Could mortgage rates drop to zero?

Actually, poster UVUVUV is not certifiably insane, just an ObamaCrat.  Basically, it's the same thing.  More free handouts for everybody.

there is a good solution for solving mortgage crisis. i know it sounds lame but if everyone does the math right and understand few suggestions as i write below it may be the key to getting us out of the mess.

   every state has powerball and lotto. let the states do the inventory of all the foreclosed houses and defaulted houses.

instead of giving money to the winner, give them the house paid off by the proceeds coming from lotto collection. every saturdays and Wednesday drawing they will be giving two houses a week to who wins the lotto. and use the collected lotto money to pay down the price of the house.

   right now money is rewarded in millions to whoever wins. so instead of giving money give houses free.

   this way it will move the housing industry statewide and all the debt will be paid and revive the housing and construction nationally.

The federal reserve bank is to blame for all this economic downturn. they play with interest rates and GDP to predict how the nation is doing economically. looks like they need to change how interest rates are set.

   by lowering value of dollar, it makes us compete globally with other nations. but there is only difference, all the third world countries have become better at managing their currency. they play the same game plan as fed's play.

    china, india are raising their interest rate. they have the biggest middle class society, where demand is more for goods. they have more growth in every sector you can imagine. we can only sell products to those countries if they

buy our own manufactured goods. which is not happening.

  next step was increasing tariff on all products coming from there. consumers in USA is paying more for it. the cost of tariff is passed on to consumers, since they sale in huge volume still they make profit. in past we had used dollar as huge leverage against third world countries, looks like they

seem to adapt well and keep their economy growing.

 They are dumping dollars and buying gold. looks like gold standard is coming back. nations are fed up with currency manipulation. worldwide all the currency are loosing value. that is why gold is going up. nationally for a trade to happen it will be only gold which will change hands. currency will fade.

  we need to fix the nations rate permanently, since its not doing any good. if we change rates to lower the value of currency, we are digging a huge hole which will drag us down.

  i think it is time that we use our own resources and not rely on oil and products from other countries. we have enough educated people. like china the federal reserve will have to  back up all the small businesses financially. so we can become strong. subsidize small businesses. small businesses hire 60 percent of the workforce. they use their own capital to be efficient without any ones help. now its the fed's who has to back them financially with lending capital with zero interest. for businesses to survive they need backing of fed's at every level. china is getting stronger in manufacturing since it is run by chinese government backing. we should do the same thing and make our nation strong. this should be done nationwide so we become competitive.

 looks like with old way we are hurting ourselves. businesses are failing because we cant compete globally. but with fed's backing with capital we will be able to achieve this goal and move the economy out.

I will give you one simple reason that 0% (or something near it) will NEVER happen: there is no profit in it. No lender would lend with no credit spread for 15, 20, 30 year long terms.

 

The only reason that 0% loans exist for cars is that the manufacturers subsidize the cost of the loan to sell cars.

 

kmd511 - Obama announced that the recession officially ended in June 2009.

Whatever the interest rates turn out to be, I recommned that you not do buisness with Wells Fargo. They insert terms into agreements that are unfair and have no sympathy at all to the negative impact they have on customers. Do not do business with WELLS FARGO>

As a homeowner who faithfully pays their mortgage every month I would prefer some help for current homeowners. There is no way I could refinace because my home is under water. If they did something for people who are struggling but still barely are making it, like adjust principal to refect the actual value of a home, I think that would greatly help the economy. I can look around my home and see atleast 10 things I want or need to have done or purchase for my home but simply can not afford. If there was something to help people like me, like they help banks, auto industries, etc. I would gladly be spending some of that extra money to help the economy. But as long as my home price drops, my bills increase, and job security is an issue, and there is no type of help in sight for me,  I will be holding on to every extra cent I get, which is not much.

It is almost like saying, hey, you are working hard, busting your butt to just get by, good for you, you get nothing. But let's make it easier for others, or help people and businesses who made bad decisions.

The only people who can qualify for homes now probably already have one or several.  We are becoming a serf society as in the days of old in Ireland where the landowners were wealthy and the peasants rented their homes.  That's what is happening en-masse across America.  Instead of banks dealing fairly with home owners and modifying or refinancing their loans with the bail-out money they were given they are just hoarding it.  The ones who are buying houses are investors who are then renting them out.  That has always been, done nothing new and there is a place for it.  But when the trend of the entire American housing market is going towards creating a ruling class over over-lords who own most of the homes and the average joe being forced into the role of a serf.  We've gone back to the bad old days of the pre-1900 Ireland where we are nothing but white slaves working to make the fat cats richer paying their low mortgages because the banks stonewalled the refinancing of our impossibly high ones.

"In theory, the only stopping point there is 0%"

Zero percent is not good enough for me.  I want to be paid 5-10% interest..

Where exactly is the money coming from that banks are lending?  Nobody's putting money in CD's at 1% interest.  Maybe we should raise interest rates, but make all existing mortgages fully assumable.  This may be the only incentive people have to NOT walk away from underwater mortgages.