The Friendly Money Making Board

[Renavatio]

I hope they cut rates a bit, but I don't believe it will help much. Housing prices will continue to fall in some areas of the country (CA & FL primarily) and consumer spending will be directly decreased because of it. It also doesn't help that regardless of rates, more than 50% of the loans that were written last year represent loan products that either a) no longer exist or b) have pricing unrelated to the Fed Funds rate (and therefore very high, say 9.5% plus).

I'm personally glad the Fed will act, but see it for what it is. More political posturing of "help" than anything IMO.

Housing prices are going to have to fall in order to clean out all of this inventory. Hopefully, younger Americans will learn through all of this to do what their parents did well for the most part. Spend what you can truly afford to spend. Spend based on their paycheck not the so called "equity" in their house. In other words, live within your means.

BTW There are finally some really good cash flow deals out there as prices come down. I helped an investor buy a property yesterday that is a fully rented quad, needed no repair, total debt servive inc. taxes and insurance around $1200 a month with rents at $600 per unit.