Discussion in 'Economy' started by KissMy, Aug 18, 2010.
Fannie Mae and Freddie Mac reform: Would it add $5 trillion to US debt?
The housing market is unlikely to hit bottom until the second year of the next administration. The four year presidential cycle and 10 year census cycle just interact that with the capital markets
They've already added $5,000,000,000,000 to the debt as they are insolvent and wards of the state.
My bet is Nov 2012. That is when Sub-Prime, Alt-A, & Option-Arms are all finished resetting & Obama is voted out of office.
The government needs to get the fuck out of the mortgage business
Notes from Appraisal Institute’s 16th Annual Summer Conference
Fannie-Freddie reform holds implications for rental housing
Fannie conference sees call for subsidy reduction
Those are some incredibly scary numbers.
This is like having an armed and counting down nuclear bomb in the economy.
Way this could have worked:
1. Waited for both to go bankrupt.
2. Bought them out and wiped the loans.
3. Close both companies and life goes on.
For every person the Obamacrat government allows to continue living in a foreclosed home for free it kills many local Main Street jobs & local taxes but increases profits for mega multinational corporations on Wall Street & increases jobs in foreign countries like China. Government has inserted itself & wall street between local business & customers thus destroying the main street economy.
These slackers no longer pay their payments for property taxes or homeowners insurance so their local insurance agent fires all their employees & goes out of business. A big insurance company like AIG has deals with banks to put forced place coverage on homes that homeowners stop paying premium on. The slacker is likely not saving that money because he is going to file bankruptcy so he blew it on a Big expensive LCD HDTV made in China for a mega multinational corporation & sold by a Big Box store. Along with an expensive satellite HDTV subscription package. This all propped up Wall Street but killed the main-street economy, local taxes, & jobs in the USA.
The same goes for the local land lords who buys foreclosed homes & used to rent them to the slacker that now lives for free & lets the house fall apart around him & even steals the copper wiring & plumbing if he ever leaves. Government is propping up home prices so land Lords cant buy them & expand. It hurts the property managers, property maintenance companies, lawn care companies. The slacker blew his excess money on some expensive expensive sneakers, clothes & I-Phone made in China & sold by a Big Box store. He upped his cell phone plan to an expensive plan that include data. This propped up Wall Street but killed the main-street economy & jobs in the USA. These local companies used to invest their earnings right back into their local economy. Now the Big Multinational Companies invest in China.
This all slowed home sales which wiped out local realtor's, loan officers, home inspectors, movers, painters, carpenters, tree services, news paper advertising, direct mailers, office equipment service technicians, & the list goes on. The slacker spent his money on a vacation to Europe on a foreign airline & blew his wad over there. This just killed the main-street economy & jobs in the USA. These local companies used to invest their earnings right back into their local economy. Now the Big Multinational Companies invest in China.
The free market is the best path to prosperity & Obamacrat communism is just trickle up poverty.
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