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The Euro can now buy nearly 1.4 US dollars. I sure hope the dollar stabilizes soon. The risk to us HK fans is 1) prices of HKs increase 2) HK possibly stops importing due to a lack of profit.

With the Fed possibly cutting rates on the 18th of September, it looks like the weakness of the dollar may, unfortunately, snowball.....
 

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Correct, unless the feds raise interest rates, odds are we will see further decline of the dollar.


What turht is there to the possibility of HK moving a portion of their production to the US? I've heard about it in the past, but now it seems the possibility is quite real...
 

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Fed has to cut rates to bail out our the mortgage industry. When the 'Refi' boom ran for 4+ yrs and 30 yr fixed rate mortgages were at all time low interest rates - some uninformed buyers got into ARM mortgages, nice at first. The rates are 'capped' for 2 yrs, after that, the cap comes off and the monthly mortgage goes thru the roof. Picture this...2 person income, 3 children - the family is making it on a budget and putting a few dollars in both 401K's.

All of a sudden the cap comes off the ARM mortgage, and now that family mortgage goes from $1500 a month to $2400, now that family is in dire financial trouble since they cant meet the mortgage - this in turn forces them into Bankruptcy. I admin. Bankruptcy for the largest auto maker in the USA.


Bankruptcy filings have went up 104% since this time last year in MN & N.D., its snow balling allright - all thanks to the ARM mortgage and some very uninformed home buyers...this is going to push the USA into a recession that will take years to dig out of...get your H&K's now/soon!
 

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Discussion Starter #4
Fed has to cut rates to bail out our the mortgage industry. When the 'Refi' boom ran for 4+ yrs and 30 yr fixed rate mortgages were at all time low interest rates - some uninformed buyers got into ARM mortgages, nice at first. The rates are 'capped' for 2 yrs, after that, the cap comes off and the monthly mortgage goes thru the roof. Picture this...2 person income, 3 children - the family is making it on a budget and putting a few dollars in both 401K's.

All of a sudden the cap comes off the ARM mortgage, and now that family mortgage goes from $1500 a month to $2400, now that family is in dire financial trouble since they cant meet the mortgage - this in turn forces them into Bankruptcy. I admin. Bankruptcy for the largest auto maker in the USA.

Bankruptcy filings have went up 104% since this time last year in MN & N.D., its snow balling allright - all thanks to the ARM mortgage and some very uninformed home buyers...this is going to push the USA into a recession that will take years to dig out of...get your H&K's now/soon!
Alot of people seem to categorize mortgage borrowers in trouble as victims. However, they knew the rate was going to go through the roof in the future but ASSUMED they could easily refinance. Its their foolish ASSUMPTION, not a defective mortgage product. Others ASSUMED they could just sell their house (worst case) in two years and pocked thousands in profit, and buy another house worth 50% more. There is no excuse for these "consumer's" bad decisions when they were really acting as INVESTORS. Any mortgage brokers out there, I bet they will concur . Remember "buyer beware?" And yes, I STILL feel sorry for anybody about to loose their house.
 

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ARM mortgage borrowers are not victims...more like *diots.
I dont feel sorry for them...the banks just made it alot harder for any one to get a mortgage...thats so sad. The ARM mortgage buyers are not victims, the American public at large are the victims, and the USA economy thats now head towards an almost certain recession.

This will really weaken the USD against the Euro...and drive prices up on H&K products here.
 

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You just can't blame the mortgage borrowers, here in Fla the lenders & real estate people are to blame also. They lowered the qual for home buyers making it easier for people who normally wouldn't qual to qual. That in turn raised the market value of houses here, so the lenders & real estate agents could make more profit from the sale of a home. And now those poor fools that took those 0% interest loans ,interest only & variable rate loans are getting pounded in the rear for it. That is the reason so many people here are filing bankruptcy or getting foreclosed on their new homes.
 

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That's what happens when people buy something they can't afford. Same thing happened to I think Mitsubish a while back - they were giving 0% car loans for pretty much any credit rating. There's a reason people have crappy credit ratings - they don't pay their bills. Something like 60% of them got repo'd.

I feel sorry for families about to lose their homes, but they broght it on themselves.

Is it possible if HK ever had a plant here they could sell them at 30% less and still turn the same profit? That would be nice. More than likely though, they'd sell them at about the same price and just turn a much higher profit.
 

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That's what happens when people buy something they can't afford. QUOTE]

Except that these people were told that they could afford it. There are two basic things going on:

1. Greed - Greed of the buyers wanting a house that ended up being more than they could pay for - and greed from the lender trying to make an extra buck off someone who they knew couldn't pay but told them they would be able to afford it anyway - but they knew that tax dollars would bail them out even if their buyers couldn't.

2. Lack of knowledge - On the part of the buyers. Most people taht are in the fix that they are in more than likely thought that they could afford the homes that they bought. They saw the increasing prices of homes and were told that their homes were a solid investment. They wanted to buy a new house, the sellers wanted to sell a new house, and the lenders wanted to make money off of interest knowing that if it didn't work - they'd get bailed out. Should people pay for ignorance - I guess, sure - we are paying for it in Iraq. Should the lenders be bailed out from a situation that they willfully put themselves into because they knew that they'd get bailed out? - no freaking way. You convince someone that they can afford something - lend them money - raise rates - and then are surprised when they can't pay - I say let the lenders pay. they made an investment as well - into the homes and into those peoples' lives.

So what should be done?
Teach money education and money management in schools.
No bail out for lenders.
Get rid of the Fed - let our elected, representative government have the power over it.
 

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That's what happens when people buy something they can't afford. QUOTE]

Except that these people were told that they could afford it. There are two basic things going on:

1. Greed - Greed of the buyers wanting a house that ended up being more than they could pay for - and greed from the lender trying to make an extra buck off someone who they knew couldn't pay but told them they would be able to afford it anyway - but they knew that tax dollars would bail them out even if their buyers couldn't.

2. Lack of knowledge - On the part of the buyers.
So what should be done?
Teach money education and money management in schools.
No bail out for lenders.
Get rid of the Fed - let our elected, representative government have the power over it.
Oh yeah, I agree with you there. That's why as a consumer, you have to educate yourself. It's unfortunate, but you can't really trust anybody that's trying to persuade you to give them money.

Back when all those ARM's were flying around, I refi'd at 5.125 for 15 years, fixed. ARMs just sounded like a BAAAAAAAD idea unless you know for sure you're going to move before the ARM can start to rise.
 

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ARMS sounded great when the housing market was going up. Once the ARMS were about to go up, many people tried to refi only to find out the house they paid $300K for was now worth $250-$275K. You can't refi with negative equity.
I do feel somewhat bad for anyone who made that error. I jsut hope the housing market starts going back up. I can afford my house, but it appears my house keeps loseing value:5:
 

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So say HK's prices went up $100 - $200 per gun...would that actually stop anyone here from buying one?
 

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Discussion Starter #12
ARMS sounded great when the housing market was going up. Once the ARMS were about to go up, many people tried to refi only to find out the house they paid $300K for was now worth $250-$275K. You can't refi with negative equity.
I do feel somewhat bad for anyone who made that error. I jsut hope the housing market starts going back up. I can afford my house, but it appears my house keeps loseing value:5:
I'm a commercial real estate appraiser, FWIW my best guess is housing prices moderate in 2010 after having decreased a total 20%; some markets will have fallen over 50% in total, example some Florida condo markets and Las Vegas. I would not be surprised AT ALL if the recently more active markets like NYC, Boston, DC, California fall 30% or a little more. Iowa, Kansas, MO will see home prices fall 5-10% max; they never really went up.
 
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