Subprime created a shift from rental statistics

Discussion in 'Economics' started by Digs, Aug 23, 2007.

  1. Digs


    Pre 2002

    Lower income people rented. When the rent could not be paid the moved on to lower rent housing. There no govt statistics on this failure.

    Post 2002

    Change this with sub prime loans, the people who previously rented now own a house.

    Once these people are in the housing market they enter important govt statistics.

    House sales
    New house sales
    Failure over 90 days top pay mortgage

    So while the asset market was in an up swing, these numbers where looked on a favourable, on a down swing the are devastating.

    So for the housing and the economy to return to normal business, there should be no bail out of home owners, let the market divest of the lenders who did these dodgy loans and in a fear years things will equal pre 2002.

    BUT if the FED keeps following SP500 sentiment, there will remove the RISK from the casino and then the situation will just get worse, for bigger explosion in the future.

  2. The fed creates this, its called rowing, or the business cycle. I am trying to find a way to like the fed even tough all my tax dollars goes into the international bankers pockets.

    I am determined to beat them at their own game.