How the Credit Crunch is Hitting Home

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I am retired, with a credit score around 700. We plan on buying a home next summer. The area we are looking at has seen a drop in prices, so nice homes are there for less money. Through a series of events, we plan on putting 50-60% down on the house. I am starting to wonder if that's going to be enough!! One of our kids lost thier home due to the preditory lending. zThey bought a home bigger than needed, but have enough income for a smaller home, can afford a fixed rate mortgage and was able to pay $2200 a month before the bank jacked up the ARM to nearly 5K a month. They can still afford a fixed at $2200 a month, but is locked out of the home buying market for 7 years. The bailout came too late for them. If the bailout would allow a lender to ignore the black mark on thier credit report, they could and would buy now. Would that help the market? Help stimulate home sales? Yes, but people like them are locked out for 7 years. I think that is wrong.

Bruce Korsmeyer of CA 4:50PM October 14, 2008

Mankind has gone thru millions of years of survival with immense odds stack against him. Cheer up this too shall pass. We may need to tighten our belts but we will survive just like our ancestors did.
Trust in what ever you believe in,take one day at a time and things will get better eventually. I am a witness of human catastrophe of immense propotion where a million people died for lack of a morsel of food and a cup of water. In the same place you see millions of hopeful people living oblivious of what happened to the millions who died in 1984.
You will survive to talk about today to your grand children.
What matter is what you can do to make things better for yourself and others without waiting for bailout.
SIT BACK, THINK, RESEARCH, PLAN AND EXECUTE.

forever optimistic of NY 3:32PM October 12, 2008

The cause of the current crisis is that we have been living beyond our means and using credit to buy all of our toys and material things that we didn't really need (houses with 4 car garages, $45,000 cars, expensive vacations, fancy spas and gyms, label clothing, etc. We have thrown common sense out the window and looked at get rich schemes and put too much trust in the stock market because it was made very easy to buy stocks. Well we are in a mess now and maybe we should cancel the coming election and sit tight for 2 more years before putting a new group in washington to make matters worse. Like during WW2 we didn't change horses in mid stream because of the threat to the US and relied on those in office to correct the problem because they knew what was happening and didn't need to have a learning period.

Al Cabrera of CA 2:21PM October 10, 2008

The one problem I see in this economic fiasco is that while the Big 3 build most of their cars for the American market in America with American labor and Japanese companies do the same, the Japanese companies also have major manufacturing centers back home for their own market. They are in a good position to build ALL of their cars at home and ship to the U.S. thereby lessening the job loss impact at home at the expense of U.S. jobs. :(
I Sure am glad I decided long ago to "buy American"; I own a Fords. I hate NAFTA!
I'm voting for McCain-Palin in 2008!

MarkD of NC 1:44PM October 10, 2008

Track the money and where does a vast majority go?
The FED or the frederal reserve bank. Just because it has the name federal many people beLIEve that the government owns it. Wrong! It is a private bank that was established in 1913 and bought control of enough of the government. All the talk about this "Bail out" is doing just what they want us to do be angry at the government so that we vote out the few that they can't buy. All this anger and furstration is aimed at the wrong target. Please help redirect the most powerfull force (the spirit of freedom) when properly motavated
http://www.youtube.com/watch?v=2VJ3son-ha8
http://www.ipetitions.com/petition/AFTF_P_1/
http://www.endthefed.us/signup.html

stopthemaddness of NV 11:21AM October 09, 2008

I would like to think that most of us are honest including politicians. The fact is ambition and honestly do not often mix. I have been a Bush fan, both Bush's, however it seems to me that to become President paybacks are a given. I believe that oil paybacks are the cause of all this economic crisis.

Eric of NC 7:12PM October 08, 2008

All I can say to everyone is , If you are a believer, put your faith in GOD. He's knocking at the door. Will you answer????

Nina Sschuenemann of CA 3:27PM October 08, 2008

The government is giving these financial intitutions $700 billion dollars, instead why not give each American $500.000.00 US Dollars, so they can payoff their mortgage and their credit card debt and auto loans.These same financial intitutions would not have further looses and this would have an inmediate positive impact on the economy and would stimulate spending both here and abroad since Americans getting this stimulus surplus would also be spending these Dollars abroad in other countries as well, now there is a real solution to this whole mess.

of CA 2:28PM October 08, 2008

I don't know exactly how we got here. I admit that I'm not that knowledgeable when it comes to the economy and finanicials. What I do know is greed has played a major role. It is disgusting and almost obscene how these CEO's and their bad decisions are not being held accountable but getting HUGE payouts. Ok, so they are set, they won't be out in the cold in the winters to come but what about the rest of us if have done their jobs correctly and are losing them because of these CEO's we don't get a huge severance if any. It would be one thing if it were just one company but it is the majority so it makes me think there is something more to all of this. The Government has just offered a $700billion bailout/rescue whatever you want to call it and the banks are hoarding the money not circulating it offering credit to keep the flow going. Sure we could start getting back at home, cutting out the things we don't need, but that doesn't help witht the economy either, if we aren't buying/spending, more companies lose out and more jobs lost, more jobs lost more people who can't pay their mortgages, which adds more to the housing mess/crisis. It seems to be a vicious cycle and one I'm not sure how we are going to get out of. We definitely need some who is knowlegeable in economics and finances. Which I don't thingk that person is running things at this time. I know things aren't going to happen overnight and it is going to take some time. We just need patience and people who believe in the fundamentals of what makes this a great country/nation, and not someone who is greedy. But too we all need to take responsibility for our role in this mess. I'm scared for my children, my family and friends. We need to have faith and hope and believe it isn't everyone but a select few and trust the rest. That not all CEO's or government is corrupt. Its true not everyone is going to be able to handle the stresses of this economic downfall and that scares me that I will be attending a lot of funerals. But I pray I'm wrong and that people are stronger than that and we all can get through this tough time. Maybe the new administration can bring back the American Dream. I'm not a 100% sure though that either candidate is up to the task but again I have to have faith.

Lori of CT 12:52PM October 08, 2008