I feared that on Day 1 they'd have something big.
Maybe a $20,000 tax credit to buy a new home.
Or a 180-day foreclosure freeze.
Or 3% 4o-year mortgages for everyone?
But no, so far, nada. Nothing. The current stimulus bill, as written, contains NOTHING for housing.
And that's a good thing.
Why?
Because the only way for the housing crash to end is that it ends. As in homes return to their fair value, based on rental income and local salaries.
The key is for government, and the Dems and Obama, to stay the f*ck out of the way. They caused this stupidity with their 1997 REIC-lobby-kiss tax change on gains, and they continue to distort the market with tax credits and deductions (i.e. REIC wet kisses).
But if they get involved in 'foreclosure prevention', mortgage workouts, or try to prop up fraud-fueled stupid prices, they'll just make a bad thing worse.
So every day that goes by with nothing being done is a good day. Let's see how much longer that can last. Hopefully by the time the monkeys act, home prices will have fallen to where they needed to be all along.
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9 comments:
Seems like they are not getting in the way of the Feds policy to workout mortgages once they are 60 days late.
Seems like a great way to encourage people to stop paying until they are 60 days late- this will happen in a large scale. And then the Fed will say they are forced to bail out the institutions. Rinse and repeat.
Shouldn't the Obama administration get in the way of this?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aoMkFZVqD8xM
-Mike
"So every day that goes by with nothing being done is a good day. Let's see how much longer that can last. Hopefully by the time the monkeys act, home prices will have fallen to where they needed to be all along."
Damn hope so.
The Idiots in NoVa that are still asking 800K for their McMansions (that have REO sales right next door for 500K )need to wake up.
Instead they are still dreaming of the coming Spring Market, the 3% Mortgages & the 25K tax credit that's going to save them.
Dream on........
For now, Obama wants to create jobs. Housing can crash, but we don't want massive numbers of homeless, jobless people; nor vacant houses. The pressure to try to "do something" to prop up the market must be strong.
Unless they changed the existing plan, it only helps a small fraction of house debtors and flippers can forget about it.
p.s. - Surfed Craigslist - one or two so-so listings, everything else still over-inflated. I was looking at modest, older neighborhoods outside DC.
I'm not yet sure if the federal government is unwilling or unable to stop the housing/mortgage bubble collapse.
In fact, after listening to President Obama's inauguration speech I am leaning toward his warning us that maybe his intent is to liquidate this entire Ponzi Pyramid.
Now, we will have to see going forward what measures are taken to re-inflate the bubble. If the feds start passing "housing credits" for homedebtors to pile into houses, that would be a bad sign that they in fact are trying to continue the bubble.
Also, keep a close eye on the "Bad Bank" plan to see what dead, toxic "assets" get dumped in there, what the banks receive in return for those "assets" from the feds (loans or outright purchases?) and what the banking/mortgage system does with the new funds.
Finally, also watch Fannie/Freddie/FHLB (or any new entities created byt the feds) for any signs that they are being ramped back up to accept more shady mortgages.
Conclusion: It's still a little early to tell what the Fed/feds will do to try to revive the housing bubble. Furthermore, even if they give it their best effort, there may still not be enough sheeple willing to sign off on the mortgages to grow the bubble to its former multi-trillion dollar per year size.
Your headline should say "What haven't Obama and the Dems done so far to stop the housing freefall?"
What about all those freaking housing bills that were passed over the past year? And that's just to start with. What about TARP? Initially it was supposed to be about buying up crap mortgages so the banks don't have to deal with them, so the banks can keep making profits. Obama sure was for that one.
I want them to use techniques that the auto companies had been doing for quite a while to move product.
zero percent financing
tax incentives for buying
free "shingle to basement" maintenance including grass mowing for five years (protection plan)
price rebates if you have body hair and can stand on one foot for a minute
price rebates if you can juggle
further price rebates if you have body hair, can stand on one foot and juggle for one minute
free coffee made every morning just before you get out of bed for a year
hot dogs for the kids
free washer and dryer
balloons
guys dressed in gorilla suits at your birthday for five years after purchase
free sporting event tickets
free strip club tickets
free annual power washing of the exterior of your new shack
more balloons
Smug Bastard
"So every day that goes by with nothing being done is a good day."
That's probably how they feel about amateur part-time coward bloggers living abroad.
Think about it, Genius.
DIE U PIGS
Hmmm, the Obama adminstration is only concerned with their masters, the Zionist bankers. Hence the new plan to create a "bad bank", while bilking taxpayers from trillions.
Like I said before folks, we fight back by not purchasing a damn thing for the next ten years, no cars, no loans, no leasing, no credit cards. Contacting your representative or voting are a huge waste of time, so we hit them where it hurts, their pockets.
NO SHOPPING FOR THE NEXT TEN YEARS. BUY USED STUFF. CUT BACK A LOT TO HURT THESE THIEVES.
"Because the only way for the housing crash to end is that it ends. As in homes return to their fair value, based on rental income and local salaries."
This is the ONLY solution that will work. Any artificial propping up will only delay the inevitable while having TBD negative side-effects.
But you just know that useless and damaging "feel good" solutions are brewing in DC....
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