Posted on 11/02/2007 8:56:59 AM PDT by 12B
Investment banks getting slaughtered on writedowns. Rumours that Goldmans and Citi might have double-digit writedowns. No end in sight for illiquidity in CDOs, ABSs, and anything else subprime related. Housing market still teetering on the verge of things getting REALLY ugly.
My solution: Offer US citizenship to every Mexican illegal on the condition they buy a house with a 20% downpayment. Housing market saved. Flow of Dollars South of the border staunched.
Fire away.
Why would they legalize themselves when they have all the benefits and none of the responsibilities right now?
I doubt there are that many illegal Mexicans in the U.S. who could put 20% down on a new car, much less, a house.
They would have to show tax receipts on how they earned the 20% down and expose themselves to tax liability. Never happen.
Besides, they say they only want work and go home not live here so they want the free medical, food, education, etc get their money tax free then go home.
You have not solved what they want to do, so the won’t do it.
Yes, the housing market is not even close to the bottom yet. Ground zero is 2008. 2009 levels out then 2010 returns to 2003-2004 levels of growth.
Sure...but I doubt many of them HAVE 20% to put down. And it would only work if they bought at market prices...and then when they default it starts all over again!
They’re sending $20Bn a year south of the border. That’s a lot of downpayments.
$20 billion divided by 20 million illegals is only 1000 bucks apiece.
That still only amounts to $1000-$1667 each depending on the count you believe.
I've long believed that the U.S. government (including both major political parties) has been fixated on maintaining open borders with Mexico to prop up our real estate market and allow a steady stream of new consumers into the country.
If 20Mn is correct, there will always be some with enough wherewithal to move from renter to owner as soon as they’re legal. 20 Mn is a lot of renters. If 5% of them could manage the jump we’d be giving citizenship to the most industrious of the bunch and potentially thwarting a housing bust at the same time.
Or maybe not.
Stupid idea! The down payment is the issue that caused a huge part of this problem in the first place - actually the lack thereof. If Americans cannot come up with downpayments, how can illegals? Besides, I’m thinking that more than a few people that purchased houses in the last year or two are illegals and didn’t put down anything.
I’m happy that you are not running this country.
Credito Facil!
5% of 20 million is 1 million. Assuming they all bought a new home with 20% down - they still would not wipe away the current overhang of unsold real estate.
Regards,
Lurking’
The problem is that we gave credit to uncreditworthy people who weren't putting up downpayments for the most part. I don't understand your logic. A buyer who can put upp a solid downpayment is exactly what the market craves. Also, many would likely enter the housing segment most hard hit by defaulters. Voila!
That is correct. But when you're teetering on the edge, it's all about momentum.
Yes but next year there will be 2 million homes unsold and there won’t be 40 million illegals - 5% of which have 20% down payments.
Lurking’
OK, I retract the bit about saving the haousing market. But it might be enough to help save the CDO/MBS/ABS markets which threaten to destroy the housing market completely if they get any worse.
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