CB CRAIG,
I can't disagree with you at all.
With the exchange rate what is now, it is certainly more favorable now to import something from Oz that what it was just a few months ago. That is definitely on my mind.
There is a CB about 8-9 hours from me in Memphis, Tennessee for sale, but honestly the owner is asking too much for it.
$10,000 USD =15,121.50 AUD (@ this morning's exchange rate, .66141 AUD = 1.00USD)
http://www.thesamba.com/vw/classifieds/detail.php?id=656253
It's my understanding he paid something in the $4000-$5000 range for the vehicle a year and a half ago.
I think he is looking for some obnoxious profit taking with his price as posted.
It might be worth $6000-$7000 USD (9,072 - 10,585 AUD).
Here in the US, CB's are largely unknown, and there are only a very few buyers interested in paying that kind of money for one.
As to some other points:
The mortgage meltdown was precipitated by a policy promoted by the Clinton administration.
The theory was that everyone should own a home, so lenders were instructed to relax mortgage qualifications to the point where any Tom, Dick, and Harry could borrow money to buy a home.
It neglected to take into consideration, some people only have a renter's mentality, and will never have the mindset or the discipline necessary to own their own home.
Also, lots of people were loaned money and bought way more than they could realistically afford in servicing the loan payments.
On top of that, many of these marginal buyers lost their jobs and coupled with huge increases recently in fuel and food costs (precipitated by higher freight, increasing production costs, and additional price pressures on corn from ethanol producers), lots of folks suddenly couldn't afford what they bought.
They epitomized the instant gratification mindset (I want the world and I want it NOW!), regardless of their ability to handle the costs associated with servicing the loans.
So the housing market has completely gone to hell. It is a buyer's market. If you have the $$$ or have previously arranged financing, you currently have your choice of whatever you want here in the US. Now, if you have poor credit history, and can't qualify under new, tighter restrictions for home loans, you are out of luck.....probably for a very long time.
Many of these folks with notes they can't service are really between a rock and a hard spot. They can't service what they have, and because of a very weak market, houses won't appraise out to new buyers for what the owners have to have to get out from under the loan. Many of these types of owners have defaulted on their loans
So the situation got so dire the federal government (i.e. US taxpayers) stepped in with a 700 billion USD bailout of mortgage and securities lenders to prop everything thing up so the system doesn't entirely collapse due to mismanagement, risky ventures, and damned poor judgment. In a capitalistic system, the risk/reward modus operandi should be the paramount consideration about the way things operate. That means if you screw up or make bad decisions, the risk and downside should be yours alone. The problem is the defaults are so big, the entire economic system of the biggest player in the world's economy might go down like a rock and thus affect every other economy in the world, in some cases catastrophically. Still it makes me sick to my stomach and burns my ass to think I'm helping bailout some big wig who works for one of the major big wig banks for his bad decisions. Gggrrrrrrrrr!
If Obama wins our presidential election on Tuesday November 4, it is my opinion things will further go to hell. We'll see higher taxes to support a widening and growing social welfare state. Capital gains taxes will go up dramatically which will drive investment away.....simply put, incentive for those individuals and companies who are the real driving force of our US economy will be squashed like the proverbial Halloween pumpkin. If that happens, the US economy is going to be going south for the winter and it may not come back north anytime soon.
Hang on everybody because I see some rough times ahead for all of us.
Regards,
Steve
