Anyone else's office freaking out?

michika · #1 09-29-2008, 11:39 PM

I got that number from a Financial Post article this afternoon.

Powertec · #2 09-29-2008, 11:57 PM

I personally have been waiting for this for a awhile. I saved and i am ready to reep the benefits of financial over extension.

Abbyreefer · #3 09-29-2008, 11:58 PM

I've worked in the financial industry for 14 years and have been a lender for the past 10 and have never seen a rate jump from current posted rates at approx 6.85% for a 5 yr fixed term up to 9% - also these are posted rates, negotiated rates are much lower then what the posted rates actually are. FYI for every 10 articles you read that claim rates are going up, you'll find another 10 claiming the rates to go down.

Truely is unfornunate whats happening in the states and with Merrill Lynch I think a few more banks and firms will probably go under as well when all of the dust sets.

If anyone has any questions regarding their mtg or anything along those lines I would be more then happy if you want to shoot me a PM and I will respond.

Murminator · #4 09-30-2008, 12:53 AM

It can get worse my 1st house I bought I got 14% over 3 years and I thought I was doing good

..Houses were dime a dozen cause people got in when the interest was low when it went up they were so tapped they couldn't afford them anymore and was trying to sell them off. I'm waiting for it to happen again ...then I can become the slum lord of e-town

michika · #5 09-30-2008, 12:59 AM

Lol Murray!

Myka · #6 09-30-2008, 01:03 AM

So...uh, what's this all mean anyway? I don't get it.

I don't watch tv, read news, or anything like that. I'm pretty out of the loop. In fact this is the first I've heard about this attempted bailout!

michika · #7 09-30-2008, 01:10 AM

For people in my office who were set to retire it means they have to work for longer now. For some in means they've lost their nest eggs.

Myka · #8 09-30-2008, 01:23 AM

That doesn't clarify anything!!

Are people losing their savings?

Whatigot · #9 09-30-2008, 03:58 PM

Quote:

Originally Posted by Myka

So...uh, what's this all mean anyway? I don't get it.

I don't watch tv, read news, or anything like that. I'm pretty out of the loop. In fact this is the first I've heard about this attempted bailout!

Myka, the very short and simplified version is that us banks got extremely greedy in the housing market run up that the us had over the last 20 years and in order to maximize the good times, they started to give out mortgages like I give reefing advice; freely and with few references so that what the banks wound up with was hundreds of thousands of mortgages (read BILLIONS of dollars) given out to people who didn't even have a job or at least any job that could sustain the mortgage, especially in the event of lending rate hikes.

so these banks, seeing that these mortgages were going to be worth less than the paper they were printed on joined in one of the greatest games of pass the buck ever seen, they took this bad paper, packaged it up and sold it as AAA grade investment (as in the safest, least volatile possible investment) and sold it to the funds, institutions and other banks who normally buy the AAA stuff all the while knowing it was anything but.

now since people are defaulting on these mortgages left, right and center it's those who bought the AAA stuff thinking it was low risk holding the bag and wondering what happened to their savings or pensions that were supposed to be "safe" while the banks themselves are being handed their money back by this government bailout...

that's the super simple and somewhat incomplete explanation....

more to come if desired.

Myka · #10 09-30-2008, 05:32 PM

Thanks for that ^ explanation!! That's the best one I've read so far.