Posted on 08/25/2011 7:08:53 AM PDT by Oldeconomybuyer
There have been rumblings for weeks that the economic plan to be offered by President Obama after he returns from his vacation would be aimed, at least in part, at trying to re-inflate the American housing market.
The dribbles from the White House on housing have hinted at some big ideas: having the government hold and lease foreclosed homes and even having the government fully take over busted and bailed out mortgage buyers Fannie Mae and Freddie Mac.
The trial balloon in today’s New York Times puts the earlier leaks in perspective. The idea is to have the government offer to refinance the mortgages of millions of Americans whose credit scores prevent them from grabbing the lower-than-5-percent commonly available to qualified buyers today.
The administration is envisioning an $85 billion instant stimulus as those with poor credit see their rates drop dramatically. But to do it, the government would likely need to take over Fannie and Freddie.
One of the criticisms on the left of the Obama efforts to revive the housing markets have failed is because they have been modest and voluntary. This would be large and mandatory.
But part of the reason the president resisted something with, as they say at the White House, “bigness” has been that Americans who pay on time and keep their credit in good shape would deeply resent a subsidy for the credit unworthy.
Another problem: If the government will give cheap money to almost anyone, banks may get out of residential lending altogether.
(Excerpt) Read more at foxnews.com ...
B.O.H.I.C.A.
We’ll be leasing high-dollar homes to the poor and homeless who won’t be able to make the subsidized rent and will tear the place up.
Community Organizing at its ideal—but least practical or attractive.
Not long ago, your prediction would have been tagged as tinfoil. In avowed socialist countries, at least they hire mathematicians and scientists to plan society; we use lawyers.
Not long ago, I couldn't have imagined making it!
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