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I'm not sure I understand this logic. The Dallas housing market somehow didn't fall victim of the communist conspiracy to get poor colored slackers into homeownership??
So Dallas doesn't have paupers who are easily seduced into government sponsored mortgages?
Or Dallas doesn't have homeowners who want to jack up prices to milk government backed mortgages?
Or could it be that the metroplex isn't landlocked and has free land (and toll ways) to make it attractive for people to decide to buy new in Little Elm instead of buying a used house in Frisco (which we all know loses 40% value once it is driven off the lot)?
I'm not sure I understand this logic. The Dallas housing market somehow didn't fall victim of the communist conspiracy to get poor colored slackers into homeownership??
So Dallas doesn't have paupers who are easily seduced into government sponsored mortgages?
Or Dallas doesn't have homeowners who want to jack up prices to milk government backed mortgages?
Or could it be that the metroplex isn't landlocked and has free land (and toll ways) to make it attractive for people to decide to buy new in Little Elm instead of buying a used house in Frisco (which we all know loses 40% value once it is driven off the lot)?
You are correct with the latter part of your statement..And let's not forget that real estate, especially as it pertains to the Boom/Bust was very Local..But for DFW areas ability to duck some of it, is largely because as you said, of the fact there are few land restrictions (less regulation), and these conditions existed prior to the housing crash. The places where there are land restrictions, CA is a great example since theirs are many, were the places it was felt most. No coincidence the high-priced enclaves were places with considerable land restrictions and hardest hit. An example of another of Govt regulation that has the opposite effect of literally making housing LESS affordable.
Then, more legislation was passed in an effort to make housing more affordable using Fannie and Freddie as vehicles to do so, lawsuits threatened, quotas set (via HUD), and THEN financing got looser, or to put it more accurately CREATIVE and the stage was set. Thats the sequence of events, not that Wall Street woke up one day and said, let's try out some new risky esoteric securitization practices. If Wall Steet is guilty of anything, it's knowing these mortgages were essentially backed with Taxpayer dollars through Fannie and Freddie. Not necessarily dumb on their part, so they took incredible risks..The question isn't why did they take advantage, the question is why it was all taxpayer secured.
Anyway, my point is the affordability of housing, in the true sense, not the political Dodd/Frank version, but in the true sense is overwhelmingly a function of just one thing, the extent to which Govt places artificial restrictions on the supply of residential land. Dallas is a standout in this regard for this reason as you mentioned. It takes a much lower percentage of median income to buy/own a home in Dallas (or Houston) than it does in most other places, great reason to move there. Thats how you making housing "affordable", not through some communist Govt run financing organization like Fannie and Freddie to advance a political cause that most Politicians care about alot less than getting re-elected.
Alas, I am getting carried away. Back on track. Perry looked good, will be watching closely as things progress.
There is too much REGULATION! Thats the problem with America today and we're at a point where people actually think it's a normal part of our Government and they can't live without some Govt bureaucracy overseeing everything because business is "bad". It's sad, really sad and I tend to agree, we've lost our way, and our debt will have our children shipping trillions of dollars of their output to China to pay off all the money Obama and Bernanke printed (they Tripled the national debt since Bush) ---but yet I still believe in this country.
Take for example the Housing crisis, most people actually believe it was Wall Street greed that caused it, when really, it was "affordable housing" efforts from douche bags like Chris Dodd and Barney Frank that set the framework for Wall street to screw up. Affordable Housing, yes this is what caused it, Fannie and Freddie being a Government run agency is what caused it. Affordable housing, a concept born in the late 70s under the (community reinvestment act), revitalized by George H.W. and vehemently enforced by the Clinton administration (think Janet Reno threatening lawsuits if banks didn't loosen lending standards). It's this administration that set quotas, yes QUOTAS around banks lending standards to minorities. Does Govt. know better than banks themselves about mortgage underwriting standards that have stood the test of time since the early 1900s? All this to make housing more "affordable" with the end result being highest inflationary period for American housing in history. You tell me, do places like Coastal California sound "affordable" or how how about where I live, or NYC. You see it all the time here, people are fleeing those places for Dallas!
Sadly, there is no accountability in our Government anymore, NONE whatsoever. They didn't want to make housing more affordable to anyone, not in the abstract they didn't. They just wanted a statement to hang their political hat on for campaign purposes. Another opportunity to have a "ribbon cutting ceremony" that provide valuable publicity for the politicians. This is what American politics is all about, and when their policies fail they are actually audacious enough to sit and wave their fingers at Wall Street execs to Scapegoat their total and utter failure. And unfortunately, we as voters allow it to happen and DO NOT take enough time to truly learn the FACTS. How a Regulation effects us not just now, but in the future when these dumb ass politicians are likely dead and gone. Bottom line, not everyone should own a home, some people should rent. It's what makes home ownership special.
Sorry for the rant..But please someone tell me when the false idea of Government protection became a more powerful force than Caveat Emptor.
I disagree with you 100%. Much of the reason we're in the mess we're in now is because of a total lack of regulation. Unbridled capitalism is as bad for the country as overregulation. Too lax of regulations is why we have banks being bailed out by taxpayers and people who never should have been homeowners in foreclosure. Underregulation is why corporations pay little or no taxes anymore while the burden falls ever more increasingly on the average middle class taxpayer. I've heard this argument from the right wing my whole life. I agreed for many years, but as I've gotten older I've realized that the root of our problems today has nothing to do with regulations.
I disagree with you 100%. Much of the reason we're in the mess we're in now is because of a total lack of regulation. Unbridled capitalism is as bad for the country as overregulation. Too lax of regulations is why we have banks being bailed out by taxpayers and people who never should have been homeowners in foreclosure. Underregulation is why corporations pay little or no taxes anymore while the burden falls ever more increasingly on the average middle class taxpayer. I've heard this argument from the right wing my whole life. I agreed for many years, but as I've gotten older I've realized that the root of our problems today has nothing to do with regulations.
This.
yeah make no mistake about it, the banks ONLY went along with the government pressure on the poor owning homes because they were able to make money on it, after all, there is one authority higher than the government in capitalism; the shareholder. If those bank CEOs want their bonuses then they better be making money for the bank...and they did, so for all those who point the finger SOLELY at the government, well this recession is like a buffet line, every one needs to grab a plate as there is plenty of blame to go round.
I disagree with you 100%. Much of the reason we're in the mess we're in now is because of a total lack of regulation. Unbridled capitalism is as bad for the country as overregulation. Too lax of regulations is why we have banks being bailed out by taxpayers and people who never should have been homeowners in foreclosure. Underregulation is why corporations pay little or no taxes anymore while the burden falls ever more increasingly on the average middle class taxpayer. I've heard this argument from the right wing my whole life. I agreed for many years, but as I've gotten older I've realized that the root of our problems today has nothing to do with regulations.
Why don't you provide some examples then? Give me some good solid examples of your theory..
Let's start with your claim of "Too lax of regulations is why we have banks being bailed out by taxpayers and people who never should have been homeowners in foreclosure".
You're right in part of your statement anyway, there are people that were specifically targeted by the Govt. (frank/dodd) that should NEVER have been able to buy a home. I think your understanding of how it all works is a little hazy.
First off Fannie and Freddie are two Govt created organizations, that are privately-owned profit-making enterprises that simply buy mortgages from Banks. I repeat Govt created organizations, who Profit is privatized but RISK is Socialized with an implicit guarantee of being backed by Govt. sponsorship (or the Taxpayer). Govt sponsored means, the Govt has continuing involvement in their policies, and they do VERY MUCH. To be specific the policies set by Frank and Dodd to make housing 'affordable'. So a couple of problems, first the methodology of selling these loans to Fannie and Freddie creates somewhat of a disincentive for banks to make sure they are going to get paid back by using traditional underwriting practices--not to mention they were given a direct order to loosen lending practices. Therefore, the underwriting practice can be more lax since it's going out the door to Fannie and Freddie. Second, investors buy securities issued by this same Govt sponsored enterprise with the same reliance on the same De Facto Federal guarantee I mentioned earlier. Add to this recipe the fact that Regulations were set stating they (fannie/freddie) needed to have 42% of the loans they write given to minorities, and threats of lawsuits from HUD if they didn't, and quotas were set around this and you have a Regulatory disaster.
Institutions effected by the CRA? What in the hell are you talking about? All banks that take FDIC insurance are subject to the rules of it. And, there are several paths for banks to meet those obligations, as your Govt sponsored article states. Some of which I have described already.
And if you think Equity loans saved the Texas housing market you should consider new sources of information rather than you local bank and government website. Are you a loan officer or something?
When I look at the crushing disappointment Obama has been and the crop of Republican candidates for 2012, all I can think about is....wonder what the cost of living's like in Vancouver?
Seriously, I have no hope for this country's future. None.
How much does it cost to get the legal papers to live in Canada?
Perry is playing to base, to push them in front of the bus later when they are no longer needed.
Perry has the aptitude for and acting career. It appears he may be almost as slickly marketed as Obama.
Institutions effected by the CRA? What in the hell are you talking about? All banks that take FDIC insurance are subject to the rules of it. And, there are several paths for banks to meet those obligations, as your Govt sponsored article states. Some of which I have described already.
And if you think Equity loans saved the Texas housing market you should consider new sources of information rather than you local bank and government website. Are you a loan officer or something?
You are wrong, perhaps you need to read closer and look at facts.
The CRA does not stipulate minimum targets or goals for lending, investments, or services. It only provides incentives. No private lending institution is forced to take these lending incentives. All FDIC insured banks are forced to maintain and adhere to anti-discriminatory policies under the authority of the CRA, but are not forced to give out unprofitable (or any) loans.
Only 6% of subprime mortgages were originated by institutions who accepted the lending incentives.
As you mentioned, there are other paths to meet CRA obligations other than originating loans if an institution chooses to accept the funding, but less than 2% of subprime loans originated by CRA eligible institutions were repurchased by another CRA eligible institution.
It was the restriction on home equity loans that helped Teaxs avoid the worst of the crisis. Home equity loans in Texas are heavily regulated compared to other states.
I disagree with you 100%. Much of the reason we're in the mess we're in now is because of a total lack of regulation. Unbridled capitalism is as bad for the country as overregulation. Too lax of regulations is why we have banks being bailed out by taxpayers and people who never should have been homeowners in foreclosure. Underregulation is why corporations pay little or no taxes anymore while the burden falls ever more increasingly on the average middle class taxpayer. I've heard this argument from the right wing my whole life. I agreed for many years, but as I've gotten older I've realized that the root of our problems today has nothing to do with regulations.
This.
Quote:
Originally Posted by 1957TabbyCat
How much does it cost to get the legal papers to live in Canada?
Perry is playing to base, to push them in front of the bus later when they are no longer needed.
Perry has the aptitude for and acting career. It appears he may be almost as slickly marketed as Obama.
All I heard yesterday was a bunch of populist nonsense but Perry is dangerous.
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Alot of people are wondering that
