Future of Housing Finance

[spence]

I think he's got a lot of credibility on the issue, but seems to ignore the market forces that certainly exploited the room to move. There are root causes and symptoms, but symptoms can often be managed through regulation. Not always the right thing, but perhaps a part of the solution.

Additionally, people should look at this as a non-partisan problem. Some love to pounce on Barney as the birther of the issue, but everybody in politics has pushed for home ownership as it's a great election issue...even Bush.

-spence

[fishpoopoo]

Originally Posted by spence

I think he's got a lot of credibility on the issue, but seems to ignore the market forces that certainly exploited the room to move. There are root causes and symptoms, but symptoms can often be managed through regulation. Not always the right thing, but perhaps a part of the solution.

Additionally, people should look at this as a non-partisan problem. Some love to pounce on Barney as the birther of the issue, but everybody in politics has pushed for home ownership as it's a great election issue...even Bush.

-spence

"Market forces?"

Jesus Spence, you really need to bone up on the issue.

As far as Bawney, he should be lined up and money-shot for treason. But you're right, he's not alone in deserving blame.

There is so much open source info out there that is damning to the democrats (on the affordable housing issue), it boggles the mind.

http://financialservices.house.gov/LtrBushGSEs.pdf

[spence]

Originally Posted by fishpoopoo

"Market forces?"

Jesus Spence, you really need to bone up on the issue.

Please elaborate, as you seem to have interpreted my statement in a very specific manner.

As for bones, Nebe has one for ya

-spence

[fishpoopoo]

The dumbing down of lending standards, and the manipulation of interest rates are NOT "market forces."

They are government policies.

And if Nebe has starting blowing glass dildoes again I'd have to start worrying about him.

[RIROCKHOUND]

Originally Posted by fishpoopoo

And if Nebe has starting blowing glass dildoes again I'd have to start worrying about him.

You are implying he never stopped....

[fishpoopoo]

Well, he DOES get requests from the ladies for them.

[RIROCKHOUND]

Originally Posted by fishpoopoo

Well, he DOES get requests from the ladies for them.

Ladies?

[spence]

Originally Posted by fishpoopoo

The dumbing down of lending standards, and the manipulation of interest rates are NOT "market forces."

They are government policies.

I agree, but the lowering of interest rates led investors to seek better returns which came from new lending products that took advantage of the lower standards...did they not?

Hence my comment about the market exploiting the room to move.

-spence

[fishpoopoo]

absurdly low interest rates sparked mortgage originations and speculation in housing.

lots of crazy loans were made to people who weren't going to pay them back.

that's not market forces. that's manipulation.

[justplugit]

Originally Posted by fishpoopoo

absurdly low interest rates sparked mortgage originations and speculation in housing.

lots of crazy loans were made to people who weren't going to pay them back.

that's not market forces. that's manipulation.

Yup, simple solution-- 20% down, and good credit rating.

FHA still only requiring 3-4% down.

When people have to work and save a 20% down payment they have a tendency
to take care of their property and think twice before foreclosure as they have
their sweat and tears in their house/investment.

[spence]

Originally Posted by fishpoopoo

absurdly low interest rates sparked mortgage originations and speculation in housing.

lots of crazy loans were made to people who weren't going to pay them back.

that's not market forces. that's manipulation.

Certainly, but I was speaking more to US borrowing rates (like 1%) and big outside investors seeking better returns. It's not like people were looking for a way to package mortgage backed securities just so banks could issue more loans...there was a demand that drove the process from both sides.

-spence

[detbuch]

Originally Posted by spence

Additionally, people should look at this as a non-partisan problem. Some love to pounce on Barney as the birther of the issue, but everybody in politics has pushed for home ownership as it's a great election issue...even Bush.

-spence

And yet another Bush-did-it-too. Any more of these and you might want to get checked for Bush-did-it-too tourettes. It may only be a milder form of the it's-Bush's-fault tourettes that the Democrats have been suffering from for the past two years.

[spence]

Originally Posted by detbuch

And yet another Bush-did-it-too. Any more of these and you might want to get checked for Bush-did-it-too tourettes. It may only be a milder form of the it's-Bush's-fault tourettes that the Democrats have been suffering from for the past two years.

No, just a comment for the "it's all Frank's fault" crowd. You're mighty pissy tonight. I seem to remember Bush praising government lending for it's efforts towards his "ownership society".

Don't worry, I'll get back to the other thread in due time...

-spence

[detbuch]

Originally Posted by spence

. . . I seem to remember Bush praising government lending for it's efforts towards his "ownership society".

-spence

Yikes . . . you did it again.

[spence]

Originally Posted by detbuch

Yikes . . . you did it again.

It is hard not discussing leadership when their policy is being discussed. Perhaps this gives "ownership society" an unintended double meaning



-spence