Comments on: HELOC Heaven http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/ Keeping a jaundiced eye on the corporate media. Thu, 04 Dec 2008 21:34:44 +0000 http://wordpress.org/?v=2.6 By: Jamie http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-141266 Jamie Fri, 18 Apr 2008 23:56:25 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-141266 It's really interesting how much the HELOC situation has changed since January. Over 120,000 of those people you're writing about have had their lines canceled or frozen without any notice. Many people owe more on their home loans and HELOCs than they can get from selling their houses. It’s really interesting how much the HELOC situation has changed since January. Over 120,000 of those people you’re writing about have had their lines canceled or frozen without any notice. Many people owe more on their home loans and HELOCs than they can get from selling their houses.

]]> By: JJ http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135073 JJ Tue, 22 Jan 2008 02:40:41 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135073 Uh-oh, merciless, I already eat beans and ride buses. What now? Maybe I should get the old bicycle out, but I'm not as quick as I used to be, and the traffic is fierce here in NYC... Uh-oh, merciless, I already eat beans and ride buses. What now?

Maybe I should get the old bicycle out, but I’m not as quick as I used to be, and the traffic is fierce here in NYC…

]]> By: Frank http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135065 Frank Tue, 22 Jan 2008 00:24:17 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135065 I've been down the debt trail too. Something about four kids and college tuition . . . . I love resale shops. My house is full of used furniture which is better, more sturdy, more attractive, and way more full of character than anything that Raymour and Flannigan has. Most of my computers are used too. But, once I replace Windows with Linux, they just scream. And kids these days have too damned many toys. I say give 'em a cardboard box and toss 'em into the back yard. Merciless has a point about the economy. Since this country doesn't actually manufacture much of anything any more, consumer spending is the engine of the economy. If it drops and stay dropped, the economy is basically toast. And with health care soaking up more and more of everyone's disposable income, it's going to stay toast for a long, long time. I’ve been down the debt trail too. Something about four kids and college tuition . . . .

I love resale shops.

My house is full of used furniture which is better, more sturdy, more attractive, and way more full of character than anything that Raymour and Flannigan has.

Most of my computers are used too. But, once I replace Windows with Linux, they just scream.

And kids these days have too damned many toys. I say give ‘em a cardboard box and toss ‘em into the back yard.

Merciless has a point about the economy.

Since this country doesn’t actually manufacture much of anything any more, consumer spending is the engine of the economy. If it drops and stay dropped, the economy is basically toast. And with health care soaking up more and more of everyone’s disposable income, it’s going to stay toast for a long, long time.

]]> By: Bob Munck http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135064 Bob Munck Tue, 22 Jan 2008 00:18:48 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135064 HELOC is the logical equivalent of having your salary check on direct deposit, especially because people have been treating the rise in housing prices as INCOME. That's like two guys in a pit getting rich by selling each other their hats over and over. I'm not sure how you decide what level of lifestyle your income can sustain. Given that, the prudent thing to do is err on the low side, but that's hard. HELOC is the logical equivalent of having your salary check on direct deposit, especially because people have been treating the rise in housing prices as INCOME. That’s like two guys in a pit getting rich by selling each other their hats over and over.

I’m not sure how you decide what level of lifestyle your income can sustain. Given that, the prudent thing to do is err on the low side, but that’s hard.

]]> By: brendan http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135057 brendan Mon, 21 Jan 2008 21:39:24 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135057 When Sam was born and I had to retire some debt and buy a vehicle, I took out a HEL. Not a LOC, although my parents AND the bank encouraged that for the "flexibility" and the ability to just have it open for when I needed it. When the loan officer said that the rate was changeable subject to the market, that killed it. I took out a FIXED rate LOAN for what I needed and not a cent more. I'm still in debt to the credit cards (though it's a lot better and has taken a LOT of work), but I cannot understand how anyone with any sense would take out a LOC in the wake of the Bankruptcy Reform Bill. It's such an obvious and blatant con What's making me mad now is the bailout of the investors who lost their shirts, especially this idea to freeze their interest rates. FUCK that: they shouldn't be rewarded for trying to game the system when people like me played by the rules. I game the system too of course, but in reverse: instead of buying things I can't afford with money I don't have, I get it used or free from craigslist, or shop right after the holiday is over. Let me tell you, there were some bargains this year as the consumer confidence and spending went down the shitter. When Sam was born and I had to retire some debt and buy a vehicle, I took out a HEL. Not a LOC, although my parents AND the bank encouraged that for the “flexibility” and the ability to just have it open for when I needed it. When the loan officer said that the rate was changeable subject to the market, that killed it. I took out a FIXED rate LOAN for what I needed and not a cent more.

I’m still in debt to the credit cards (though it’s a lot better and has taken a LOT of work), but I cannot understand how anyone with any sense would take out a LOC in the wake of the Bankruptcy Reform Bill. It’s such an obvious and blatant con

What’s making me mad now is the bailout of the investors who lost their shirts, especially this idea to freeze their interest rates. FUCK that: they shouldn’t be rewarded for trying to game the system when people like me played by the rules.

I game the system too of course, but in reverse: instead of buying things I can’t afford with money I don’t have, I get it used or free from craigslist, or shop right after the holiday is over. Let me tell you, there were some bargains this year as the consumer confidence and spending went down the shitter.

]]> By: merciless http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135054 merciless Mon, 21 Jan 2008 20:45:56 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135054 Nearly everything in this economy is geared toward consumer spending. It's something like 70% of GDP (I think). Corporations make their money from manufacturing, distributing, and selling their goods to Americans, and the only way they can do that is to manufacture a need for Americans to buy. It's a constant drumbeat, aided and abetted by our criminal president and his administration. Yeah, I think it's stupid too. Will people learn a lesson from this? It depends on how hard the crash is. If it's as hard as I fear it's going to be, an awful lot of people are going to be learning how to cook beans and ride busses, who until recently ate filet and rode bmws. The depression of the 1930s certainly taught our grandparents (and some of our parents) a serious lesson. But hey, it's America! No one could have predicted! What could possibly go wrong? Nearly everything in this economy is geared toward consumer spending. It’s something like 70% of GDP (I think). Corporations make their money from manufacturing, distributing, and selling their goods to Americans, and the only way they can do that is to manufacture a need for Americans to buy. It’s a constant drumbeat, aided and abetted by our criminal president and his administration.

Yeah, I think it’s stupid too.

Will people learn a lesson from this? It depends on how hard the crash is. If it’s as hard as I fear it’s going to be, an awful lot of people are going to be learning how to cook beans and ride busses, who until recently ate filet and rode bmws. The depression of the 1930s certainly taught our grandparents (and some of our parents) a serious lesson. But hey, it’s America! No one could have predicted! What could possibly go wrong?

]]> By: Chris http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135052 Chris Mon, 21 Jan 2008 20:12:56 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135052 HELOC = Home Equity Line Of Credit HELOC = Home Equity Line Of Credit

]]> By: PSoTD http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135051 PSoTD Mon, 21 Jan 2008 20:07:54 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135051 which isn't a positive sign for the future. which isn’t a positive sign for the future.

]]> By: PSoTD http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135050 PSoTD Mon, 21 Jan 2008 20:07:11 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135050 <i>Do people really believe they “deserve” to live in luxury? </i> yes. Do people really believe they “deserve” to live in luxury?

yes.

]]> By: Izquierdo http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135049 Izquierdo Mon, 21 Jan 2008 19:55:47 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135049 Chris, you could also buy used beer as well. But what are HELOCs? I get the first three letters, but not the last two. Chris, you could also buy used beer as well.

But what are HELOCs?
I get the first three letters, but not the last two.

]]> By: Chris http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135047 Chris Mon, 21 Jan 2008 19:35:42 +0000 http://susiemadrak.com/2008/01/21/13/39/heloc-heaven/#comment-135047 Without used baby toys I'd never be able to afford my beer tab. Without used baby toys I’d never be able to afford my beer tab.

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