Economy grew 3.3% in Q2
Phill Gramm may have worded his assertion in an impolitic manner, but the latest economic data proves him correct. The US economy grew at an annual rate of 3.3% in the second quarter, almost twice as much as first……

Definitely.

I live in the DC area and there are people who homes are assessed at four times what they paid for them.

So I’m supposed to cry a river for them because they can’t get that today? Because their houses are worth three times what they paid? Please.

This goes along with a Washington Post sob story on a 23 year old woman who bought a $20,000 used car with a one-year warranty. She wanted to look cool on the weekends.

She looked real cool when the engine blew after the warranty expired and she couldn’t afford to repair it. So she defaulted on the loan.

But she was portrayed as someone we’re supposed to feel sympathy for. I bought a car for $300 for cash at 23 and it lasted longer than a year. I have no sympathy for someone stupid enough to buy a $20K car they cannot afford to repair.

McCain is embarrassing……

{^_^}

LimeyGeek on July 31, 2008 at 5:44 PM

Actualy, the more I look at it, its the FED who makes rules about banking and loans. Congress is supposed to oversea them, but they do not make the rules.

In fact, the much touted Congress proposed “truth in lending” thing just passed the FED board as a RULE….

Its the FED who oversees the member banks who are failing, and suddenly need BILLIONs in bailouts… but its interesting that no one is blaming the FED….

Fannie and Freddie? oversite by the FED, not the Congress…

Hmmmmm… may have to dig a bit more…

are THEY the ones responsible for the mess we find the banking industry?

Partly. Their low interest rates enabled bad gubmint policy to take far greater hold in the banking industry.

But fundamentally, congress is the turd in the punchbowl.

LimeyGeek on July 31, 2008 at 5:04 PM

I’d already read that, some time ago.

My contention is that it has evolved into somthing OUTSIDE of effective government control, or even real oversite. Is it a “public” institution? Sort of… is it a governmental institution? Not really…. although it does hold our economy in its power. Does it make its own rules? Yes.

And the biggest question, which just hit me… if they are the entity which oversees the Loan industry, as it seems their mandate reads… are THEY the ones responsible for the mess we find the banking industry?

bayam on July 31, 2008 at 5:19 PM

Does it come in pink?

“Unthinkable Truth, Undeniable Reality”

http://www.moneyandmarkets.com/Issues.aspx?Unthinkable-Truth-Undeniable-Reality-2024

Both parties are to blame. But Harry Truman was right, so George Bush is going to get the blame.

He’s sitting where the buck stops.

I want a unicorn.

And thats what you said when they talked about putting a man on the moon. Some people just can’t see a future beyond oil. The same breed that couldn’t have imagined laptop computers 25 years ago.

LimeyGeek on July 31, 2008 at 5:05 PM

I had no clue that buying a house would be this unnerving. First house I might add. On top of that I am buiding a cabin, not including the jobs I am working. I need a massage… sighs.

upinak on July 31, 2008 at 4:57 PM

I’m jus’ funnin’ ;) Glad you came out on top.

Romeo13 on July 31, 2008 at 3:55 PM

I suggest reviewing the ‘official’ site at http://www.federalreserveonline.org/

It is a curious beast, but the only private organizations are the member banks – the entire Federal Reserve infrastructure (Fed Reserve + 12 regional banks) itself is a public entity. The relationship between it, government and the private sector is a peculiar one. Understanding the furore surrounding the Aldrich Plan and the Fed Reserve Act sheds some light on how this structure evolved.

LimeyGeek on July 31, 2008 at 4:52 PM

I got into a bidding war over 50 dollars on a house. A repo that needed some serious fixing.

It went for 130, and I big 100,900 and someone under bid me by 50 dollars. I uped it to 105K and they did the 50 dollar underbidding again. I just said screw it and pulled it. The guy that got it is now regreting it… the pipes froze and blew and the mold in the house is so bad it is concidered a health hazard. Glad I never got it.

the assesment was 160K I got it (without a bid war) for 159,900

LOL Who gets into a bidding war over $100? ;)

Reminds me of a scene in “Bad Santa” where they’re haggling over the division of loot….

upinak

Realtors advise that the low purchase price makes a home the great buy, not what it sells for after inflation at some future day and time.

maverick muse on July 31, 2008 at 4:39 PM

not this place. I am in an Aea which most of the homes and condos got for minimum of 250K and the highest is 1.5 million and I am in the oldest condo’s around there and they are the smallest as well.

The market up here sucks. You can’t buy anything for less then 240, and that is a ranch, 2 bdrm, 1 bath without anything else and you usually have to buy new appliances, as no one leaves them much anymore. I got lucky as it was an older couple who were tired of it and renting it out was becoming troublesome.

The reality business here has gotten as bad as the politicians. And that is me putting it nicely.

Realtors advise that the low purchase price makes a home the great buy, not what it sells for after inflation at some future day and time.

NoDonkey on July 31, 2008 at 4:00 PM

You know I think the home sales are dropping because people are tired of the inflated BS with them.

I am in the process of buying a Condo right now. The City has it as 179,900, the assesment was 160K I got it (without a bid war) for 159,900. It isn’t a small condo either 1689 sq ft, which is almost the normal house size, 2.5 baths and 2 fireplaces (no I am not going to turn them gas either… that is a waste of money). The original price was 189,900.

So with what I am going through and buying now, I think people have just had it with prices and are slacking off and waiting for the owners to cave. Screw the owners… there is NO reason why I should pay out the world prices for a house, condo, duplex, townhouse etc when I do not see the reason behind it. I will pay fair market value… that is it.

We fight foreign wars and ask only soldiers to make sacrifices- for the rest of us, it’s free.

bayam on July 31, 2008 at 3:12 PM

Aah, the soldiers probably don’t like shopping that much anyhow.

Then again, it’s amazing that people seem to have no idea how much tax money will be spent on bailing out the financial system over the next 5 years. Freddie and Fannie acted with incredible incompetence and have essentially been nationalized to prevent their collapse, while Congress refuses to pass the type of reform that will prevent the same problems from occurring again at those lenders. Voters don’t seem to care though.

bayam on July 31, 2008 at 11:45 AM

I think this is what astronomers call a Black Hole.

Geologists call it the tip of an Iceberg.

Because people refuse to accept the fact that they’re asking too much for their houses.

I bought mine in 2001 and it more than doubled in value, according to what I could have sold it for in 2005.

So what? I’ll sell it for double. How much did I lose?

And I’m going to wait until the price comes down on the houses I really need.