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Old 12-10-2007, 09:21 PM
 
Location: San Diego California
6,795 posts, read 7,274,103 times
Reputation: 5194

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After a clear look at the sleezy freeze deal it should be clear to all that this is not going to do much to repair the housing / home loan crash. So what is the point of floating this lead balloon? Well for one, most people want to believe that the goverment wants to, and is capable of doing something about this mess. They are willing to be decieved and to postpone looking at reality until they are forced to.
A year ago they were still denying there was a problem with the housing market and today they are in denial about the comming recession.
The proponents of the freeze deal basicly accomplish 3 things by this deal.
1. It gives the "believers" an excuse to go out and spend this holiday season as if nothing is really wrong.
2. It postpones the worst of the s*** storm until a new administration takes office.
3. This is the most important benefit. It sets the president in this matter of goverment intervention and opens the door for future action when this fails.
By using incramentilism, the "powers that be" will be able to slowly and steadily justify a full scale bail out. You see, regardless of what they tell you, there is really no such thing as a win/win situation. in order for someone to win someone else has to loose. The question is who is going to be the loosers. My bet is the taxpayers.
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Old 12-12-2007, 07:21 AM
 
201 posts, read 904,724 times
Reputation: 83
I have a terrific fix for this mess.

Make it illegal to puchase single family houses for investment purposes. Each family may own two houses, neither of which can be used for income generation. Any extras must be sold immediatley.


Naturally, this will force the speculators sitting on 10-20 houses to unload them all. This will force the prices down exponentially. Unfortunately, it wont help the people already stuck in overpriced houses from defaulting, but it will completely erase the housing bubble.
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Old 12-15-2007, 07:46 PM
 
2,197 posts, read 7,381,163 times
Reputation: 1702
Quote:
Originally Posted by Lethal_Poison View Post
I have a terrific fix for this mess.

Make it illegal to puchase single family houses for investment purposes. Each family may own two houses, neither of which can be used for income generation. Any extras must be sold immediatley.


Naturally, this will force the speculators sitting on 10-20 houses to unload them all. This will force the prices down exponentially. Unfortunately, it wont help the people already stuck in overpriced houses from defaulting, but it will completely erase the housing bubble.
Homeowners who took out loans they had no business taking out for homes they knew they couldn't afford are the biggest culprits. The speculators still sitting on homes are novices. The smart investors got out a long time ago.

Investors aren't the problem. But they'll be part of the solution. When the market bottoms and all the foolish homeowners are shaken out, the investors will start buying properties and the market will rise.

You're targeting the wrong group.
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Old 12-16-2007, 07:47 AM
 
Location: Pinal County, Arizona
25,100 posts, read 39,200,144 times
Reputation: 4937
Quote:
Originally Posted by goodbyehollywood View Post
Investors aren't the problem.
With all respect, I must disagree - at least for the Az marketplace

Az State University recently did a study that showed that a MAJORITY of the homes foreclosed or in foreclosure in AZ are INVESTOR OWNED - NOT owner occupants. Now, that may change next year with all the arms popping but, for the moment, Investor owned properties ARE A MAJOR PART OF THE PROBLEM
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Old 12-16-2007, 07:59 PM
 
2,197 posts, read 7,381,163 times
Reputation: 1702
You're right-- AZ is unique, as are several other urban markets. Most of the country was not fueled by speculators. I still think it's individual borrowers using liar loans to buy champagne houses on a beer budget. I could be wrong, but the stats that I've seen bear that out, at the macro level.

There's a big difference between a speculator and an investor. Investors don't buy and flip for a quick buck; they buy for the long term and let renters pay off their mortgage. Big difference. Investors aren't the problem, because true investors aren't trying frantically to unload. I belong to several investors' clubs and I don't know of a single person looking-- or needing-- to sell.
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Old 12-16-2007, 09:34 PM
 
Location: Northglenn, Colorado
3,689 posts, read 10,402,231 times
Reputation: 972
Quote:
Originally Posted by Lethal_Poison View Post
I have a terrific fix for this mess.

Make it illegal to puchase single family houses for investment purposes. Each family may own two houses, neither of which can be used for income generation. Any extras must be sold immediatley.


Naturally, this will force the speculators sitting on 10-20 houses to unload them all. This will force the prices down exponentially. Unfortunately, it wont help the people already stuck in overpriced houses from defaulting, but it will completely erase the housing bubble.
plus it would put millions out of jobs. Dont forget about us home designers. and builders who do production work.
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Old 12-16-2007, 09:53 PM
 
1,297 posts, read 5,502,101 times
Reputation: 572
Quote:
Originally Posted by jimhcom View Post
2. It postpones the worst of the s*** storm until a new administration takes office.
So true. I remember GW boasting about the high % of homeownership since he took office. I guess they forgot to check up on a few administrative things like loan qualification. Now as he's stepping out, the next administration will have to deal with it and the negative implications... a leadway for republican administration next time around. Funny how that works out.

Politics aside, its really the fault of the property owner for signing a lease they can't afford or it could be as simple as "that's the way things go when you invest". Sometimes you make money, sometimes you don't. The key is not to play your entire portfolio on one hand and if you do, you better know what your doing.
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