stimulating housing demand will cure the economy

Truthmatters

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May 10, 2007
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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."
 
"...23 percent to 31 percent of homeowners owe more debt than their homes are worth..."
--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.
 
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.
 
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?
 
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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
 
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by the way twat lips this is an economic expert saying this if you bothered to listen
 
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
 
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

oh yeah folks were benefiting from the use, like chis dodd, "friend of angelo"...like him?


or barney frank who defended the housing market to the bitter end? yea, I see what you mean....:clap2:
 
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

Derivatives were a vehicle where lenders might recover losses. There were winners and losers there too, but the fact remains is that there would have not been tons of bad paper to sell without the Community Reinvestment Act. Jimmy Carter and bill clinton saw to it that millions of people got mortgages that shouldn't have been able to buy a Big Mac on credit.
 
same old fucking blather from you cons.

no solutions and no adult conversation
 
Now you fucks are doubling down on that same stupid
What a fucking idiot you are - your piece is proposing exactly that.

:lmao:

Never change, TM. You are awesome.

Must spread... She is a constant source of amusement, isn't she?

I figure TDM must be 8 feet tall and weigh in at a ton and a half just to fit all that "stupid" into one person.
 
same old fucking blather from you cons.

no solutions and no adult conversation

Why don't YOU propose a solution in your own words? Let's see what you've got. No linked lib talking points, no quotes, no Progressive "experts". JUST your own words. Go for it. Let's see just how brilliantly "enlightened" you are.
 

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