Here's a question I would like to hear Barack Obama, and each candidate for US President 2008 to weigh in on.
IS THE WRITING IS ON THE WALL FOR A RECESSION STARTING IN SIX MONTHS TO A YEAR?
by Zuma Dogg
Contributing Blogger for Mayor Sam's Blog: "Insider" Los Angeles Political blog
Oh no...Sen. Chuck Shumer/NY just told Zuma Dogg (indirectly) that we are gonna have a housing bubble-burst and recession starting in about a year. (With the effects starting as soon as six months.) SELL NOW!
They got these things called “sub-prime lending” (high risk, low interest loans). When you have a good economy, you can give some “riskier investments/clients” these low interest loans to jumpstart their American dream of home ownership.
They only pay 1% or 2% the first three years, or so. Then, the rate jumps to the Federal rate (what is it, 5.5%, or something.) Well ZD feels it might go to of 6%, 7% -- is 8% out of the question?)
When the Federal Reserve raises interest rates, more people with subprime loans default. Why? Because these people, coming off 3 year low interst loans, have to jump into a 6% or 7% or even 8 % rate all of the sudden, and they can’t keep up with the new, higher payments each month and then they default.
Well these days, with higer paying jobs being replaced with lower paying jobs; while housing costs, property taxes, and everything else -- people are gonna be defaulting on the loans, more and more. And the banks know that this is going to to become more of a problem, so they are going to stop approving these “low prime lending” rates.
Sen. Chuck Shumer/NY has a bill in congress in about six months to a year they are going to put the clamp down on “sub-prime loans”. This is a major sign that the housing bubble is gonna pop. Then, all these condos will be staying on the market, vacant -- getting cheaper and cheaper by the quarter.
L.A. is leading the nation in this housing bubble burst, as vacany rates in Los Angeles continue to increase, due to people moving out of the CIty for all the reasons stated daily by the pueblos.
Come summmetime fuel prices will go higher and the interest rates will go higher....that means good bye sub prime lending, because the default rate will rise along with it.
HERE'S ZUMA DOGG (of Election Press Blog Network and Mayor Sam's Blog in Los Angeles) ADDRESSING LOS ANGELES CITY COUNCIL FOR PUBLIC COMMENT.
Official Blog: www.zumadogg.blogspot.com
Feel free to post your comments here. Maybe we will use them as a main thread on the Election Press Blogspot Network