Monday, September 15, 2008

Whoaa!!

The crumbling economy is freaking me the hell out. I feel like we are standing in the middle of a rope bridge over a chasm. At the bottom: a roiling river filled with snakes and large jawed flesh eating things. We have started on our construction process but when we are done we must convert from a construction loan to a traditional mortgage. With all the big players falling into ruin what is going to happen to interest rates between now and then? What if they shoot sky high like they have in the past and push us beyond our means? Since the bottom has fallen out of the housing market, if that happens we would not be able to sell the house (not that we would want to) and we would end up another foreclosure casualty. I try not to think thoughts like this too often but when I log on in the morning and the first thing I see is that Merrill Lynch is biting the dust it gives me heart palpitations.

3 comments:

Nathan said...

Be afraid, be very afraid. If you need some additional help being afraid, go the Shantel's blog and listen to the scary music while reading the financial page.

NC

Pioneeress said...

Be just a little afraid, not very afraid. This is the United States of America after all and I think she is very strong. After the election I guarantee things will go Northwards no matter who wins. That's the classic cycle. (In fact being that there is no incumbant in this election BOTH sides benefit from encouraging panic about the economy and saying they'll make it better. Bush did the same thing 8 years ago). A big part of the economy is based on sentiment--the markets, spending...and there's going to be an upsurge of optimism once the old guard steps down. Remember the people who bought in the 90s were dealing with 11-14% rates and they got by. I feel quite confident that they won't go much over 7% this year. It's not like you guys have been crazy extravagant. You're recycling a house for goodness sake! And both you and Matt have been employed for years you both have rock solid credit ratings. Our loan two months ago was a breeze. On the other hand my newly Dentist brother had a CRAZY hard time finding a loan because he didn't have any pay stubs. Took three months to close and a creative lender. You guys are not in that category. The market's rough for newbies and people with bad credit.

Anonymous said...

I'd be curious what you think about this youtube video on this subject: http://www.youtube.com/watch?v=H5tZc8oH--o