tag:blogger.com,1999:blog-13875985.post451298938001836948..comments2023-09-08T08:38:00.267-04:00Comments on KroydBlog: The New Normal for Credit MarketsJay Ackroyd (@jayackroyd)http://www.blogger.com/profile/17270262597090808369noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-13875985.post-91877536325241478022008-10-05T17:05:00.000-04:002008-10-05T17:05:00.000-04:00Based on the theory that a home that is occupied b...Based on the theory that a home that is occupied by an owner who is continuing to make mortgage payments he can afford is significantly more valuable than a home that is sitting empty and is being held by an institution that has no way of recovering its value except by selling it at a lowball price, I'd say that helping people refinance with non ridiculous terms would indeed be a good investment.Paul Dirkshttps://www.blogger.com/profile/02953091429632551776noreply@blogger.comtag:blogger.com,1999:blog-13875985.post-41955872003066016972008-10-05T12:28:00.000-04:002008-10-05T12:28:00.000-04:00If home prices keep falling, and banks continue to...If home prices keep falling, and banks continue to balk at lending money for mortgages on houses whose value will inevitably drop, and then the pool of credit shrinks, and so the cost of mortgages increases, and therefore the pool of buyers shrinks, won't home prices then continue to plummet as sellers race to disgorge their near-foreclosure debts?<BR/><BR/>Shouldn't the Federal government:<BR/><BR/>A) lend ordinary people who are near foreclosure the money to stay in their homes until housing values stabilize<BR/><BR/>and/or<BR/><BR/>B) be empowered to re-write the terms of mortgages to reflect these realities (principle, interest, payment terms, rate adjustment, etc.)?<BR/><BR/>Why do we have to buy crazy debts from banks in order for them to lend money to us? Why don't we just lend ourselves money, at least until the downward spiral is over?stuart_zechmanhttps://www.blogger.com/profile/14817215761981204304noreply@blogger.comtag:blogger.com,1999:blog-13875985.post-6715925640139256322008-10-05T12:07:00.000-04:002008-10-05T12:07:00.000-04:00I think you're thinking of Wall Street and Main St...I think you're thinking of Wall Street and Main Street but not thinking so much about Industrial Avenue. While I've been uncommited on whether I think the bailout is a good idea (I have neither the time nor the inclination...!) several discussion threads I've seen have convinced me that if we ARE in a credit crunch, it will be felt most strongly among manufactures and other concerns that rely on lines of credit for their operating expenses.<BR/><BR/>Consumer credit might remain unaffected but this could have a very noticable effect on employment going forward.Paul Dirkshttps://www.blogger.com/profile/02953091429632551776noreply@blogger.com