> Government should exit the housing market

Make sure you get rid of the mortgage interest tax deduction too.  I'm sick of subsidizing your McMantion.

wrote:

The entire reason we are in the mess we are in is giving loans to people who couldn't pay them back.

20% cash down required on any financing.

RACIST!!!!  RACIST!!!!  RACIST!!!!  RACIST!!!!  RACIST!!!!  RACIST!!!!  RACIST!!!!  RACIST!!!!
     \

wrote:

The entire reason we are in the mess we are in is giving loans to people who couldn't pay them back.

20% cash down required on any financing.

The government's no doc loan program only allowed them in areas where the prices were already depressed.   Those home prices couldn't fall any more than they already had, and getting poor people to move in and take care of them worked out very well.

It was the banks, on their own, who took the no doc rules and allowed people to buy overpriced homes in areas that were clearly undergoing a bubble.  The loans were not only bigger, but the downside was huge when the bubble popped.

wrote:

The government's no doc loan program only allowed them in areas where the prices were already depressed.   Those home prices couldn't fall any more than they already had, and getting poor people to move in and take care of them worked out very well.

It was the banks, on their own, who took the no doc rules and allowed people to buy overpriced homes in areas that were clearly undergoing a bubble.  The loans were not only bigger, but the downside was huge when the bubble popped.

  ALL PLACES WERE IN A BUBBLE.  There is a national housing market SINCE THERE'S A NATIONAL BANKING MARKET.

So NO BANK was making a sane loan.  They were ALL taking on risks that varied from "too much" to "huge" to "wretchedly obscene".

In the Midwest, while jobs fled like they were tucked into the cargo compartments of rockets, housing prices STILL rose.  That's part of the housing bubble, moron.  Housing MUST track incomes, since it's INCOME that pays a loan or mortgage.  So when INCOMES in the area fall, so must HOUSING PRICES.

wrote:

Most of us liberals would LIKE to see the bib banksters take a big hit...

Yes, only in the sense that you'd like the deadbeats to keep "their" houses.  So you're STILL part of the big problem.

ImperialExecutive wrote:

ASSTRAP!

Why so angry? 

ImperialExecutive wrote:

  ALL PLACES WERE IN A BUBBLE.  There is a national housing market SINCE THERE'S A NATIONAL BANKING MARKET.

So NO BANK was making a sane loan.  They were ALL taking on risks that varied from "too much" to "huge" to "wretchedly obscene".

In the Midwest, while jobs fled like they were tucked into the cargo compartments of rockets, housing prices STILL rose.  That's part of the housing bubble, moron.  Housing MUST track incomes, since it's INCOME that pays a loan or mortgage.  So when INCOMES in the area fall, so must HOUSING PRICES.

Not true.  Much of flyover country barely saw any change in housing prices, and inner cities were either falling or had fallen long before the bubble. 

Specifically, the Feds program dealt mainly with property that had been redlined, which basically meant that you couldn't get a loan in those areas no matter how good your credit rating was.  That was the quasi-legal way banks managed to deny loans in minority neighborhoods, and with nobody able to get a mortgage the home prices fell like a rock.

But at this point, the other thing to look at is the performance of those loans, and every report I've seen says that government actually ended up with a default rate that was below average, even before the bubble popped.

. wrote:

Not true.  Much of flyover country barely saw any change in housing prices, and inner cities were either falling or had fallen long before the bubble.

Having trouble with English again?  When jobs flee, housing prices SHOULD HAVE FALLEN.  They did not.  They largely rose with inflation, plus.  Banks were making stupid loans EVERYWHERE.  Like subsidies, credit is a price supporter.

The housing bubble was EVERYWHERE, since banks were EVERYWHERE.  That's the sordid truth of the matter.

wrote:

And they even suckered you, when you could have waited a year and saved thousands 

Here, you can't afford these ----> 

No, prices around here have plateaued for a bit.  I bought at the right time, since it allowed me to turn OFF my rent payments.  Now I'm enjoying the savings, and since I'm never selling, the assessed value could go to zero for all I care.

wrote:

The entire reason we are in the mess we are in is giving loans to people who couldn't pay them back.

20% cash down required on any financing.

NO - the loans were sold in some cases to five different MBSs at the same time. Guess who actually got the payment. That is why shyt is crashing. The amount of money loaned to poor whytes and spics is fuqing pennies compared to the giant MBS ponzie. You can now pay off your mortgage and still have 6 other banks trying to forclose you. There are not enough whytes to give mortgages too to generate the black hole we are about to be sucked into.