stimulating housing demand will cure the economy

Discussion in 'Economy' started by Truthmatters, Jul 5, 2012.

  1. Truthmatters
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    Stimulating Housing Demand



    When the housing market collapsed four years ago, many economists and federal regulators blamed excessive leverage on Main Street and Wall Street for the crisis. Now, years later, the unwinding of that massive debt -- known as deleveraging --is slowing the economic recovery, says Mike Konczal, a fellow at the Roosevelt Institute, a left-leaning think tank.

    "Mortgage debt is the real core problem" for the economy, Konczal told The Daily Ticker.

    It's estimated that 23 percent to 31 percent of homeowners owe more debt than their homes are worth, said Konczal. Not surprisingly, many are trying to pay off that debt, leaving less money to spend on anything else, and that drop in demand is causing high unemployment. He calls it a "balance sheet recession."
     
  2. Truthmatters
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    too much reality huh?
     
  3. expat_panama
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    expat_panama Silver Member

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    --and 87% of internet percentages are imaginary, but this is a good topic and thank you for posting it.

    OK, we agree that it does happen, and while the situation may be difficult for the homeowner it's twice as bad for the mortgage holder because the bank lacks the recourse of getting the money back if the homeowner can walk away having spent all the borrowings.

    Bigger problem here is how do we prevent this in the future. One good step is educating stupid people about borrowing more than they can pay back. Another is repealing laws requiring banks to loans to deadbeats.
     
  4. iamwhatiseem
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    iamwhatiseem Gold Member

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    What a boneheaded moron you have got to be.
    Even for you this is over-the-top stupid.
    Ever hear of the Savings and Loan crisis?
    Have you noticed we are in a severe recession?
    Both were due in part to the government creating elevated/false demands.
    Wow...just wow.
     
  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    Exactly...which is exactly opposite of what the likes of TM and the herd of cliff swine like her want.
     
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  6. Trajan
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    Trajan conscientia mille testes

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    we've been 'stimulating' the housing market for 30 years, then bombed out and have been 're-stimulating' it to correct for the previous 30 years and? where has that gotten us?
     
  7. Truthmatters
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    no it was due the industry being deregulated and then using that deregulation to pull a fast one by selling worthless mortgages and then rolling them into securities and selling them to buyers who had no way of knowing they were packed with worhtless mortgages.


    The banks caused this and should fucking pay the cost of fixing it
     
  8. Truthmatters
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    by the way twat lips this is an economic expert saying this if you bothered to listen
     
  9. Trajan
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    Trajan conscientia mille testes

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    the landscape is littered with economic experts who told us that the housing market was fine and that extending loans to folks how really had no biz. in a home was sound...
     
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  10. Truthmatters
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    Yeah ones who were beifiting from the ruse.

    Fox was full to the brim with them and you Idiots called anyone warning its coming all sorts of crap
     

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