Boomer
02-21-2009, 03:36 PM
It has been a while since I have put a link to NPR's weekend radio show, Marketplace Money, on here for you to listen to if you want to. Most Saturday mornings I listen to my gardening show guy and then to Marketplace Money. My life is so glamorous and exciting, you know. And while I can see the light where my gardening stuff is concerned (I saw a robin last week) I cannot say the same for this economic mess.
This week's show is almost entirely about the financial issues that face our military men and women.
But on the web edition of the show, another segment was added. That one is about the "plan" to deal with the nation's mortgage crisis. Some Harvard guy is interviewed. Some guy who is supposed to know stuff, right? Uh huh.
Anyway, at the risk of looking like a total idiot (not the first time) I am going to tell you what I would ask that Harvard guy if I had the chance.
I would say, "Hey, Harvard guy. Would it work to just tell those banks to sit down and shut up and here's what's going to happen? -- You are going to redo those mortgages into fixed rate -- oh maybe 5%, maybe less, and you are going to extend the term to something like maybe 40 years, maybe more. And by doing so, the borrower will get a reduced, fixed payment. It's all about the monthly payment these days, in so many cases. And it's a completely different game now anyway. (What's equity, huh?) And fixed rate loans are almost all interest up front. And so the borrowers will get the income tax deduction. And banks will get the interest. And will own the houses forever -- maybe. Yeah, it will render us a nation of renters, basically, renters in their own homes. But it might help get a few through and let things catch up. Maybe." -- So that's what I would ask the Harvard guy.
Yeah, I know. Who knows where those mortgages are? In the front door and out the back door of those lenders. All repackaged into some unrecognizable mess. And I am sure there are many theories that Boomer the Bumpkin would not understand about how this would not work. Long, long term, low enough fixed rate mortgages.
And meanwhile, this thing grows arms and legs and heads that affect all of us. You know us. The ones who knew never to exceed 25% of income for housing costs. (Heck, I used to make it 25% of net, including taxes and insurance, even if the bank said gross was good.) But what do I know?
A woman with a bad mortgage on a modest home was interviewed on a show the other day, and she said, "Yes, I was stupid. But the lender was guilty."
Well, that's my little rant for right now. Just thought I would put it out there. Letting off a little steam I guess. I returned not long ago from being out and about where I overheard two business owners talking, one said to the other, "I just laid off more people than I really had to."
So here's the link. I know you are all now just so excited to get all cheered up by listening to it. And I have to leave to go to a 90th birthday party. Maybe at our 90th birthday parties, we can all sit around and talk about this and how short it all was. Ya think?
http://marketplace.publicradio.org/episodes/show_rundown.php?show_id=8
Boomer
This week's show is almost entirely about the financial issues that face our military men and women.
But on the web edition of the show, another segment was added. That one is about the "plan" to deal with the nation's mortgage crisis. Some Harvard guy is interviewed. Some guy who is supposed to know stuff, right? Uh huh.
Anyway, at the risk of looking like a total idiot (not the first time) I am going to tell you what I would ask that Harvard guy if I had the chance.
I would say, "Hey, Harvard guy. Would it work to just tell those banks to sit down and shut up and here's what's going to happen? -- You are going to redo those mortgages into fixed rate -- oh maybe 5%, maybe less, and you are going to extend the term to something like maybe 40 years, maybe more. And by doing so, the borrower will get a reduced, fixed payment. It's all about the monthly payment these days, in so many cases. And it's a completely different game now anyway. (What's equity, huh?) And fixed rate loans are almost all interest up front. And so the borrowers will get the income tax deduction. And banks will get the interest. And will own the houses forever -- maybe. Yeah, it will render us a nation of renters, basically, renters in their own homes. But it might help get a few through and let things catch up. Maybe." -- So that's what I would ask the Harvard guy.
Yeah, I know. Who knows where those mortgages are? In the front door and out the back door of those lenders. All repackaged into some unrecognizable mess. And I am sure there are many theories that Boomer the Bumpkin would not understand about how this would not work. Long, long term, low enough fixed rate mortgages.
And meanwhile, this thing grows arms and legs and heads that affect all of us. You know us. The ones who knew never to exceed 25% of income for housing costs. (Heck, I used to make it 25% of net, including taxes and insurance, even if the bank said gross was good.) But what do I know?
A woman with a bad mortgage on a modest home was interviewed on a show the other day, and she said, "Yes, I was stupid. But the lender was guilty."
Well, that's my little rant for right now. Just thought I would put it out there. Letting off a little steam I guess. I returned not long ago from being out and about where I overheard two business owners talking, one said to the other, "I just laid off more people than I really had to."
So here's the link. I know you are all now just so excited to get all cheered up by listening to it. And I have to leave to go to a 90th birthday party. Maybe at our 90th birthday parties, we can all sit around and talk about this and how short it all was. Ya think?
http://marketplace.publicradio.org/episodes/show_rundown.php?show_id=8
Boomer