A Positive Opinion on the Economy

[Glory]

If there is any word that captures the mood in the economy right now, it's uncertainty, along with shadings of bafflement and distrust. We have never seen a credit crisis quite like this. What's next?

http://money.cnn.com/2008/03/14/news/economy/krugman_subprime.fortune/index.htm

Time will tell sisters and brothers. Meanwhile, I've got Luke 12:37 written on my heart.:rapture

[Debsters]

that was a very good article. Thank you for posting it. It explained even more questions that I've had and have not had the chance to ask jds6958, Issacher or Rondaben ...
I am learning so much reading all the posts and article posted. My friend whos company is a client of Bear Stearn couldn't belive how much knowledge I had today, since when I talked to him on Saturday I was useless !

Keep all the articles and comments coming ! I appreciate it a lot !

God Bless !

Debbie ~

[goinghome]

It sounds like that guy is living in la-la-land. Reality will be harsher than what he's saying. He doesn't have a very deep understanding of how finance works and what's involved.

[Glory]

It sounds like that guy is living in la-la-land. Reality will be harsher than what he's saying. He doesn't have a very deep understanding of how finance works and what's involved.

:aha I feel the same. I sent a friend of mine another article (a negative outlook) so he sent me this one back. I'm curious to get more feedback on this thread. I'm even more curious to see WHO ends up being right.

Taking into account all the other signs of the times around us, I'm expecting the worst as far as the economy goes.

[jds6958]

It sounds like that guy is living in la-la-land. Reality will be harsher than what he's saying. He doesn't have a very deep understanding of how finance works and what's involved.

Maybe he is Ben Stein's (perma bull) cousin?

[Debsters]

gosh, did I misread the article ? :idunno I tought he was pretty dire sounding.
Glory, can you post the other article, or PM me w the link? I'd like to see what 'negative' really is.
I guess I'm still lost on all of this.

thanks a lot,

Debbie ~

[lmenningen]

One thing that strikes me is the muddle over a projected large number of people who will owe more than their house is worth.

So what? A low house value does not, by itself, affect things much.

As long as homeowners make their mortgage payments, they will not be forced into foreclosure.

The problem arises when people default on their loans. A side problem affects those people who need to sell at a loss and can't afford to fund the difference between the sale and the mortgage; therefore, if your house drops too low in value, avoid selling your house if at all possible. It may seem painful now but actually if the dollar keeps falling your home may automatically "rise" in value again anyway.