Comments on: Has enough been done to restore confidence? http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/ Get to grips with the issues affecting world business Wed, 16 Dec 2009 20:43:39 +0000 http://wordpress.com/ hourly 1 By: G. Green http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-7920 G. Green Thu, 04 Dec 2008 22:34:19 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-7920 the major problem being missed to help boost the economy falls with one group and one area: the middle class mortgage rate. Conforming loan limits are too low and rates are too high to impact mortgage holders in major cities. For Example: In Atlanta, the conforming loan max limit is $417,000. The average middle class home is $500k-$700k. The current interest rates for these loans are 7-7.5%. Not attarctive! Move the conforming Max to $650k or $700k with the interest rates around 5.5-6.2% and watch the Economy go crazy recovering. The Real Estate Industry impacts almost every industry. Wood, Steel, Concrete, Plastics, Brick, Stone, Landscape, Fabrics, etc. Mortgage rates are going down, but they are not in the $500-$750k area. Offer these Re-fi and Purchase rates and see what happens!!! Glenn Green the major problem being missed to help boost the economy falls with one group and one area: the middle class mortgage rate.
Conforming loan limits are too low and rates are too high to impact mortgage holders in major cities. For Example: In Atlanta, the conforming loan max limit is $417,000. The average middle class home is $500k-$700k. The current interest rates for these loans are 7-7.5%. Not attarctive! Move the conforming Max to $650k or $700k with the interest rates around 5.5-6.2% and watch the Economy go crazy recovering. The Real Estate Industry impacts almost every industry. Wood, Steel, Concrete, Plastics, Brick, Stone, Landscape, Fabrics, etc. Mortgage rates are going down, but they are not in the $500-$750k area. Offer these Re-fi and Purchase rates and see what happens!!! Glenn Green

]]> By: Ion Livas http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-7256 Ion Livas Fri, 21 Nov 2008 10:16:37 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-7256 In defense of the three Auto Executives; they did not come from Detroit alone. Each had a group of other Executives, Accountants and Lawyers with them in the plane. Add to this the weight of hundreds of pounds of documents they brought with them, flying down to Washington by he Company Executive Jet, was probably cheaper and much safer. Ion Livas ionlivas@gmail.com In defense of the three Auto Executives; they did not come from Detroit alone.
Each had a group of other Executives, Accountants and Lawyers with them in the plane.
Add to this the weight of hundreds of pounds of documents they brought with them, flying down to Washington by he Company Executive Jet, was probably cheaper and much safer.

Ion Livas
ionlivas@gmail.com

]]> By: Ray http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-6582 Ray Mon, 17 Nov 2008 02:26:21 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-6582 Since the housing market crash and many foreclosures, who's been paid the mortgage premium insurance, that most home owners are requied to pay on their home loans. If the payments have been made why is the banks having difficulty with cash flow? Since the housing market crash and many foreclosures, who's been paid the mortgage premium insurance, that most home owners are requied to pay on their home loans. If the payments have been made why is the banks having difficulty with cash flow?

]]> By: Ion Livas http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-6510 Ion Livas Sat, 15 Nov 2008 08:39:04 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-6510 The G20 are meeting today. Can someone give President Bush this message, so that he may give them some hope? The present financial meltdown started in the US. It started where it hurts most in the US. The Housing market. Tthe bell-weather Industry that determines the wealth of the ordinary man in the street., and consequently the US Economy! To an American, his house is the cradle of his wealth. Take that away from him and the Nation suffers. Give him back his home and the Nation will prosper and flourish and along with the US, the Global Economy will be revived as well. It can be kick-started with a $400 billion money-back-to-house-owners program, that will eventually put back $5.5 trillion into the Global Economy, by reviving the ‘TOXIC’ sub-Prime Mortgage Paper. Put cash back into Main Street and Detroit will sell its cars again. Jobs will be saved and jobs will be made. That will be the easiest, the cheapest and the quickest way out of the present catastrophic Financial Situation. And for the future? Prevent the periodical repetition of the housing meltdowns by insulating the Housing Industry from the ravages of the repeated see-sawing of the Fed Prime Rate. Let a house be sold at fixed interest for the duration of the loan, by Federal Assistance if Necessary, through a Government backed, Federal Fixed-Interest Mortgage Assistance Program. Houses should be sold like cars. Equal payments for the life of the Mortgage! Ion Livas ionlivas@gmail.com The G20 are meeting today.
Can someone give President Bush this message, so that he may give them some hope?
The present financial meltdown started in the US.
It started where it hurts most in the US. The Housing market.
Tthe bell-weather Industry that determines the wealth of the ordinary man in the street., and consequently the US Economy!
To an American, his house is the cradle of his wealth. Take that away from him and the Nation suffers.
Give him back his home and the Nation will prosper and flourish and along with the US, the Global Economy will be revived as well.
It can be kick-started with a $400 billion money-back-to-house-owners program, that will eventually put back $5.5 trillion into the Global Economy, by reviving the ‘TOXIC’ sub-Prime Mortgage Paper.
Put cash back into Main Street and Detroit will sell its cars again.
Jobs will be saved and jobs will be made.
That will be the easiest, the cheapest and the quickest way out of the present catastrophic Financial Situation.
And for the future?
Prevent the periodical repetition of the housing meltdowns by insulating the Housing Industry from the ravages of the repeated see-sawing of the Fed Prime Rate.
Let a house be sold at fixed interest for the duration of the loan, by Federal Assistance if Necessary, through a Government backed, Federal Fixed-Interest Mortgage Assistance Program.
Houses should be sold like cars. Equal payments for the life of the Mortgage!
Ion Livas
ionlivas@gmail.com

]]> By: Hanief Edwards http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-6500 Hanief Edwards Fri, 14 Nov 2008 23:27:25 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-6500 Everyone, is blaming the GM's and say that they misread the market, but anyone who wants to can see that GM and Ford have plenty of small cars. It's the consumer who has chosen to buy the Hummers instead of the Cobalts. Let's put blame where it belongs in this demand driven economy. Everyone, is blaming the GM's and say that they misread the market, but anyone who wants to can see that GM and Ford have plenty of small cars. It's the consumer who has chosen to buy the Hummers instead of the Cobalts. Let's put blame where it belongs in this demand driven economy.

]]> By: Kumar, Sharat http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-6177 Kumar, Sharat Fri, 07 Nov 2008 09:05:58 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-6177 Mr. Barack Obama should re-orient the tech sector of US economy in such a manor that they should concentrate on the tech intensive part and the service part should be left to global partner. So that the US companies stay competitive and get benifited by the tech as well. For the jobless he should encourage and arrange to re-orient/retrain to settle them gracefully. No amount of feeding will help rather then give them the tool to make way themselves. Thanks, Sharat Kumar India Mr. Barack Obama should re-orient the tech sector of US economy in such a manor that they should concentrate on the tech intensive part and the service part should be left to global partner.

So that the US companies stay competitive and get benifited by the tech as well.

For the jobless he should encourage and arrange to re-orient/retrain to settle them gracefully.
No amount of feeding will help rather then give them the tool to make way themselves.

Thanks,
Sharat Kumar
India

]]> By: Ulasi Joshua Ikechukwu http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-5884 Ulasi Joshua Ikechukwu Sat, 01 Nov 2008 14:21:01 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-5884 I do not think that this is time to play partisan politics in Britain and the US. The Western Credit crunch. The ISAVE struggle should not have been witnessed in the sort of new economic order we now have. Brown and Cameround, Obama and Mcain should find this moment as an opportunity to contribute their best in salvaging their economies, not a time to profit from the financial doom of their electorate. I do not think that this is time to play partisan politics in Britain and the US. The Western Credit crunch. The ISAVE struggle should not have been witnessed in the sort of new economic order we now have. Brown and Cameround, Obama and Mcain should find this moment as an opportunity to contribute their best in salvaging their economies, not a time to profit from the financial doom of their electorate.

]]> By: Ulasi Joshua Ikechukwu http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-5883 Ulasi Joshua Ikechukwu Sat, 01 Nov 2008 14:06:56 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-5883 i think we are very close to a US stockmarket bounceback. Since the stock market simply reflects activities in the real sector of the economy, i think it is fair to say that a V-shaped recovery is underway for the US and of course the rest of the world. World leaders have already done their own part to get banks to start lending to each other again. We have seen Bailout and stimulus packages by the world magor ecoomies (in Great Britain, US, and of course the 27 trillion YEN in Japan). Although we may see slight increases in the interbank lending rates going forward, i think that will be an indication that they are now ready to lend, but need some extra charges just in case... What this means is that confidence has been restored, but banks would still remain courteous- which is exactly what is needed to jump out and really stay out of this type of mess. There has been many blames on mortgage lendings, especially that of the US. in my views, if the US consumer does not spend above his/her income, then the Japanesse auto industry would never have exported itself out of the late 1990's recession, and interest rates would currently be well into the negative. Also the European companies that benefit from outsourced jobs would not have popped up. the Chinesse food and clothing industry would not have found markets in North America. The bad news though is that many companies are announcing layoffs in tens of thousands. This may further slow down the recovery process since purchasing power will soon be hurt in the US. The strict trade union laws in Europe may mean that Europe will not be hurt as much in terms of low purchasing power. this means that those countries they export to may beging to see their balance sheets and of course ther share prices edge up slightly. The good news is that both the US and Gordorn Brown realised that 'Monetary Policy need to be backed up by Fiscal Policy.' With the conventional definition of recession-negative figures in two consecutive quarters- I think we may have a recovery somewhere around Mid December. Although this is not enough time for Monetary Policy, or the more time taking Fiscal Policy to filter through the economic figures. The idea is that given the conserted efforts by Western Central banks Including those in Asia, and the psychological effects of these announcements, we may see an earlier than expected recovery. Thanks Ulasi Joshua Ikechukwu Joshua Ikechukwu Foundation. Economics Dept University Of Nigeria Nsukka, Nigeria i think we are very close to a US stockmarket bounceback. Since the stock market simply reflects activities in the real sector of the economy, i think it is fair to say that a V-shaped recovery is underway for the US and of course the rest of the world. World leaders have already done their own part to get banks to start lending to each other again. We have seen Bailout and stimulus packages by the world magor ecoomies (in Great Britain, US, and of course the 27 trillion YEN in Japan). Although we may see slight increases in the interbank lending rates going forward, i think that will be an indication that they are now ready to lend, but need some extra charges just in case... What this means is that confidence has been restored, but banks would still remain courteous- which is exactly what is needed to jump out and really stay out of this type of mess. There has been many blames on mortgage lendings, especially that of the US. in my views, if the US consumer does not spend above his/her income, then the Japanesse auto industry would never have exported itself out of the late 1990's recession, and interest rates would currently be well into the negative. Also the European companies that benefit from outsourced jobs would not have popped up. the Chinesse food and clothing industry would not have found markets in North America.
The bad news though is that many companies are announcing layoffs in tens of thousands. This may further slow down the recovery process since purchasing power will soon be hurt in the US. The strict trade union laws in Europe may mean that Europe will not be hurt as much in terms of low purchasing power. this means that those countries they export to may beging to see their balance sheets and of course ther share prices edge up slightly. The good news is that both the US and Gordorn Brown realised that 'Monetary Policy need to be backed up by Fiscal Policy.' With the conventional definition of recession-negative figures in two consecutive quarters- I think we may have a recovery somewhere around Mid December. Although this is not enough time for Monetary Policy, or the more time taking Fiscal Policy to filter through the economic figures. The idea is that given the conserted efforts by Western Central banks Including those in Asia, and the psychological effects of these announcements, we may see an earlier than expected recovery.
Thanks
Ulasi Joshua Ikechukwu
Joshua Ikechukwu Foundation.
Economics Dept
University Of Nigeria Nsukka, Nigeria

]]> By: jami http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-5758 jami Tue, 28 Oct 2008 22:27:19 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-5758 Propping up the banks is no doubt a good idea to prevent an absolute collapse of western economies. However, pumping money into the pockets of those shitty bankers who created this mess is only worse. the appropriateness of depleting the capital that taxpayers just injected into the banks through the payment of billions of dollars in bonuses, especially after one of the financial industry's worst years is beyond my fathom Jami Propping up the banks is no doubt a good idea to prevent an absolute collapse of western economies. However, pumping money into the pockets of those shitty bankers who created this mess is only worse.
the appropriateness of depleting the capital that taxpayers just injected into the banks through the payment of billions of dollars in bonuses, especially after one of the financial industry's worst years is beyond my fathom

Jami

]]> By: Prem Kumar http://business.blogs.cnn.com/2008/10/13/has-enough-been-done-to-restore-confidence/#comment-5523 Prem Kumar Thu, 23 Oct 2008 19:52:33 +0000 http://cnnibusiness.wordpress.com/?p=596#comment-5523 Do we know what caused it, who caused it,how deep is the problem,we are really far from having fixed it or having done enough. Let the culprits go to jail first. Lack of any regulations have caused this.This is far from over with all the financial messing around the Wall streets boys have been doing. Do we know what caused it, who caused it,how deep is the problem,we are really far from having fixed it or having done enough. Let the culprits go to jail first. Lack of any regulations have caused this.This is far from over with all the financial messing around the Wall streets boys have been doing.

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