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DemonZach

Sorry I can't go in detail about his job, because I have absolutely no idea what he does. I think it involves real estate.. Any who, my economic teacher said that Ben Bernanke said recession is very likely over. So, I'm assuming everything will be normal again and everyone will make money. True?I guess I have 2 questions.Thanks you!

mac2197

Don't click on the link above. Installs malware on your computer.It's true that Chief Bernanke said that recession is over, but that is based on the stock market results which has been in a steady increase since it bottomed on March. Today 6 months over that horrible fall, the investments are beginning to recover, but the improvements in wall street aren't felt immediately on the economy. SInce your fater works on the mortgage side, two things need to happen so your step-father begins to see some activity on his business. House market has to fizzle and unemployment rates have to decrease. Until the street sees these changes on your city, your step father's business will pick up again. And that might take perhaps another 6 months to a year. Some house markets will bottom in five years .

Sergio3096

If your dad is in the mortgage biz, I assume that he has experienced a severe decline in his business, everyone else has.As for Uncle Ben, he has yet called the economy right. I guess if you make enough calls, one day you'll be right.09-15-2009"Economists Said What? Sorry, But The Recession is Not Over"http://profiles.yahoo.com/blog/CUXTCCBSBYDZODXWGYK2IZDOOI?eid=NNGFJyY6kSj4tE5TOlj yhBBClpfcc8_zKGbwGzBmQtQoWHbX3gThis will be a multi-year recession. Not a V shape, or U shape recovery. We will have another wave of issues to deal with, which I have cited above and in my Y!A post history.07-16-2009Home foreclosures continue to break records:"Foreclosures at record high in first half 2009 despite aid"http://www.reuters.com/article/topNews/idUSTRE56F0XK2009071609-21-2009"U.S. mortgage delinquencies set record"http://www.reuters.com/article/businessNews/idUSTRE58K29E2009092209-04-2009"U.S. unemployment rate jumps to 26-year high of 9.7%"http://www.marketwatch.com/story/unemployment-rate-jumps-to-26-year-high-of-97-2009-09-0409-04-2009Even Teen Unemployment Rate is Over 25% - the highest since records on this was first kept since 1948 http://www.nytimes.com/2009/09/05/business/economy/05teen.htmlI am not saying the economy will plunge like in Sept 2008. Hope not. It could be worse one day if the future problems are not handled. Taxing and socialization is not the solution. The government can't keep spending and spending.09-23-2009"U.S. Issues $7 Trillion Debt, Supply to Stabilize"http://abcnews.go.com/Business/wireStory?id=8649840Last year (2008) $50 TRILLION was lost world-wide, and this money is not coming back anytime soon. Most is gone forever.03-09-2009"Global Financial Assets Lost $50 Trillion Last Year..."http://www.bloomberg.com/apps/news?pid=20601068&sid=aZ1kcJ7y3LDMHousing may take 10-15 years to recover, but not back to peak prices. U.S. News argues that it may take 20 years for housing to recover. I don't know about that, but the ever growing deficit is a big problem, commercial real estate re-fi could be a problem over the next several years, and if interest rates go up sharply then watch for the next wave of economic problems to begin.Notice the FED is not raising rates now as I have said they should not do. 08-13-2009"Why Higher Interest Rates is a Bad Move for the FED and the Economy Right Now"http://profiles.yahoo.com/blog/CUXTCCBSBYDZODXWGYK2IZDOOI?eid=fWkyl8Yxm34lkqZJ3PC rmi896PN2k7N2703evaJuvpyfCYRCpgThe reason why rates are not going up is because Uncle Ben (Bernanke) knows that higher rates would increase gov cost on the $15+ Trillion in debt and loan guarantees, including the FED's own $2 Trillion+ holdings, and this higher loan cost would be disaster for the government and make the deficit soar faster.09-24-2009"Fed Signals Growth Return Insufficient to End Monetary Stimulus "http://www.bloomberg.com/apps/news?pid=20601068&sid=a7PUzPYyvn7M08-12-2009"Why a Housing Rebound Could Take 20 Years"http://www.usnews.com/money/blogs/flowchart/2009/8/12/why-a-housing-rebound-could-take-20-years.htmlFNM, FRE, Ginnie May, and FHA all have serious problems.08-21-2009"Now What? - Another $1 Trillion Bailout?"http://profiles.yahoo.com/blog/CUXTCCBSBYDZODXWGYK2IZDOOI?eid=tUCkXQk1mX0J5ihG2PN UAnKZpxJSCpv3mgV0sqQbR7lC6p2_9gSo where is the recovery again?Post Date: 09.23.2009

caramel

Probably not in his lifetime. The supposed purpose of the mortgage broker industry was to help borrowers find lenders willing to advance the money to purchase a home. Over time, the perverse compensation arrangements changed the manner in which it operated. Borrowers would approach a mortgage broker and present their information (credit, income, assets) and then the broker would go out and shop the loan and find a lender will to loan to someone with those stats. The broker would then load up the loan with a bunch of fees and get the buyer to agree to the highest rate they possible could under which they would still qualify. After closing, the broker would then pocket the fees and sell the mortgage note at a premium to the lender they had lined up ahead of time.Mortgage brokers were a thriving industry because of the incredible demand for mortgages that could be packaged into securities that could be sold. These are the Mortgage Backed Securities that are now being referred to as "Toxic Assets" because the brokers, desperate for mortgages to sell, got homebuyers to overextend themselves to qualify for a payment that they can now not afford.Without a secondary market into which to sell mortgages a mortgage broker doesn't have an outlet for the loans he makes. At this point in time there is no longer a secondary mortgage market out the GSE's (Fannie Mae, Freddie Mac.) In essence, your step father is qualified to make a product nobody wants to buy.The effects of this disaster are going to take decades to fix so unless you are ten years old, his age dictates that he is unlikely to work in that industry again as his sole source of income.