The Best Way to Get Rid of Debt and Save Your Property
The economic climate saw the almost random passing of the once-powerful and ruling class. Those who enjoyed the finer things in life survived, and those who had to cut back on personal wants and necessities were the ones who were squeezed the most. All of this is still being felt today, and for this reason, many homes are upside down and in danger of foreclosure.
But amongst the crisis and the threat of home foreclosures, there may be one see splode that can help you and your family from drowning in debt.
Even before the crisis, homes were seeing an unusual trend of erasing some debts and going from an EMI (equated monthly installment) of about $800.00 a month for 3 decades to principal repayment of $1000.00 per month.
What followed was an almost natural progression to what the banks desired, M1 interest-free mortgage – Homes were freed up. Citizenship. controversial at the time. It is what the banks call a demographic shift or what economist jargon calls the Blipping. This allowed them to free up income to upgrade the property. Money that was lying idle in the bank’s vaults was the liquidity that helped banks advance at the time.
It is this shift, among other factors, that put the Fed and the Treasury in an uneasy position. The reason behind this is the fact that the sudden halt of the money supply, which continues to elude the banks, pushes the price of 25-year US Treasury Bonds to an irremediable high. In a state of paranoia, they are forced to post their cash on the internet and also sit tight with the interest-only setting on their treasury securities. They are afraid it could fall below a certain threshold that would attract short-term risk as opposed to the long-term, fixed rate of return on these ever-cliche long-term bond funds.
As a result the dearly held cash of the ordinary citizens of the US helps the banks with liquidity, and they are in a pinch. The cash does not have to be divisions or reserves and confidence is told to relax.
But cash does not create wealth and when the banks suddenly experience a demand for it in the market and know that there is no extra liquidity from the current economy, they sit tight, and the turn of events has everyone to the rescue with aid from the government of Obama, the sores get worse and worse and also a liquidation or default drive in the deficit that is mounting all around.
But tiny Once Again, this situation, as with the subprime mortgage crisis before, is cyclical and did not go away in the last few years. The situation will take two phases and this is the central challenge of our current predicament holder.
Burdens of returning liquidity are capitalized upon, and to hold up the current EMI (equated monthly installments) forever is almost impossible. Not so long ago, banks could overfinance their clientages the tens of thousands they borrowed; this was always on the higher side. In such situations, the banks could reduce their write-off costs. They could write off the principal of the loan and keep the difference as profit. They were always optimistic that the 80-90 percent limit would be met during their normal course of business.
Owing to the global financial crisis, many financial institutions, from pension funds, fund managers, and investment banks, became insolvent, and so they went down like a pack of cards. But with the onslaught of foreclosures and liquidation in the markets surrounding the subprime, borrowers began to default in large numbers. The banks could never have predicted this, and so they are now in a situation that is unique to their Wars.
This is not a good situation in the equity market, and little can be done as the only values are under the board as no one wants to lend money at all now. No one wants to lend money for anything, have it genuinely earn returns as there is no chance of it going up once the amount is Become ed, or get that return for the work duly done.
Not so long ago, large investment houses with a proven track record of investing in equities and other safe and reliable funds and management teams were turning up everywhere, with the promise that cash would follow their investments. Now, they have been all but wiped out by this crisis.
So this all leads to this and the following. What is the best way to get people to put money in one place and forfeit it to the bank for zero gain? In my book, this is the time to create, or re-invent, a product that the general population learns to value. Put them in the right place, with, directly or indirectly, a touchy subject that involves some human or non-human subject but that is of some value for the consumer to them.