Hi, and welcome to the very first entry in my new blog! My goal is to stimulate some discussion about what's going on in the markets, and about government policies that will impact all of us.
Let me start by posting the last few paragraphs of my column today. It has already brought some emails, and I've asked those people for permission to post some of their comments.
In the future, please go directly to my blog and I'll be interested in hearing your thoughts. With travel schedules permitting, I promise to be there at least a couple of times a day! Many thanks -- Terry
Here is the last part of my column, talking about a potential "solution" to the mortgage mess!
Fed Chairman Ben Bernanke acknowledged that even dramatic Fed interest rate cuts and a huge tax rebate program are not getting the economy back on track. The Fed is worried about the banks and is providing more credit. But the banks are worried about lending. And the world is worried about the value of the American dollar amidst our growing national debt.
Even staunch "free-market-solution" advocates are coming to recognize that the cost to our society of these foreclosures and bankruptcies could be worse than the cost of some sort of government-backed rescue plan.
Alex Pollock of the conservative American Enterprise Institute has come up with a plan reflected in a bill introduced by Sen. Chris Dodd (D-Conn.). It recommends a modern version of the Depression-era Home Owners' Loan Corp., which was created in 1933 to help avert foreclosures by purchasing defaulted mortgages from the banks and then making new, more affordable loans to the homeowners based on reduced property values.
At that time, nearly half of mortgage debt in America was in default! Drastic action was necessary. Eventually, nearly one of every five mortgages in America became owned by HOLC. Lenders didn't get all their money back, and they had to settle for lower-yielding government bonds. But the program did work to stop the downward spiral of home foreclosures and values.
So far, there's something in this current "bailout" proposal to offend everyone -- homeowners, investors and even foreign central banks -- since each stands to lose something in the process. But there is also general agreement that someone needs to stand up and lead the way out of this mess -- before it inevitably gets even worse. And that's the Savage Truth!
Terry Savage writes a syndicated personal finance column for the 
I am a retired C.P.officer with a small deferred comp account distributed roughly 70% fixed and 30% stock. Given the current state of the market, would it be in the best interest to move the 30% into the fixed portion of the account or leave things as they are now?
SAVAGE SAYS: That sounds about the right allocation, depending on your age and risk tolerance AND need for access to the money. I don' think these market declines presage the "end of the world."
But let me point out something else to you -- and everyone else using bonds as a 'safe haven.' If interest rates rise (because of inflation, or the need ot attract money to finance our debt) then the prices of bonds will FALL. That is, no one will pay $1,000 for your old fixed rate 5% bond, if new bonds are issued paying 8%. So if you have to sell the bond before maturity, you'd take a loss. And if you hold it to maturity, you're "stuck" getting less interest than if you had waited to buy a higher rate bond.
That's why bonds are NOT "chicken money" investments. Chicken money belongs in SHORT_TERM Treasury bills, insured CDs, and insured money market accounts -- things with maturities of less than 1 year and a direct guarantee from the government.
Great read. I think I'll subscribe to this as it has some good info! Thanks. I do apppreciate the blog :-)
Greetings,Terry
Great column yesterday on college debt, and it's consequences. My personal case is that I brought my neice here,from Ukraine,on a student visa. That was the only avenue I had to sponser her. What a great suprise I got when I saw her tuition is 2-3 times the tuition paid by resident students. That said, I have been paying her tuition in total with cash so that she does not have to face that monkey on her back in the future. She has responded with a 3.8 gpa. Very proud of her. Her goal is to get an MBA eventually.
The dilema I face is how do I retain her on permanent status so that she and our country can benefit from an exceptional young woman. Are there programs where she can get a work visa from a financial institution that would keep her here long enough to gain permenant residency? I know that this is somewhat off topic,but your column on Monday got me thinking. I will turn every stone over to find a solution. This is not a matter of my future financial planning. It is all about her.
I read where the Fed will lower rates again on wed. Being in "chicken money" currently, this troubles me. Is that not the cause for the wild speculations leading us to such ridiculous spikes in the cost of just about everything? Oil at 120 dollars? I do not understand the cource being taken by the Fed today. I know they are attempting to stimulate the economy but at what cost? Do you beleive this will back fire? I do.
Thank You,
SAVAGE SAYS: Well, your letter makes a couple of points. First, you remind us that people come from all over the world to America, partly to get a good education. It's nice that we "export" this product -- but America could use more trained and educated people, not fewer!
Unfortunately, there are only limited visas available for skilled workers - -and they are given out through companies that really need those workers because they can't find people with the education and training to work here on those jobs. But those visas are gone very quickly!
Second, you remind us of the value of the education we get here. People are willing to work, save, and pay for that education. So, per my column, maybe it IS worth it -- even if the student goes back to his or her home country where that education is valued.
Finally, you know from reading my own posts, that I believe the Fed is sowing the seeds of future inflationary problems. And I also believe they think they have no alternative but to try to "save" the financial system today -- and fight that next problem tomorrow.
Again,good day, Terry {would you prefer Ms. Savage?}
Read your column today as well as the supplement the Sun Times included. Very well done!
My first reaction was that I felt justified in the cource I took 9 years ago. It is an immense relief for me to not count myself in the column of debit distressed persons. That said, I do feel mixed feelings about those who are bearing the burden today. On the one hand I realise that unforseen circumstances come to play here, but I also want to roll up a newspaper and smack them on the head. What were they thinking?
I refer back to my point of the black mark on our educational system. I beleive that economics should be taught at a high school level. After all home economics has been a main stay for as long as I remember. Why not teach sound economic stradigies?
Teach the young on the pitfalls of "easy" credit.My generation has been imbued with a sence of entittlement. Now we are bearing the consequence of that self absorbed paradigm.
You really presented a bleak picture in your column. You stated that some solutions are better than others, but all are not easy answers to the issue. I totally agree. I have been hearing a bombardment of commercials on the radio from agencies stating they will solve all the credit issues of anyone that replies to them. I see a big red flag, and it was good to see you addressed that in your column. Sharks feeding on shark loans.Cannibal economics.
I do not want to seem like a callous person, but I do have issues with people who are demanding the government to provide a bail-out for what they should have realised as a bad proposition to begin with. I saw a banner on t.v. that stated no more "arms" just help the people caught in the present crisis. Give a lower fixed interrest rate. That is not what they sighned out for.
I see a total disregard for liabilty today in every area of society. No one is willing to accept blame for any actions they took.It is allways the system.
There is a certain measurement of enbellishing on my part. I feel the issue will not be resolved till we get a government willing to tackle the issue in a direct manner and leave the personal baggage at the doorstep
SAVAGE SAYS: We've had decades of not taking personal responsibilty for our decisions. In the midst of that, we've suddenly been given the responsibilty for complicated financial decisions -- everything from adjustable rate mortgages to 40lk plans -- with little or no education.
The combination of lack of responsibility and lack of education has been financially deadly.
Good day to you,Terry,
Yep! It's me again. I have been reading your books that I ordered and I beleive that was the best investment of 25$ I have made to date. I have been promoting them to my friends.
What I want to do here is relate my personal history in regards to credit debt and let readers asses my decisions.
I was the same as many in that I was a credit card addict. Can't afford something I want? I just charged it. So simple.I did that till I accrued a credit card debt of 28 thousand dollars. That may or may not sound like a large amount, but the loan shark rate of interest is what kept me from balancing out my accounts. It was like walking against a hurricane wind.
When I saw the futility of trying to balance out,I explored means to save myself. What I did was that I loaned myself the total balance and payed off in full my debt. By that I mean that I took a loan out of my 401k with the stipulation that the loan would be deducted from my weekly pay check at 61/2interest rate.I finished the last payment 4 years ago and that money is back in my portfolio plus 61/2 percent
There is much more to be said Paying off the debt was just a step in the right direction. I had to wean myself off of credit cards the same as a drug addict would do. What is the point of being debt free if you decide to plunge back into what got you in trouble to begin with. I cut 7 cards to peices and kept one to facilitate internet purchases. At each statement period, I pay the balance in whole.I never allow the balance to go beyond 1000 dollars.
Some of you may think you could not function without a credit source,but consider this.I found that not owing interest put that much back in my pocket Things I thought I could not afford have become within reach on a cash basis.
I urge all to not wait for some government bailout. We can begin the recovery by applying sound financial stradegies in our personal finances.
I find it ironic for me to cringe every time the interest rate is lowered. Money out of my pocket
Robert
SAVAGE SAYS: Congratulations! I hope all my readers will realize it is possible to work your way out of debt -- and even better not to fall into that trap in the first place!!
You'll really enjoy my column coming up on Monday, April 14th!
Dear Terry,
After further research I have a better understanding of the underlying purpose of the Fed intervention in this case.I can see what no action from the Fed would have entailed.
Therein lies the problem. I beleive I represent the average American in the lack of knowing the complexities of our financial markets. The sub-prime crisis, for example.
Financial institutions relaxed conditions for qualifying for a mortgage with the idea that those mortgages would be bundled and sold off to investment institutions. That freed them of any liability, and as a consequence introduced a willingness to participate in high risk ventures.Bear Stearns was the primary institution that embraced that policy and as a consequence was the first to face liquidation in the motrgage crisis.The "Dominoe theory" would have come to fruition and others would have followed.Have I been accurate in this assesment?
I am very gratefull to you as a source of common sence advise.We are being short-changed by mainstream media.
I find myself speechless when I contemplate the "State of the Union" as it exists today. The present administration has shown no desire to provide oversight for the good of the people.Why in the world are we paying such high cost for fossil fuels? The present paradigm is causing an explosion in prices across the board. Was not the Iraq adventure supposed to have eased such matters?
I feel a disticnt sence of forboding for our society today.Somehow our train of prosperity has been de-railed. If I practiced the economics our government does I would be labled as derelict.A 160billion dollar "bailout" to jump start the economy? Borrowed money at that? What do they think my 600dollar rebate is going to do for me, or the economy as a whole? A 10 trillion dollar deficit? I am not a pessimist in nature but I cannot help but see a house of cards ready to collapse.
We ,as a people, must share the blaim as well.To not understand the consequence of living on maxed out credit is a blackmark for our educational process.I feel mixed emotions when it comes to the issue of subsidising mortgages that were bad to begin with.What is next? Covering bad choices in the stock market?
Inshuring credit card balances?We have to accept responsibilities for our actions.When we can do that,then we can demand our elected officials to do the same
A winded out Robert
SAVAGE SAYS: Robert, you've said it all -- and very well!
Hi again,Terry,
What does my favorite financial guru think of the latest Bush proposal on the overhaul of federal reserve regulations? The formalising of recent actions taken by the treasury to bail out financial and investment institutions at the cost of tax payers?
I will show my colors here by stating my skeptisism regarding any proposal forwarded by the Bush
Administration.
I love your website,
Robert
SAVAGE SAYS: I think the Fed had no choice. Very few people realize the huge and intertwined derivatives market would have dragged down the global financial system if they hadn't stepped in to "rescue" Bear Stearns. And they didn't rescue the shareholders. As I noted in a commentary, they rescued the SYSTEM.
Now, they -- the Fed -- and the Treasury -- own the problem. Once they started down that road, they have to have some oversight of the institutions they're in effect, guaranteeing. So those new regs are inevitable.
Hi Terry,
I am writing in responce to Arlene's queery about purchasing gold at current prices.
I have been involved in numismatic collecting for several decades,and I can say this; Precious metal BULLION lies in uncharted territory,right now. Personally,I would NOT invest in gold at current prices. The market is to volatile and to assume gold will rise substancially above current price is to bet we will have a total economic melt down.I do not beleive that is the case.
In 1982,I purchased gold in the form of 20 gold coins at 1 oz. each for the price of 300 dollars an ounce. That came out to $6000 dollars {the numbers are rounded off} Today,26 years later,
they would price at a total of $20000 dollars. Take that figure and compare with what the 6000 dollars would yield on the market if that is where I would have invested in.{Terry?}
I view metal bullion as an a emergency fund. Short term at that.I mentioned that I have been a numismatic collector. That means I have been purchasing rare coins at investment grade {uncirculated ms63 and above} Many can be found at fairly cheap prices. That said,one has to understand grading systems and be prepared for the long haul. It is not a quick fix for anything.
Best wishes for you, Terry
Robert Cizda
SAVAGE SAYS: I can't seem to find the original question to which you refer, but here's what I think, and do.
I've always had a minor position in gold stocks in my portfolio -- and upped that substantially four years ago.
(My Sun-Times editor, now departed, urged me not to go public too much with this viewpoint, or be viewed as a "goldbug"! )
I haven't sold any of those positions -- and am not surprised that prices have backed off. The stocks have served as a very nice balance in my portfolio. And I think they'll continue to do so.
I don't know where this economic mess will end -- but the likely bet is future devaluation of the dollar. To that end, I've also written about, and recommended, EverBank CDs -- FDIC insured CDs denominated in foreign currencies, and the Merk Harc Currency Fund. (Note: I put my money where my mouth is!)
As for collecting rare coins, this has proved a very satisfying "hobby" as well as investment over the years. But I recognize that many people do not want to devote the time necessary to understanding real value in this market. Thanks for your post.
Terry, one of my concerns regarding the home mortgage disaster that we are currently experiencing is regarding the following "what if" scenario: What if the illegal immigrants in the country (12 million plus) were to actually be deported from the United States? Many of these illegals own the homes that they are living in. They would be forced to place these homes on an already saturated market of homes for sale. This would simply exacerbate an already major financial problem that the country is trying to deal with. Any thoughts, Terry? Would my concerns be justified?
SAVAGE SAYS: It's an itneresting thought. But the housing market has even worse woes. Think of the many millions more adjustable rate mortgages that will adjust this year. Maybe Fed rate cuts will keep that from becoming less painful. Still we have 1.3 million mortgages already in foreclosure in the US, more being added every day so the number will be well over 2 million by the end of this year.
Hi Terry -
I just have a comment, and I agree with the statement from your blogger who said:
"I also feel that these bailouts penalize (indirectly) those of us who were more responsible and lived within our means or did out due diligence and were alert enough to avoid shady lending practices."
I am extremely disappointed in both the Bear Stearns bailout and the comments by the US Treasury Secretary Henry Paulson. When asked if the government was responding to a "Wall Street" crisis as opposed to a "Main Street" crisis , he sidestepped the question by referencing an "economic crisis" in the entire country. Pardon me??? We have been in an economic crisis for quite some time. I feel we represent main street America. Both my husband and myself have managed our personal savings and conservative mortgage, and were able to survive not one, but several "forced" career changes, finally leaving the IT industry entirely, but continuing to maintain our home and credit rating.
According to a 2002 study of demand for high tech workers by Information Technology Association of America, U.S. companies shed over 528,496 IT workers during 2002. Without a comment from the federal government, and not one bailout. This compared to 18,000 Bear Stearns employees.
Clearly the inflation in the housing prices, and associated inflated activity throughout the credit markets, needs to be corrected, and should be allowed to do so without government interference ( I am also opposed to the tax rebate). I believe suffering in the short term while trying to practice more fiscal responsibility will in the long term help our country's financial and political wellbeing. Unfortunately, the politicians don't seem to agree. It's just bothersome when " wall street " problems continue to command precedence over "main street" problems.
And I'm sure that won't change in the end.
Terry
We have a ARM 3.75% $148,000 coming due Nov 2008.The interest rate jumps to 5.75% for 1 year etc.....If the fix rates go below 5.75% then should we refinance..or should we pay the loan off with are equity line of credit prime -1%.....Need some help....Many thanks for all your passed advised....Jim
SAVAGE SAYS: Definitely refinance in the coming weeks as mortgage rates drop. And don't wait too long, as inflation fears may cause rates to rise again! And definitely lock in a FIXED RATE on this loan, not a Home Equity Line of Credit which will fluctuate (higher) if rates rise!
I may be wrong. Rates may continue down. Then you can refi again (make sure there's no prepayment penalty). But if I'm right, and rates rise in the next year or so, you'll be sleeping well with that fixed rate loan.
Many thanks for your recent column about the Rex Agreement. I was thinking of switching my HELOC to a Rex, but I have revised my thoughts. Thank you And that is the Mason truth. Frank --30--
SAVAGE SAYS: Glad to help. But beware. Right now interest rates are dropping, making your HELOC affordable. But we're sowing the seeds of inflation -- and higher rates -- so that loan will get more expensive. Plan to pay it down now!
Terry,
Do you think the Federal government will ever do anything about these corporate CEOs that leave firms with outrageous bonuses and golden parachutes as their firms go belly-up? I know that this inequity should be addressed by corporate shareholders but they are too unorganized and many are simply indifferent to the situation. Any thoughts?
SAVAGE SAYS: The market in executive compensation has gone to an extreme. But I don't think Congress is the place to solve the situation -- only highlight it, as the hearings did last week.
The real solution revolves around requiring deferred comp to be paid out in stock -- and held for 5 years! Then the ex-CEO of Bear Stearns, who condoned all this mortgage securitization mess, would be suffering like all the current (as of last week) shareholders.
Thank you for the explaination of Treasury rates VS discount rates and "fed fund rates"...I understand now.. The next question to follow would be in what form would you suggest we purchase gold now that it is at 1000.00??? With low treasury rates it seems worth looking at. Thank you
SAVAGE SAYS: I make it a point not to give specific recommendations or prices. But I've been suggesting,a nd writing about gold and other hedges for the past few years. (And Iv'e followed myown advice.) It's certainly possible that gold could move higher from here, but it's a lot more risky now!
Frderal Interest rates and U.S. Treasury Rates: how do they differ?? What makes the Treasury rates move up and down??
Please explain the difference between Fed Interest rates and U.S. Treasury rates...How do they affect each other?? Also what makes the Treasury rate rise???
SAVAGE SAYS: The Fed can "control" short term rates that banks use to borrow money from each other and from the Federal Reserve bank. The former is the "fed funds" rate, and the latter is the "discount rate."
When the U.S. Treasury needs to "borrow" money to fund its deficits, it auctions off Treasury bills, notes and bonds. The bills are IOUs with maturities of one year or less, notes have a slightly longer maturity of 2-5 years,and bonds are longer term, mostly 20 years (though there used to be big auctions of 30 year Treasury bonds).
The interest rate paid on those Treasury IOUs is not set by the Fed. Instead it is set by huge instituional bidders who are willing to lend the U.S. Treasury money. (Smaller buyers can go to www.TreasuryDirect.gov and purchase Treasury bills at the weekly auction, and notes and bonds at the monthly auctions, by agreeing to accept the average rate set by those free market bidders.)
Those bidders -- big financial institutions, foreign central banks, and companies -- are set in a competitive bidding process. Rates move higher when buyers are unwilling to lend us money at low rates -- because they fear that inflation (too much money creation) will devalue the dollars they get back when the IOUs mature.
While the Fed can influence rates at the auctions, the specific rates are set by the bidders. Lately bidders have been looking around at all this new liquidity being created by the Fed, and all the borrowing demand caused by our deficits -- and they're wondering if maybe they wouldn't be better off exchanging their dollars for gold instead of IOUs. So you see the price of gold rising!
Hope you get the difference now.
Dear Terry.....
I had to pay on my federal income tax this year and was told that I must write my social security number on my check in order to have it applied properly. I think this is an identity risk proposition. In processing my check it will pass through many hands. Is there another way to handle this?
Thank you for your time.
SAVAGE SAYS: The risk of identity theft is offset by the risk that they won't properly credit your tax payment if you don't have your SS# on your check!
I'm working on a big identity theft project that will help protect you from theft. In the meantime, keep checking your credit report at www.annualcreditreport.com -- That's the only way to get a FREE credit report from each of the 3 bureaus, each year.
Greetings Ms Savage,
I read your column regularly in the dead-tree edition during my commute to work.
After reading this particular column I was left wondering...
what will/should/needs to happen to housing prices.
Your article touched on a number of topics, but what seemed to be absent was any discussion of the over-inflated home prices and what the market reaction will be to any bailouts.
As someone who was shaking his head over the last 5-8 years at the rate of appreciation of real estate and the huge jumps in home prices, I have to wonder how any bailout is going to effect home prices. Under normal market circumstances (where bad actors are allowed to fail), I would expect home prices to drop considerably -- to adjust to more realistic valuations. All these foreclosures would drag prices down, while the supply of housing would steadily go up as these "distressed" properties go back on the market.
Instead though, it seems to me that these bailout plans (that may or may not succeed) will also prop up some of these higher prices or at the very least limit the declines in home values/prices. As someone who waited to buy a new home specifically because I knew that the housing market would have to adjust downward (houses just don't double and triple in value in a period of 1-2 years) I fear that all these bailout plans being floated will stall a much needed correction/adjustment in the housing market. I also feel that these bailouts penalize (indirectly) those of us who were more responsible and lived within our means or did out due diligence and were alert enough to avoid shady lending practices.
I would be very curious to hear your analysis about how any bailout plans would affect housing prices and prospective buyers. What kind of adjustment do you foresee happening?
SAVAGE SAYS: I agree absolutely. In fact, there was a great article in today's WSJ (page C-1) that made the same point: without a bailout, housing prices could be expected to fall at least 10%, and more in some areas where prices had been more highly overvalued. They quoted Merrill Lunch economists as predicting a 20-30% drop -- from these already lower levels!
Those estimates are based on ratios between household income and home prices. The article points out taht from the start of 2000 to mid-2006, the peak in home prices, home prices nearly doubled. But over the same period, income per household rose just 26%. That's unsustainable.
Check my column archives. I'll find the one I wrote in 2003, saying much the same thing!
Government interference will only postpone the ultimate day of reckoning. But given the growing impact of this situation on the entire economy, our best hope is for some sort of rational government plan -- if that's not an oxymoron!
Hi Terry:
As a displaced Chicagoan I now can find you on line which is a
"really good thing":
I recently came across something you wrote or was written about you.
It dealt with hedge funds.
My chicgo ofinancial institution has pointed us to their hedge fund investment which is called the "fund of funds"
We wonder what your opinion is about our investing a portion of our money in this way.
We will NOT have to pay the usual 15% or 20% fee on the growth which we might achieve from this investment but we will have a collection of some of the ("best hedge fund minds working with this block of our money.")
We will be obligated however to pay an additional 1 1/2% to 2%
for managing this portion of our portfolio.
Let me assure you that this is not our retirement money.
We were told that doing this will further insure the stabalization of our accounts.
One lifelong Chicagoan to another may we ask you about what you think about this idea?
We are really curious to hear your crystal clear thinking on this subject?
We still own a home in a fine Chicago suburb and we are now snowbirds.
SAVAGE SAYS: Well, that's not a bad strategy --as long as your "fund of funds" includes the best, and complementary hedge funds. That's what the woman I interviewed, Kay Torshen, does best. And she points out the pitfalls of just "diversifying" without knowing that the different hedge funds have different strategies, and truly professional managers who can implement those strategies when all else is going wild!
Also, you'll certainly be paying the 20% of profits on the individual funds, as well as the individual funds' management fees -- PLUS, it appears from your letter, an additional Fund of Funds management fee! That's a pretty steep load to carry. TS
Ms. Savage,
In regards to the gas crisis we're now facing... What would happen if the U.S. threatened to release our reserves? Would the price of gas go down? How might the oil producing countries react? Also, how much of a reserve does the United States have? Just curious...
Thanks - love your column.
Read your column today and I have my own dilemma I would like to share. I am one of the people who is this close to forclosure due to being 'overmortgaged' and not enought equity.
These groups that constantly say "call your company and work with them' have never tried to do that. I had one of my companies (I have 2) tell me that they wouldn't even talk to me unless and until I was 90 days past due. so much for being proactive.
all of this talk is just that--talk and hot air. you see on TV all the time about people who have had to go to extreme measures just to get somebodies attention. and Bush says that $600 is going to make a dent and revive the economy. a bunch of hooey.
I am now working with an investor to try to complete a short sale with my house, but I will still have to file bankruptcy for my other debts. and I have a full time job.
just thought you should know
SAVAGE SAYS: I know, now we just need to let Congress know what's really happenign out there!
Hello Terry;
Great article (today) on the crisis that's afflicting our country, with home prices going down, lack of cohesive plans to avert a cathostraphe that we and the previous generations have not seen -- I myself have a ARM that's due in 2009 , Live in Orland Park, store front's are empty , for leases starting to appear everywhere-- for example a "strip" of stores in Homer Glen next door to Orland Park has 7 for Lease or rent ,and it's not going to get better.
Just last week a Nicor Gas bill was $335.00 for the previous month. I am basically suriviving and able to pay off the bills. The ARM is not that big approx 74 K so even If increases by a substational amount I will still be able to pay my monthy bills, but what's going to happen to all my neighboors who have ARMS for 300 or 400k or even higher. The middle class in the USA is gone. The price of gasoline at the pump will curtain driving, restuarants will have no customer's , waiters will loose jobs, etc, etc, it's a steamroller effect. That "future" dowry that our kids, or grandkids will have to repay will not stimulate this "gift" that we will receive this May from IRS, people that are strappped will try to use it for the necesseties in their life. The "greediness" has and will stop , but at what cost to human life .
Question for you Terry== = what's going to happen to future Real Estate taxes for the rest of the country with these copious amounts of foreclosures. How are we the homeowners to "recoup" our tax obligation since the value of that house that we own has gone down appreciably.
Thank you sincerly
SAVAGE SAYS: Now that's going to be the subject of a great column at the next property tax reassessment time!
Ms Savage,
If idiots live beyond their paychecks, buy homes beyond their means and do not spend the $350 for a attorney to read the contract, pay only the minimum (if that) on their credit cards, cannot drive a 5 year old car why should you or I care? God forbid the government get involved.Those idiots in congress are busy investigating if some multi billionaire baseball player is using drugs, who cares? You stated that 900,000 homes are in foreclosure, how many homes in the U.S. are solvent, how many have paid their home off. My wife and I have a total IQ (did I spell IQ correct) of 24 that is less than the stop sign on the corner, we have owned homes since the early 90's NEVER late on one payment. Thank you for letting me vent. Please do not use my name.
P.S.
Remember Ms Savage: The American Way, Buy things you don't need with money you don't have. This is still the greatest country in the WORLD if you can't make it here you are an IDIOT. Love your column.
PSS Drove by a pricey car wash in Kenosha this Sunday, the line was a block and a half long, do these people know that we are in a recession?