Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
We bought a house might loose a lot of money. We are paying punctual and lot more than we should, but the value of our cute home might drop a lot, as the video suggested.
The mortgage crisis make the normal people poor, as they pay a lot more for their houses than it would cost without subprime mortgages and the banks and real estate agencies rich.
Joined: Sep 19, 2007 Posts: 920 Location: Land of the Tongva tribe
Posted: Mon May 12, 2008 11:00 am Post subject: Re: Aussie foreclosures (video)
alokin wrote:
The mortgage crisis make the normal people poor, as they pay a lot more for their houses than it would cost without subprime mortgages
So are you in favor of subprime lending???
joeltrout _________________ ENERGY is the basis of our industrial civilization and sustains our standard of living. It is the foundation stone of our national wealth. A nation starved of energy.....will be a nation of starving people.
Posted: Wed May 14, 2008 12:15 am Post subject: Re: Aussie foreclosures (video)
maybe I didn't wrote it clearly:
The subprime loans drove house prices up as people were able to take higher loans as they could normally. Who gains? The bank and the real estate. Who looses? All those who take out traditional mortgages, as they (we ) pay much more for the house than we normally.
It made me a bit cross - this family in the film, nearly crying in front of their newly suburban house they can't afford. Why didn't they search for an older cheaper home? Why is there a brand new car in front and an expensive trampoline for the kids? That are simply guys who can't live within their means, I guess.
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