Wasnt this part of the problem?

[striperman36]

Originally Posted by RIJIMMY

Part of the 75B mortgage plan -

Finally, the plan bolsters the amount of money allocated to Fannie Mae and Freddie Mac in an effort to keep mortgage rates low and entice new homebuyers into the market, since new buyers are what's needed to drive down the number of extra houses for sale.

So lets lower interest rates so people buy houses which will once again artifically inflate home prices so that the people who are under water in the homes will be ok. Sounds like a plan to me.

We cannot continue to blow air into a bubble, the bubble has burst.

It's spring, alot of basements flood then. Lots of stuff underwater.
I don't get it either.

[spence]

Most markets only work assuming they trend up over time. The problem isn't that the markets grew, it's that they grew in a dysfunctional manner that couldn't sustain the normal cycle.

We need people to be able to buy houses or we can't fix this mess. That doesn't mean we shouldn't fix the dysfunction.

-spence

[RIJIMMY]

Originally Posted by spence

Most markets only work assuming they trend up over time. The problem isn't that the markets grew, it's that they grew in a dysfunctional manner that couldn't sustain the normal cycle.

We need people to be able to buy houses or we can't fix this mess. That doesn't mean we shouldn't fix the dysfunction.

-spence

Im glad that makes sense to you.

[Joe]

The free market answer is to do nothing.
If the boarded up houses drag down property values to the point where no one can sell or improve a home, and the notion owning your own home is transformed into the American nightmare, so be it.

[JohnnyD]

Originally Posted by Joe

The free market answer is to do nothing.
If the boarded up houses drag down property values to the point where no one can sell or improve a home, and the notion owning your own home is transformed into the American nightmare, so be it.

Bingo! Same goes for the automotive companies and corporate sector. Enough bailing out every part of our economy. The country cannot function without a financial system and if major national banks collapse, it would disastrous. But it needs to stop there.

[buckman]

Originally Posted by JohnnyD

Bingo! Same goes for the automotive companies and corporate sector. Enough bailing out every part of our economy. The country cannot function without a financial system and if major national banks collapse, it would disastrous. But it needs to stop there.

You said it. And the worst part is, the govornment then wants to tell them how to run their companies. The post master general makes 800k but they want to set the top pay private sector at 500k

[Joe]

Bingo! That's why you lost.
An economy in crisis needs intervention.

[RIJIMMY]

Originally Posted by Joe

The free market answer is to do nothing.
If the boarded up houses drag down property values to the point where no one can sell or improve a home, and the notion owning your own home is transformed into the American nightmare, so be it.

I have a good memory. You were out here months ago whining about how Americans cannot afford to live in the same neighborhoods as their parents and that young people are priced out of homes.
Duh, Joe, thats becasue houses were way, way, way overvalued!!!! Their needs to be a correction! Obamas plan is to STOP the correction! Housing prices need to drop drastically. That means some real bad news for the ecomony and families. But a home is an investment, sometimes you lose! Were lending more money to people that couldnt afford it last year or the year before, and now they'll be able to afford it in this economy??????????????????????