http://www.bloomberg.com/news/2011-07-29/u-s-homeownership-rate-falls-to-lowest-in-13-years-on-stricter-lending.html?cmpid=
SAMEER SAYS
TIGHT LENDING ?????
AS I'V SAID BEFORE - BANKS WONT LEND AND CONSUMERS WONT BORROW
THE FED CAN PRINT AS MUCH AS WANTS - BUT IF THE SENTIMENT ON THE MKT IS TO PAY BACK ITS DEBT AND TAKE ON NO NEW DEBT - NO MATTER HOW MUCH YOU PRINT - IT WILL BE WORTHLESS
CREDIT CONTRACTION CAN OUTPACE MONEY PRINTING - AND THIS IS WHAT IS GOING TO HAPPEN - AND THIS LEADS TO DEFLATIONARY OUTCOMES
YOU CAN TAKE A HORSE TO THE LAKE - BUT CANT FORCE HIM TO DRINK - IF HE IS NOT AT ALL THIRSTY!!!!!
The U.S. homeownership rate fell to the lowest level since 1998 in the second quarter as stricter lending standards blocked purchases and foreclosures forced people out of their residences.
The strictest mortgage standards in more than a decade are disqualifying potential buyers while owners are being evicted from homes after falling behind on loan payments, said Wayne Yamano, director of research at John Burns Real Estate Consulting in Irvine, California. Home purchases fell in June to a 4.77 million annual pace, the National Association of Realtors said July 20. If housing demand remains at that level, 2011 would have the fewest sales since 1997.
SAMEER SAYS
THE PEOPLE WHO SAY THAT RATES ARE SO LOW AND PEOPLE WILL BORROW - ARE REALLY FOOLISH.
RATES ARE NOT LOW FOR THE END CONSUMER - BANKS ARE CHARGING BASE RATE ( AND THIS IS LOW ) + A HUGE SPREAD IN ORDER TO MAKE MONEY - AND THIS IS NOT LURING THE CONSUMER
LOOK AT UK FOR EXAMPLE
BASE RATE MAY BE 0.25% BUT CAR LOAN , MORTGAGES AND PERSONAL LOAN RATES ARE ALL ABOVE 8% OR SO
A LOAN AT 8% MAKES SENSE ONLY WHEN YOU EXPECT TO MAKE MORE THAN THAT - OR ELSE THE TRANSACTION IS STUPID
IN CASE OF HOME LOAN - BUY TO LET - YIELD SHOULD BE 8% - WHICH IS NOWHERE TO BE SEEN
IN CASE FOR BUYING A HOUSE TO LIVE - YOUR WAGES MUST GROW ABOVE THE RATE AT WHICH YOU SERVICE THE LOANS - IN GENERAL - AND THIS IS NOT HAPPENING
SAMEER SAYS
TIGHT LENDING ?????
AS I'V SAID BEFORE - BANKS WONT LEND AND CONSUMERS WONT BORROW
THE FED CAN PRINT AS MUCH AS WANTS - BUT IF THE SENTIMENT ON THE MKT IS TO PAY BACK ITS DEBT AND TAKE ON NO NEW DEBT - NO MATTER HOW MUCH YOU PRINT - IT WILL BE WORTHLESS
CREDIT CONTRACTION CAN OUTPACE MONEY PRINTING - AND THIS IS WHAT IS GOING TO HAPPEN - AND THIS LEADS TO DEFLATIONARY OUTCOMES
YOU CAN TAKE A HORSE TO THE LAKE - BUT CANT FORCE HIM TO DRINK - IF HE IS NOT AT ALL THIRSTY!!!!!
The U.S. homeownership rate fell to the lowest level since 1998 in the second quarter as stricter lending standards blocked purchases and foreclosures forced people out of their residences.
The strictest mortgage standards in more than a decade are disqualifying potential buyers while owners are being evicted from homes after falling behind on loan payments, said Wayne Yamano, director of research at John Burns Real Estate Consulting in Irvine, California. Home purchases fell in June to a 4.77 million annual pace, the National Association of Realtors said July 20. If housing demand remains at that level, 2011 would have the fewest sales since 1997.
SAMEER SAYS
THE PEOPLE WHO SAY THAT RATES ARE SO LOW AND PEOPLE WILL BORROW - ARE REALLY FOOLISH.
RATES ARE NOT LOW FOR THE END CONSUMER - BANKS ARE CHARGING BASE RATE ( AND THIS IS LOW ) + A HUGE SPREAD IN ORDER TO MAKE MONEY - AND THIS IS NOT LURING THE CONSUMER
LOOK AT UK FOR EXAMPLE
BASE RATE MAY BE 0.25% BUT CAR LOAN , MORTGAGES AND PERSONAL LOAN RATES ARE ALL ABOVE 8% OR SO
A LOAN AT 8% MAKES SENSE ONLY WHEN YOU EXPECT TO MAKE MORE THAN THAT - OR ELSE THE TRANSACTION IS STUPID
IN CASE OF HOME LOAN - BUY TO LET - YIELD SHOULD BE 8% - WHICH IS NOWHERE TO BE SEEN
IN CASE FOR BUYING A HOUSE TO LIVE - YOUR WAGES MUST GROW ABOVE THE RATE AT WHICH YOU SERVICE THE LOANS - IN GENERAL - AND THIS IS NOT HAPPENING
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