The Wall Street Journal today notes the lack of prescience at the Federal Reserve prior to the crisis: “…But Mr. Bernanke described the cooling of the housing boom as a ‘healthy thing.’
‘So far we are seeing, at worst, an orderly decline in the housing market,’ he said.”
Fannie Mae’s CEO, Michael Williams, resigned this week. Said Williams: “I am extremely proud of what we have achieved together, and I am confident that they will continue to make a positive difference.” Freddie Mac’s CEO is also on the way out, by the way.
The Obama Administration announced this week that it wants to convert foreclosed properties to rentals. It is ” a pilot program to sell government-owned foreclosures in bulk to investors as rentals.” Since this is a partnership with government-owned corporations Fannie and Freddie, this program is likely to manifest itself as yet another investment opportunity only for massive, politically-connected enterprises. Small investors will very likely need not apply.
US Senator Jim DeMint declares in South Carolina: “If You Don’t Listen To Ron Paul…The Federal Reserve Is Gonna Destroy Our Monetary System” See the video.
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Orderly decline in the housing market? Convert foreclosures to rental property?
Government owned foreclosures should be sold at market value, which is next to nothing for most of them, and allow people to buy them for less than they would pay in rent.
Banks should be forced to mark to market, which is non-existent right now. Then, we’ll see an orderly recovery of the housing market.
Obama is an idiot who is out of touch with reality.
They did the same kind of thing with the Savings and Loan industry, which the government first created (with New Deal era banking mandates), and then destroyed, taking untold billions in real wealth down with it.
They set up the Resolution Trust Corporation to liquidate the holdings of the failed S&Ls. It was a crony-fest. And, of course, the sales had no real rhyme or reason. Just arbitrary prices, with vast give-aways, alongside absurd wastes of property sitting empty.
“The Obama Administration announced this week that it wants to convert foreclosed properties to rentals.”
I suppose it will be called:
“Federal Unseen Consequences Kooky Underwriting Program”.
(
It should be called:
“Federal Government announces plan to intentionally devalue existing rental property, destroying property owner’s ability to pay their mortgages, while at the same time increasing the dependency of the poorer classes on Government confiscated property”
As a friend’s elderly father who emigrated from the old USSR put it “My past is your future”.
In other words, privatize public housing. The banks want to control every possibility for turning a profit. “Slum lording” has been one small business opportunity that a blue collar person with limited education could get into if he had the (nasty) personality for it. Not any more!
Aaahhhh,
Naughty acronyms!!!
Very Good!!
Rich get richer, poor get poorer once again, by the hand of government.
It’s really laughable that there are still left-leaning people out there that will openly claim that the government helps to “bridge the income gap”. I’ve noticed, though, that these people are becoming more rare and less vocal in general. Young people see right through that illusion nowadays. I really think it’s a sign that we’re starting to witness the death of statism as a philosophy.
If you really want to rent a house like this for $1000 a month, all you need to do is become and Obama apparatchik.
http://www.sterlingchaserealty.com/
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