When they lower or raise the ffr it has an effect on all facets of the economy. But if you're going to contend that after 9/11, The Fed should have put into place contractionary policies (raise the ffr - interest rates rise - unemployment rises - growth slows) you're going to find few who agree with you (not here, but everywhere). A very limited understanding of SRAS and LRAS models would tell you that the market was out of equilibrium and if they sat on their hands it would've been disasterous to the economy. I'm not contending that it didn't have a negative effect in some sectors, but overall, the big picture was great. The Fed didn't "mess up," they saved our ass from a recession.

__________________
I'm more tongue and cheek than a lesbo orgy.

I agree, Plato ... and that's what the Fed does. The Fed is an inflation machine. They manipulate the money/credit supply in order to have an effect on the economy. All I'm saying is, after 9-11 they kept lowering the rates, not taking into account the delayed reaction those rate changes have ... and the rates went too low. Down to 4.5% fixed in some cases. This allowed very marginal first time buyers to buy property. There was so much easy money, thanks to the Fed, that mortgage brokers used a mirror to qualify a lot of those buyers ... Like, "here, breathe on this mirror and if it fogs up, you qualify for the loan." Now the pigeons are coming home to roost.

Med ...

You said this:

"A friend in the Air force bought in last year in central Ca. for 450K, that house is now not sellable @ 300K and his payment keeps going up. I'm sure he is going to lose it."

I have a question for you: If the "greedy, asshole Realtors" drove the prices up to $450,000 and bamboozled your friend into buying it, did those same "greedy, asshole Realtors" drive the price down to $300,000 as well?

Vi



</IMG></IMG>

__________________
Liberals are people that will believe anything twice.

No, Reality set in and when there were no more people that could fanigle a loan (through a combination of creative financing and creative selling by the crooked realtors) IE no-one could qualify for 450,000 shitbox houses because the appraisers finally got a conscience and deflated those rattraps. Now along comes bloodsucker realtors (remind you of anyone) to save the homeowner from bankruptcy with a creative bailout conjured up by crooked third parties and charge a 3-6% commission, all to the dumb ass victim, the homeowner, and some new speculator gets a 450,000 house for 300,000 and sells it for 350,000 and the bloodsucking realtor gets another 3-6%. Sounds like the bloodsucking realtor is the one making out in this deal. A Very creative way to fuck people, I'd say. Say, do you know anyone doing this? ~LOL~~~BTW Bush has approved bailing out the lenders, but said fuck the homeowners, they are at the mercy of all these crooks.

__________________
Life is good, the water is sweet. The ground keeps moving beneath my feet.

So, if the speculator gets the house for $300,000 and sells it for $350,000, why didn't your Air Force friend sell it for $350,000? I mean, wouldn't the "greedy Realtor" prefer the "bloodsucking" 6% commission on 350K over the "bloodsucking" 6% commission on $300,000?

And, are you saying that the "Bloodsucking" Realtors, by some magic formula, have the power to drive prices up, but lack those same powers to drive prices down?

As far as Bush bailing the lenders out and "fucking the homeowners" ... have you heard of "short pays?

Vi

__________________
Liberals are people that will believe anything twice.

Nope we will be heading into a ressesion right now... But you won't admit it even when it's happening.

__________________
The privilege of the writ of habeas corpus shall not be suspended, unless when in cases of rebellion or invasion the public safety may require it. United State Constitution, Art. I Sec. 9 Par. 2

"Dissent is the Highest form of Patriotism" -- Howard Zinn

As far as Bush bailing the lenders out and "fucking the homeowners" ... have you heard of "short pays?
Nope, not an economist, but you really didn't refute any of my post now did you? I've heard of "short dicks", although I've never been afflicted,~LOL~. In answer to your "why didn't the homeowner sell to the speculator", Because it is a rigged deal from the gates. the realtor and the speculators are in cahoots, in fact, they may be one and the same.

__________________
Life is good, the water is sweet. The ground keeps moving beneath my feet.

~lol~ ... Its amazing how the ultra-right sees a conspiracy behind every bush and the ultra-left sees a Bush behind every conspiracy.

Med ...

You are clueless.

Please explain how Realtors drive prices up in order to get higher commissions ... and then drive prices down, for what reason ... to get LOWER commissions? ~lol~

Vi

Vi

__________________
Liberals are people that will believe anything twice.

1. drove them up by speculating and interselling. IE speculators and realtors would go into an area and buy all the houses they could for the going price, then sell a couple to eachother at highly inflated prices and use those prices for comps so that every house in the area would rise in value.
2. House flippers in cahoots with realtors did the same thing.
3. With housing prices going through the roof, many unsuspecting homeowners took advantage of the equity and took out seconds for investment purposes and home improvements, leaving them vulnerable to decreasing home values.
4 Various and assundrious other devious means were used by realtors to raise the prices by telling the sellor his house was worth more than it was and telling the buyer that this was a good deal.
As for the fall of the housing market: once the appraisers (that had to be in on the scam) got a conscience, or in cahoots with speculators started deflating house values, speculators (now rich with all the excess profits weaseled from the home buyers) now are in a buying phase to have the whole process start all over again. You and I (taxpayers) will bail out the Banks and all the criminals in the real estate business will skate with big money. Typical right wing criminal behavior reminiscent of the S&L scandals in the 80s. I don't have all the particulars, this is just an overview, but if it walks like a scam, talks like a scam, and smells like a scam, it must be a scam.

__________________
Life is good, the water is sweet. The ground keeps moving beneath my feet.

Recently I have heard of some realtors going into crack infested ghettos and buying houses as low as 2000$ , hyiring contractors to repair 10 houses at a time and pouting a gate around them , than selling them for $ 300000 and up...Now I am no genious but I am pretty sure that the crack dealer, realtor and contractor are one and the same...

__________________
any images or information presented by krime 13 are fictional, and should not be taken seriously, if the person reading them is employed by a law enforcing agency, they are not authorized to read or use them in any way.

please tell me where this market is!! i want to retire tomorrow.






.

__________________
"But even when you cease to be slaves, you are yet far removed from being placed on an equality with the white race."

- Abraham Lincoln, President of the United States of America, Hero to the servants of big government, Racist War Monger