“You’re just giving the junkie more dope,” says Christopher Whalen, managing partner with Institutional Risk Analytics, a consulting firm.”
No it’s not.
It gives the market time to work. Many of these people will get a little time to get refinanced or sell the homes.
It will stabilize the housing market which will be good for everyone.
“No it’s not.
It gives the market time to work. Many of these people will get a little time to get refinanced or sell the homes.
It will stabilize the housing market which will be good for everyone.”
Most of the market did not buy homes in the last 3-4 years and a large percent that did buy didn’t use these BS loans. This “plan” does nothing for most of the market. It does reward risky behavior on both the borrower and lender sides.
There is a big difference between stablizing the market and proping the market up. I believe this long term is more destablizing. Letting the chips fall and allowing investors to buy the foreclosed homes is painful, but necessary to clean it up. Similar to the savings and loan crisis and aftermath.
I don’t see another Ronald Reagan/Paul Volker out there that will be capable of cleaning up this mess in the making in 2016.
Falling home prices are not bad for everyone: they’d be great for me, looking to buy what is currently an overpriced home in a neighboring great school district. . .if home prices fell I’d love it, as a buyer.