The Media is still drinking Kool-Aid

[lendingmaestro_IHB]

<p><a href="http://money.cnn.com/2007/09/11/real_estate/toxic_rate_reset_shock/index.htm?postversion=2007091209">http://money.cnn.com/2007/09/11/real_estate/toxic_rate_reset_shock/index.htm?postversion=2007091209</a></p>

<p>Obviously they didn't bother to call me, or any other lender before they wrote this article. These blanket statements that are made are absolutely driving me insane! A small cut in the Fed Funds rate is going to help borrowers? Not by a long shot. You still have to qualify now with less equity and tighter lending standards. Does this person even know what is involved in underwriting a loan???</p>

<p>These people should be fired honestly. You should not be able to make unresearched and unsustantiated claims like this. It's a wonder as to why so many are oblivious that we are headed into a recession</p>

<p> </p>

 

[awgee_IHB]

lm - The secondary market overreacted. There is tons of cash out there and it can't wait to get back to buying paper on depreciating assets.

 

[lendingmaestro_IHB]

[No message]

 

[IrvineRenter_IHB]

I remember reading a number of articles like this early in 2006, particularly in the wake of the subprime implosion. They are factually challenged, but they serve to quell the fears of FBs. Sometimes you have to spoon-feed people the truth.





In a week, someone will write an article explaining LIBOR, credit risk premiums, loan qualification standards, etc., and the truth will leak out.