for them to keep up with the mortgage payments because of the
recession and everything gets a lot worse.

 

I think things will get worse before they get better, but only if the government nationalizes the banks.

Without that nationalization, we will resemble Ethiopia within a decade.

 

I agree 100% with nationalizing the banks. They have showed that they are willing to take stimulus money and blow it on parties and bonuses and whatnot. They are definitely not operating as they should, to protect the interests of the people, at the very least their customers, and don't seem to want to learn.

 

I agree that things will probably get worse before they get better.

And I do receive credit card offers in the mail, and some telemarketing calls about consolidating debt.

 

Unfortunately, the large banks are in business to make money any way they can. there is no care for the lower or middle class, it used to be that one would make a loan for a car or home, and the rates would not change. The bank was careful not to make a loan to anyone that would have a problem paying it. When a bank doesn't try to work with people the people suffer.

 

I agree with that and I'd add that in some cases, the people getting the credit made some mistakes as well.

I saw a report on people who got mortgages with manageable payments initially, but it sounded like the payments were designed to basically double in a few years... At least that's what happened and I got the impression that it wasn't simply a result in the change in overall interest rates.

 

Often, people were told not to worry about the payments going up, and were assured that the lender would be happy to work with them so they could stay in their homes.

It can be hard to defend yourself when you are taught that banks and other lenders can be trusted.

 

One of the cases I saw on CNN involved a lady who was having trouble as her payments went up, but didn't have a lawyer to help with the purchase. I was surprised at that.

Is it common in some areas of the US to not hire a lawyer when buying a home?

 

I'm not aware that you need a lawyer when you go through a real estate agency. We never had to deal with one. If you mean without a real estate agent either... well yes, there are some "for sale by owner" homes that bypass an agent, but I'd think those would be the ones that *would* take a lawyer.

 

I think that it would get a lot worse. It would take some time before the economy could be better. I doubt it that anyone could speed up the recovery.