Tim wrote:
On Dec 6, 12:51 pm, BAR wrote:
Eisboch wrote:
"JohnH" wrote in message
...
On Sat, 6 Dec 2008 11:30:04 -0500, "Eisboch" wrote:
"D.Duck" wrote in message
...
I'm pretty much in the same position. I haven't had a loan payment in
over 20 years (FICO now 800+) and hopefully won't need one again in this
lifetime. For those that will need credit, the extra baggage on the
credit report won't help.
The last credit report I read indicated that my score was not as high as
it
could be because I didn't have a mortgage.
??????????
I am like you and JohnH now. Now that I don't need it, I have all kinds
of
credit available and I don't use any of it.
But, I also remember that it took me 10 years to pay off a small balance
on
a stupid Hechinger's credit card that I had back in the Navy. Every penny
counted for many years.
Eisboch
For me it was Sears, and a wife who couldn't control herself.
--
John H.
Do they still have Hechinger's around that area? It was sorta like a
hardware/mini Lowes type place back in the late 70's.
As soon as Home Depot opened up Hechinger's got real friendly and
helpful but it was too late. Hechinger's had been mistreating their
customers for too many years. The closed within a couple of years.

They're still around, though

http://www.hechinger.com

Looks like it is just a web presence.

On Dec 6, 2:49*pm, BAR wrote:
Tim wrote:
On Dec 6, 12:51 pm, BAR wrote:
Eisboch wrote:
"JohnH" wrote in message
...
On Sat, 6 Dec 2008 11:30:04 -0500, "Eisboch" wrote:
"D.Duck" wrote in message
news:MfydnY_pe9XYGafUnZ2dnUVZ_o3inZ2d@giganew s.com...
I'm pretty much in the same position. *I haven't had a loan payment in
over 20 years (FICO now 800+) and hopefully won't need one again in this
lifetime. *For those that will need credit, the extra baggage on the
credit report won't help.
The last credit report I read indicated that my score was not as high as
it
could be because I didn't have a mortgage.
??????????
I am like you and JohnH now. * Now that I don't need it, I have all kinds
of
credit available and I don't use any of it.
But, *I also remember that it took me 10 years to pay off a small balance
on
a stupid Hechinger's credit card that I had back in the Navy. *Every penny
counted for many years.
Eisboch
For me it was Sears, and a wife who couldn't control herself.
--
John H.
Do they still have Hechinger's around that area? * It was sorta like a
hardware/mini Lowes type place back in the late 70's.
As soon as Home Depot opened up Hechinger's got real friendly and
helpful but it was too late. Hechinger's had been mistreating their
customers for too many years. The closed within a couple of years.

They're still around, though

http://www.hechinger.com

Looks like it is just a web presence.

you mean like no brick n' mortar, box type stores?

Only web purchases?

"Eisboch" wrote in message
...
Help me out here.

I hear the economy is frozen. Banks won't lend. No mortgages. Hoarding
their bailout money.

Yet, virtually every commercial break on MSNBC or CNN features at least
one pitch from a major bank or a mortgage company (Ditech comes to mind,
which is a GMAC subsidiary) offering low interests mortgages, loans and
"we have money to lend" announcements.

So, why aren't they lending? Seems to me that this would be an ideal
time for people to re-finance for lower rates, etc.

Economics confuses me.

Eisboch

They are looking for AAA credit. If I have a 300 score loan for $20,000, if
I can get a 900 score new loan for $20,000 I can say the average is 600 for
$40,000. Repackage and send the debt to the markets needing a minimum of
say 500.

Low end debt isn't moving. But say you own your own home and have cash, no
problem.

And they now have lots of cheap money to lend courtesty of future currency
devaluation. A smart person has to ask and evaluate the possible affects of
fiat money, inlfation and future interest rates. Plus the Fed might drop
interest rates to zero. Makes a nice spread if you pay 5% and the
government will bail them out.

"Wayne.B" wrote in message
...
On Fri, 05 Dec 2008 13:10:55 -0500, "Reginald P. Smithers III, Esq."
wrote:

Yes, it had to do with packaging bad loans with a high probability of
default, the loans I mentioned above. Those investment instruments
would be a great investment, if the loans were going to be paid, or they
could recoup the money in foreclosure. neither can be done, when there
is no down payment, and the mortgage was for more than the home was
worth. Home loans have been packaged as investments for over 50 yrs,
and probably much longer, and were considered a fairly safe investment,
when we used reasonable criteria for determining who would get the loan.
Once Fannie Mae said, guaranteed that they would buy and resell the
loan, regardless of risk, it opened the flood gates for all banks and
mortgage companies to disregard the ability of the person to repay the
loan.

The problem was that the demand for packaged loans became almost
infinite as people discovered the so called "carry trade" which used
inexpensive borrowed money from Japan to buy high yielding bonds. It
was almost a license to steal limited only by the supply of bonds to
invest in. Packaging and selling these bonds was also highly
profitable to the investment bankers. Mortgage brokers sprang up on
every corner to help meet the demand, and the money was flowing like
water to anyone who wanted to buy a house or speculate in the housing
market. That pushed up real estate prices across the country
creating the bubble which eventually broke as all bubbles must.

The rest is becoming history.

Well put. But I might add a blurb on how because the the government
controls interest rates there is no counter balance towards infinite debt.
When the market ran it, if borrowers exceeded savers, the rates went up
encourgaing savings. If borrowers paid debts down then rates would go down
for savers and allow inexpensive debt. Eventually finding a long term
stable rate that encurges more equity savings, real wealth that is.

Government, was it Carter? Broke this mechanism some years ago.

"Wayne.B" wrote in message
...
On Fri, 05 Dec 2008 15:00:18 -0500, Tom Francis - SWSports
wrote:

Go get a car loan from a bank with a 720 credit score.

Go ahead - I'll wait.

Might depend on who made the car.

Hahaha. Quite true. 4 year loan, warranty and union issues, GM goes under
and tranny is fried....not good news.

Good point. Back to the good old days where risk is factored in. The way
it should be.

On Sat, 6 Dec 2008 16:45:36 -0400, "Don White"
wrote:

i love the smell of 2stroke in the morning.
/snip

Although, I do not care much for the smell of that racing fuel they
use at the events.

My race car burns methanol and with 20 cars guzzling it at a rate of
100 gallons per hour, the formaldehyde will make your eyes water.

Casady

Tim wrote:
On Dec 6, 2:49 pm, BAR wrote:
Tim wrote:
On Dec 6, 12:51 pm, BAR wrote:
Eisboch wrote:
"JohnH" wrote in message
...
On Sat, 6 Dec 2008 11:30:04 -0500, "Eisboch" wrote:
"D.Duck" wrote in message
...
I'm pretty much in the same position. I haven't had a loan payment in
over 20 years (FICO now 800+) and hopefully won't need one again in this
lifetime. For those that will need credit, the extra baggage on the
credit report won't help.
The last credit report I read indicated that my score was not as high as
it
could be because I didn't have a mortgage.
??????????
I am like you and JohnH now. Now that I don't need it, I have all kinds
of
credit available and I don't use any of it.
But, I also remember that it took me 10 years to pay off a small balance
on
a stupid Hechinger's credit card that I had back in the Navy. Every penny
counted for many years.
Eisboch
For me it was Sears, and a wife who couldn't control herself.
--
John H.
Do they still have Hechinger's around that area? It was sorta like a
hardware/mini Lowes type place back in the late 70's.
As soon as Home Depot opened up Hechinger's got real friendly and
helpful but it was too late. Hechinger's had been mistreating their
customers for too many years. The closed within a couple of years.
They're still around, though
http://www.hechinger.com
Looks like it is just a web presence.

you mean like no brick n' mortar, box type stores?

Only web purchases?

Yes, no snotty people to not greet you and not help you when you walk in
the door.

Richard Casady wrote:
On Sat, 6 Dec 2008 16:45:36 -0400, "Don White"
wrote:

i love the smell of 2stroke in the morning.
/snip

Although, I do not care much for the smell of that racing fuel they
use at the events.

My race car burns methanol and with 20 cars guzzling it at a rate of
100 gallons per hour, the formaldehyde will make your eyes water.

Casady


Don's a pussy.