A plan that keeps large numbers of foreclosed homes from being dumped on the market is a good thing.
Everyone is affected if housing prices have a significant decrease.
And individual risky behavior isn’t being rewarded, it is more like a bad situation doesn’t turn into a catastrophic one.
Don’t forget that the active housing market has pumped huge amounts of wealth into our economy.
Everyone benefits from this.
“Don’t forget that the active housing market has pumped huge amounts of wealth into our economy”
Change the word ‘wealth’ to ‘debt’ and then you would be making sense...otherwise, you are way, way off base....
How naive and ignorant.
Have you read no history?
The same could be said of the Tulip Bubble, the South Sea Bubble, the John Law Bubble, and the Trump Casino on a good day.
The best best and final resolution in each of those cases occurred when the bubble burst and the imaginary wealth dissipated.
Then, the citizens went back to working for wealth, instead of speculation. And people should be buying a house to live in, not to vie for appearances on lives of the rich and famous.
And your dismissal of the moral hazard argument adds to the speciousness of your position.
Are your initials "A.G." by any chance? (Mr. "ARMs are a good deal now". Now we know why they were such a good deal!).
Not everyone is affected by a temporary decrease in prices. The only impact appreciation has on me at this time is increased taxes. My primary house isn’t a piggy bank and it does not impact me one iota whether its worth X, or Y tomorrow as I am not selling it. My family requires a roof over... Long term is a different story. As long as it goes up on average a couple % a year above inflation it’s ok.
Now appreciation on the rental houses I owned concerned me greatly. I sold 2 in 04 and 05. Covering yourass is important as markets never go strait up. This time really wasn’t different.
The quicker we resolve this the better it is for the housing market. Screwing with the market is not potential for catastrophy?
The government declaring a contract is not binding is something to be afraid of imho.
Not everyone.
Should a young hard-working couple saving up their pennies to buy their first home . . .
Pay you more money for your home than it's worth, simply because the government props up its value, to put more money in your pocket for doing no work at all?
“Everyone is affected if housing prices have a significant decrease.”
Everyone is affected by housing prices going through the roof to.
If I could get a house at $150,00 for 15 years or $300,000 for 30 years I might just chose the 15 year loan.(My home has gone from 150 to 300 in a short time)
The inflated housing prices just makes the working class slaves to the lenders and makes the government more tax money. It’s fine if you are in the market but for any poor 20 year old they should get ready for a nice 40 year loan so they can pay for the inflated housing cost.
It’s called placing the burden on our kids.