Upside Down Mortgage

Posts Tagged ‘blog’

Housing Bubble Depression

KEEP A JOURNAL OF THESE TIMES! March 6, 2009

Ten years ago I wrote a column with a similar title, saying "Someday your grandchildren will become excited about a future bull market, and you'll certainly want to tell them about the Great Bull Market of the 1990's. But you'll need considerable proof or they won't believe you. So keep a journal; about how wild the frenzy is to own tech and Internet stocks at any price, of how IPO's of unknown startups shoot up 200% in a week, of how America Online, still trying to make a profit, is valued at more than the combined value of Delta Airlines, Federal Express, Texaco, Raytheon, Litton Industries, Colgate Palmolive, Union Carbide, Pepsico, Hertz Corp, J.C. Penney, and Sears. And be sure to include this week's news that brokerage firm Donaldson, Lufkin, and Jenrette has opened "trading kiosks" halfway down several ski slopes at Vail, Colorado, so skiers can stop on their way down to check on their stocks, make trades, and then continue down the slope."

As I said at the time, if that was not a mania and a bubble, then the definition of those terms would surely have to be re-written.

Shortly thereafter we saw the severe 2000-2002 bear market, in which the S&P 500 lost 50% of its value and the Nasdaq, home of most of the tech and Internet stocks, lost 76% of its value.

We then saw the 2002-2007 bull market that carried the Dow and S&P 500 all the way back up to their peaks of early 2000, (but not the Nasdaq, which recovered less than half of its losses).

Then we saw the bursting of another bubble, this time in housing, and the current even more severe bear market in stocks, which has dropped the stock market below its lows of the 2000-2002 bear market, in fact back to its levels of 1997.

Yes, it has been historical times.

Someday, just as our grandparents and great-grandparents told us about the great crash of 1929-32, we will be telling our grandchildren the stories of 2008 and 2009. And again, you may need proof if they are to believe you. So once again I say keep a journal of these times.

Otherwise they may not believe for instance that in 2009 a share of one of the largest bank conglomerates in the world, CitiGroup, could be bought for $1, less than they charge for a withdrawal from one of their ATM machines, a hundred shares for a hundred bucks; or that a share of G.E., which just two years before was being honored as the best run company in the world, could be had for the price of a Big-Mac burger. Or that shares of once mighty General Motors, of which it was said for several generations that "As goes General Motors so goes the nation," could be had for less than a cup of coffee, except that no one wanted them since the company said it was probably headed for bankruptcy. (Let's hope the old saying that as goes GM so goes the nation no longer has any truth to it, since for generations when GM was doing well the nation was doing well, and when GM struggled, so did the nation. GM heading for bankruptcy?).

Meanwhile, you'll also want to tell your grandchildren how, as has happened often over the last 100 years, once again in 2008 and 2009 banks and brokerage firms were under investigation by Congress and regulators, trying to figure out how their greed and risk-taking again got out of control, how their problems again threatened the collapse of the entire financial system and economy, how many went under before it was over; how the market collapse had Ponzi scheme crooks again coming out of the woodwork; while economic conditions were downright scary.

When we tell them the story, our grandchildren will likely ask what the difference was between the risk-taking banks, and the risk-taking speculators in the Internet bubble, or the housing bubble. We'll tell them that one of the biggest differences was that, as usual the banks and Wall Street firms risked and lost other people's money.

Yes, we are living in historic times that will be analyzed and critiqued for generations to come.

We will come out of it, at this point probably sooner rather than later (with 12 years of the previous excesses already taken out of the stock market).

But how that will be done is still the unknown and unwritten story.

Sy Harding publishes the financial website www.StreetSmartReport.com" target="_blank">www.streetsmartreport.com">www.StreetSmartReport.com and a free daily Internet blog at www.SyHardingblog.com" target="_blank">www.syhardingblog.com">www.SyHardingblog.com. In 1999 he authored Riding the Bear - How To Prosper In the Coming Bear Market. His new book is Beat the Market the Easy Way! - Proven Seasonal Strategies Double Market's Performance!

About the Author:

Sy Harding is CEO of Asset Management Research Corp., author of 1999's Riding the Bear and 2007's Beat the Market the Easy Way, editor of www.StreetSmartReport.com, and www.SyHardingblog.com.

Source - Keep A Journal Of These Times! March 6, 2009

Housing Bubble vs. Great Depression

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Discount Mortgage Relief Reviews

Last Wednesday was a difficult day at the stock market. Behold a lesser mirror image of Wall Street market in the States; wrecking the bank shares, and feeding the speculation about upcoming inflation, the index of FTSE 100 stocks dramatically dropped by 160 points. The market in the States is suddenly dumbfound with realization that sub-prime lenders are far from being healthily well-off, to say the least. If New Century’s potential bankruptcy is any indication of the times, it comes with no surprise that banks are feverishly reviewing their assets and are revising their terms and policies.

US sub-prime lenders are hit by highest wave of late payments and repossessions in the history of this service. It is a relief to know that for a number of reasons such crisis in unlikely to occur in the United Kingdom. The percentage of sub-prime mortgages compared to regular mortgages is smaller, property in Europe being an attraction for large number of foreign investors, different lending policies, and finally, British financial common sense, are the beneficial factors that will likely outweigh the threat of market instability. Ian Giles, director of marketing at Kensington Mortgages, for instance, comments that “By introducing a tiered approach to risk we are allowing those people who can afford to do so, borrow more, and helping more people to buy their own homes.” In the light of the present situation, the words “those people who can afford to do so” acquire a new profound significance, and are the key.

Amidst the anxiety and the controversy surrounding the sensitive issue, fixed rate mortgages reign supreme. According to the Council of Mortgage Lenders, 85 % of first-time buyers select the fixed- rate option. Within last week eight major mortgage lenders, including such major players as Direct Line and Britannia, have reduced their fixed-rate offerings in a bid to ensure stability and to promote better budgeting.

Another product, suddenly big and bold on the top of a ‘must – have’ list is financial insurance. No big surprise there either. The Royal Bank of Scotland Group's Direct Line Insurance is certainly blossoming. With RBS Global Banking & Markets being a leading banking partner to major corporate and financial institutions worldwide, Direct Line has financial support second to no other company in the UK. At the time when almost all mortgages come with mandatory insurance on all lending products, Direct Line provides its customers with a full range of insurance, debt financing and risk management, offering discounts on its insurance for those who take out their loan or mortgage. After receiving a recent blow, the banks aim to stay on top of the game. Not a single lender, not even Direct Line, offers Inflation Insurance. Shame, really.

About the Author:

Homeowner Loans and Mortgages All Credit Welcome. No Obligation Quote. Compare Direct Line online quote.

Source - Direct Line is on the Ball

Mortgage peace of mind best consultation advice, tips. Mortgage refinance

Mortgage Relief Online

If you decide that you want online debt relief, you should prepare for it. When you prepare yourself before seeking credit help, it is your way of insuring that you can actually pay for the additional fees that the credit company will tack onto your monthly payments for helping you. You can follow steps to assess your financial situation so that when an outside agency performs this task; there will be not be any surprises about the payment schedule or any budget that they will suggest to you.

You will need to make an accurate accounting of all your average monthly expenditures. You will include everything that you spend money on regularly and infrequently. You will list things such as bills, groceries, shopping, fees and any other infrequent or frequent expense. Group the expenditures according to necessity: necessary, somewhat necessary and not necessary. Use these lists to develop your draft budget.

Now, list all sources of income. If you have bad credit, you may notice that you are spending more than you are bringing home. This is where you begin cutting things out of your budget, starting with the unnecessary expenditures. You should create a balance between necessary payments and that amount for expenses with which you can live. Here is where you can decide the fee schedule that you can afford to pay a debt relief or debt consolidation company for their services.

You can free up money quickly by paying off the smaller debts first. Balance this approach by paying off any necessary bill payments and credit cards that are close or at their limit before seriously addressing these smaller debts and any mortgages. You can drop larger amounts on your smaller debts and mortgages to speed up those payment schedules.

You may have to carve your budget up to the essentials if you want to pay off your debt quickly. If you just want to consolidate your debts for easier monthly payments then you may not be as concerned with trimming your budget so that you can afford the monthly credit relief fees.

For people seeking online debt relief through debt consolidation for the sake of convenience, you can use this task to decide what amount of money that you can save every month. A good rule of thumb is to save at least three months worth of your monthly living expenses for any emergencies. If you are in a position to save money while planning your budget, you should begin saving for your retirement as well.

You can create different budgets for different financial scenarios. You could create a monthly budget for months when you want to make a few larger payments to get rid of debt faster. You can make also make budgets for a regular month of paying off debts and for a month with lighter payments. When you try to find a credit relief company, you will find that different companies charge different rates for their services. You will be better armed to decide on which company's services that you can actually afford when you prepare beforehand.

Online debt relief companies will charge different fee and interest structures for their services, which will directly affect your budget. You will have to weigh services against total fees when deciding on which reputable credit company that you will choose. You can plan for debt relief when you assess your financial situation accurately and develop a sensible budget.

About the Author:

If you are in need of
Debt Consolidation Programs
or
Online Debt Relief
click on of the links for more information.

Source - How to Prepare For Online Debt Relief

Gov Mortgage Relief & Loan Modifications Jason Cardiff