Stock Market

Aliantha · 08-16-2007, 11:22 PM

Of course that's true Bruce. I think we all know people who've mortgaged themselves way higher than they should have, and there are some very attractive mortgages out there but when you do your homework you realise the whole scheme is a house of cards (almost literally).

The problem is that those mortgage companies are financed by major banks who're going to feel the pinch when the direct mortgager folds because their credit ridden clients can't pay their bills.

This in turn is going to push interest rates up for more stable borrowers who will then not have the money to invest in other items which is what drives the economy.

I predict that the knock on or trickle up effect will be a lot higher than some of our other members here seem to think.

08-16-2007, 11:22 PM	#11
Aliantha trying hard to be a better person Join Date: Jan 2006 Location: Brisbane, Australia Posts: 16,493	Of course that's true Bruce. I think we all know people who've mortgaged themselves way higher than they should have, and there are some very attractive mortgages out there but when you do your homework you realise the whole scheme is a house of cards (almost literally). The problem is that those mortgage companies are financed by major banks who're going to feel the pinch when the direct mortgager folds because their credit ridden clients can't pay their bills. This in turn is going to push interest rates up for more stable borrowers who will then not have the money to invest in other items which is what drives the economy. I predict that the knock on or trickle up effect will be a lot higher than some of our other members here seem to think. __________________ Kind words are the music of the world. F. W. Faber

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