Author Topic: Housing Bubble 2.0  (Read 3984 times)

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sirs

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Housing Bubble 2.0
« on: April 03, 2013, 04:25:02 PM »
Just when you thought this President's judgement couldn't be any worse.......

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Got bad credit? Want to buy a home? You're in luck! President Obama is ramping up the country for housing bubble 2.0 as he urges banks to loan to people with poor credit so they can purchase a home. What could go wrong? Oh just about everything. And don't worry, the government is going to promise banks everything will be just fine.

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default
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Shorter version: President Obama's crappy economy has caused people's credit to decline and even though the economy isn't much better (and neither is their credit) he wants them to buy a home with money and credit they don't have. Fantastic.

As a reminder, the housing market crashed after the government forced banks to lend to people who
1) shouldn't have been applying for a housing loan in the first place
2) had no way to pay a housing loan back
3) never intended to pay back the housing loan in the first place.


"The worst form of inequality is to try to make unequal things equal." -- Aristotle

Christians4LessGvt

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Re: Housing Bubble 2.0
« Reply #1 on: April 03, 2013, 04:50:47 PM »
"Mr. Gorbachev, tear down this wall!" - Ronald Reagan - June 12, 1987

sirs

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Re: Housing Bubble 2.0
« Reply #2 on: April 03, 2013, 06:02:28 PM »
Our Greece-like train just keeps picking up speed


Oh, and on a related piss-poor judgement note, remember all the leftist blather of how Obama was to be this new diplomatic & sensitive president, compared to that "cowboy" Bush, as it relates to foreign engagement.  Notice how worse we're now seen by foreign countries, especially the middle east, and now we have all this potentially imminent conflict with North Korea?  Yea, There's that "uniter' Obama, doing his thing
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

Xavier_Onassis

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Re: Housing Bubble 2.0
« Reply #3 on: April 03, 2013, 07:39:35 PM »
There is always some loon saying the sky is falling.

I am surprised that you have not quoted Porter Stansbury.

There is not going to be another housing bubble.

Check out the ETF called SPDR S&P Homebuilders (XHB), up over 10% in the last four months.

"Time flies like an arrow; fruit flies like a banana."

sirs

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Re: Housing Bubble 2.0
« Reply #4 on: April 03, 2013, 07:44:06 PM »
As a reminder, the housing market crashed after the government forced banks to lend to people who
1) shouldn't have been applying for a housing loan in the first place
2) had no way to pay a housing loan back
3) never intended to pay back the housing loan in the first place

If that's what Obama's pushing, this will just speed up our Greece-like departure.  Bush was wrong when he did it, and Obama's economic conditions make it exponentially worse
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

Xavier_Onassis

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Re: Housing Bubble 2.0
« Reply #5 on: April 03, 2013, 08:43:47 PM »
Not gonna happen.

President Obama is doing the VERY BEST job that he can do. That is why he was reelected.
"Time flies like an arrow; fruit flies like a banana."

sirs

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Re: Housing Bubble 2.0
« Reply #6 on: April 03, 2013, 08:51:28 PM »
Not only IS it going to happen, but happen even faster now, thanks to the piss poor Judgement known as Democrat think and Obama in particular
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

Plane

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Re: Housing Bubble 2.0
« Reply #7 on: April 03, 2013, 08:56:26 PM »
There is always some loon saying the sky is falling.




The President was in that role recently , using a lot of hyperbole to describe the sequester consequences , as if he were not the author of the thing himself!

I am not too worried , when I was newly in the Civil service President Reagan did something similar, only with less drama.



Reguarding the origional post, I consider this another proof that the Obama administration can talk a good game without actually having any members that understand what is going on.

Xavier_Onassis

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Re: Housing Bubble 2.0
« Reply #8 on: April 03, 2013, 09:12:39 PM »
I think they know well what is going on. This is just more rightwing 'bagger crap.
"Time flies like an arrow; fruit flies like a banana."

Plane

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Re: Housing Bubble 2.0
« Reply #9 on: April 03, 2013, 09:19:02 PM »
I think they know well what is going on. This is just more rightwing 'bagger crap.

Thank you very much.

Now if you want me to think that you know something about this subject , .... perhaps you couold point out what they are doing diffrently  that can prevent unrecoverable loans from piling up?

Xavier_Onassis

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Re: Housing Bubble 2.0
« Reply #10 on: April 03, 2013, 09:34:39 PM »
Tell me why they are telling anyone to make bogus loans in the first place.
The default ratio on loans made since the last reforms is extremely low. Bogus loans are NOT being made.

It is just  typical 'bagger horseshit. I reject the premise.
"Time flies like an arrow; fruit flies like a banana."

Plane

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Re: Housing Bubble 2.0
« Reply #11 on: April 03, 2013, 09:37:00 PM »
Tell me why they are telling anyone to make bogus loans in the first place.



I almost didn't try to answer , this is a very tough question.

I think that people like Congressman Frank are trying to lower the standard for approval of loans so that more poor people can live in a decent house and use the real estate investment to improve their wealth.

However sincere this urge may be , when indulged with no study of consequence it tended to produce taxpayer backing for loans that had little colateral and little repayment strength.

They were trying to prevent "greenlining" and trying to make loans as accessable as possible , but when the taxpayer is really garunteeing the loan why should the bank that makes the loan care about the borrowers strength?

When a loan was made to someone who does not really understand the loan , has little downpayment , has insuficient income or no really dependable employment , why should the bank worry about the quality of the loan? As soon as possible the loan will be bundled with a dozen or an hundred other simular such loans and sold to Fannie May, whether it lasts through the repayment period or not has no bering therefore on the profit made by the origionating bank.

Banks that required a big downpayment , or required a lot of proof of income , or tryed to keep as many loans as possible in their own house were outgrown by banks that churned through a huge number of loans , harvesting early profit and fees , then reinvesting in more loans in the same way.


This can't happen now?

« Last Edit: April 03, 2013, 10:11:12 PM by Plane »

sirs

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Re: Housing Bubble 2.0
« Reply #12 on: April 03, 2013, 09:50:44 PM »
Precisely
"The worst form of inequality is to try to make unequal things equal." -- Aristotle

Plane

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Re: Housing Bubble 2.0
« Reply #13 on: April 04, 2013, 12:08:31 AM »
http://en.wikipedia.org/wiki/Community_Reinvestment_Act


I would have guessed that one would need to be a lawyer to understand this stuff.

But...


It seems evident that Lawyers are not understanding it either.

Xavier_Onassis

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Re: Housing Bubble 2.0
« Reply #14 on: April 04, 2013, 01:02:33 AM »
Fannie Mar is making record profits now, because there are so very FEW defaults.

This is bogus nonsense,
"Time flies like an arrow; fruit flies like a banana."