Remember when people said there was no housing bubble? That subprime was contained? And that all of you were Chicken Littles and Brown Shirts?
Trillions and trillions have now been lost. Lives have been destroyed. The world economy has crashed.
And we're about to throw $350 billion more into this bottomless pit.
Amazing.
It hath been foretold.
Obama Would Use Bailout Funds for Housing Crisis
President-elect Barack Obama would spend the remaining $350 billion of a financial bailout fund on expanded lending and reduced foreclosures and would not use the money to help other industries, lawmakers said Wednesday after discussions with Obama emissaries.
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38 comments:
Obama is a great leader. At least everybody is thinking this way. Oh, well, now he needs to prove it. Time will tell. No money in the world could fix "housing" right now - in my opinion.
Like Peter Schiff said , by the time we get into 2012
( post ALT - A ) we will be so disgusted we will vote for a reformist resulting in a radical change in thinking and leadership.
I believe Schiff is right.
Hey Keith how about a thread on anarchy/martial law in the US ie the ongoing riots in Oakland? Lots of coverage on that at sfgate dot com.
Obama a BIGGER fool than Bush!?
Opps! Glad I didn't vote for him.
Maybe for professional arsonists. They're not cheep you know.
You endorsed the Messiah a few months ago.
$350 Billion poured on the housing problem will be a fart-in-a-windstorm.
When you are talking value drops of $200,000 to $400,000, that TARP money might save 1 million of the 4 to 5 million foreclosures coming
Why is government always trying to save housing?!
What the f is it so gd important that it has to be subsidized and bailed out all the time? It's a consumption item as much as anything else. Most people don't need anything more than a kitchen, a bathroom and a bedroom. Yet the government for some reason thinks we can't do with anything else than sprawling suburuban mcmansions and luxury condos!
"Anonymous said...
Obama a BIGGER fool than Bush!?"
Impossible.
George Bushco WORST HUMAN EVER BORN
Speaking of Real Estate, here's a nifty little article in your butt-boy whacko Casey Serin who is currentlt listed as "he's recently contemplated living on the streets." Lets' all hope this wonderful fate befalls EVERYONE AND ALL THOSE IN TH REIC. Fuck all of you, especially RealWHOREs in Red Dresses multiplying x 6%...
Read it and Have a Nice Day:
Homeowner Bailout Rewards Irresponsibility
Declan McCullagh: A Failed Real Estate Speculator Gets It, So Why Can't Washington?
Comments 164
Jan. 14, 2009
CNET) This story was written by CNET's Declan McCullagh.
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Perhaps the best argument against a government bailout of underwater homeowners can be found in the character of Casey Serin, a 26-year-old would-be mogul in Sacramento, Calif.
In hopes of getting rich quick, Serin took out $2.2 million in mortgages on eight houses, some sight unseen. He lost all of the properties, most to foreclosure, and says he's recently contemplated living on the streets.
Serin achieved a measure of Internet fame by chronicling his failures at real estate speculation on a now-defunct blog, where an audience of so-called "haterz" spent endless hours critiquing his innumerable financial missteps. After selling his Web site to pay down his then-wife's credit card debt, Serin has had time to reflect on how he and other speculators contributed to the biggest housing bubble in history.
"I personally don't believe in bailouts," Serin said in an interview this week. "If you don't get hurt, what's going to stop you from taking on the risk next time? You're interfering with the natural order of things."
Too bad our elected leaders in Washington, D.C. aren't half as thoughtful as a failed housing speculator.
The reality is, as I wrote in an earlier column, housing prices leapt too high, too fast, beyond what economic fundamentals permit.
This is why house prices are falling back to earth. Speculators have moved on or, like Serin, are courting bankruptcy. Lending standards are returning to normal. Debt has given way to moderate thrift. The supply of homes exceeds demand in many areas; prices will stabilize only when homes become affordable again and excess inventory is sold.
Unfortunately, our representatives seem unable to let a return to normalcy take place.
Taxpayer aid to prevent foreclosures on mortgages acquired by the government was part of last fall's $700 billion bailout. Rep. Barney Frank, a Massachusetts Democrat, now wants that money to be used to rewrite mortgages and reduce monthly payments. Politicians are being egged on by homebuilders, real estate agents and lumber companies that set up FixHousingFirst.com a Web site urging taxpayer-funded "foreclosure prevention" and "discounted mortgage financing" to "increase home values."
That's a little like propping up Pets.com shares during their post-dot com bubble slide toward 19 cents and eventual liquidation.
This is not politically correct to say, but the reality is that not everyone can afford a house.
Declan McCullaghNo matter what Washington promises, homeowner bailouts will aid the undeserving - the Casey Serins and speculators of his ilk - at the expense of the fiscally prudent. Why should Americans who rented and saved their pennies for a 20 percent down payment be taxed to bail out those who gambled and lost? Where in the U.S. Constitution has Congress been delegated the power to hand out such largesse? And do banks and lenders need government help to decide whether writing down loans is better than expensive foreclosures?
This is not politically correct to say, but the reality is that not everyone can afford a house. A fast food assistant manager makes $9.95 an hour, and the median price of a new home sold last fall was around $218,400. With reasonable assumptions about taxes and interest rates, our assistant manager would have $0 a month left over for food, clothing, and car payments. Unless a house is unusually cheap, renting could be wiser.
Yet for at least a decade, the official policy of the U.S. government has been that if you breathe, you qualify for a mortgage. As George Mason University economics professor Russell Roberts noted, that official policy is what created the housing bubble - nonexistent oversight of Fannie and Freddie; the Federal Reserve's artificially low interest rates; the Community Reinvestment Act and its Clinton-era expansion; and a 1997 law that made capital gains tax-free.
In June 2002, President Bush announced "America's Homeownership Challenge" that included $200 million annually for down payment assistance, and $2.4 billion for homes to be sold to low and moderate income families. A year later, Bush proclaimed National Homeownership Month by saying "American values of individuality, thrift, responsibility and self-reliance are embodied in homeownership." (A cranky Barney Frank responded by claiming Bush hadn't gone far enough.)
We know how that turned out. Americans queued up for exotic zero-down mortgages on houses they couldn't afford, with unscrupulous lenders taking advantage of greedy buyers, all with Uncle Sam's blessing. Then came foreclosures and trashed credit and realization that many buyers would have been better off renting all along. (The average home ownership rate from 1970 to 1990 was 64 percent, according to U.S. Census data. Today the rate remains at a historically high figure of 68 percent.)
"Pain is one of the best ways to make change happen," said Serin, the speculator-turned-tell-all-blogger. "If you were just completely reckless about it, you deserve to fall flat on your face. I was reckless. But I don't know what I deserve."
One thing Serin doesn't deserve is a taxpayer bailout. Alas, if Rep. Frank and his political allies have their way with our pocketbooks, others who were just as irresponsible and dishonest will receive precisely that.
I wonder if Obama will be making TARP decisions instead of the old/new treasury secretary?
Havent heard a peep out of Paulson. He must be hiding out and counting down the hours till he's outta there.
Casey: "I personally don't believe in bailouts," Serin said in an interview this week. "If you don't get hurt, what's going to stop you from taking on the risk next time? You're interfering with the natural order of things."
Wow, throw a couple points casey's way. He's young, and maybe, and I mean MAYBE, there's some hope for him. He'll probably forget the lessons as soon as the pain is gone though. But you have to admire a comment like that.
Wow, not that its shocking wow. Just wow. So far, people are still in "Obama lust". As soon as the fact that 44 of the 50 states are underwater starts the inevitable MAJOR cutbacks at thier kids schools and the large numbers of prisoners released into thier streets, the luster will wear off. Just wait until the first rapist gets released early because a state didn't have money and he rapes again. And it happens all over the country. And top it off with a dose of 15% or so unemployment and you have a recipe for some very bad things.
I have become numb to it at this point. To get stressed out about it anymore is just not worth it anymore. I just have to laugh even though it effects me because to take this stuff too seriously when I know its going to get MUCH MUCH WORSE, my blood pressure can't take it. On the bright side, it seems Casey Serin learned the truth. If he can wake up, anyone can.
Soon, they will be calling for Obamas head. Very soon.
Yes We Can!
Like Peter Schiff said , by the time we get into 2012
( post ALT - A ) we will be so disgusted we will vote for a reformist resulting in a radical change in thinking and leadership.
I believe Schiff is right.
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or I worry that another idiot will get swept into power simply because people will not want to vote for any democrat.
it was this "disgust" vote that enable bush to win in 2000 and it enabled BO to win this year.
Obama isn't my president, I didn't vote for him!
just thought I would repeat one of the many childish statements from the accepting progressives. Oh, that is an oxymoron, accepting progressive.
How does BO reconcile trying to prop up home prices against making housing more affordable? doesn't he understand that housing is becoming more affordable right now?
A lot of bitter, dead ender GOPers here posting their hatred for Obama.
I JUST LOVE IT!
With even just the smallest bit of luck, 8 years of Obama will be a hellish nightmare for them. Maybe some will even choose to end it all. YESSSSSS!!!!!!!!!!!
Oh, and BTW GOP bitter enders, just a reminder: You lost to a black man. That's right, a B-L-A-C-K man. Boy, that must REALLY drive you GOP racists NUTS every night before you go to sleep.
Enjoy the next 8 years of Obama boys!!
Oh and, I hope you conservative, GOP types enjoy taking orders from a black C.I.C. When he says jump, make sure you JUMP!!
Muahahaha!!!!!!!!!!! Payback b1tches after 8 years of your idiot in chief.
"That's right, a B-L-A-C-K man."
Obama's black?!? That's funny.
Hey gutless, when Bill and Hillary stage their coup in a couple of years and gently lead the shiny, clean, black messiah out by the elbow, will you still be cheering?
Let's hope it doesn't get down to Banana Republic levels with tanks surrounding the White House, but I see the Clinton's and their posse making a move on Obama sooner or later.
B Horror Movie Reviews said...
You endorsed the Messiah a few months ago.
My thoughts exactly!
"That's right, a B-L-A-C-K man."
Obama's black?!? That's funny.
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it is worse than that. BO is more arab than black.
GOP lost to an A-R-A-B
Obama has great presence and a great speaking voice but in the end all decisions will be made by advisers and DC insiders....business as usual (just look at his staff).
At least we have a president who "appears" intelligent. THAT by itself is worth something.
like they said, if all you can afford is a 20 percent down payment ..then the house is only worth 20 percent of asking price
you w3anna be that way ? how about peasant African..... think of what is going on there, in so many countries.....yet hawaii born??//
jealous?
"Oh and, I hope you conservative, GOP types enjoy taking orders from a black C.I.C. When he says jump, make sure you JUMP!!"
It was nice of whitey to throw a bone. Obama knows who his Daddy is. Just look at his Clinton Cronies.
Nuff said!
"At least we have a president who "appears" intelligent. THAT by itself is worth something."
Couldn't agree more.
At least we got a smart lap dog.
Let's criticize the policy and leave the man alone for now.
Forcibly redistributing my income to keep house and condo prices unaffordable for me is utterly reprehensible.
Spending $350B to rescue homeowners shows that this administration and congress does not really care about homebuyers - only homeowners. Which is to say, this administration and congress cares only about themselves.
What is right no longer matters. Justice no longer matters. Fairness no longer matters.
I'm a loss mitigation specialist for a very large bank and you people have no idea how bad the problem really is, no matter how ugly you think it is, it's actually worse. Biblical proportion is a good way to describe it because IT IS BIBLICAL. Read your bible!
Great
Now I stop making my payments so I get a loan modification.
Happy Days are here again
Go Obama
He gonna pay my mortgage, fund my children's education, my auto loan, my credit card loan and last but, not least pay for my daily crack habit
I love Obama
"Oh, and BTW GOP bitter enders, just a reminder: You lost to a black man. That's right, a B-L-A-C-K man. Boy, that must REALLY drive you GOP racists NUTS every night before you go to sleep."
The only one who has brought up race is you, you f*cking idiot!
I like the fact Obama is black. But I really find the man's recent policy decisions to be totally unacceptable.
His cabinet picks make 'change you can believe in' an utter mockery.
America got fucked again.
Bring out the nukes and end this neverending story.
-Mike
The devil is in the details. If there is triage, then it can do some good in the short-term. Also from what I've read, the whole amount isn't being piled into housing. It was more of a vague pronunciation that we're going to stop flushing money down the toilet with the banks and start using it to shore up small businesses and borderline mortgages.
I'm not entirely happy with this plan, and there's definitely a moral hazard minefield. But at least we're going to see a plan emerge and get away from this whole business of lurching from one failed katrina-like response to the next. There does seem to be an understanding that we are in a solvency crisis and not a credit crisis. Much as I dislike the idea, the credit bubble may have to be partially reflated in order to position the nation in such a way that it can be deflated in a controlled manner.
Obama, if he has to use such funds, should address JobPANIC. The unemployment rate is going to explode this year. Pretty sad.
I've been laid off 3 times before and have made it. If I get laid off again, I might end up moving back in with my parents.
My coworker got divorced and decided to move in with his parents for a year at least.
In other words, make the worst possible use of the money.
Obama hasn't even been inaugurated yet, and already I'm glad I didn't vote for him.
Freddie Mack executive Rahm Emmanuel as cheif of staff.
Timothy Geithner, nominated to be most powerful Secratary of Treasury since Alexander Hamilton! Ugh!
TARP funds to be used exclusively for bad mortgages.
Obama couldn't do worse if he tried.
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