Wednesday, February 24, 2010

Let the bad investments die already

From the Mercury News:

LAS VEGAS — President Obama unveiled a $1.5 billion program to aid the states hardest hit by the foreclosure crisis, a small but targeted effort to address a housing problem that continues to resist government solutions.

The program, which administration officials called an "innovation fund," is modest in size and reach and comes as the administration's chief foreclosure-prevention program faces criticism for not doing more to help borrowers.

Speaking to the Las Vegas Chamber of Commerce, Obama said the program would allow states to find new ways to help struggling homeowners. "That means that here in Nevada, we're going to be able to prevent some foreclosures that otherwise would have happened," he said Friday afternoon. "The goal is to target communities at the center of the crisis and to empower local agencies that know these communities best."

Obama made the same promise at a town hall meeting earlier in the day, telling about 1,700 people in Henderson, a suburb near Las Vegas, that "government has a responsibility to help deal with this problem."

VH: Here we go again. The Federal government riding the white horse over the hill to "help" out distressed homeowners. So instead of letting these bad investments go quickly to bankruptcy and clearing out the housing market, we have a vain attempt to prop up a market that shows very little signs of improvement. I don't see how this helps people who, after this small injection of public funds, will most likely lose their homes because they can't find a job or the value of their homes are much lower than what they are shelling out each month in mortgage payments. The irony in all this is that it was the Federal government that led all of these poor people down this path of destruction by implementing all sorts of "affordable housing" incentives. If the Feds want affordable housing now and they want a quick recovery of the housing market, why not let prices drop to their equilibrium? Instead, we get more public funds thrown at lost causes.


commoncents said...

Thank You for posting! Keep up the great work!!

Common Cents

C.C. Mitchell said...

You got one part wrong. The federal government isn't riding a white horse. It's a unicorn.

If they are so hellbent on this socializing America thing by giving money we don't have for all these things. Then why didn't they just take the $787 Billion Stimulus and and divide it equally amongst all Americans? Then the "Rich" who paid most of it would only get an equal just like the poor man. And we could all pay off our houses and cars. The Auto companies wouldn't have needed a bail out nor the banks as their toxic loans would have been paid in full. And people could buy new cars.

No I don't advocate such things but would it not have made more sense, saved money, and actually solved the problems?

Oh wait it wouldn't have given all power and control to Politicians!

My Bad!

Forgotten Liberty said...

I want the prices to keep falling because I'm looking to buy a house right now. The government needs to let the market sort this thing out and stop trying to artificially keeps things afloat. It's like pumping the water out of a sinking boat without first plugging the hole where the water is coming in.

VH said...

C.C. said: "You got one part wrong. The federal government isn't riding a white horse. It's a unicorn."

LOL!! Excellent!

Forgotten Liberty, we may be entering a sweet buyers market in housing very soon as interest rates must rise. Best of luck.

C.C. Mitchell said...

VH, I forgot to point out it the unicorn was ridden of a rainbow not a hill.

Forgotten Liberty said:"It's like pumping the water out of a sinking boat without first plugging the hole where the water is coming in."

I heard someone refer to it as rearranging the deck chairs on the Titanic. I loved that one.

Any way if they plugged the hole it would take care of itself and Washington politician would lose that power. As long as their pumping water they maintain control.