Posted on 01/19/2021 6:36:10 PM PST by springwater13
Here is audio from a Bush speech where he promised big loans for minorities who could never afford them, declaring they could have as nice home as anyone else. His own words and this was only a year or two prior to the epic housing collapse!
https://www.youtube.com/watch?v=GkAtUq0OJ68
It looks like Bidet is going to double down on every failed policy ever done in the last six decades.
The future economic crash is gonna be epic—the trick is getting out of markets in time...
Biden is proposing a $15,000 first-time homebuyer tax credit, which could be accessed immediately by the buyer, thereby serving as down payment assistance.
Wasn’t CRA originally a Carter creation?
This industry has been thriving under Trump. God save them from federal government “help.”
Houses for nothing & abortions for free.
That’s what I was thinking when these people can’t pay off their mortgages...it will 08 on steroids
Biden is going to be dropping money from airplanes. What could go wrong?
Behold.. America's epitaph. :(
jobs for the new Hondurenans, Not Americans.
What could possibly go wrong?
Seems like we’ve seen this movie before.
They wanted to stop "red lining" which is just another word for "you don't qualify for the loan". Most of the people living in those areas didn't qualify under the underwriting standards.
First, they created adjustable rate loans (ARMs) with low start rates to qualify unqualified buyers. But when the loans adjusted up, they borrows couldn't afford their payments and defaulted.
Then it progressed to "no documentation" loans where you didn't have to have your assets or income verified in writing to get the loan. You could just tell the lender what your numbers were and you would get the loan.
Finally, it got ludicrously crazy when they developed "no qual" loans where you didn't have to provide documentation nor qualify for the loan. You could lie all you wanted and you were given a loan.
It all worked fine until the housing market and interest rates turned and everybody stopped paying. Sent the country and the world into a decade long recession.
If people don't have their own "skin" in the game, they are most likely to bail on the loan contract when things get tough. Giving people $15,000 for their down payment for their only equity or "skin" in the game, will result in loan defaults right and left when the markets gets tough.
If people don't have anything in the house of their own at risk, they will walk away having lost nothing.
TARP 2.0. Part of the Obama Porklulus 2.0. Porklulus!!!
There are rumors of another Cash for Clunckers coming down the pike as well.
Right. I had forgotten about what were also called "liar" loans.
bump for later
Housing bubble here we come.
Clinton
How The Housing Crash Will Happen - (Step by Step!)
The 7 Stages:
Stage 1: Speculation = drives prices up (prices families out) REITs gain ground
Stage 2: Low interest rates = Equity Release, housing becomes leveraged investment for further investment release
Stage 3: People live beyond means = Over optimistic GDP (Fake GDP)
Stage 4: Problem occurs (2008: ARM aka Subprime crisis / 2020 Virus) = Spending stops
Stage 5: High Unemployment = Start of Recessionary Cycle, mortgage & rent payments missed… unemployment scarring. Wage reductions.
Stage 6: Quantitative Easing…
Stage 7: CRASH!
https://m.youtube.com/watch?v=HEI3GIU5m3s
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