Posted on 02/01/2009 10:12:39 AM PST by Fred
I think this is a BRILLANT maneuver....it could suck all the money out of any other alternative and beats the BAD BANK idea!
I don't think the Demoweenies can let this happen...now they have a problem...
Wrong!
It slows down the Democrats with their wasteful spending...
Agreed, Question, they are pretty much throwing the houses away in Sin City...Perhaps now is the time to act (am not a realtor, just shocked at the prices in Vegas)
Actually, she’ll get the low payments in any case. If this garbage doesn’t pass, she’ll get a much cheaper house, with a somewhat higher rate (much easier to pay off).
Absolutely the LAST thing we need is more preferential treatment for real estate. This is what fed the bubble in the first place, distorting investment streams and making housing more expensive than it needs to be.
But never let it be said that the GOP has given up its role as The Stupid Party. They work too hard at keeping that title.
What the heck are folks waiting for? I do not get it. The houses in Vegas are a solid 10% below replacement cost?
If saving the banks is the goal, it makes more sense to pay off ALL mortgages, not just the “problem” ones.
Since this would require public financing (gov’t paper of different kinds), the money would flow out, and flow back in, and then flow back out plus interest, over 30 years. Thanks Ernest.
What a ridiculous idea.
The long term solution is to drastically cut the size of government, reinstitute tariffs on imports, zero the personal income tax, get back on a commodity currency standard, and get rid of the illegals. I’m not sure that the Chinese would agree to use putting tariffs on their goods - they might sell our treasuries, causing a currency crisis - but at some point we need to take our medicine and get back to a solid foundation.
We WILL survive economic hard times, but socialism and globalism will destroy America if we don’t end them.
You do realize that they haven't repealed the CRA? All this does is add yet another level of bad debts and kicks the problem down the road. It fixes nothing. They need to drain the swamp first, by cancelling the CRA.
However, cancelling the CRA also cancels the flow of money into housing, which would knock housing down another bunch. And it would result in somebody, lots of somebodies, losing their houses and maybe going bankrupt.
After the CRA is cancelled, one possible fix would be to give money to folks to buy down their mortgages to a level they can afford. The banks (and the savings accounts they support) would be ok. Housing prices would still fall greatly. New housing would be dead. But eventually the problem of bad mortgages would stop.
Of course, the level of corruption in handling out the money would be staggering. And it's possible that it would be impossible to stop the handouts. And it would greatly punished the savers of the country, but that's going to happen anyway.
Yes.
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