The big R

Do you honestly think if oil dropped this would all go away? How do you explain avg. credit card balances jumping $2000 since credit tightend 6 months ago? The analyst say it happened because people were robbing peter to pay paul because their number one asset devalued. Also how do you explain the PNW not being hit buy this bug since our gas prices are among the higest in the US?. Home values are strong here comparesd to the rest of the US. Not to worry we always lag by 6 motnhs to t year and stay down longer.

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I think that there is a problem with perception versus reality. I also think that all the talk of recession has taken the place of doom and gloom in Iraq. Do I think that if oil dropped this would all go away? Not all, but it would have a very good effect on the national economy. As for credit card balances jumping, I don't know about everyone else, I can only relate how that effected me. I have a Capital One card and have had it for around 6-7 years. This card balance was typically fairly low but last summer the wife's transmission went out and we had a clothes dryer failure so there was a higher balance then normal. During the initial credit crunch C1 raised the rate from 9.9 to 15%. I got on the phone and told them that if they didn't return my rate back to 9.9 I would transfer the balance. They changed it immediately because I have a good credit rating and a good track record with them. I realize a lot of people don't have that option but just raising the interest percentages would contribute quite a bit to the raising of balances. Also the holiday season has something to do with the average balance climbing also. And finally, yes there are quite a few people that have used their homes as ATMs but there isn't much that can be done about that.

As for why the PNW hasn't been hit harder, I only have a theory or two. One is that we have a higher educated population here then a lot of other parts of the country and our employment opportunities have diversified quite a bit in the last 20 years or so. A big Boeing downturn isn't the crisis that it was years ago now and people are still moving here from other parts of the country due to our wide range of employment opportunities. Since the workforce is better educated they earn more money and therefore are better equipped to deal with rising fuel costs. How many guys on this board have newer boats?

It isn't all roses right now but it isn't really that bad either. There are quite a few areas of the country, including here, where real estate prices are stable to rising, and there are some areas where they are declining like Miami, NY and California. Is the glass half full or half empty?

Whoa there big fella... I don't know as I'd be callin' everybody who took out an ARM or an interest only stupid!

What about those young families who sought the "American Dream" of home ownership... but because they lived in a high value area (like western WA) they could never afford the $450,000 it costs just to buy a 3 br 1 bath 1000 sf sh!thole within the Seattle city limits? Some of those 'deals' sounded like the ONLY way a young working couple could afford to buy their first house. Can you honesly blame them for tryin'?

It's real easy to point fingers and blame Joe Public (and they DO deserve some blame here) but I blame predatory lending practices and unscrupulous mortgage brokers just as much as I do stupid borrowers.

Congrats on the land deal! Question though... was it something you had to pull the trigger on right away? The reason I ask is because those interest rates are probably gonna go down another half point within the next 3 months or so... meaning even MORE savings on a 15 or 30 yr fixed! I'm holdin' out 'til late March - early April before I re-fi my residence and rental.