Since we've veered off to politics and national economy...
Read an article in SF Chronicle, about how the supposed "fix" for the subprime mortgage mess is really just another bail-out for fraudulent mortgage lenders. The idea is that the investors - many of them foreign - in our nice little subprime mortgage mess have a right to demand full, immediate payment on the loans, because they can probably prove the investments they were sold in the subprime business were bascially fraudulent. Apparently the "fix" means that these investors cannot demand that immediate payment, but will have to wait five years. However, if the investors are able to make these demands, it could sink even our largest banks. To top it off, the fix only postpones the disaster - there's every indication that home prices will continue to drop over the next few years, making the frozen mortgage loans just as upside down then as they are today, in that they are for more than the homes are worth on the open market. And when the freeze comes off, foreclosures will continue to mount, and the misery will be compounded by our major banks going under with the legal demands for immediate payment by investors.
Something to ponder.
I'm starting to think that gold, at $800/oz, may actually be a good investment.
Read an article in SF Chronicle, about how the supposed "fix" for the subprime mortgage mess is really just another bail-out for fraudulent mortgage lenders. The idea is that the investors - many of them foreign - in our nice little subprime mortgage mess have a right to demand full, immediate payment on the loans, because they can probably prove the investments they were sold in the subprime business were bascially fraudulent. Apparently the "fix" means that these investors cannot demand that immediate payment, but will have to wait five years. However, if the investors are able to make these demands, it could sink even our largest banks. To top it off, the fix only postpones the disaster - there's every indication that home prices will continue to drop over the next few years, making the frozen mortgage loans just as upside down then as they are today, in that they are for more than the homes are worth on the open market. And when the freeze comes off, foreclosures will continue to mount, and the misery will be compounded by our major banks going under with the legal demands for immediate payment by investors.
Something to ponder.
I'm starting to think that gold, at $800/oz, may actually be a good investment.