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21.04.2009 (1124 Days Ago)
The Logic behind my blogs is to stimulate inlightened thinking on all levels of life.
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Economics and Finance
Economics and Finance
1124 days ago 0 comments Categories: Tags: money
O.K. everybody's worried about the economy specifically the housing sector. Here's a thought, Why don't a collective group of people buy forclosed houses for as cheap as possible (that way you make a profit), sell them to maybe a newly wed couple with good income, and put less pressure on banks to lend. 1.Think about it, you simply buy a house for less than market value say a $250,000 house for $30,000 and sell it for $100,000. A. It benefits you because you have just made a $70,000 profit. 2.The married couple only have to pay $100,000 for a house that would normally cost $250,000. B. That couple has just benefited because they have a house they have payed $100,000 for that will appreciate in value over time. 3.When it comes time for the bank to lend the money to the couple that takes pressure off of them because instead of turning down the loan because it's too much, now they can approve it because it's managable. C. The bank itself benefit because again that's taking pressure off of them to lend and with President Obama giving money to the banks like he is, this gives them added leverage to replenish itself. Basically, if you think about it, you have just reset the housing market and the whole process starts all over again.
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