Today's NYT has one of the best explanations for the current fix we're in, and it all seems to come down to the housing market. It started this mess, and it's the only thing that will end it.
Basically, prices and rates were so good in the real estate market that everyone put their eggs in that basket. Lenders got greedy and lowered both their rates and standards. Supply and demand hits, rates go up and presto -- foreclosures. Perhaps I'm oversimplifying, but you get the gist.
The market is awful right now -- at least ten months of inventory, buyers can get nearly any price they want if you're a motivated seller, but from what I understand from my realtor, it's becoming much much harder to qualify for mortgages in the first place.
Gas and oil are outrageous -- we fully expect to pay upwards of $70-80 within a month or two to fill our SUV. We sold the Saturn around Thanksgiving -- it was reaching the age at which we would have had to put more money into it to maintain it that was worthwhile, plus we love the 4Runner. However, I really miss that gas mileage. I'm seriously going to look into the possibility of riding my bike to work this summer.
On a totally different track, the NYT had a great article on Obama's speech yesterday. The national election is just fascinating this year! Tom and I are both still registered independent, but really like what we hear from Obama.
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