I have a niece who spends more then she makes. Is always in debt. Never saves for retirement. Designers things was only things she use to buy. She has gotten to the point she is going bankrupt. The last time I tried to help was over a year ago. I offered to refinance her mortgage, and pay off her credit cards, and get her up to date on her 2 car payments. It was going to cost 12,000. And her monthly bills would go down by 0. After paying one car payment, of close to 0 she said she did not want to refinance her house, and just wanted the money to pay off her credit cards. Which would only lower her monthly bills buy 0. That is not good financing. I said no. And since then I have not given any more money. Except for a small gift, for birthday, or now Christmas.
The problem now is she is mad at me because even though money is tight, I have given a few hundred to charities this year. And I signed up for 0 to my church to buy a gift for needy kids for christmas. I usually give to kids under 12yrs old and for the older older kids. My niece is mad that I most likely be giving more to a stranger. By the way I have forgiven over ,000 in loans in the last 10yrs

Am I wrong.
I am an uncle not a aunt. But thanks for the support. I get weak every few months and feel guilty. Thanks for making me strong again.

First wave of sub-prime mortgage defaults over.

Second wave of mortgage defaults coming now to higher quality credit risks. These are people who have bought homes in the last five years and who have taken out home equity loans. Mortgages now going under water owe more than house is worth. This wave of defaults will take upwards of 10 to 12 months to clear.

Third wave of mortgage defaults due to begin this year and continue through 2011 are Option Arms and Altay; as payments are automatically resetting to higher rates. We saw some fail last month because of a 3% rate hike, next month is the beginning of the end as rates start to climb even higher.
Estimated – 8 million defaults in next four years.

As if this is not enough we have the next huge failure to come in the commercial real estate market, that will make the sub-prime fiasco look like kids play!

Then comes credit cards and auto loans in the end.

There is a " Term Asset-Backed Securities Loan Facility " whichi is supposed to " get credit flowing more normally again," It is for a trillion in lending for households and businesses, especially commercial real estate which is not doing so well lately

"Under the program, which got off to a slow start in March, the Fed provides loans to investors. They use the money to buy newly issued securities backed by auto and student loans, credit cards, business equipment, commercial real estate and loans guaranteed by the Small Business Administration."

Do you think this will get us out of the recession, or do you think it will get us into deeper trouble?
http://news.yahoo.com/s/ap/20090925/ap_on_bi_ge/us_bernanke

1 Funds cannot be removed from this savings account until the end of a certain period of time
2 A type of loan used to buy real estate
3 The amount borrowed in a loan
4 The largest source of income for banks
5 Provide the most services and play the largest role in the economy of all types of lending institutions
6 Requires customers to use a PIN
7 Institutions that give installment loans to consumers
8 A feature of modern banking that allows you to transfer, deposit and withdraw money 24 hours a day
9 Type of bank which originally introduced NOW accounts
10 A banking system that only keeps a portion of the funds on hand and loans out the remainder

A. Fractional Reserve Banking
B. Principal
C. Automated Teller Machine
D. Debit Card
E. Commercial Banks
F. Savings Banks
G. Federal Reserve System
H. Credit Cards
I. Default
J. Stored Value Cards
K. Mortgage
L. Money Market Mutual Funds
M. Finance Companies
N. Interest
O. Certificate of Deposit
I think 3 is B and 6 is D

1 Funds cannot be removed from this savings account until the end of a certain period of time
2 A type of loan used to buy real estate
3 The amount borrowed in a loan
4 The largest source of income for banks
5 Provide the most services and play the largest role in the economy of all types of lending institutions
6 Requires customers to use a PIN
7 Institutions that give installment loans to consumers
8 A feature of modern banking that allows you to transfer, deposit and withdraw money 24 hours a day
9 Type of bank which originally introduced NOW accounts
10 A banking system that only keeps a portion of the funds on hand and loans out the remainder

A. Fractional Reserve Banking
B. Principal
C. Automated Teller Machine
D. Debit Card
E. Commercial Banks
F. Savings Banks
G. Federal Reserve System
H. Credit Cards
I. Default
J. Stored Value Cards
K. Mortgage
L. Money Market Mutual Funds
M. Finance Companies

I just read the entire text of President Bush’s address last night and I grade his effort "D" at best. He did not make the case that needs making.

Here’s the real skinny and what I think President Bush should have said and one —

My Fellow Americans:

The annual yield on treasury bills fell yesterday to 44 basis points. at times yesterday, it was negative. This shows that companies and people with more money than FDIC insurance covers aren’t willing to deposit it at the banks, nor are they willing to buy commercial paper with it.

Without funds from deposits or commercial paper, the banks don’t have the money to make ordinary loans to their regular customers, even if the regular customer’s credit is good. I’m thinking of the local grocery store that borrows on Friday to pay their employees and repays the bank each Monday from the weekend’s receipts.

Without funds available to the banks, they can’t make even good loans to regular customers.

Many people think the bank’s executives and managers should be fired for making all these bad mortgage loans and thus they want to deny this bailout program until the banks are being run better.

America does not have the time to wait for that to happen.

Booting the bank managers would require us to let the banks fail first. It is illegal to simply take over the banks unless and until they stop functioning.

If the banks stop functioning, America’s payments mechanism would stop.

That means that your credit cards, your debit card, and your atm card would not work. No one would take your check because they couldn’t know if your bank will be able to pay it tomorrow.

If that happened, you would not be able to buy groceries or gas or anything unless you had actual cash. This would cause the total volume of sales to plunge, perhaps to only 1/3rd or less of regular levels.

And then employees would be laid off, and every business that couldn’t withstand a huge decline in sales would go bankrupt.

If you and your extended family has four workers in all, I’m talking about one of them losing his job and a second being told her wages are now 1/3rd less than what they were, or she loses her job too.

This is what we must prevent — America’s payments mechanism must continue to operate.

If this means that we have to accept that some executives and managers who deserve to lose their jobs get to keep them because they are also the payments mechanism, that is a price we simply have to pay.

Loans whose value is unknown must be reduced to less than the amount of capital each and every bank has on hand. Since the financial markets have already shown that they will not provide more capital to the banks, someone has to remove the questionable loans from the banks’ assets.

This is what the program my administration has proposed will do.

And the only entity with enough size to do that for the entire economy is the Federal government.

To make sure there is enough time for Congress to act, I have asked the Securities and Exchange Commission and Federal Reserve to immediately declare a banking holiday. They have agreed to do this.

All banks, stock markets, futures markets, stock brokerages, and similar enterprises all across America will be closed tomorrow. They’ll stay closed until Congress acts.

It is very likely that your credit cards will not work tomorrow. Your debit cards and atm cards probably will not work either. And stores may refuse to take your check.

Banks and markets will re-open when there is reasonable assurance for their depositors and ordinary creditors that these weak assets will not cause the banks to fail and take away their deposits and short term lendings.

Our prayers are with America tonight and every night,

thank you and good night.

***
Well, that’s what I think the President should have said and done –

what’s your opinion?
I started working in banking in 1970. along the way, I earned MBA and CPA. I’ve seen economic booms and busts related to real estate lending since my first bust in 1973.

This is by far the worst situation since then.

I am a teacher who ended up bad credit after borrowing money for college and with the expenses of my child. I have steady income.
I need some money to pay off some bills(credit cards,loans, other stuff about a ,000 debt. I own some inherited commercial property that is worth about 25-30 thousand dollars. I want to remodel the old house on it but I don’t have the cash. Also I would like to borrow some money on the place to pay off some bills. I am more than 6 months behind on a lot of my bills. Is it anything that I could do to get some money with bad credit. I have owned this place for 3 years but can’t earn any profits off of it because I don’t have any money to invest in it. The property is in North Mississippi in a very good location of business.

Also I would like to know what type of loan do I say that I need?
Th property has never had any liens on it.

Any advice would be appreciated!
My income is less than 33,000

Looking in the neighborhood of 750k – 1.5 million dollars… Assuming the only thing you have to liquidate any assets from would be the home and 401k what are other options where this level of funding could be acquired (DO NOT INCLUDE credit cards or venture capitalists in your responses) ?

I need answers that speak towards women and minorities seeking loans to acquire commercial property.

Thanks!

I currently have four business accounts (Dell, Staples, Office Depot and Exxon). I would like to get a business line of credit or credit card without a personal guarantee, so I can eventually have a business profile under my company name. All of my credit cards are in good standing. But I don't want to have my personal debt tied in with the business debt.

I keep getting offers from Advanta but they ask for the Social Security Number for the business owner. Where can I go to get business credit solely based on the company's Tax ID Number? All of the other credit card accounts were obtained this way.

Do you have any suggestions?