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I'm shocked they allowed this.
me too. they usually play the bumper music as soon as anything controversial is said.
Hope Rick doesn't have a hot tub...
It is obvious that you read ZH. Using your influence to the financial masses, please explain to the politicians that we, the people, do not re-finance our homes because we have lost so much value in them already. My home has lost $130K in value. Because we did the "right" thing, we put down $80K at closing. Our hard earned savings of $80K has evaporated. Yes, we have been paying our mortgage and are current. Yes, our credit scores are okay. Yes, we are employed. The reason we don't refinance is because we would have to bring $50K to closing to meet the current appraised value. If we bring the $50K, where does it go? It evaporates, because it damn sure isn't converted to equity. The American citizens may have been born at night, but not last night. I'll sit on my $50K in case things get worst or ....buy gold bitchez! (Not implying that you, Rick are a bitch,...just a ZH tag).
Well said, Janice.
Read ZeroHedge.com Bitchez!!
Santellivision is the only thing worth watching.
The guy in the middle is a complete idiot. Following his logic, The Fed should just become the interest rate/treasury market and drive all rates to ZERO. At that point, all mortgages could be refinanced at 0.00% and all homeowners would be flush with cash in this new, zero-rate utopia. What a complete fucking moron. I would never, ever, in a million years entrust any money to Payden & Rygel. Clearly, they are a bunch of buffoons.
Banksters and government whores are 99% to blame. Here is why the banks don't give a shit what your house is worth or what houses sell for:
There will be blood in the streets.
We listened to two decades of "look how silly Japan is, they should take the marks but they won't, silly buggers."
Now we have the same commentators, buffoons like this guy, imploring ZIRP ZIRP ZIRP; as if it is some gee-whizz panacea.
And just where the Fuck do those Smartest People in the Room in the Sacred Halls of Gubamint think that The People, their Constituency are gonna get the New and Improved Additional Down-stroke from, when;
I'm underwater on the House and thus have No Equity left to take out of the House to serve as a New Down-payment on the Same House on which I already Lost my First Down-payment?
My 401(k) is shot to Crap, so I can't Get Money From There, and Even if I could, I'd have to Pay Taxes on It to get it to Refinance with the Money I No Longer Have.
And they keep talking to me about Increasing Investor Confidence to get Me Back Into the Market, when I don't have anything to Get Back Into the Market With and If I Did, I Sure as Hell Wouldn't Put It There because Everybody's Come to Believe the Idea that It's a Scam to take Money Away From the Little People by the Big People.
Ever Hear of;Once Burned?Cats and Hot Stoves?Being Ripped Off?I was Born at Night but not Last Night?And I'm Not That Stupid?
Inmates Running Asylums.
Did ya just hear Santelli bitch slap Insana
(that fat sports reporter/failed hedge fund mgr.) ?
Santelli is da man.
Ron Insana..... "ohhh God please help this poor soul find the light..."
Why is that all Cramer collaborators are IDIOTS ?????? Altucher, Insana , Dykstra .... too many of them to be a coincidence !!!
Pimps pushing skanky hos
Ron Insana is clearly one of the premier public myth keepers. His duties include perpetuating the myths, supporting the myths and backstopping any myths that might be undermined by common sense and critical thinking. But most important for dear Ron (and something that's clearly to his personal liking) his use of dramatic eye rolling, slow strained talking so all nearby fools can understand him combined with his classic "Dear Lord, save me from these misguided fools" disgusted looks has reached the pinnacle of the disinformation and propaganda art form.
How dare Rick not accept at face value whatever propaganda spills from Insana's conflicted lips. After all, if the Fed has assured Insana that ZIRP forever is the only way they roll and Insana sees the divine wisdom of anything Fed as pure and unassailable, whoa be any mere mortal who questions the mighty Ozsana.
Tool. Pure unadulterated tool. And even more dangerous to the world, Insana appears to be that very special type of propagandist tool. It appears he might just believe what he's spewing. Kill me now Insana so you no longer suffer my foolish questions.
Insana needs a sharp object injected into his annulus......pronto.
I do not know who Ron Insana is. I have a bad habit of dismissing idiots. Which is also why I am self-employed. : )
Cramer out as poster boy for euthanasia, Insana in. Cramer will be back, don't worry.
If Insana was so fucking good, then why did his hedge fund fail? I am surprised SAC capital picked that dickwad up.
Santelli is definately the man! but Immelt will kick him off the station if he keeps telling the truth.
In the same boat as you Janice. What a dolt I was to pay a downpayment. Now I can't even refinance. I guess i should have known better, but what young person buying there first house has any understanding of bubbles and crashes? Oh well, my education has been dearly paid for, but worth it in the long run I suppose.
This is the second home that I bought during my lifetime. We paid the first home off and was able to sell it just as the market crashed. What we are experiencing in almost unprecedented, except for the Great Depression era. I expected our home to lose value, but $130K...33%? And it doesn't appear that the bottom is in. I fully expect that the value of my home will go back up...in my children's lifetime.
I started thinking about the solution. And it is easy...raise the interest rates! If the interest rates were higher, people would stop buying gold and put money in savings account...hopefully in local banks... and then those local banks would lend for local projects. The down side of that is that there are so many Treasuries out there that the interest payments would drastically cut into the federal budget. So, we have the government of the people, by the people, for the people....screwing the people.
Raising rates would slow things down even more. Only reason why your neighbours to the North did so last month was because of an actually improving economy. However, last jobs report, we lost many jobs as well.
So, go figure...raising rates (while i agree money in the bank at interest is king) tends to slow the already sad excuse of a 'recovery' to a standstill.
While I understand your point, I am not too sure about that I agree. If I put my money back in the local bank at a decent interest rate, I would be able to take that interest and hire an employee at my business....or buy a new purse and a bunch of other stuff, and the cycle begins. If not now? When? Crap, raising interest rates is the only thing that the Fed has not tried.....Yes, I have heard the party line....the FED can only influence interest rates in a small way via the Treasury market...bullshit. The federal government can make any damn policy that they want....They want the masses to be enslaved to the government via handouts.
Next on my wish list would be federal term limits and lobbyist controls. In Florida, we have both and while we may also have a few corrupt politicians, they are thrown out after 8 years, to allow a new crop of crooks to evolve. The way I figure it, it takes about two - three years to turn a good man (dedicated to change) into a criminal dedicated to self-preservation.
But, I digress and am taking up too much valuable ZH real estate.
RAISING INTEREST RATES IS THE ONLY SOLUTION !!!!!!
1. the Fed has no where to go but print money, expand credit, since they followed the drum beat to the bottom (ZIRP).
2. ZIRP has produced ZIP. No jobs, no investment in jobs, and don't tell me government workers have jobs- these are only sponges of private sector taxes.
3. Insanely low interest rates continue to do what they have been doing for the last decade- kill savers, induce misallocation of investment and encourage absurd risk taking.
ZIRP and its cousin (rates lower than the general growth rate of the economy) is an insidious policy that is deluding central bankers and politicians. Stupid "investments" will continue to burn through scarce capital until this economy is no more.
ZIRP IS THE DISEASE THAT PURPORTS TO BE THE CURE !!!!!!!!!!!!!!!!
Banks are not lending no matter what rate they might choose to charge. They know we have not seen the bottom of anyting yet.
I re-financed last November at 5%. I knew rates would go lower but I was afraid I would not have the 20% equity needed to do it if I waited any longer.
Raising rates is the answer but it would show that banks are insolvent. Heck, it would show the entire economy is bankrupt. The Fed hopes that home values will go back up and we will pull ourselves out of the recession/depression. Only then will they raise interest rates. But ZIRP has created an imbedded deflation fear so the economy will not recover. They are going to have to find a way to raise rates so banks will not buy treasuries but will loan money instead. This will not be an easy thing to do, but the Fed Funds rate needs to be around 2-3% right now. The policy they are currently pursuing guarantees deflation.
I can count on one hand how many people I hope to meet someday to simply shake their hand.
Rick Santelli is at the top of that list.
Janice, you are spot on. I put $100k down (25%) on my northwestern Chicago suburb home and am current in my loan. It has now declined in value by 40%. It doesn't matter if interest rates are zero... I cannot put down another $48k to refinance to meet the 20% level of PMI.
Wait a minute! Who does PMI help? Not the law abiding, tax paying citizen who is dedicated to paying off a mortgage. I had a client once tell me "the credit card company knows that I am good for it." And I responded, that's why they treat you like crap...they know that you are good for it no matter what. PMI helps the banks and insurance companies...the real ones that run our government. I think PMI is crooked, just like the new health care legislation.
I on the other hand paid off my House and do not want to finance, re finance. I know one thing for certain that I own the roof over my head except of course the Property taxes which have gotten out of hand, but that is a different matter.
I would be afraid with this economy to put my Home in jeopardy. I am not patting my self on the back as it took over 20 years to pay it off and it was not easy. But, well worth the peace of mind.
I do have a few small mortgages on rental properties not enough of a principal to refinance. Yet, if I happen to lose them I would not lose the roof over my head.
Although, if rates got to 3.5% I would consider financing my home to bet on higher rates in the Banks in the future. As if I could get 4.5% or 5.5% in a Federally Insured Bank I could make money on the spread. Would be a risk but I would go for it.
I hear you. Our first home was paid off. I wish we'd stayed, but it was too small and the neighborhood was starting to go down. But because our first home was paid for, we were able to save a huge down-payment for the new one. In the post above, someone brought up the PMI. I had forgotten about that. To refinance, we would have to bring not only the $50K in lost equity, but another 20% to get out from under the PMI......which means another $48K....just not worth the hassle and potential loss of future equity.
+ 1,000,000 Thanks Janice
The refi talk in the media is a joke.
You don't REFI because a REFI extends the loan abck to ANOTHER 30 years and you end up paying more. The only reason the REFI at a marginally lower rate is because YOU CAN'Y AFFORD the monthly payment. In a deflation the best thing to do is GET THE HELL OUT OF DEBT and pay it off.
People are have lost their jobs or lost income will either pay the mortgage because they CAN afford it or they will default because they RAN OUT OF MONEY. No one gives a rats ass about what a great citizen these people were and playing by the rules. The rules were made to gank money from the middle class and poor.
If you are going to lose your house its because Al Greenspan and the Government wanted to get you and others into HOCK so you could be derivatived and trached as an asset and money supply. You are now worthless to the US government and economy-unless they can fool you into holding a worthless asset at a high price for as long as possible.
This is not an insult, it's just how corrupt these dickwads are at the FED and Congress.
And in a deflation(or the destruction of money and credit supply) no one should give a FUCKING SHIT about credit scores. that is some dumb high school popularity contest between corrupt money-lending institutions. Pay in cash and tell the credit score people to go hump a camel
Agreed, but would refi to a 15 yr if the conditions were right. Cut 10 years off the current loan. Pay more, be mortgage free in 8 year. Not everyone thinks inside the box.
Another reason not to refinance, if you live in a non-recourse state - should things take a turn for the worse, you will be able to walk away from your home without the bank hounding you for the difference betweeen what you owe and what it is worth. Unless some politician gets the bright idea to make a retroactive change in contract law.
Im surprised they didnt pull the plug on him too, Especially when he quotes Zero Hedge!
Heavens to Mergatroid!
I almost spit my coffee onto my computer when I heard him mention ZeroHedge. It just made my day. And you know the guys in the production room started sweating once they heard it.
Haha definitely, yes great illustration. Surprised Rick's feed didn't get cut off cause of technical difficulties..
Tyler, IF you don't get that man a Zero Hedge t-shirt or a Goldman Sachs level hooker, I will.
Rick, that was out f'in standing.
Actually what you need to send him is a non-descript zero hedge pin with just the logo so only those who come to the site will know what it means. Now that I think about it, everyone who come to this site should start wearing it that way you could be walking down the street and see someone wearing it and know that they are part of the club.
Financial Jerry Springer show!
Rick's the only one left at msnbc with more than half a brain....They must be paying him well.......
plus MSNBC, plus NBC, Plus GE, plus TARP, makes.........
I'm surprised they let him talk, as many here have already said. He may want to temper his comments a bit if he plans on staying around. Although I hope he doesn't. We need as many people with sense as we can get. Heaven knows we have precious few.
Hendry has his neck on the line as Hedge fund manager unlike Phds out there
He is buying whatever he is saying
so he is brave when he says things and right when he buys USTs
Santelli and Hendry, thank god for honest, common sense speaking individuals. It really is amazing Rick keeps his contributor status - although if he did disappear , whats left of CNBCs pathetic viewing figures would go with him.
Who was the douche in the middle? Please tell me he doesnt run money /and or advice on economic policy.
hendry is a poor misinformed soul that is bullish on the US dollar that is backed by the imploding FIRE economy that he cant see, maybe he needs new glasses.
I agree. Hendry, while I agree with him on many points, is too arrogant for my tastes. That is a very dangerous trait. As to the Santelli rant, I thought they were basically arguing the same point. The guy was entertaining the idea* of the Fed's problem and Rick was pounding him for endorsing it. Don't get me wrong, I love it when Rick pounds on guests. I'm just not sure this guy was as far outta whack.
*Aristotle said something to the effect that an educated man can consider an idea without necessarily endorsing it.
He's been very right about US Ts, no?
He is about as right on USTs as Nasdaq investors where in 1999 about internet stocks.
Peter Schiff was wrong about the bankruptcy of fanny/freddie for a while too.
whaddarya talkin about?
On a percentage basis he's kicking ass, not just
grabbing the last 10%. whatever
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