Obama is setting us up for another housing-market collapse

[4est_4est_Gump]

Crime pays when you finance the Clintons:

http://www.americanthinker.com/blog...overnment_to_keep_its_partners_from_jail.html

 

[Wat_Tyler]

I know a little about Mickey Mouse loans. I'm damn grateful that they existed so I could buy a house in 2006. I wouldn't have been able to, ever, on the rules that were in place in 1986.


I haven't missed a payment on mine.

 

[4est_4est_Gump]

Yet...

:snicker:

Twists waxed mustache....

 

[Wat_Tyler]

I almost did in 2011.


Lack of stimulus, that was my dilemma.


I also only borrowed about two-thirds of what they would have lent me. I've been house-poor before, and it ain't no fun.

 

[4est_4est_Gump]

Almost don't count...



The Bush Administration almost headed off the disaster, but FRANKly, that was never going to happen.

 

[Adjudicator]

I'm in the market to buy a new house. A collapse would suit me and my wallet just fine.

 

[Wat_Tyler]

It counts in hand grenades . . . .

 

[4est_4est_Gump]

Atomic bombs...

 

[Ishmael]

Almost don't count...



The Bush Administration almost headed off the disaster, but FRANKly, that was never going to happen.

Even if he'd tried to re-write law with Executive Orders I doubt that he could have headed off the collapse. Perhaps it might have not been as severe, but it was still going to happen. The first 'red flag' his admin sent up was in 2003. By then the process was well under way. There is no way he could have taken any action until 2005 (election cycles). So at best he would have saved a years worth of bad paper.

Far too many house Republicans that claimed to be 'conservative' were perfectly happy to go along for the ride. And even so, the democrats in the Senate would have blocked any legislative action. Most of congress, both houses, knew the jig was up, but no one, NO ONE, wanted to be the the one to announce that the party was over.

So what is the game plan now? Flood the nation with illegals and loosen credit so they can buy houses again? This is going to get the economy out of the doldrums for how long?

I doubt that the 'bundling' scheme is going to work this time around either. Investors have learned their lesson and laying off those loans is going to be damn near impossible. And that being the case the US Taxpayer will be left holding the whole bag this time around.

Ishmael

 

[4est_4est_Gump]

More people might have had a heads up.

Well before it happened we had a thread of the housing bubble, I had a hard time believing that it could happen...

 

[smartjuanxxx]

The question remains

WHY IS IT BEING ALLOWED TO HAPPEN AGAIN?

And it will happen again

No, not under Knee Grrrr's tenure, but it will happen again

 

[Que]

More people might have had a heads up.

Well before it happened we had a thread of the housing bubble, I had a hard time believing that it could happen...

The issue has been mischaracterized. Loose money was the problem, not that the loans likely would, and often did default in the end.

It was the classic tulip bubble. Loose money made it easy for everyone and their brother to speculate on the greater fool theory of investing. Very little to no money down. Buyers lying about the "new house" being intended to be owner occupied. Phoney rental contract on the old house they never intended to move from.

I've told the story before of ghost-town neighborhoods with lots of FSBO signs competing with still under construction builder spec homes. No cars, no landscaping, no hose to was the -non-existant occupant's car.

I estimated in one neighborhood, less than a dozen out of 200 sold homes were occupied. No attempts to rent them, no population out there to support 1/10 of those rentals. Only employment was building more houses or commuting 30 miles to civilization or 20 to the prisons, and the guards already had homes out that way before the bubble.

starting to see those cheesy hand lettered signs offering investors buying houses, offering to sell fixeruppers also. stop sign on a manufactured home purveyor it seemed to indicate that it was okay to be an illegal alien and purchase one of their homes so they're probably already are programs for non-citizens.

 

[4est_4est_Gump]

People should be worried that the Fed is afraid to raise interest rates.

 

[smartjuanxxx]

The issue has been mischaracterized. Loose money was the problem, not that the loans likely would, and often did default in the end.

.

this is silly


there was LOOSE money cause banks were forced to lend to those they KNEW wouldnt/couldnt repay

 

[Que]

this is silly


there was LOOSE money cause banks were forced to lend to those they KNEW wouldnt/couldnt repay

Banks did a portion of business and offered products to pump up their minority numbers to avoid being accused of redlining, but that is drop in the bucket. People with poor credit and no cash reserves were not the ones going out buying two and three houses with hopes of reselling them within 2 or 3 months at a 5 % to 10% profit.

The "demand" that drove up prices was artificial. The intial 10% was attributable to the drop in interest rates. Lower interest rates result in lower carrying cost and that difference can be capitalized through increased income stream and therfore valued correctly. The rest was speculative fluff based on everyone having a friend who flipped a house for a profit doing nothing to it. Doubling of value when the land was no scarcer and materials and laver were about the same was insane.

 

[4est_4est_Gump]

I've been on a scary tangential thought this morning...



The elites of DC probably like these bubbles and bursts because, you know, what Rahm said...

"Never let a crises go to waste."

​

 

[Que]

I heard a Berne Sanders ad the other day that I agreed with. He says the too big to fail banks are even bigger now after the bail-out and that nothing has changed that would prevent a rcurramce. He is right but places the blame on the evil greedy bank instead of on Dodd Frank which he supported and addressed none of the above. FNMA and FMAC caused the bubble, period.

 

[4est_4est_Gump]

Politics ain't Occam...

 

[Que]

I've been on a scary tangential thought this morning...



The elites of DC probably like these bubbles and bursts because, you know, what Rahm said...

"Never let a crises go to waste."

​

They like them, they cause tbem, but they have no idea about cause and effect. Because innumercy, and what passes for education with regards to econ101.

Probably a good thing. Imagine how dangerous the collective 'they' would be if the had even a rudementary idea of how economic reality includes all the pieces of the machine making choices in their bst interest.

 

[4est_4est_Gump]

You have to study 600-level sophistry to work in Government and be successful...



"Alex, I'll take The Blame Game for $500..."

The economic policy of home ownership was the fault of this group of people.

"What are Republicans good for?"

 

[richard_daily]

You haven't the slightest idea. Yes there were loans with no income verification. Theu wete known as low-doc or no-doc loans. Liar loans is what they wrre called in the industry.. the offical name was "stated income loans."

These are not "laws the banks libbied for." These are unelected people making MILLIONS in bonuses like Franklin Raines with FNMA writing the guidelines, with the stated goal to increase homeownership in general, and minority homeownership specifically. This goal began under Carter and was put on steroids under Clinton. Any "lobbying" was done to block oversight Dodd and Frank chaired thosr committees.

Banks were arm twisted initially with threats of sanctions if they did not "reinvest" in the community by funding more ways to approve more minorities that typically carried levels of debt to high for conventional lending guidelines. To make it possible to do eithout banks going bankrupt on the defaults the lians were guaranteed to be bought by fannie and freddie si long as the ever looser guidelinrs were met. Eventually, the guideline was, "have a pulse."

The rich and banks play the game by the rules your saimted dems put into place. Hate the game not the players,playa.

I see you get your news from the "not-librul" media. You literally summed up the Rush Limbaugh position on the housing crash perfectly. If this was a 4th grade book report on the subject of "rush's version of the housing collapse" you'd get an A.

There were never loans that existed in the way you present them. I know, because I got them often. You did need to show proof of income, you couldn't just "make up" any number you wanted.

The banks were complicit in giving these loans, because they would hire assessors (not tax assessors, valuation assessors, the fact that you don't understand that, shows you don't know what you're talking about) who were friendly to their motivations, which was to make as many loans as possible, with the assurance that they'd be bailed out if things went south, due to regulations that the lenders pushed for in congress.

These assessors (again, NOT tax assessors), would basically agree to write down whatever value the lender wanted. I know, because I saw it happen at least a dozen times.

I love how you're trying to blame Carter for the meltdown, when we had a republican president and republican controlled congress several times between 1980 and 2008. Either the Republicans didn't see the issue, or they were part of hte problem. Which was it?

It's clear that the RWCJ chatter on this is willfully ignorant at best, and just completely clueless at worst.

 

[richard_daily]

At least be a man and admit that you have nothing to support your claims, and that they're just your opinions, but you really really really feel them strongly.

Unlike you, I don't live on Lit.

Still haven't seen an apology from you, so it's clear you lack the stones of a man.

 

[richard_daily]

...not to mention banks don't assess, tax assessors assess. Banks rely on appraisals. Done by actual apprasers who have proffessional standards and boards of apprasal who oversee their work. They are ALWAYS fully independent. Appraised value was there WHEN the lians wee made. The entire house of cards was based on the idea that real estate always goes up.

The actual bubble was caused by making it ridiculously eady and cheap for real estate dillatamtes to become straight up speculators with no-doc, 5% insteaf of 220 down investor loans.

You keep hollering about the greddy rich and banks, seemingly unawate that the bulk of loanoriginations are by mortgage brokers. At tanhe peak, mortgage brokers were able to submit thlanoans themselves already underwritten using automated underwritung. Banks never saw or passed judgements on the borrowers or the lians.

Reading a few headlines or some partisan hack article and especially listening to politicians place blame is a poor way to learn how an industry works

Tax assessors don't assess property values.

Have you ever gotten a loan?

Get back to me when you've seen how the world works. You need a couple decades more of experience, clearly.

 

[Que]

Tax assessors don't assess property values.

Have you ever gotten a loan?

Get back to me when you've seen how the world works. You need a couple decades more of experience, clearly.

How the world works? Got that handled do you?

I'm sure applying for a loan or two gave you keen insights and qualifications I could never hope to match.

 

[Que]

PS. Why don't you go tell the appraisal Institute that the nation's appraisers are all calling themselves the wrong thing that they're really assessors

That when they perform appraisals there actually assessors not appraisers.

When one assesses value you are assigning a value upon which the tax will be based. Some states that might match appraised value (ad valorom assessment) some states it does not.

Now be a man and admit you haven't got the slightest idea other than what you have read in some headlines and heard from politicians.

If you are aware of any falsified value on an APPRASAL in connection with a Federally insured loan you should have reported that felony.

When you get your "assessed value" in the mail from the tax assessor, go ahead and market your property for that "correct" amount.