Subprime Blogger » economy

Let the Market Set Interest Rates!

admin — Wed, 10 Jun 2009 16:37:52 +0000

Make sure to use Subprime Blogger to get your Mortgage Rates Forecast as well as keeping up with Daily Mortgage Rates. You could save a great deal of money by knowing where mortgage rates are going.

I promised a rant yesterday and today’s tirade is directed straight at President Obama and Ben Bernanke. For many months now President Obama has said that credit is the lifeblood of the economy. Hmmm, are you sure? I realize that during most of your lifetime you have seen an abundance of purchases on credit, but hasn’t the current crisis opened your eyes? The reason we are in the current economic mess is because of credit yet you STILL think credit is the lifeblood of our economy. President Obama, America elected you on your platform of “change.” Well, as much as things “change,” they stay exactly the same. You continue to prop up companies that should go backrupt. You continue to use tax payers money to bail out Wall Street and you are continuing to devalue the United States dollar. Change? If I can remember correctly, this was all blamed on the Bush administration.

Ok, ok, maybe it is not all the President’s fault, maybe some of the blame has to go to Fed Chairman Ben Bernanke. In March, the prophetic (HAHA) Jim Cramer made the statement “In Bernanke I trust” when it was announced that the government was going to purchase over $1 Trillion in mortgage backed securities. Well, of course Jimmy Cramer was happy because he got to refinance his multi-million dollar mansion for a rate under 5%. This is all find and dandy, but has ANYONE see the housing market recovery since this action? We all know that mortgage rates dropped dramitcally but it was artificially created by the government’s purchases. LET THE MARKET SET INTEREST RATES! Wait, President Obama and Ben Bernanke disagree with free market capitalism, sorry about that!

Peter Schiff has a great interview on the Daily Show that I encourage all of you to watch. Jim Rogers and Peter Schiff have been right for years and everyone has laughed at them. Who is laughing now Wall Street?

How Much Money Do You Need Saved?

admin — Tue, 05 May 2009 01:28:33 +0000

Many of you are probably wondering this very question. If I quit or lose my job, just how much money do I need to have saved? Will I get back on my feet within three months or will it take longer? Well, in this economy, it is likely to take quite a bit longer than three months but every situation is a bit different. Here is an intersting article about cash analysis.

Cash Analysis – How Much Cash Do You Really Need?

Subprime Lending in a Nutshell

admin — Tue, 28 Oct 2008 04:58:31 +0000

Please use Subprime Blogger to get your information on average mortgage rates. There are also several articles to help you get low mortgage rates.

Subprime lending is a financial term used to describe financial institutions providing credit to borrowers who are deemed risky or “underbanked” due to financial restrictions. Subprime borrowers are often slapped with higher loan rates as they are at a higher risk for loan default. Subprime lenders take on extreme risk as they are lending money that might not be paid back.

The above situation is exactly what caused the “Subprime Crisis” of 2007. Mortgage lenders had been giving money to risky individuals for over a decade and when the economy started to go south, the “at risk” borrowers could not pay back their commitments and had to default. One lender falling lead to another which has created the current market condition we are currently in. Subprime lending ultimately lead to the troubled economy we are in today.

There have been many ideas as to how to get out of this situation, but the best way is to let the financial institutes default, just like the borrowers they approved and let the economy “flush” itself out. What are your reactions to this idea?

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