Water Cooler

US property market to get worse through till next year

121.91.177.180

I went to an interesting seminar yesterday.
It was organised by HSBC and half of it was about the investment market.
The speaker (from Perpetual) spoke at length about how the US has gotten itself into such a pickle.
No deposit mortgages.
Even no repayment mortgages.
In 2006 20% of ALL mortgages were in what is known as the "sub-prime" area.
At heart mortgages for people who cannot afford to repay them.
In a country where many banks are unable to go after defaulters if they hand in the keys and run.
Many of these mortgages came with a 2 year honeymoon period of low/zero interest.
Those all run out this year.
Yes folks, it's going to get worse.
More sub-prime mortgages were given in 2006 than any other year.
So until next year many repossessions will be happening.
Of course, the flipside is that for anyone cashed up, this will be a great time to buy.
Once again the poor are sacrificed on the altar of greed of the major financial institutions.
Free market? Gotta luv it!

Follow Ups:

Most of our problems are directly attributable to GREED... - Thermionic Dude 22:00:20 05/07/08 (16)
- Now this is a good, thoughtful response, IMHO . . . - JoshT 10:00:57 05/08/08 (10)
  - Another NSTAAFL man, we see. nt - clarkjohnsen 10:30:28 05/08/08 (9)
    - I'm far too touch feeling and wishy washy to be a true NSTAAFL man! - JoshT 11:14:23 05/08/08 (8)
      - No easy answer? How about "the greater good"? (Heh heh.) nt - clarkjohnsen 11:35:13 05/08/08 (7)
        
        I would have expected you to suggest "the good of the greater", cj. nt - dave c 14:46:58 05/08/08 (0)
        
        RE: No easy answer? How about "the greater good"? (Heh heh.) nt - 3fd 14:46:42 05/08/08 (5)
        
        "Define the greater good." No, the contemplation of that intentional irony is left to the reader. - clarkjohnsen 08:26:33 05/09/08 (4)
        
        RE: "Define the greater good." No, the contemplation of that intentional irony is left to the reader. - 3fd 13:42:20 05/09/08 (3)
        
        "You still did not answer my question." Dude, relax, it's virtually unanswerable. - clarkjohnsen 09:23:26 05/10/08 (2)
        
        RE: "You still did not answer my question." Dude, relax, it's virtually unanswerable. - 3fd 12:35:20 05/10/08 (1)
        
        "He is totally right wing and anything else is useless." The horror! - clarkjohnsen 11:09:32 05/11/08 (0)
- And all of a sudden the lefties who always screamed for "more affordable housing" (a dire misnomer)... - clarkjohnsen 09:52:00 05/08/08 (3)
  - "And they're still screaming!" Looks like you are the only one screaming, but nice to see some of your own con - dave c 13:57:35 05/08/08 (2)
    - \\\The only time you can lose money on the value of a house, like with share prices, is if you sell. ///...... - three_sox 16:39:48 05/08/08 (1)
      - Perhaps. - dave c 20:56:17 05/08/08 (0)
- I believe he said the only parts of the USA showing prices rises... - dave c 02:07:58 05/08/08 (0)
Dave C proves a one man pyramid scheme can work..... - J-PMatt@Comcast.Net 20:43:59 05/07/08 (1)
- thank you for a brilliantly constructed argument - dave c 02:11:00 05/08/08 (0)
RE: US property market to get worse through till next year - Postal Grunt 20:03:52 05/07/08 (1)
- RE: US property market to get worse through till next year - 3fd 14:42:54 05/08/08 (0)

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