Dow Drops by 777 points...WHO'S FAULT IS IT?

[Matt Gerchow]

"Democrats say that its the republicans fault that we are in this mess, and now they are not manning up to help fix it"

"Repiblicans say its the democrats fault because Nancy Pelosi's speach went too far on the political retoric"

"Main St, is blaming Wall St, and Wall St. is blaming congress...

Does anyone have any thoughts on this?

[John Schroeder's RealProspect Software]

This is a big mess that seems to stem from laxed regulations that were put in place in the last administrations term, but obviously Wall St. is the ultimate at fault for allowing too many high risk mortgages to be sold. But then again, so is Main St for extending themselves out and buying more than they can afford.

In any event, its a major problem. If action is not taken by the Govt to solve this problem, this could be a MAJOR problem for financial markets and could cause the Worlds first global recession. There is no historical data to go back and look at to determine how to play this one.

Scary times. While I originally thought 4 months ago we were close to a bottom of all this, now I realize that next year could be much worse than this year considering the markets lead the economy by about 6 - 12 months. What happens today doesnt actually effect the economy for several months later... it takes time for good as well as bad events to trickle down to Main St.

The upside is that now is the best time in almost 20 years to buy real estate, especially with creative terms like seller financing, and agreements for deeds, etc. There are lots of opportunity here, its just tough to find the right time to get in.

[Leasingoptions]

You know these big banks / lenders who lend wholesale funds to little banks on handshakes and no real assets are the ones to blame. They were financially flawed to lend money business-wise, but to lend to people who had no real way of repaying the money lent, was irresponsible and plain stupid.

Also, the government adding more money to the situation, why don't they give everyone half a million dollars. This way they are really devaluing the economy! Instead of helping out big end of town!
LO

[Hassan Omar]

it's partially my fault because when I first got into real estate investing I didn't know what I was doing and took on too much, causing me to default on some loans and credit cards. I apologize and promise not to do it again.

[Matt Gerchow]

Wow! What an honest answer.

How refreshing is that. Welcome to the site. Thank you for all of your participation.
Shoot me a PM if you want to work on some cross-promotion.

Matt

Hassan Omar said:

it's partially my fault because when I first got into real estate investing I didn't know what I was doing and took on too much, causing me to default on some loans and credit cards. I apologize and promise not to do it again.