Right before the countdown, there is talk of a massive zero percent financing package for vehicles where you don't need to pay interest for 60 months/5 yrs of freedom!! Under the current situation, this maybe the best option. The real truth will be seen when every American rushes to get their new cars. And for the manufactures, they get to remove/reduce their inventory without giving cashback. Zero percent financing is a tried and true method that works everytime. Pay attention to the advertisements and you should these popping up for Lincoln, Ford, Mercury deals!
Solving the glut in oversupply of new and used homes requires a similar methodology to the auto credit/borrowing extension. 30 year fixed mortgages will be a thing of the past and welcome the 40/50 year fixed mortgages. What does this really mean? It will take you 10/20 additional years to attain the same equity in your home. In essence, if a 30 year old individuals bought a home, their home loan would be paid off by the time they reached 70/80 yrs old. The loan would be guaranteed a certain rate and banks can choose to keep or phase out the program. For now, it will help solve the credit crunch, the oversupply of homes and allow lower monthly payments.
They say time heals everything. So if we give it more time, the healing will come. In 2009, we will give a warm welcome to the 40/50 yr mortgage.
