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Government Sponsored Enterprises who have been mismanaged and massaged their earnings for a couple decades now to hide the massive failures they are while giving HUGE bonuses to former directors. They are given a government protected monopoly and market to do what they want with and backed by taxpayer money.Well this is a highly suspicious conclusion. I take it more of a sign of EVERYONE who bought too much house is defaulting. The rich just are defaulting later as their 'on paper' wealth evaporates.As reported in all mortgage data. Read NYT article today.
I have been telling you this for a long time.
It was not the middleclassand lower middle class from some government program forcing the banks to lend $ as right wing conspiracy kooks spouted.
Of course this makes Avatar correct in saying, then they weren't that rich. I'd add the words "anymore" to it.
The rich defaulting does not change the fact that Freddie and Fannie have destroyed this economy.
You do realize that Fannie and Freddie are private corporations, right?
And who was obstructing republicans from doing anything about this mess back in 2003 when even W saw there was a problem... Oh that's right... the Democrats.The Republican failure to do anything about the looming real estate crisis:
Republican Congress Talked About Financial Reform, But Did Nothing
Republican Congress Talked About Financial Reform, But Did Nothing
HAHAHAHAHAHAHAHAHAHAHAHA!
They are not defaulting because they cant pay you idiot.
they are defaulting because their property is no longer a good investiment.
Jesus you rightiest are stuupid fucks.
It was Fannie and Freddie and Fwank.
And who was obstructing republicans from doing anything about this mess back in 2003 when even W saw there was a problem... Oh that's right... the Democrats.The Republican failure to do anything about the looming real estate crisis:
Republican Congress Talked About Financial Reform, But Did Nothing
Republican Congress Talked About Financial Reform, But Did Nothing
And don't say that they had the votes to pass it... Your tardocrats in office have the votes to pass anything but yet you guys whine they're being obstructed like a bunch of old women in need of a few gallons of Activia and a bran muffin.
And who was obstructing republicans from doing anything about this mess back in 2003 when even W saw there was a problem... Oh that's right... the Democrats.The Republican failure to do anything about the looming real estate crisis:
Republican Congress Talked About Financial Reform, But Did Nothing
Republican Congress Talked About Financial Reform, But Did Nothing
And don't say that they had the votes to pass it... Your tardocrats in office have the votes to pass anything but yet you guys whine they're being obstructed like a bunch of old women in need of a few gallons of Activia and a bran muffin.
Once again you are caught lying, Fritz.
President George W. Bush Radio Address: American Dream Down Payment Fund
President George W. Bush Radio Address
For Immediate Release - Office of the Press Secretary June, 15 2002
Copied from the Official White House Web Site where an
audio format of the speech is available
THE PRESIDENT: "Good morning. Owning a home lies at the heart of the American dream. A home is a foundation for families and a source of stability for communities. It serves as the foundation of many Americans' financial security. Yet today, while nearly three-quarters of all white Americans own their homes, less than half of all African Americans and Hispanic Americans are homeowners. We must begin to close this homeownership gap by dismantling the barriers that prevent minorities from owning a piece of the American dream."
"The single greatest hurdle to first time homeownership is a high down payment requirement that can put a home out of reach. So my administration is proposing the American Dream Down Payment Fund. When a low-income family is qualified to buy a home, but comes up short on the down payment, the American Dream Down Payment Fund will help provide the needed funds. We estimate that this fund will open the door to homeownership for 40,000 low-income families annually."
"A second obstacle to minority homeownership is a lack of affordable housing. To encourage the production of single-family homes for sale in neighborhoods where affordable housing is scarce, my administration is proposing a single-family affordable housing credit. Over the next five years, this will provide developers nearly $2.4 billion in tax credits for building affordable single-family housing in distressed areas. These credits will make 200,000 new homes available over its first five years to low-income purchasers."
Thanks Mudwhistle.And who was obstructing republicans from doing anything about this mess back in 2003 when even W saw there was a problem... Oh that's right... the Democrats.
And don't say that they had the votes to pass it... Your tardocrats in office have the votes to pass anything but yet you guys whine they're being obstructed like a bunch of old women in need of a few gallons of Activia and a bran muffin.
Once again you are caught lying, Fritz.
President George W. Bush Radio Address: American Dream Down Payment Fund
President George W. Bush Radio Address
For Immediate Release - Office of the Press Secretary June, 15 2002
Copied from the Official White House Web Site where an
audio format of the speech is available
THE PRESIDENT: "Good morning. Owning a home lies at the heart of the American dream. A home is a foundation for families and a source of stability for communities. It serves as the foundation of many Americans' financial security. Yet today, while nearly three-quarters of all white Americans own their homes, less than half of all African Americans and Hispanic Americans are homeowners. We must begin to close this homeownership gap by dismantling the barriers that prevent minorities from owning a piece of the American dream."
"The single greatest hurdle to first time homeownership is a high down payment requirement that can put a home out of reach. So my administration is proposing the American Dream Down Payment Fund. When a low-income family is qualified to buy a home, but comes up short on the down payment, the American Dream Down Payment Fund will help provide the needed funds. We estimate that this fund will open the door to homeownership for 40,000 low-income families annually."
"A second obstacle to minority homeownership is a lack of affordable housing. To encourage the production of single-family homes for sale in neighborhoods where affordable housing is scarce, my administration is proposing a single-family affordable housing credit. Over the next five years, this will provide developers nearly $2.4 billion in tax credits for building affordable single-family housing in distressed areas. These credits will make 200,000 new homes available over its first five years to low-income purchasers."
You might want to read your own posts.
He said "When a low-income family IS QUALIFIED.." which means he wasn't advocating dropping all of the basic qualifiers needed in obtaining financing for a home.....you know....good credit....income or ability to pay back the loan. He wanted to help folks with the down-payment. That's it.
Thanks Mudwhistle.Once again you are caught lying, Fritz.
President George W. Bush Radio Address: American Dream Down Payment Fund
President George W. Bush Radio Address
For Immediate Release - Office of the Press Secretary June, 15 2002
Copied from the Official White House Web Site where an
audio format of the speech is available
THE PRESIDENT: "Good morning. Owning a home lies at the heart of the American dream. A home is a foundation for families and a source of stability for communities. It serves as the foundation of many Americans' financial security. Yet today, while nearly three-quarters of all white Americans own their homes, less than half of all African Americans and Hispanic Americans are homeowners. We must begin to close this homeownership gap by dismantling the barriers that prevent minorities from owning a piece of the American dream."
"The single greatest hurdle to first time homeownership is a high down payment requirement that can put a home out of reach. So my administration is proposing the American Dream Down Payment Fund. When a low-income family is qualified to buy a home, but comes up short on the down payment, the American Dream Down Payment Fund will help provide the needed funds. We estimate that this fund will open the door to homeownership for 40,000 low-income families annually."
"A second obstacle to minority homeownership is a lack of affordable housing. To encourage the production of single-family homes for sale in neighborhoods where affordable housing is scarce, my administration is proposing a single-family affordable housing credit. Over the next five years, this will provide developers nearly $2.4 billion in tax credits for building affordable single-family housing in distressed areas. These credits will make 200,000 new homes available over its first five years to low-income purchasers."
You might want to read your own posts.
He said "When a low-income family IS QUALIFIED.." which means he wasn't advocating dropping all of the basic qualifiers needed in obtaining financing for a home.....you know....good credit....income or ability to pay back the loan. He wanted to help folks with the down-payment. That's it.
Crocks doesn't remember that he's been on ignore for a few weeks now or thought I was kidding. He ended up there for precisely what you busted him on. False data, incorrect data, and not reading is own information, let alone being unable to follow a chain of logical causation.
But since you put it out there so nicely Mud, I'll pile on by also reminding the dipshit that reform that W wanted to do to Freddie and Fannie never made it out of the finance committee thanks to "Countrywide" Dodd and the Barney the Banking Queen blocking it there. They had invested a lot of time and political capital creating this financial timebomb 'for poor people' that has resulted in the banking mess that exists now and they fought like hell, successfully to protect it.
W should have pushed a lot harder to bust the obstruction in the finance committee.
You might want to read your own posts.
He said "When a low-income family IS QUALIFIED.." which means he wasn't advocating dropping all of the basic qualifiers needed in obtaining financing for a home.....you know....good credit....income or ability to pay back the loan. He wanted to help folks with the down-payment. That's it.
June 12, 2002, Speaking to HUD employees....But I believe owning something is a part of the American Dream, as well. I believe when somebody owns their own home, they're realizing the American Dream. They can say it's my home, it's nobody else's home. (Applause.) And we saw that yesterday in Atlanta, when we went to the new homes of the new homeowners. And I saw with pride firsthand, the man say, welcome to my home. He didn't say, welcome to government's home; he didn't say, welcome to my neighbor's home; he said, welcome to my home. I own the home, and you're welcome to come in the home, and I appreciate it. (Applause.) He was a proud man. He was proud that he owns the property. And I was proud for him. And I want that pride to extend all throughout our country.
One of the things that we've got to do is to address problems straight on and deal with them in a way that helps us meet goals. And so I want to talk about a couple of goals and -- one goal and a problem.
The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it.
We are here in Washington, D.C. to address problems. So I've set this goal for the country. We want 5.5 million more homeowners by 2010 -- million more minority homeowners by 2010. (Applause.) Five-and-a-half million families by 2010 will own a home. That is our goal. It is a realistic goal. But it's going to mean we're going to have to work hard to achieve the goal, all of us. And by all of us, I mean not only the federal government, but the private sector, as well.
And so I want to, one, encourage you to do everything you can to work in a realistic, smart way to get this done. I repeat, we're here for a reason. And part of the reason is to make this dream extend everywhere.
I'm going to do my part by setting the goal, by reminding people of the goal, by heralding the goal, and by calling people into action, both the federal level, state level, local level, and in the private sector. (Applause.)
And so what are the barriers that we can deal with here in Washington? Well, probably the single barrier to first-time homeownership is high down payments. People take a look at the down payment, they say that's too high, I'm not buying. They may have the desire to buy, but they don't have the wherewithal to handle the down payment. We can deal with that. And so I've asked Congress to fully fund an American Dream down payment fund which will help a low-income family to qualify to buy, to buy. (Applause.)
We believe when this fund is fully funded and properly administered, which it will be under the Bush administration, that over 40,000 families a year -- 40,000 families a year -- will be able to realize the dream we want them to be able to realize, and that's owning their own home. (Applause.)
The second barrier to ownership is the lack of affordable housing. There are neighborhoods in America where you just can't find a house that's affordable to purchase, and we need to deal with that problem. The best way to do so, I think, is to set up a single family affordable housing tax credit to the tune of $2.4 billion over the next five years to encourage affordable single family housing in inner-city America. (Applause.)
The third problem is the fact that the rules are too complex. People get discouraged by the fine print on the contracts. They take a look and say, well, I'm not so sure I want to sign this. There's too many words. (Laughter.) There's too many pitfalls. So one of the things that the Secretary is going to do is he's going to simplify the closing documents and all the documents that have to deal with homeownership.
It is essential that we make it easier for people to buy a home, not harder. And in order to do so, we've got to educate folks. Some of us take homeownership for granted, but there are people -- obviously, the home purchase is a significant, significant decision by our fellow Americans. We've got people who have newly arrived to our country, don't know the customs. We've got people in certain neighborhoods that just aren't really sure what it means to buy a home. And it seems like to us that it makes sense to have a outreach program, an education program that explains the whys and wherefores of buying a house, to make it easier for people to not only understand the legal implications and ramifications, but to make it easier to understand how to get a good loan.
There's some people out there that can fall prey to unscrupulous lenders, and we have an obligation to educate and to use our resource base to help people understand how to purchase a home and what -- where the good opportunities might exist for home purchasing.
Finally, we want to make sure the Section 8 homeownership program is fully implemented. This is a program that provides vouchers for first-time home buyers which they can use for down payments and/or mortgage payments. (Applause.)
So this is an ambitious start here at the federal level. And, again, I repeat, you all need to help us every way you can. But the private sector needs to help, too. They need to help, too. Of course, it's in their interest. If you're a realtor, it's in your interest that somebody be interested in buying a home. If you're a homebuilder, it's in your interest that somebody be interested in buying a home.
And so, therefore, I've called -- yesterday, I called upon the private sector to help us and help the home buyers. We need more capital in the private markets for first-time, low-income buyers. And I'm proud to report that Fannie Mae has heard the call and, as I understand, it's about $440 billion over a period of time. They've used their influence to create that much capital available for the type of home buyer we're talking about here. It's in their charter; it now needs to be implemented. Freddie Mac is interested in helping. I appreciate both of those agencies providing the underpinnings of good capital.
There's a lot of faith-based programs that want to be involved with educating people about how to buy a home. And we're going to have an active outreach from HUD. (Applause.)
And so this ambitious goal is going to be met. I believe it will be, just so long as we keep focused, and remember that security at home is -- economic security at home is just an important part of -- as homeland security. And owning a home is part of that economic security. It's also a part of making sure that this country fulfills its great hope and vision.
See, I tell people -- and I believe this -- that out of the evil done to America will come some incredible good. (Applause.) You know, they thought they were attacking a country so weak and so feeble that we might file a lawsuit or two, and that's all we'd do. (Laughter.) That's what they thought. We're showing them the different face of America. We're showing them that we're plenty tough. When it comes to taking somebody trying to take away our freedoms, we're tough, and we're going to remain tough and steadfast. (Applause.)
But I also want people to see the deep compassion of America, as well. I want the world to see the other side of our character, which is the soft side, the decent side, the loving side. I want people to know that when we talk about dreams, we mean big dreams. And when we talk about a free society, we want a society in which every citizen has the chance to advance, not just a few.
And part of the cornerstone of America is the ability for somebody, regardless of where they're from, regardless of where they were born, to say, this is my home; I own this home, it is my piece of property, it is my part of the American experience. It is essential that we stay focused on the goal, and work hard to achieve that goal. And when it's all said and done, we can look back and say, because of my work, because of our collective work, America is a better place. Out of evil came incredible good.
Thank you all for coming by.
The point that one might take away from this statistic is that the more economically enlightened understand that old adage in business:
SUNK COSTS ARE SUNK.
And since, in many cases these wealthier people are not walking away from their homes, but rather from their second homes, or third homes or investment homes, so they are treating these investments AS investments.
And since some of them figure all they are doing is throwing good money after bad, they are doing what they deem the best thing for them to do, financially.
They are taking their losses.
The middle class doesn't do that quite so often because in their case:
1. They are actually selling the place they need to live, anyway, and
2. They cannot bring themselves to lose whatever equity they put into it
3. The cost of MOVING and the cost of losing CREDIT makes walking away from an under water property more expensive ( by comparison) for the working classes than it does for the investment class.
The economic game is played very differently for the poor, the middle class and the well heeled
Strategies that make perfect sense for one class, can easily make no sense for another.
I don't see a link, what do they deem as "rich"?
The point that one might take away from this statistic is that the more economically enlightened understand that old adage in business:
SUNK COSTS ARE SUNK.
And since, in many cases these wealthier people are not walking away from their homes, but rather from their second homes, or third homes or investment homes, so they are treating these investments AS investments.
And since some of them figure all they are doing is throwing good money after bad, they are doing what they deem the best thing for them to do, financially.
They are taking their losses.
The middle class doesn't do that quite so often because in their case:
1. They are actually selling the place they need to live, anyway, and
2. They cannot bring themselves to lose whatever equity they put into it
3. The cost of MOVING and the cost of losing CREDIT makes walking away from an under water property more expensive ( by comparison) for the working classes than it does for the investment class.
The economic game is played very differently for the poor, the middle class and the well heeled
Strategies that make perfect sense for one class, can easily make no sense for another.
Except most middle class people had no equity in their homes. With zero downpayment options, or at most 5% that could be borrowed and given on seller seconds etc they had nothing in them. Frequently it was more advantageous to walk away from the house (the term du jour for sending your keys is "jingle mail") and rent more or less the identical house down the street for less money per month.
The point that one might take away from this statistic is that the more economically enlightened understand that old adage in business:
SUNK COSTS ARE SUNK.
And since, in many cases these wealthier people are not walking away from their homes, but rather from their second homes, or third homes or investment homes, so they are treating these investments AS investments.
And since some of them figure all they are doing is throwing good money after bad, they are doing what they deem the best thing for them to do, financially.
They are taking their losses.
The middle class doesn't do that quite so often because in their case:
1. They are actually selling the place they need to live, anyway, and
2. They cannot bring themselves to lose whatever equity they put into it
3. The cost of MOVING and the cost of losing CREDIT makes walking away from an under water property more expensive ( by comparison) for the working classes than it does for the investment class.
The economic game is played very differently for the poor, the middle class and the well heeled
Strategies that make perfect sense for one class, can easily make no sense for another.
Except most middle class people had no equity in their homes.
Wrong.
With zero downpayment options, or at most 5% that could be borrowed and given on seller seconds etc they had nothing in them.
In those cases, yes you're right. But you're wrong if you thnk that describes "most" of the middle class who have mortgages.
Frequently it was more advantageous to walk away from the house (the term du jour for sending your keys is "jingle mail") and rent more or less the identical house down the street for less money per month.
Yup.
The point that one might take away from this statistic is that the more economically enlightened understand that old adage in business:
SUNK COSTS ARE SUNK.
And since, in many cases these wealthier people are not walking away from their homes, but rather from their second homes, or third homes or investment homes, so they are treating these investments AS investments.
And since some of them figure all they are doing is throwing good money after bad, they are doing what they deem the best thing for them to do, financially.
They are taking their losses.
The middle class doesn't do that quite so often because in their case:
1. They are actually selling the place they need to live, anyway, and
2. They cannot bring themselves to lose whatever equity they put into it
3. The cost of MOVING and the cost of losing CREDIT makes walking away from an under water property more expensive ( by comparison) for the working classes than it does for the investment class.
The economic game is played very differently for the poor, the middle class and the well heeled
Strategies that make perfect sense for one class, can easily make no sense for another.
Except most middle class people had no equity in their homes. With zero downpayment options, or at most 5% that could be borrowed and given on seller seconds etc they had nothing in them. Frequently it was more advantageous to walk away from the house (the term du jour for sending your keys is "jingle mail") and rent more or less the identical house down the street for less money per month.
homeownership has long been the hedge against inflation, which renting does not assume Rabbi.
~S~
Most middle class people who walk away from their homes have no equity. That's like a blinding flash of the obvious.
