Trump: "Make A Deal With Your Lender"
***BREAKING ALERT*** - US Fed Adds Liquidity Again For 2nd Day To Help Ease Liquidity Problems. More to come soon.
A: Anybody else hearing this in their office right now? The Donald is on CNBC right now in a live interview pleading with Bernike (thats how he pronounces it) to lower interest rates RIGHT NOW or else people will lose their homes. He admits that Manhattan real estate is still red hot, and that the best thing for people in trouble to do is to call their lender and make a deal. He has a point, only one agreeable point though in my mind.
Trump Says:
If your having trouble with your loan, DONT LEAVE, FIGHT LIKE HELL, call your lender and negotiate with them and you very well might get a better deal than you originally had. Lenders do NOT want to take your home and hold it for 5 years!WATCH THE DONALD LIVE CALL HERE ON CNBC
I agree with The Donald that every troubled homeowner should absolutely call their lender, explain their situation, and work with them in any way possible to re-negotiate either the rate or the payment schedule to avoid foreclosure. The banks do not want to take your home away as that costs money and given the current housing market across the nation, they know it will be hard to sell in a timely manner.
I also agree with The Donald that Manhattan is holding up very strong with tight inventory, still plenty of buyers (although I'm seeing a psychological effect sinking in right now given the headlines in the media), foreign buyers/demand, and super low rental vacancy rates. Manhattanites need a home and rental rates have skyrocketed making buying more attarctive; except there is very little product out there!
However, I disagree that the fed should jump in right now and cut rates aggressively! Provide liquidity like other banks are doing, but don't cut rates! If they do act aggressively and cut a whole point, as Donald suggests, that will really SCARE the markets! Ultra loose monetary policy led us into this mess, not at least let the markets correct themselves; we are 700 points or so from record highs for gods sake! What happened to us all!!
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Comments (3)
ok, so this is interesting we have many people calling for a rate cut. These are some very experienced people (The Don and The Kramer) that are begging for this. I dont know whether to be scared or skeptical???
Posted by justin williams | August 10, 2007 2:15 PM
hard to either way...if this doesnt infect global growth, it will go away after 6-10 months or so as the markets reprice themselves.
However, if it hits globally and slows down economies, this will be more painful and will last longer than anyone is willing to admit,.
Posted by Noah | August 10, 2007 2:28 PM
In a next few months, we would know if indeed Manhattan is a different market, literally and figuratively an island in a swirling sea of real estate crisis.
Posted by Bobby | August 10, 2007 7:57 PM