Mortgage & Housing BUST-BOTTOM LINE

[RUSH LIMBAUGH is my clone!]

From Investor's Business Daily
http://ibdeditorial.com/IBDArticles.aspx?id=306370789279709

[soonerscuba]

Boy howdy, didn't see that coming you from you Rush.

[Whet]

very interesting article!

[tommieharris91]

I'm surprised this doesn't have more comments.

[StoopTroup]

Thank goodness they didn't blame the Republican Contolled Congress during those years.

I don't think I could take that.

[RUSH LIMBAUGH is my clone!]

Thank goodness they didn't blame the Republican Contolled Congress during those years.

I don't think I could take that.It was another vote buy from the dems. The repubs would have been keelhauled in the media if they fought against "housing for the underprivileged". They should have, but didn't

[StoopTroup]

It was another vote buy from the dems. The repubs would have been keelhauled in the media if they fought against "housing for the underprivileged". They should have, but didn't

Stupid ****ers.

That's why I don't trust them either. :D

[RUSH LIMBAUGH is my clone!]

Stupid ****ers.

That's why I don't trust them either. :DYou should prolly vote 3rd party.

[StoopTroup]

You should prolly vote 3rd party.

:D

[bluedogok]

That's why I don't trust them either. :D

Spek
http://www.robotswillkill.com/graffiti/04162007174312spek0537om6.jpg

[Veritas]

It was another vote buy from the dems. The repubs would have been keelhauled in the media if they fought against "housing for the underprivileged". They should have, but didn't
I hate referring to people as "underprivileged." It's a ****ing liberal term that removes personal responsibility as a factor for why some folks are where they are financially.

[RUSH LIMBAUGH is my clone!]

I hate referring to people as "underprivileged." It's a ****ing liberal term that removes personal responsibility as a factor for why some folks are where they are financially.Agree. Hence, the quotes.

[Oldnslo]

there was no one cause. as in pretty much all meltdowns, there has been a cascade of errors, playing one upon another. Pointing a finger may help expend a calorie or two, but it solves nothing.

carry on.

[RUSH LIMBAUGH is my clone!]

there was no one cause. as in pretty much all meltdowns, there has been a cascade of errors, playing one upon another. Pointing a finger may help expend a calorie or two, but it solves nothing.

carry on.Do you really think the repubs would have come up with that penalizing lending institutions stuff for not loosening their credit requirements? I got a bridge to nowhere you might want to buy!

[Veritas]

Pointing a finger may help expend a calorie or two...
I call BS.

If pointing fingers burned calories I'd be ripped like David Beckham. :)

[Oldnslo]

Do you really think the repubs would have come up with that penalizing lending institutions stuff for not loosening their credit requirements? I got a bridge to nowhere you might want to buy!

Do you really and truly believe that our current financial problems are caused solely by that one factor? That there was nothing else which played into it?

you can't possibly be that naive.

[royalfan5]

I think a supreme overconfidence in the mathematical models underpinning the explosion in derivatives trading that were used to create huge tranches of over leveraged asset pools that hedge on the models performing perfectly have a lot more to do with it than Pubs and Dems. Everybody ****ing loves their model and doesn't believe it will fail until it does. I think there is a lesson in there about trying to apply mathematical models to markets that are fundamentally driven by human behavior.

[Vaevictis]

It couldn't possibly have anything to do with the fact that thanks to CDO's the act of lending became completely divorced from the risk of holding such a loan.

Or the fact that the folks who ultimately ended up holding that risk had no way of evaluating the risk they were holding for themselves.

No way. No way at all.

[Boomerbrad]

As much as I like to see the Dems bashed, Bush actually expanded these programs:

http://www.alta.org/washington/news.cfm?newsID=782

House Approves American Dream Downpayment Act
December 10, 2003

On Monday, December 8, the House approved legislation to help more Americans realize the American dream of homeownership. Introduced by Rep. Katherine Harris (FL) and Rep. Mike Rogers (MI), the American Dream Downpayment Act is a new initiative proposed by President Bush to set first-time, low-income homebuyers on the path to homeownership by helping with down payment and closing costs. The action clears the bill for President Bush’s signature. Later in the day, the Senate passed the legislation on a voice vote, sending it to the President for this signature

"In addition to the tremendous benefit and sense of satisfaction thousands of families will gain from owning their own homes, this legislation will help to strengthen our communities by increasing the number of stakeholders in neighborhoods across the country,"said House Financial Services Committee Chairman Michael G. Oxley (OH).

Downpayment and closing costs are traditionally the most significant obstacles that would-be homebuyers face. This legislation eliminates that barrier for families struggling to save for a downpayment, but otherwise qualified for homeownership.

"By passing the American Dream Downpayment Act, Congress has fulfilled the basic obligation of a decent and compassionate society. This visionary, comprehensive legislation will provide thousands of men, women, and children across our nation with the dignity, stability, and economic empowerment of home ownership,"said Rep. Harris, the sponsor of the American Dream Downpayment Act.

The $200 million in grants provided in the American Dream Downpayment Act will assist an estimated 40,000 low-income families each year to share. More than 500 State and local jurisdictions will be eligible to receive the grant funding, and the program will be administered through the Department of Housing and Urban Development’s HOME Investment Partnerships Program.

"Today the nation’s overall homeownership rate is an impressive 68 percent. More than two-thirds of all Americans own their own homes; but the homeownership rate for African-American, Hispanic and other non-Hispanic minorities is approximately 49 percent. This legislation will play a significant role in narrowing the minority homeownership gap,"said Subcommittee on Housing and Community Opportunity Chairman Bob Ney (OH).

In addition to the American Dream Downpayment Act, provisions from a bill introduced by Rep. James Leach (IA), H.R. 1614, the HOPE VI Program Reauthorization and Small Community Mainstreet Rejuvenation and Housing Act of 2003, were also included. H.R. 1614 reforms and reauthorizes the HOPE VI program through fiscal year 2006.

HOPE VI has been an important part of the transformation of public housing and distressed communities since 1993. The legislation passed yesterday includes provisions to improve the management and accountability of the program. Additionally, small communities wishing to revitalize their downtowns will now be eligible HOPE VI recipients.

"For the first time since the inception of the HOPE program in 1990, small communities will have access to this important federal housing approach,"Leach said.

Also included are provisions from legislation introduced by Rep. Gary Miller (CA) and Financial Services Committee Ranking Member Barney Frank (H.R. 1985) to update the Federal Housing Authority (FHA) multifamily program. This legislation will help to address the critical housing needs in high-cost communities across the country by allowing the Secretary of HUD to increase the maximum FHA multifamily mortgage limits in high-cost areas.

"I am pleased that S. 811 included provisions from a bill I authored, H.R. 1985, to allow the HUD Secretary to increase multifamily mortgage loan limits for Federal Housing Administration (FHA) insured properties in high-cost areas,"said Miller. "There are markets where construction costs are significantly higher than in other areas of the country. This makes it difficult or impossible for builders to use the FHA program because the current limits are insufficient. Passage of this legislation will help ensure hard-working Americans have access to decent, affordable rental housing in the neighborhoods where they work."

Finally, the bill includes a technical correction that would allow the FHA to offer more flexible 5/1 hybrid adjustable rate mortgages and a change to the Community Development Block Grant program to address many of the critical housing needs in insular areas.

:pop:

[Vaevictis]

:les: OWNERSHIP SOCIETY!

[Sooner Born Sooner Bred]

How about blaming people who live beyond their means and the people who take advantage of that greediness?

When I bought my car two years ago, I qualified for a $50K loan doesn't mean I could afford it.

[Sooner_Havok]

:les: OWNERSHIP SOCIETY!

http://images.jupiterimages.com/common/detail/97/51/22595197.jpg

[Blue]

How about blaming people who live beyond their means and the people who take advantage of that greediness?

When I bought my car two years ago, I qualified for a $50K loan doesn't mean I could afford it.

How about blaming the people that went to school and majored in FINANCE and still sold their souls for some money? Blaming anybody but the greedy *******s on Wall Street that get this stuff is stupid IMO. Yes people should buy what they can afford but most have been conditioned into the American Way of debt.

[Sooner_Havok]

How about blaming the people that went to school and majored in FINANCE and still sold their souls for some money? Blaming anybody but the greedy *******s on Wall Street that get this stuff is stupid IMO. Yes people should buy what they can afford but most have been conditioned into the American Way of debt.

I remember someone not to long ago saying to go spend your money! Buy things! Show them they haven't won!

Who was that :confused: :confused: :confused:

[Sooner Born Sooner Bred]

How about blaming the people that went to school and majored in FINANCE and still sold their souls for some money? Blaming anybody but the greedy *******s on Wall Street that get this stuff is stupid IMO. Yes people should buy what they can afford but most have been conditioned into the American Way of debt.My point is you can't point fingers at the Democrats any more than you can the Republicans.

This crisis now is why Homebuyer Education classes are so important.

[Blue]

My point is you can't point fingers at the Democrats any more than you can the Republicans.

This crisis now is why Homebuyer Education classes are so important.

I completely agree. This is a "stupid" problem. We're all guilty but I put 80% of the blame on the people who knew what they were doing.

[Sooner_Havok]

My point is you can't point fingers at the Democrats any more than you can the Republicans.


Watch me!

Damn the Republican party to hell for this mess!
Screw the Democrats sideways with a bowling pin for helping create this mess!

NO POLITICAL PARTY GETS A PASS ON THIS!! THEY CAN ALL STOP TRYING TO WASH THEIR HANDS, WE KNOW WHAT THEY DID!!

[Vaevictis]

This crisis now is why Homebuyer Education classes are so important.

Wouldn't have helped that much, really. For every person who took it to heart, there'd have been 9 more who bought into the "home prices are going up up up" mantra that convinced people that it didn't matter if they could afford the floating rates, because in a few years, they could just flip the house or refinance with more equity from an increase in value.

[Oldnslo]

With a bowling pin? Sideways?


ouchie.

[Sooner_Havok]

With a bowling pin? Sideways?


ouchie.

I was going to go with pineapple, but I thought a sideways bowling pin would work better :D

[SoonerKnight]

The first article was simply an opinion piece with no evidence to support it accusations!!!!! The housing market was caused by deregulation and that is a fact!!! Loaning to people without checking their financial ability to pay! Hmmmmm.....so government told the banks to loan loan loan......... :rolleyes:

[Blue]

The first article was simply an opinion piece with no evidence to support it accusations!!!!! The housing market was caused by deregulation and that is a fact!!! Loaning to people without checking their financial ability to pay! Hmmmmm.....so government told the banks to loan loan loan......... :rolleyes:


Nothing to see here!

http://dunamai.com/Humor/BagdadBob/images/bagdad_bob_large.gif

[JohnnyMack]

Yes, it was the poor peoples fault. And Clintons' fault. It had nothing to do with mortgage lenders and developers in areas like Las Vegas, Phoenix, FL & CA that saw record (and obviously unsustainable) growth. Had nothing to do with people speculating on new construction, hoping they could take out a mortgage, wait for the property to increase in value and then sell the property often times before construction was ever finished. Nope. Not a thing.