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LookieNoNookie -> RE: Housing bubble 2.0 is on the way (2/28/2014 6:28:15 PM)
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quote:
ORIGINAL: papassion
Obama appointed Rep Mel Watt Director of the Federal Housing Financial agency on January 6. Ironically, Watts was also one of the chief architects of the housing bubble that popped in 2007.
Watt was then Chairman of the Congressional Black Caucus, is best known for pushing banks to give risky loans to blacks and other minorities that could not afford them. In the lead up to the housing bubble, he drafted legislation that would have pushed banks to give mortgages to PEOPLE ON WELFARE as long as they could come up with $1,000.00. His plan called for the government to cover any losses by the bank by gauranteeing the mortgages.
In Oct 2002, Watt announced the public-private partnership called "Pathways to Homeownership." This plan was designed to coerce banks to give mortgages to people EVEN IF THEY COULDN'T SCRAPE TOGETHER A DOWN PAYMENT. Even in 2007, when the housing market was imploding from all the subprime loans, Watt pushed a bill to force Fannie and Freddie to make MORE loans to non-creditworthy minorities in inner cities. He vehemently fought against any effort to reduce sub-prime lending. He and BARNEY FRANK led the effort to sucessfully block the 2003 Fanie and Freddie reform effort.
What do you think Watt's agenda will include? He has already told us. Reflate the housing bubble by helping people buy houses they cannot lafford. He also put his name to a letter calling on Freddie And Fannie to forgive the debts of underwater homeowners who speculated on houses at the height of the bubble. Mel Watts's record is public knowledge.
Why didn't the Republicans challange him on that? One, Everybody is afraid to be called a racist and anything that can be twisted or perceived to be against minorities, and Two, the Republicans were also complicit in the housing bubble pushing banks to give loans to those who could not afford them. Three, banks and real estate groups are amoung the biggest donors to both political parties.
Mell Watts is just the man for Wall Street. Big banks will again be giving loans to people who can't afford them, now they know the government will subsidize them and bail them out when things go wrong. Housing bubble 2.0 is on the way thanks to Obama's appointee.
I read about 16 words and thought "Bud...do a little yoga, read some poems.....burn some incense...."
Look, the real estate market has been hit hard, it's coming up. The Case/Schuller Index shows that we're not quite where we should be...just yet...following historical paths but, we're also not following historical paths.
The Case/Schuller Index is no longer (implicitly) valid.
The amount of cash circulating has upset values, ergo, the indexes (all of them) no longer tell the entire story.
In the end, it's all about whether or not you can get out....or get in.
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