McCain at the Debate (Right Now): I will prop up home prices!

[Knightskye]

"Is it expensive? Yes."



Wrong answer. He seemed comfortable with it, though. Much moreso than at the podium last week.

 

[ghengis86]

what a douche. this is such a big crock of shit...we're all f^%ked no matter who gets elected

 

[ItsTime]

These two clowns have NO clue what they are doing. Im glad Im not watching

 

[thechitowncubs]

Did anyone see the Ron Paul book during a commercial break on CNN before the debate? The commercial was for Cheapbooks.com and after all the establishment books they had a Ron Paul book

They know their market too well

 

[Otter Mii-kun]

Keynesian propaganda

I am SO SICK of the doom-and-gloom propaganda about the housing market. There is NOT A DAMN THING wrong with falling home prices! (nor is there anything wrong with the DOW falling 800 points-we've had worse one-day precentage downturns than that in the past!)

I keep asking over and over what's so bad about falling home prices and STILL can't get a real straight answer other than Hoover/FDR and Clinton/Greenspan era Keynesian propaganda about how housing is supposed to be an "investment" and prices have to keep rising forever and ever and therefore can never be allowed to fall.
Excuse me, but a house is supposed to be SHELTER, not a securitized "investment" that appreciates forever and one can cash out equity as if it were some giant ATM!

These two clowns have NO clue what they are doing. Im glad Im not watching.

I have no real reason to be watching any of the mainstream media's "debates" either.

 

[fr33domfightr]

I am SO SICK of the doom-and-gloom propaganda about the housing market. There is NOT A DAMN THING wrong with falling home prices! (nor is there anything wrong with the DOW falling 800 points-we've had worse one-day precentage downturns than that in the past!)

I keep asking over and over what's so bad about falling home prices and STILL can't get a real straight answer other than Hoover/FDR and Clinton/Greenspan era Keynesian propaganda about how housing is supposed to be an "investment" and prices have to keep rising forever and ever and therefore can never be allowed to fall.
Excuse me, but a house is supposed to be SHELTER, not a securitized "investment" that appreciates forever and one can cash out equity as if it were some giant ATM!

I have no real reason to be watching any of the mainstream media's "debates" either.

I had a co-worker tell me people were starting to think of houses as investments back in 1988. I told him that I believed that was a bad idea. Usually people buy a house to raise a family. The idea of using it as an investment gets people to dump their retirement plans and put all their money into a home. And if you bought it when the home prices were inflated, you've just F'd yourself bigtime by making a BAD investment. The idea of investing in a house was due to it appreciating more than the stock market. That's fine, but easy credit and no accountability allowed speculation to run wild, throwing all the common sense of investors (home buyers) out the window.


FF

 

[FindLiberty]

"Is it expensive? Yes."



Wrong answer. He seemed comfortable with it, though. Much moreso than at the podium last week.

but is it effective or worth it?

 

[Knightskye]

Did anyone see the Ron Paul book during a commercial break on CNN before the debate? The commercial was for Cheapbooks.com and after all the establishment books they had a Ron Paul book

They know their market too well

I was watching the debate on CBS. And I ignored the commercials.

 

[JaylieWoW]

This might be a bit off the topic but the reason my husband and I decided to get a house was because we have a family. However, although this was in line with the "American Dream" of owning a home, the other major reason we wanted a home was because Apartments had become a bit cost prohibitive. The slight increase we've had in our expenses (garbage disposal, a pittance & water bill, some apts do charge you for your water), are still less than what we would pay for a 3 bedroom in a complex suitable (and I don't mean suitable in a snobbish way, face it there are some places you just DON'T want to live).

So basically, not only did the growing inventory affect housing prices, but it affected apartment prices as well. I'm probably not the only one who basically got "pushed out" of being able to afford an apartment. Plus our rental rates went up considerably every single year. The final push into looking to buy a home was because our rent on a three bedroom, a very BASIC three bedroom (the kitchen was an afterthought and then they shoved a washer & dryer in a tiny closet in the afterthought of a kitchen) went up from $930 per month to $980 per month.

We did look around a bit at other apartments (the one we were in was going to shit anyway) and there wasn't a decent (again, not snobbishly so) apartment for less than $1200 per month. Our house payment is less than $1000 a month AND we have 4 BR/3 BA as well as a sizeable yard.

I'm not sure where I'm going with this train of thought but its something along the lines of a snake eating its own tail. At least, that's the image that keeps popping into my head.

Edit:

Ok now I figured out where my brain was taking me. Isn't it possible that propping up housing prices is going to also erroneously inflate apartment rents? I really think it has a direct affect. Would "mark to market" in anyway have this affect as well? Just thinking out loud now.

 

[Pauls' Revere]

Frankly, you use to be able to buy a build it yourself house out of a sears catalog I believe back in the day. They had everything you needed down tyo the number of nuts and bolts and tools etc...the truck showed up to the lot dropped everything off and off to work you went. Very modest homes self built with electric heat, etc...I think some are still standing in Ohio.

NO SHIT!

http://www.searsarchives.com/homes/1908-1914.htm

No contractors, no licensures, no government, just build and go. how nice was that?

 

[ghengis86]

This might be a bit off the topic but the reason my husband and I decided to get a house was because we have a family. However, although this was in line with the "American Dream" of owning a home, the other major reason we wanted a home was because Apartments had become a bit cost prohibitive. The slight increase we've had in our expenses (garbage disposal, a pittance & water bill, some apts do charge you for your water), are still less than what we would pay for a 3 bedroom in a complex suitable (and I don't mean suitable in a snobbish way, face it there are some places you just DON'T want to live).

So basically, not only did the growing inventory affect housing prices, but it affected apartment prices as well. I'm probably not the only one who basically got "pushed out" of being able to afford an apartment. Plus our rental rates went up considerably every single year. The final push into looking to buy a home was because our rent on a three bedroom, a very BASIC three bedroom (the kitchen was an afterthought and then they shoved a washer & dryer in a tiny closet in the afterthought of a kitchen) went up from $930 per month to $980 per month.

We did look around a bit at other apartments (the one we were in was going to shit anyway) and there wasn't a decent (again, not snobbishly so) apartment for less than $1200 per month. Our house payment is less than $1000 a month AND we have 4 BR/3 BA as well as a sizeable yard.

I'm not sure where I'm going with this train of thought but its something along the lines of a snake eating its own tail. At least, that's the image that keeps popping into my head.

Edit:

Ok now I figured out where my brain was taking me. Isn't it possible that propping up housing prices is going to also erroneously inflate apartment rents? I really think it has a direct affect. Would "mark to market" in anyway have this affect as well? Just thinking out loud now.

we went from an apartment to a nearly identically sized house. apartment rent $900; motgage principal and interest $750. add taxes, utilities (which we were paying at the apartment), and we are still saving money.

but back to the OP topic; even if the president directed the treas. sec. to buy up these mortgages and renegotiate terms, what happens when the homeowner says "F you" in negotiating or just can't or won't pay: will the military evict you then? also, why can't the government buy my mortgage and negotiate better terms for me? obviously i'm not in foreclosure, so shouldn't i get great interest rate? where's my reward for not fueling this foreclosure fire?

lastly, i don't know if i can say it enough, but i loathe these two candidates

 

[ghengis86]

Frankly, you use to be able to buy a build it yourself house out of a sears catalog I believe back in the day. They had everything you needed down tyo the number of nuts and bolts and tools etc...the truck showed up to the lot dropped everything off and off to work you went. Very modest homes self built with electric heat, etc...I think some are still standing in Ohio.

you can still do that to some degree; go to any menards and you can order your home, with just about anything you want. they have full house "kits" starting around $40K. just try to find some cheap land.

There are plenty of these homes in my town in northwest indiana; they even use he "sears catalog home" in the realtor fliers

 

[Pauls' Revere]

I'm out West...what's a menard's?

 

[ghengis86]

I'm out West...what's a menard's?

like a regional home depot/lowes, but a little cheaper. forgot that they're not everywhere

 

[chadhb]

I'm out West...what's a menard's?

California has different building standards, than a Indiana spec house. The blue prints would have to be re-enigeered, on the framing at minimun.

 

[RideTheDirt]

California is on a huge fault. You don't want your home falling down while your in it. There is no way to know when an earthquake is coming.

 

[libertarian4321]

I am SO SICK of the doom-and-gloom propaganda about the housing market. There is NOT A DAMN THING wrong with falling home prices! (nor is there anything wrong with the DOW falling 800 points-we've had worse one-day precentage downturns than that in the past!)

I keep asking over and over what's so bad about falling home prices and STILL can't get a real straight answer other than Hoover/FDR and Clinton/Greenspan era Keynesian propaganda about how housing is supposed to be an "investment" and prices have to keep rising forever and ever and therefore can never be allowed to fall.
Excuse me, but a house is supposed to be SHELTER, not a securitized "investment" that appreciates forever and one can cash out equity as if it were some giant ATM!

I have no real reason to be watching any of the mainstream media's "debates" either.

You are completely missing the point Re: the financial crisis.

Its got nothing to do with people's homes being "investments."

Its about people ditching their homes (letting them go into foreclosure) and sticking the lenders with huge losses.

Because of the complex financial instruments created on Wall Street, those loans (and their losses) have been spread to financial institutions (banks, brokerages, insurance companies) and investors around the world.

The amount an institution can led is proportional to the value of its holdings. When they take huge losses in in those holdings, they reach a point where they can't lend.

When banks can't lend, the economy can grind to a halt. Most businesses (to say nothing of individuals), use credit to purchase materials, inventory, etc- both long and short term credit.

If businesses can't purchase materials, they have to cut back, or go out of business. People get laid off. Which leads to more people losing their houses and going bankrupt, which means more losses to the banks, who in turn tighten credit more. At the same time, people with money see their net worth plunging- those that have the most ability to stimulate the economy pull back.

Rinse, lather, repeat- it becomes a death spiral that feeds upon itself.

How bad is it? I have no idea, but it goes WAAAAY beyond "people losing investment value in their homes."

 

[libertarian4321]

Oh, and McCain's idea is nothing short of IDIOTIC.

It goes way beyond being just another massive example of socialism.

McCain's hare brained scheme would punish those who bought homes responsibly, and reward those who bought more home than they can afford.

 

[HOLLYWOOD]

Oh, and McCain's idea is nothing short of IDIOTIC.

It goes way beyond being just another massive example of socialism.

McCain's hare brained scheme would punish those who bought homes responsibly, and reward those who bought more home than they can afford.

Do not buy into any homeowner BAILOUT... the TRUE PLAN is to ARTIFICIALLY INFLATE the prices for PROPERTY TAXES, FEES, PROPERTY SALES TAXES, etc...

IT's ALL ABOUT GOVERNMENT at all Levels, FEEDING OFF the PEOPLE in whatever elaborate scheme. (no matter how stupid it may sound)

EVERY STATE CAPITOL is calling into Washington and using LOBBYISTS to GAIN their AGENDA.

LOOKOUT... Government wants more and they have another GIMMICK for the SHEEPLE to follow.

NO to ANY MONEY for Washington DC and the States!

 

[Ex Post Facto]

You are completely missing the point Re: the financial crisis.

Its got nothing to do with people's homes being "investments."

Its about people ditching their homes (letting them go into foreclosure) and sticking the lenders with huge losses.

Because of the complex financial instruments created on Wall Street, those loans (and their losses) have been spread to financial institutions (banks, brokerages, insurance companies) and investors around the world.

The amount an institution can led is proportional to the value of its holdings. When they take huge losses in in those holdings, they reach a point where they can't lend.

When banks can't lend, the economy can grind to a halt. Most businesses (to say nothing of individuals), use credit to purchase materials, inventory, etc- both long and short term credit.

If businesses can't purchase materials, they have to cut back, or go out of business. People get laid off. Which leads to more people losing their houses and going bankrupt, which means more losses to the banks, who in turn tighten credit more. At the same time, people with money see their net worth plunging- those that have the most ability to stimulate the economy pull back.

Rinse, lather, repeat- it becomes a death spiral that feeds upon itself.

How bad is it? I have no idea, but it goes WAAAAY beyond "people losing investment value in their homes."

Don't forget then the government prints money, that causes inflation to fix the underlying issues, which you pay back over time through taxes. They print money to loan to banks to loan to businesses. The businesses charge higher prices for the items they sell so they can pay their interest, in addition to an already inflating currency...the consumer gets stuck paying for it all in the end. The tax payer pays for it all.