Housing Bubbles

[Trust & Obey]

More News for you all~

How much do you know about your Bank? How solid is it?

Today I stopped in and spoke with the Branch Manager of the Independent Bank I have accounts with.

It turns out that this bank is very solid. It is 21st in a ranking of banks in the USA.

Beware~ There are some banks out there, that won't beable to exists if the housing bubble bursts. These banks will be forced to forclose on their home loans and other loans.

How many people do you know can come up with $100,000, to cover their home loan?

First - inflation has driven the house prices up? However, many homes are over priced. So when you buy an over priced home and the house Bubble bursts, you are still responabile for the total loan, yet you will not beable to sell it for what you paid for it. I hope this makes sense.

When the house Bubble bursts the interests rates go UP. In the past home owners could barely make the interest payment let alone the house payment. Anyone who took their loan out on a variable rate are doomed.

It doesn't stop there- anyone who has maxed out their credit cards are doomed too.

I hope you can understand this, it all ties in to the end days.

Here in Michigan boaters saw two water spouts on Lake Michigan, something NEVER seen here before.

I hope ever one is healthly and working on being Joyful.

Snow4JC

<{POST_SNAPBACK}>

There isn't going to be a "nation-wide pop" of the 'housing bubble.'

There are some areas that will begin to soften and even come down a bit...10-20%. But, I seriously doubt there will be a nationwide catastrophe.

People cannot liquidate their homes like they can with stock. THAT is what caused the stock market to tank... everyone cashing in their stocks caused a ripple-effect that made it worse and worse.

If the housing market cools down, everybody isn't going to call their Realtor and have their house sold in 30 days. People need to live in their houses, regardless of what their equity is doing.

True, some people who have ARM or hybid mortgages (3/1, 5/1, 7/1) may be ill-prepared to pay thier new mortgage rate as it goes up and up... so, these people may indeed have their house foreclosed on. But, that just means the bank takes possession of it and sells it off to recoup their investment. There will be investors itching to buy these properties at a discount from 'market value.'

Now, will the banks lose some money on these houses? Perhaps. But, it isn't going to be enough to make the economy go "FLOP."

This is not the time to start drying out fruit and storing guns and ammo.

[Snow4JC]

No guns & No Ammo!

Just trying to get the word out on what may happen.

Sometimes it is better to see what is coming at you, rather then to see it once it goes by.

I believe man/woman has been conditioned to take what they hear and Ask no questions in return.

Not a Wise way to live if you ask me.

Snow4JC