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Mark Fisher of MBF who on a regular base comes on the business channel giving his input on Nymex issues or other issues, one time stated that to solve the hosuing crisis is to provide GC to people who invest in homes over here for a certain amount of money ($ 500 K and up) and they won't be allowed to sell them for 5 or 10 years and give them a GC.
That will help move the homes fast, get the values up and move the economy. They will need to spent money over here since every home will have repairs, etc...and most of them will move in one of these homes which will make them need at least one car, clothes, groceries, etc...so lots of money coming in.
They can start a business as well and people who this amount of money to spent usually will be people who start their own company or already have one in place.
even if it worked as intended (without ending up some kind of scam), i wouldn't call that a "solution to the housing crisis"... more like spitting in the ocean.
Um, how about just letting the property values crash like they should?
Yeah exactly! Allowing prices to come down to be affordable for the middle and lower classes. It's the rich as usual that have speculated everything into the heavens. Most middle class Americans just want to buy a nice home and grow old in it. It's the greedy rich that try to make a buck off of everything....i.e. the whole flipping houses and mortgage backed securities etc.
Yeah exactly! Allowing prices to come down to be affordable for the middle and lower classes. It's the rich as usual that have speculated everything into the heavens. Most middle class Americans just want to buy a nice home and grow old in it. It's the greedy rich that try to make a buck off of everything....i.e. the whole flipping houses and mortgage backed securities etc.
I don't think you can solely blame the upper class for this. So many middle class people saw easy money in flipping houses too.
I don't think you can solely blame the upper class for this. So many middle class people saw easy money in flipping houses too.
It was the big rich bankers that shelled out all the free money with the help of the US government. Flipping houses takes a lot of money and for most people that money comes in the form of credit and loans. HELOCS etc.
I don't think this should be a goal of government policy at all.
Prices remain too high in many areas relative to average incomes and relative to the number of potential buyers with either cash-on-hand or a down payment + a sufficient credit record to justify a mortgage.
Let the prices decline to whatever level the market will support without external federal manipulation or interference.
Um, how about just letting the property values crash like they should?
As a home owner that bought at the end of '08 I hate the sound of this, but I believe it is what needs to happen.
Captialism means letting the market determine the price rather than propping it up by artificial means.... At least that was the understanding I got in my economics classes...
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