Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This idea just hit me and I wanted to type it out. I think in order to "some what" get out of this recession, we have to figure a way to get out of the housing crisis. It needs to be repaired for many many reasons.
This is my idea. The government should force the banks(Who they have given billions of our tax dollars) to sell the foreclosures for 30%+ lower than the market value. This would create some what of a small housing boom and would get people into houses who could really afford them. You would also have investors that would buy them up and rent them out. Property taxes would start getting paid again and would help out local communities\states that are hurting bad.
Now do I realize how much this would cost? Yes, I do and it would be painful for a little while. However, I feel it will slow the fire down. Right now, we are just throwing money at the banks etc. and getting no where. We are basically tossing our money into a fire and burning it up to try and keep people in homes that they can't afford anyway because they are still too inflated. Sorta like the same way we keep throwing money at G.M. and saying they are too big to fail when in reality they are to big to bail out!
Maybe my idea has a bunch of holes in it, I really don't care because I feel we should all be thinking of ideas to get out of the mess we are in now. Please post your opinions etc. If you like my post give me a rep point!
Anyway, hate to burst your bubble (pun intened) but banks are already selling foreclosures 30% below comps and in some case even more.
There are no quick fixes. Thats the whole damn problem. Too many people looking for a quick fix to avoid the unavoidable. Welp, the gig is up. No more bubbles to create I'm afraid so finally it's just going to have to play out good old free market style. Sure, the gov't will try it's best to magically make reality disappear but as should be obvious to all that's not working and won't work.
So there really is no need for you or anyone else to think of ideas to get out of this mess. The best and only true solution is to let the free markets work. And it speaks volumes about just how bad things are in this country when letting free markets work is an unusual idea.
You are the only one drinking my friend. Im not looking for a quick fix, Im looking for some sort of solution. The government is the one who is looking at quick fixes and throwing money away.. LITERALLY. Trust me, if banks were selling homes at 30%+ BELOW CURRENT market value... homes would sell, and they would sell fast. I'm not talking about the random house here and there, I'm talking about all foreclosures everywhere.
All the government is doing right now is throwing fuel on the fire. If anyone believes otherwise, they are retarded.
You are the only one drinking my friend. Im not looking for a quick fix, Im looking for some sort of solution. The government is the one who is looking at quick fixes and throwing money away.. LITERALLY. Trust me, if banks were selling homes at 30%+ BELOW CURRENT market value... homes would sell, and they would sell fast. I'm not talking about the random house here and there, I'm talking about all foreclosures everywhere.
All the government is doing right now is throwing fuel on the fire. If anyone believes otherwise, they are retarded.
The solution is to let free markets work. Having the gov't tell banks what price they need to sell thier homes isn't a solution to anything. Trust me, left alone the housing market will solve it's own problems. Maybe not as fast as people would like, but it's 100% guaranteed to work.
The solution is to let free markets work. Having the gov't tell banks what price they need to sell thier homes isn't a solution to anything. Trust me, left alone the housing market will solve it's own problems. Maybe not as fast as people would like, but it's 100% guaranteed to work.
Yeah, its working real well right now. This deep recession is going to take YEARS to recover at the current pace its going..if it recovers at all. We are facing a major disaster right now that could be catastrophic to the US. We need ideas and innovation to get out of this. I typically agree with the free market strategy, but I think we need something sooner.
Right now they are just cluelessly throwing money away(Money we don't have) hoping they can some how bandage the deep recession we are in. All the while crossing their fingers that the economy will miraculously turn around. They are using our tax dollars to keep people in homes that were extremely inflated to begin with. These people will never be able to afford them.
This is my idea. The government should force the banks(Who they have given billions of our tax dollars) to sell the foreclosures for 30%+ lower than the market value.
This would be a huge transfer of wealth to current home buyers to everyone else. Huge. The government would have to make up the difference, because this would hit the bank's balance sheets in a major way.
But the only way you could do this is with voiding contacts. Most mortgages are owned by investors, the government would not only have to force the banks but also the investors to take a loss. What gives the government the right to take money from investors?
How about this. The government can take say 20% out of everyone retirement account and give it to home buyers with a 20% housing credit. What you are talking about is equivalent to this.
How about this. Have the government force every company that sent jobs overseas and closed plants in America reopen the plants and rehire the workers at their previous wages.
Stop ignoring the 800 pound gorilla in the room and do something about it before it destroys the whole house and we are all out in the streets.
Why not have the government just take over completely, have it own and run everything, that way you won't have to buy a house or have a mortgage, the gov. will assign you one, this would also work great for employment, at birth the gov. will assign you a job that you will have for life, no layoffs. why have we not tried this before?
Ooops never mind I just remembered that whole Soviet Union thing.
Im looking for some sort of solution. The government is the one who is looking at quick fixes and throwing money away.. LITERALLY.
So, your solution is to get the government MORE involved by taking what is private property and ordering it to be sold at less than fair value? That make no sense whatsoever. The governments actions may appear to be helping to pull us out of recession, but all it's really doing is delaying the pain and transferring the bill to our children. Government needs to get their hands out of the economy as much as possible, and let things play out as they will. Banks and car companies need to be allowed to fail if they can't be profitable. As painful as that would be, it makes for stronger competition among the survivors. The resulting lower government deficits over the long haul wouldn't hurt either.
Quote:
Stop ignoring the 800 pound gorilla in the room and do something about it before it destroys the whole house
The government IS the 800 lb gorilla. I'd even argue with you that at this point, it's a lot bigger than 800 lbs. How would you like it REDNC, if you were to move you and your family from North Carolina to Georgia because the job market there was better, only to have the state of NC force you to move back because your moving was detrimental to the state. That is what you are proposing only on a larger scale, and, no offense, but it's ridiculous.
Everybody in this country needs to stop worrying about what the government should be doing and start worrying about what it SHOULDN'T be doing. On e of my favorite quotes applies here: "Those who trade their freedom for security have neither." And frankly, I am appalled at the number of people who are just lining up to make that trade. If everyone just started taking more personal responsibility by working or finding work, earning money, paying their bills and paying off their debts, and saving money, and started worrying about improving their own little patch of this country instead of worrying about everyone elses patch, we'd be a much stronger nation than we are today. It's sad to say, but I guess there's just too many people these days who find the concept of personal responsibility to be to much work.
The government IS the 800 lb gorilla. I'd even argue with you that at this point, it's a lot bigger than 800 lbs. How would you like it REDNC, if you were to move you and your family from North Carolina to Georgia because the job market there was better, only to have the state of NC force you to move back because your moving was detrimental to the state. That is what you are proposing only on a larger scale, and, no offense, but it's ridiculous.
Everybody in this country needs to stop worrying about what the government should be doing and start worrying about what it SHOULDN'T be doing. On e of my favorite quotes applies here: "Those who trade their freedom for security have neither." And frankly, I am appalled at the number of people who are just lining up to make that trade. If everyone just started taking more personal responsibility by working or finding work, earning money, paying their bills and paying off their debts, and saving money, and started worrying about improving their own little patch of this country instead of worrying about everyone elses patch, we'd be a much stronger nation than we are today. It's sad to say, but I guess there's just too many people these days who find the concept of personal responsibility to be to much work.
No the 800 pound gorilla is greed by big business. Following the OP's need for government involvement sent me down the path to government involvement where I should not have gone.
You are right, we need to start worrying what we shouldn't be doing.
We shouldn't buy products from any company that has moved jobs offshore.
We shouldn't buy any products that hire illegal workers or cheaper labor from other countries.
We shouldn't allow companies to pay less than a living wage.
"If everyone just started taking more personal responsibility by working or finding work"
Tell that to the small town workers that just had the plant close down not because the product they made wasn't selling, but the CEO wanted a bigger bonus.
I have to laugh at how many blindly line up to push others off the cliff while ignoring the fact that by doing so they are setting themselves up to be the next to be pushed off.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
