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Craig Custom Builders, Inc.
New Jersey custom home builder serving Bergen County, Morris County, Passaic County, and Union County.

Contractors Area: Northern and Central New Jersey 
Contact Information:
144 Oceola Road Wayne, NJ 07470 (973) 831-8988

Contractor Listing Details
From: Carpentry
Supplier Rating: 9.00 from 7 users
Member Since: May 10, 2006
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User Review:

By: Cancas
cf I don't think housing is the key, it is a part, but not the key. This will alywas come back to credit. There are a few points that everyone is in agreement. One big one is that credit is the lubrication of our Economy and if they banks would start lending, there would be some short term relief. The problem with that is no matter what the government do, the banks have one focus. They are in cash preservation mode. Even if the government buys all the MBS, the banks are just going to take that cash and sit on it. Libor and TED going up is the markets way of dealing with this crisis. It now costs companies more to service their debt and rollover if they can. Just like the towns and cities saw their debt servicing costs shoot up when the muni and ARS markets disappeared. If you need credit you are going to pay. Now some companies are going to be unable to survive with the higher costs. If they are already extended, they may top out and go under. That is the risk they take. We can agree that a Ninja loan going into forclosure is an accpetable conclusion. If you took on a loan that was too big for you on an ARM, you can't complain that you can't make the payments when the rates go up. Just like the homeowner, the business cannot complain that they can't afford the debt servicing just because they can't afford the nut.Banking is going back to basics. The first law of banking used to be' the easiest way to get a loan is to prove you don't need it . If I have 800+ credit and 20% down, I will get a mortgage, even in todays market. I may pay more, but I will get it. If I am a company, and I'm not over-leveraged, I will get the roll-over but it will cost.A company that is over leveraged will have to find some way to scale back or they will hit the wall. My last though is that the only way out of this is to let Libor, TED, FFR all go to double digits. It will hurt, bankruptcies will soar, but the high interest rates should restart savings. The government will need to backstop the slide with social programs to stop the chaos. While I understand this will be hard for some R's to swallow, that is the price that needs to be paid. The choice is do you want to pay it now or next year. Next years price will be higher. While some members of this board should look into cabins in Montana or compounds in Texas, there have been some relevant points leaking out among their doom and gloom. Just as you have had some good points while sometimes coming across as holding on too tight. I understand that you and others are feeling a lot of pressure. This place is a good place to let off steam, but we can't forget the fact, it is just a blog.
Date: Oct 5, 2012 | Contractors | Suppliers | Real Estate | Regional | Resources | Home Projects
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