{"id":4520,"date":"2008-09-19T06:00:15","date_gmt":"2008-09-19T13:00:15","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4520"},"modified":"2008-09-18T22:55:10","modified_gmt":"2008-09-19T05:55:10","slug":"how-wall-streets-meltdown-helps-main-streets-housing","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4520\/how-wall-streets-meltdown-helps-main-streets-housing\/","title":{"rendered":"How Wall Street’s Meltdown Helps Main Street’s Housing"},"content":{"rendered":"

Just for fun, let’s imagine a possible silver lining to the complete melt down on Wall Street.\u00a0 In this scenario, the next big shoe to drop will be access to consumer debt.\u00a0 No one is going to extend car loans, credit card debt, retail debt and so on.\u00a0 But this may not be all bad for our<\/em> industry.<\/p>\n

Imagine John & Mary Homeowner talking about their day.\u00a0 John says gas prices are up and his long commute is killing them.\u00a0 They need to buy a different car.\u00a0 “But no one is lending money for new cars,” Mary replies.\u00a0 John decides that if he can not have a better ride, he will have a better destination.\u00a0 “Let’s add on a nice deck for me to enjoy after my long commute.”\u00a0 Mary smiles pleasantly and reminds John that no one will extend an equity line for home improvement.\u00a0 Exasperated, John suggests they just buy a jacuzzi and settle for some easy relaxation.\u00a0 But Mary points out that no store is offering credit, so large purchases are largely impossible.<\/p>\n

What do you suppose John and Mary do?\u00a0 What about next Sunday, out for a drive, when they see a nicer home, closer to work, with more square footage – and they realize they can own it for the same payments they are making now.\u00a0 What happens when the only money available is purchase money?<\/strong> Thanks to Fannie & Freddie (and FHA, VA) home loans will be plentiful while every other kind of debt will disappear for a while.<\/p>\n

Supply and demand… the meltdown might be just what we needed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Just for fun, let’s imagine a possible silver lining to the complete melt down on Wall Street.\u00a0 In this scenario, the next big shoe to drop will be access to consumer debt.\u00a0 No one is going to extend car loans, credit card debt, retail debt and so on.\u00a0 But this may not be all bad […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,26],"tags":[],"class_list":{"0":"post-4520","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-casual-friday","7":"category-lending","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1667,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1667\/the-800-pound-gorilla-in-the-corner-the-meltdown-of-the-wall-street-mortgage-market\/","url_meta":{"origin":4520,"position":0},"title":"The 800 pound gorilla in the corner – the meltdown of the Wall Street mortgage market","author":"Morgan Brown","date":"July 16, 2007","format":false,"excerpt":"As we go about our daily lives in the mortgage and real estate world; dutifully performing our job functions and taking the high road of customer enlightenment via blogs such as Bloodhound; we are faced with a very large gorilla looming in the corner of our workplace. That gorilla is\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1747,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1747\/the-mortgage-tax-act-of-2007\/","url_meta":{"origin":4520,"position":1},"title":"The Mortgage Tax Act of 2007","author":"Brian Brady","date":"August 5, 2007","format":false,"excerpt":"Michael Cook did an excellent job explaining the two noteworthy debacles of last week. American Home Mortgage went belly up and Bear Stearns may be downgraded to a negative rating. Thursday afternoon, Angelo Mozilo of Countrywide Financial, did his best Nero impression by muttering two words to analysts; \"Don't Worry\".\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4588,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4588\/wall-street-bailout-plan-to-include-more-than-bad-mortgage-debt-feds-to-absorb-unpaid-bar-bets-inadvertently-laundered-postage-stamps-unredeemed-soda-cans-and-insufficient-tooth-fairy-disbursements\/","url_meta":{"origin":4520,"position":2},"title":"Wall Street bailout plan to include more than bad mortgage debt: Feds to absorb unpaid bar bets, inadvertently laundered postage stamps, unredeemed soda cans and insufficient tooth-fairy disbursements","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Totally absurd? Think twice:In the dark of night over the weekend when most people were snoozing, the Treasury dramatically expanded its bailout plan to include buying student loans, car loans, credit card debt and any other \"troubled\" assets held by banks. The changes, which were included in draft language that\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4582,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4582\/bloodhound-blog-radio-interviews-matt-padilla-author-of-chain-of-blame\/","url_meta":{"origin":4520,"position":3},"title":"Bloodhound Blog Radio Interviews Matt Padilla, author of Chain of Blame","author":"Brian Brady","date":"September 22, 2008","format":false,"excerpt":"We interviewed Matt Padilla, author of Chain of Blame- How Wall Street Caused the Mortgage and Credit Crisis.\u00a0 This book, released in May, 2008, details a history of non-prime lending, the S&L crisis, securitization of mortgages, and what went wrong. Download and Listen to the 45 minute interview here An\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4576\/what-happened-fannie-mae-and-freddie-mac-exploded-and-many-bystanders-were-injured-in-the-blast-some-fatally\/","url_meta":{"origin":4520,"position":4},"title":"What happened? “Fannie Mae and Freddie Mac exploded, and many bystanders were injured in the blast, some fatally”","author":"Greg Swann","date":"September 22, 2008","format":false,"excerpt":"Things fall apart: Kevin Hassett at Bloomberg.com is getting death threats over this news analysis:The financial crisis of the past year has provided a number of surprising twists and turns, and from Bear Stearns Cos. to American International Group Inc., ambiguity has been a big part of the story. Why\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4828,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4828\/and-now-no-reason-to-root-at-all\/","url_meta":{"origin":4520,"position":5},"title":"And Now, No Reason to Root At All","author":"Sean Purcell","date":"October 6, 2008","format":false,"excerpt":"Last week, while watching the House contort itself in a self-serving round of navel-gazing over the bailout package, I pondered two connotations of their disconnect with the populace.\u00a0 Taken together they are a question really, that looks at the motivation behind politicians' decisions; the metaphysical understanding of a Representative if\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4520"}],"version-history":[{"count":7,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4520\/revisions"}],"predecessor-version":[{"id":4529,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4520\/revisions\/4529"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}