Posted on 08/15/2007 6:11:20 PM PDT by Kaslin
For many, the American dream starts with homeownership. Purchasing a home is usually a family's largest financial commitment. A home is not just a personal investment. It is an investment in the community and an affirmation of our fundamental value of private property.
Since we are all touched by the housing market, any turmoil in the housing sector grabs attention and emotions, as evidenced by the recent coverage of the subprime mortgage meltdown and "crisis." But should we be preparing for the next Great Depression, and do we need the federal government to save us?
Unfortunately, the media have a tendency to sensationalize stories, and, by nature, politicians will attempt to get in front of any issue to promote themselves.
When you go beyond the demagoguery and look at the economics, it is clear the mortgage market is correcting itself and that a government bailout would only make matters worse.
(Excerpt) Read more at ibdeditorials.com ...
Which is exactly what happened at the beginning of the Great Depression
I was waiting for those subprime loan sharks to go belly up and I'm in no hurry to save their rears.
(Hopefully the payday-loan centers are next...)
I’m thinking of getting a smaller 2nd home to rent out till retirement, is this a good time to get something cheap?
If he really wants to make a case for the markets to work, he should be criticizing the central banks.
What bailout happened at the beginning of the GD?
Kudlow is a Pollyanna. I doubt if he called for the Feds to buy junk. But he's right that the Fed should lower rates.
It’s an excellent time to buy.
I should have fined tuned that. No bailout, but it was government that caused the GD from what would have been a short recession - specifically misguided monetary policy.
The Fed has already been buying mortgaged back securities, but I’m pretty sure they are of the highest quality. The government does need to raise the caps on Fannie and Freddie so they can go in the market and do some cherry picking in the mortgage market.
He sure did. I almost drove off the road when I heard that...
Southack, your viewpoints on matters economic are cogent and well-reasoned. Do you think the sub-prime problems have a reasonable chance to seriously affect the larger economy if the Fed does not"assist", as some want to happen?
I am a Masonry Contractor and there is very little work lining up for the fall rush. Last year we had more calls than we had time to work the jobs in.
Banks and Mortgage brokers got greedy and now everyone will pay the price. If it goes like the 1929 Stock Market crash and the subsequent run on banks for cash we are in big trouble. When companies and people cannot get loans to operate on they have to use reserves of cash to operate. That further limits the amount of money floating around in the economy for job creation and business expansion.
Government is not the answer to the problem but they will come to the rescue in their famous, inept, unorganized super flop costume.
I think this winter is going to be very bad for a lot of people, and businesses. We have already cut way back, laid off help, and tried to cut expenses as much as possible.
I see very bad times coming and nobody can show me anything positive to change my mind.
While the purchases aren’t permanent they do add money into the system, and certainly do help liquidity.
Mortgage company and hedge fund implode meter..can follow daily with new companies added daily...no fun..but good info: http://ml-implode.com/
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