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Inquiring minds are watching a pair of videos from Southern California. Allegedly, banks acquired brand new homes in foreclosure processes, the homes were not quite finished and the banks razed these homes rather than fix code violations.
Well, the resident Keynesian retard will tell you that not only are you employing the bulldozer and demolition workers, you've now restricted the supply allowing the artificially inflated values to return.
While I don't like to see a home torn down, it does bring up a point that I'd like to ask you folks about.
All those folks who can't afford their resetting mortgages - should the banks be pressured into letting them stay in their homes even if they can't make the increased payments?
The reason I'm asking is because it brings up a situation similar to the one mentioned above - many, many vacant homes around the country. Vacant homes like these (when they are in large numbers) have a detrimental affect on the community. They attract looters and vandals and homeless folks who often trash the place. As they deteriorate they lower property values and quality of life for the people who live nearby.
So, you seem so set to criticise the demolishing of these buildings (rather than just letting them sit and possibly suffering the fate I mentioned above) - so tell me YOUR solution.
I doubt you're in favor of granting the homeowers a "break" on their interest rates - and you've made clear you'll criticise tearing the places down.
So what's the solution to all these thousands of vacant homes slowly (or sometimes not so slowly) deteriorating and thus dragging whole neighborhoods down with them.
While I don't like to see a home torn down, it does bring up a point that I'd like to ask you folks about.
All those folks who can't afford their resetting mortgages - should the banks be pressured into letting them stay in their homes even if they can't make the increased payments?
The reason I'm asking is because it brings up a situation similar to the one mentioned above - many, many vacant homes around the country. Vacant homes like these (when they are in large numbers) have a detrimental affect on the community. They attract looters and vandals and homeless folks who often trash the place. As they deteriorate they lower property values and quality of life for the people who live nearby.
So, you seem so set to criticise the demolishing of these buildings (rather than just letting them sit and possibly suffering the fate I mentioned above) - so tell me YOUR solution.
I doubt you're in favor of granting the homeowers a "break" on their interest rates - and you've made clear you'll criticise tearing the places down.
So what's the solution to all these thousands of vacant homes slowly (or sometimes not so slowly) deteriorating and thus dragging whole neighborhoods down with them.
Don't be shy.
What's your answer?
Ken
Banks should be selling these homes for literally pennies on the dollar. Not 20% off. 50-75% off. The banks, getting bailed out, have no incentive to do such a thing.
Banks should be selling these homes for literally pennies on the dollar. Not 20% off. 50-75% off. The banks, getting bailed out, have no incentive to do such a thing.
OK, that's an answer (not sure I think it's the best one, but it IS an answer).
I do have to say though that I think these homes already ARE at 50% off (at least in some areas).
Maybe deconstruct the place and donate the materials to charity - I can't view the video so I have no idea if they already stripped out all reusable items (windows, doors, framing lumber, ...
OK, that's an answer (not sure I think it's the best one, but it IS an answer).
I do have to say though that I think these homes already ARE at 50% off (at least in some areas).
Ken
They need to be discounted to the point where people will buy them. Supply/demand. Economics 101.
If they cost $5,000, bidding wars will start allowing it to rise to its TRUE market value.
The myth that we have to "stop home prices from falling" is just that, a myth. Do people lose their paper equity? You betcha. But, some lucky couple who saved and scrimped for this day will finally bask in the sunshine. That is how capitalism works.
I still favor demolition...especially to curb exurban development, and most of these homes would wind up as rental property and would likely turn into exurban slums.
They need to be discounted to the point where people will buy them. Supply/demand. Economics 101.
If they cost $5,000, bidding wars will start allowing it to rise to its TRUE market value.
The myth that we have to "stop home prices from falling" is just that, a myth. Do people lose their paper equity? You betcha. But, some lucky couple who saved and scrimped for this day will finally bask in the sunshine. That is how capitalism works.
That's not how the "new" capitalism works.. Didn't you get the memo?
I wonder if this is part of the "shovel ready" stimulus jobs that our fearless leader was bragging on...
That's not how the "new" capitalism works.. Didn't you get the memo?
I wonder if this is part of the "shovel ready" stimulus jobs that our fearless leader was bragging on...
It's the Beavis and Butthead (aka Keynesian) form of "economics".
Blow up stuff!! yeah yeah!!! Fire (heh heh) fire!!!! Destroy!!!!
Although there is a resemblence...
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Didn't you get the memo?
