Comments on: Subprime Mortgage Crisis Helps Bring Down An Airline http://www.biggerpockets.com/renewsblog/2007/12/26/subprime-mortgage-crisis-helps-bring-down-an-airline/ Learn, Network, Invest Tue, 24 Nov 2009 06:18:45 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Rick Marnon, Howell http://www.biggerpockets.com/renewsblog/2007/12/26/subprime-mortgage-crisis-helps-bring-down-an-airline/comment-page-1/#comment-53188 Rick Marnon, Howell Thu, 27 Dec 2007 04:05:50 +0000 http://www.biggerpockets.com/renewsblog/2007/12/26/subprime-mortgage-crisis-helps-bring-down-an-airline/#comment-53188 When will the crash end? I have read so much from people that are supposed to be giving educated opinions, but they haven't even been close yet. I would rather people just be honest and say that they truly do not have a clue as to when the market will turn around. It would make things easier for me and those that are looking to buy a home. I have so many clients that ask me is it a good investment, and I'm straight forward with them and say yes as long as you are willing to sit on it for a while. When will the crash end? I have read so much from people that are supposed to be giving educated opinions, but they haven’t even been close yet. I would rather people just be honest and say that they truly do not have a clue as to when the market will turn around. It would make things easier for me and those that are looking to buy a home. I have so many clients that ask me is it a good investment, and I’m straight forward with them and say yes as long as you are willing to sit on it for a while.

]]> By: Steven Boorstein http://www.biggerpockets.com/renewsblog/2007/12/26/subprime-mortgage-crisis-helps-bring-down-an-airline/comment-page-1/#comment-53184 Steven Boorstein Wed, 26 Dec 2007 20:28:47 +0000 http://www.biggerpockets.com/renewsblog/2007/12/26/subprime-mortgage-crisis-helps-bring-down-an-airline/#comment-53184 You're right in that the subprime mess extends it's reach far beyond just borrowing for houses. It does affect the ability to obtain credit, overall. However, banks know the difference between business credit and consumer credit and lend "differently" to these groups. I agree that it had made the ability to obtain credit more difficult, but not impossible. If this little airline folded because they couldn't get credit, although I think the subprime issues may have played apart, I would also assume there were other factors working against it such as poor management, poor vision and strategy, undercapitalization from the get-go, etc. I'd hate to blame everthing on subprime. The problem is that the easy credit we had prior to the last year or so created businesses, investors and others who shouldn't have been able to do the things they were able to do anyway. Tighter credit markets just mean you have to plan better and execute your plan smarter. In the end, those who are smart and resourceful are going to be able to succeed. Those who aren't maybe shouldn't be doing the business they are doing... survival of the fittest. And I don't mean that in a mean way, but businesses survive because they thrive. The subprime mess only gave false confidence to those who shouldn't have been there to begin with, so maybe we should consider ourselves lucky that we had the meltdown at this point than it extending another five years and really imploded things. Steven Boorstein Landlord Business Insider You’re right in that the subprime mess extends it’s reach far beyond just borrowing for houses. It does affect the ability to obtain credit, overall. However, banks know the difference between business credit and consumer credit and lend “differently” to these groups. I agree that it had made the ability to obtain credit more difficult, but not impossible. If this little airline folded because they couldn’t get credit, although I think the subprime issues may have played apart, I would also assume there were other factors working against it such as poor management, poor vision and strategy, undercapitalization from the get-go, etc.

I’d hate to blame everthing on subprime. The problem is that the easy credit we had prior to the last year or so created businesses, investors and others who shouldn’t have been able to do the things they were able to do anyway. Tighter credit markets just mean you have to plan better and execute your plan smarter.

In the end, those who are smart and resourceful are going to be able to succeed. Those who aren’t maybe shouldn’t be doing the business they are doing… survival of the fittest. And I don’t mean that in a mean way, but businesses survive because they thrive. The subprime mess only gave false confidence to those who shouldn’t have been there to begin with, so maybe we should consider ourselves lucky that we had the meltdown at this point than it extending another five years and really imploded things.

Steven Boorstein
Landlord Business Insider

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