Pay no attention to that man behind the curtain… says the mighty OZ to Dorothy.
Who is that man behind the curtain? By now everyone who is not a member of the media/government class knows there is no one behind the curtain and we are on our own. Rationalizing your life style is not what corporations want. They want you to spend and buy in a credit less economy.
Banks are making money and its almost impossible to get a loan for a home. How is this possible?
This morning I did get a home loan, but as an investor not as a homeowner. I wasn’t exactly planning to buy as an investment, I was trying to buy a smaller home to move down.
I found a home that needed to be gutted and rebuilt, but that fit our near and far term needs better than our present larger and more expensive home. This morning I discovered that moving down market is considered an INVESTMENT move and not subject to the tax credits you get for moving to a new home, which only apply when moving up in price. In addition the term rates and down payments etc are higher for investment mortgages than owner occupant purchases.
I am pretty sure that I won’t get to buy this gut and remodel unit because of other bidders, but who knows? Now I have credit to buy another property in the near future if we find one that suits our needs.
The point of the matter is that everything the government, banks, financial institution and wall street are doing is an effort to rebuild a “consumer” economy.
I am pretty certain that without credit, consumer capitalism is dead in the water, so don’t count on either the Mighty Oz or the man behind the curtain, neither of them have a clue whats going on on Main Street..