Tell me why Mexico has an unemployment rate of 5%? Thank you NAFTA.
This guys doesn’t seem to “get it”. The DemocRATS forced the banks to lend to people who had no chance of ever paying the money back. Liberal DemocRATS created the environment of lending money to anyone even if you knew you’d never get the money back. IMHO, this is the fault of the government, not the banks. The DemocRATS’ plan to collapse the American economy began many years ago.
Massive dafault is a bad idea - sure, it’s a really “fast” way to get beyond where we are now but it’s still a very bad idea. It’s like giving up entirely ...
Silly article. The author fails to mention the small point about the federal government coercing banks to loan money to unqualified borrowers — forcing banks to engage in practices which they would have otherwise avoided. Under the guise of “fairness” and “diversity” many banks had no choice but to approve loans which were patently risky. The feds didn’t give them an option.
Somewhat agree with this, there are tons of houses that haven’t even hit the market.
The housing market hasn’t even reached bottom because the government refused to put them on the market.
If they try to rent them out, then it is going to make all the landlords go bankrupt and they are the most likely to pay their mortgage because of the money they have invested.
So can’t do that....
SO you sell them, but who is going to pay on a mortgage for the next 15 years that is under water 15 years out by 40%? They aren’t, many are just going to walk away.
What ever is going to happen, lets just get it over with so we can move on.
Banks won't like it, as they'll have to recognize the hit on their books.
Borrowers that pay on time won't like it, as it's unfair to them...they were doing the right thing.
I don't much like it, either, but this economy's going nowhere until a bottom in the real estate market is established.
Without a 'floor', the best we'll see is treading water.
Not true, nor are his alternatives. Money used to pay debt doesn't go into some galactic Black Hole...it goes back into the system.
You really can have it both ways, except Obozo is too stupid and too Marxist to go along with it. For the tens of millions who are trying to pay back their debt, cut their taxes. This leaves them with more money to pay off debt and buy more goods are services. As consumer demand rises because take-home pay is now higher, business needs more inputs, from raw steel to labor. More labor means more (NOT less, you idiot!) tax receipts.
Now, cut the tax rate for corporations and make them permanent so corporations can plan around it. Is it by chance that the country with the second highest corporate tax rate in the world (the US) is struggling with 9.2% unemployment and negative growth while the country with the world's lowest corporate rate (Chile) has the highest growth rate and lowest unemployment rates? I don't think so. And this from a country that was going up in smoke under Allende's Marxist policies in the '70's. They saw the light...we don't.
Alas, lowering personal income taxes on ALL income levels and corporations doesn't square with Obozo's Class Warfare to destroy capitalism plans. I sure hope smart minds do better in 2012 than they did in 2008.
After the “Crash” in 1929 homes that were valued at $20,000 were being sold for as little as $7000. The banks didn’t want them and sold them for what they could get just to get some much needed cash. The original large downpayment required plus the resale price minimized the banks exposure so they came out pretty well since they didn’t have access to the Big “O’s” stash. Also mortgages were typically for 3 to 5 years and people actually expected to pay off their homes and own them free and clear. “Burning the Mortgage” parties were a common social event.
We need more pride in America, not less. We are already in a de-facto state of default, and making that condition official might ease our economic woes, but it will do nothing towards making America great again. It will also do nothing towards shrinking government, the one thing that will have to be done to put us back on the right track.
At this time, maybe we just need to let the forces work themselves through, to purge the system of them once and for all, and get back to growth.
Agreed. The lawyers’ real estate interests’ scheme of stopping foreclosures by judicial decree is doing more harm than good. Get it over with. Same for local governments and their dependencies on federal funding.
However we have not had a free economy in this area for about 15 years.
And it is getting even less free as the government piles more and more restrictions on who you can lend to and under what conditions.
You have a down payment, good credit and a stable job. You want to get in on the ground floor of a new condo, sorry, the bank can not loan you money. There has to be a certain number of condos under contract before they can loan you the money.
However you can get that loan with no down payment, bad credit and a unstable work history if you get the loan from the Federal Government.
The federal government is trying to force banks out of the loan business so they can take it over. Does this sound like a "free economy" to you?