How did homeowners take advantage of rising housing prices by refinancing?
Q. In many writeups on the current economic crisis that I've read, I frequently see reference to how homeowners, in a speculative bubble, assumed that their real estate values would go up, after which they would refinance, and reap some benefit, etc. I'm looking for an explanation of how rising prices would enable refinancing, and then, what benefit would be gained by doing so. Thanks.
Asked by darkfyre - Thu Nov 13 21:12:09 2008 - - 3 Answers - 0 Comments

A. After an economic bubble breaks, in this case houses, product value drops because there are no longer as many buyers. And in the case of houses, the banking system relied heavily on the purchase of new homes. The more homes that sell the more loans are granted by banks. A halt in home sales puts a dent in the bottom line of lenders. Therefore, the banking system keeps the lending rates low. And, generally, banks become more eager to re-finance to home owners with good credit. (However, the current economic situation is kind of throwing a little bit of a wrench in the process.) But the more clients paying to a lending the institution, the better it is for that institution. The benefit for the home owner is a lower interest rate on… [cont.]
Answered by Todd Jansens Monkey - Thu Nov 13 21:34:37 2008

What good comes out of the rising gas prices?
Q. I'm a economy nooby and this is my first time on this section, but I was wondering if there was any good that comes out of the nation's rising gas prices. I watch the news and I hear the it increases the prices of everything and messes up the economy, but is there anybody that benefits from it or any kind of business? Please answer thoroughly. Thanks!
Asked by KB24 - Mon May 12 21:20:39 2008 - - 3 Answers - 0 Comments

A. Basically everyone involved in the oil production cycle. Producers require smaller amounts of oil to get same revenue. Look at the stock market and all the oil company's such as Exxon, and Mobil are skyrocketing profits. Service company's as well. Halliburton is booming at the seams. Also you have to remember our importing oil friends. Yes they are now receiving more than ever compensation for there product. Requireing payment for oil imports with hard currency such as gold and not paper money also increases there profit margin. Hence, i world is tied to the oil production and delivery which makes since that everything goes up if oil goes up. Very basic economics but this can be very bad for Americans as a whole. Hope this helped a little.
Answered by pumpt - Mon May 12 23:32:36 2008

How supply and demand plays in the rising of oil price ?
Q. Oil price is rising obviously is rising, and it is caused by the demand and supply, with demand exceeds the supply. So, what are actually the factors of these supply and demand... OPEC come into mine as the supplier and China & India's rapid economic growth also come to my mine as the cause of demand. Can anyone explain me more about this supply and demand factors that causes the oil price to increase this much?
Asked by ko.flok - Mon May 19 11:11:28 2008 - - 4 Answers - 0 Comments

A. OPEC is a cartel and it operates in ways that milk bad situations. They have no incentive to supply more volumes of crude oil to the market since the obscene amounts of money they now make are way beyond their present and future needs. The oil markets are not "free markets" and you and too many who buy into the classic market model to understand the price behavior, refuse to learn that. People who spoof conspiracy theories need to understand the origin of our anti-trust laws which have been tossed out to favor overconcentration of power in certain commodities particularily in staples that tend to be highly inelastic on the demand side. Google "price fixing behaviors", "Anti-trust behaviors" "OPEC & commodity cartels". If you don't study… [cont.]
Answered by heeltap - Mon May 19 11:40:42 2008