Economic Woes

These days, saying “it’s the economy, stupid,” is an understatement. Look around the grocery store and you’ll find the prices are rising. Fill up the tank with gas and it costs a fortune.

NOTE TO READERS: I’m unsure what happened to this post, apparently it was hijacked in some way.

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One Response to Economic Woes

  1. There was another large mortgage company that was just shut down (First Franklin, owned by Merrill, Lynch). The market is also punishing the paper of Fannie Mae and Freddie Mac so they are cutting off lending to more and more people in an effort to get back into the good graces of Wall Street. What that means is that the tidal wave of foreclosure homes will be met by only a trickle of new buyers.

    The only part of the system that is still functioning normally is FHA and VA loans, a pretty sobering thought. In fact, it was just announced today that FHA will start insuring mortgages in the Salt Lake City area for up to $725,000. Needless so “that ain’t your daddy’s FHA”, but we’d be in far worse shape if we didn’t have it.

    If the mortgage industry were totally privatized right now, rates would be in the eight per cents, and the only people able to qualify would be sold gold borrowers. If you want to see a bad situation turn into a disaster, just do that.