Blonde moment

And the silver spoon.

Friday, March 07, 2008

And the belt tightening begins…

Sure, Josh and I will be living on a different budget a month from now, let alone when Pvt. Baby joins us, but the belt tightening I’m referring to is on the end of banks. Citi is going to reduce its residential home mortgage portfolio by 20% (WSJ Subscribers) . A lot of that, they report, is going to come from not replacing loans as they mature, but they are also going to exercise more restraint in lending.

King posts, and via King, Stephen Landsburg , remind us of the people who are out of the media’s view regarding foreclosures (that’d be people like Josh and me who benefit from cheaper housing and next year’s Josh and Liz who will have a harder time getting financing). I’d like to remind everyone of other people out of the news who are hurt by tighter credit, people who want to move because their family wants to move into a bigger house, namely Chad the Elder and family. (Reminds me of a dad and mom who took their three daughters and moved into a bigger house 22 years ago.)

I feel sorry for people who are caught up in bad financial circumstances, either through unwise borrowing decisions or through changing job circumstances. But, Landsburg is right when he says: "None of these foreclosed houses is going to disappear. After a foreclosure, one family moves out, and another moves in. We see the sad faces of the people moving out, but we don't as often see the happy faces of the new homeowners moving in. Nevertheless, those happy faces are out there, and we should not discount them. That's important, and it's important in a larger context. Often when it comes to economic policy, some effects—in this case, the genuinely moving stories of good people who can't afford to live where they've been living—are highly visible, while others—the genuinely moving stories of good people who can now achieve their dreams of home ownership—are less well-publicized. That doesn't make them any less real."

When praying for those affected by the market, don’t forget to ask God’s blessing on those who are outside the view of the media, sellers and buyers alike, and those who hold savings accounts, and…

As an aside, if there's a first time home buyer looking for a place in the west metro, I hear these guys know of one...


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