The list, ping
Let me know if you would like to be on or off the ping list
...more like “housing market overpriced by $4 trillion coming back down to earth...”
“Down” from an artificial “up” means that a process of revaluation is in progress. Folks should not get convinced that prices will return to previous levels anytime soon, if ever.
Heard an example the other day of a house that was put up for sale for around $1 million. After 90 days there had been exactly one telephone inquiry and zero showings. Is this house “worth” $1 million?
The Kenyan-Reid-Pelosi increased spending 4 trillion since 2007. A coinkydink?
The Kenyan-Reid-Pelosi increased spending 4 trillion since 2007. A coinkydink?
If you bought a $100K home in 1975 with a 30-year mortgage -the total payments were $300K by 2005 at maturity.
Retirees selling those homes in 2005 figured they were getting the *fair* price and buyers were willing to pay it.
IMHO this was the first of the baby boomer blips. If only those first-time, younger buyers had properly qualified - the artificial high prices would not have exploded and then bombed.
What that means is the Housing Bubble was overinflated with $4 Trillion worth of hot air, lies, and plenty of fraud, and the collapse of that bubble continues.
The web site for Fannie Mae says their mission is to support "affordable home ownership".
First off - what business is it of the federal government to get into the real estate market? They created a broad array of policies, along with two massive gov sponsored entities that completely dominate and distort the financing markets.
Fan/Fred created mortgage products for people with little or no equity to put down on a loan (no personal capital at risk) and loosened the allowable debt coverage ratios (cash flow to cover all debts).
In the decade after Fannie dropping the requirement for a down payment of at least 20% and verification of sufficient, stable income - home prices doubled. This created a need for ever more lenient lending standards.
Before the introduction of huge price distortions from artificial demand, engineered by the Statists in Washington - a person who's primary goal was to put a roof over their family and not invest for profit from a quick sale - could afford a house or rental unit with average income. That was obliterated by the people who's stated goal was to create affordable housing (sound like Obamacare?)
In some cases, finance companies offered zero down, 50-60 year interest only, optional monthly payment loans where skipped payments get rolled back onto the balance due - paying 60 years of interest on payments of pure, peak-level interest. Where's the "ownership society" in this scenario?
This grand scheme is one of the biggest financial crimes in the history of our nation. It was pushed by congress to broaden the perceived prosperity of lower-middle class families and it fits the DemocRATS "entitlement" agenda where everything becomes a "right", emanating from a central government, confiscated from the producers in our society.
We'll never see anyone from the government take responsibility or receive punishment for this blatant market takeover and its predictable devastation of personal wealth, topped off by the burden of a giant load of new national debt that's impossible to dig out from under (since the taxpayer paid to prop up the system to support the lust of ever greater power and control by our politicians).