For Our Members
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The real estate industry is in flux and will be for quite some time. The latest are bailouts to various banking institutions. We are jumping back to the 80s. Some may not remember the savings and loan bailouts. It was a mess. The recession of the early 90s exploded shortly thereafter. |
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I was checking on the latest oped additions to the New York Times and ran across the oddest article. Well, at least I thought it was odd. The author predicted the expectation of over two million foreclosures next year. He inferred the whole problem was tied to the sub-prime loans, but I have my doubts. |
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You are probably bored by now hearing the reasons the mortgage companies contributed to the crash of the housing market. Basically, they packaged loans so that consumers didn't want to say no even if they couldn't afford to get into a long term commitment. Money was flying; customers were buying and realtors were making great commissions. It was a rosy world for awhile. |
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Former Federal Reserve chairman Alan Greenspan has warned that plans announced this week to launch a so-called "super fund" – a dramatic attempt by major investment banks to ease the crisis facing credit markets – could have dire repercussions. (This is referring the mortgage credit markets.) |
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Buying and owning your home has always been the American dream. Since the 80s, it has been harder to make this come about. Mortgage craziness and nutty prices have put many middle class people out of the market. |
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With rising prices for years, one could easily argue greed. Then
there were the financing agents who were determined to get folks into
homes despite all odds. The forces involved in this particular market
are in a mess. |