Why has no one used the term "Junk Bonds" when talking about the Housing Bubble Burst? - high yield junk bonds
From what I read, is a "junk bonds":
http://en.wikipedia.org/wiki/Junk_Bonds
"The holder of the claim is subject to the risk of interest rate and credit risks. The risk of interest rates is the risk that the value of a bond changes in value due to changes in the structure or the level of interest rates or credit spreads. The credit risk of a return above refers to the probability and probable loss of a credit event (ie, the reorganized debtor is in default on scheduled payments or bankruptcy, or the guarantee will be).
If this is not done, what in the 70's & 80's, where all pensioners have lost their savings?
How is it now sounds exactly like what happened, so I do not intend to use the terms or should we look for what they have learned in the past.
What I'm missing?
I want answers.
THIS IS NOT A PROBLEM operated THAT CAN NOT!
This report is not!
Thursday, January 14, 2010
High Yield Junk Bonds Why Has No One Used The Term “Junk Bonds†When Talking About The Housing Bubble Burst?
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2 comments:
It was about 50 years and Seen It All Before. I experienced a lot of bubbles bursting and does not change the truth. I pull the belt and lead a normal life.
Whenever the market falls, then it is a good buying opportunity. Now at a lower level is always a good investment. As they say, "there is never an ill wind blows no good will."
I was not in the 70 (or enough), I to know in the 80s can not really say. . . But what I understand our current situation does not seem as bad as at the time.
In fact, I think I heard the term "junk bonds" is used though.
The question now seems to be based on the timing of the two. First, set the values of the same houses after years of unsustainable increases
Secondly, kick mortgages with variable interest rates to higher rates.
In recent years, increases in home values, people could sell mortgages and take profits when their adjustable interest rates could footsteps, or simply because their home refinancing is worth much more than buying.
Well, some people are in a situation where yours if they do not have money for the loan (the selling price is lower) than the entire outstanding amount. For many, this is not a problem because they carefully planned, but for people who can not afford the new interest rate or refinancingE, or who can not afford to pay the balance of their loan in the event of a sale. . . are in trouble then.
It's really not that bad, but in my opinion - I believe that less than 5% of mortgages at risk at present. Those who suffer are the lenders (the money lent to people at high risk) and those who have mortgages that were too much for them to manage in the long term. People / addiction are now fighting not to blame but themselves for making stupid to make decisions and more risks than they could.
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