Great stuff.....


Billy

Thanks guys. If you have any more questions on this subject then just let me know.

Quote from: taxed on October 16, 2010, 01:30:07 PM
There is nothing wrong with leasing.  Also, saving for something special would make people more responsible.  When you really want something, you may cut down on some frivolous expenses and save instead.  Far more people can save for a home than you give credit for Zip, IF they are responsible and stay under their means.

Zip, I am not saying _if_ you have a mortgage and can afford it and are responsible that it's a bad thing.  I am saying people should buy their homes in cash.  We would be a better society from it.

   I agree cash would be better...but let me give you a true scenario to demonstrate what I mean.

   A police sgt with 10 yrs experience and a High School teacher in NJ together make around 160k give or take...before taxs...they have two kids...the average house in jersey before the crash went for like 275k thats a half decent 2000sq ft house...with the kids expenses insurance...AFTER taxs...how long would it take to save 275k plus...and they both have what would be considered decent jobs.

Great job, Dan.  You know your stuff.

I would add Goldman Sachs to that list of investment banks, only because they received a multi-billion dollar bailout from the federal government, and they are the most powerful investment bank left in the USA.  Many of the others you mentioned went under or were forcibly merged.

I will also add that the "mortgage-backed securities" you talked about were packaged up by the THOUSANDS and sold overseas as "safe investments" to foreign entities, who in turn lost their asses and continue to lose their asses.

This situation isn't all about American investment banks and American investors.  It involves investors around the world who have lost BILLIONS of dollars by believing the lies and other crap they were told.

Heads need to roll, PERIOD.  These lending practices are so outrageous, preposterous, and unbelievable that it boggles the mind.

I have serious doubts that this country is going to recover from the dirty deeds of the entities that you mentioned, Dan. 

Quote from: zip on October 16, 2010, 09:23:00 PM
   I agree cash would be better...but let me give you a true scenario to demonstrate what I mean.

   A police sgt with 10 yrs experience and a High School teacher in NJ together make around 160k give or take...before taxs...they have two kids...the average house in jersey before the crash went for like 275k thats a half decent 2000sq ft house...with the kids expenses insurance...AFTER taxs...how long would it take to save 275k plus...and they both have what would be considered decent jobs.

Don't buy a $275k house.

That was easy....

Dan, excellent info. we need a library for posts like this one.