Congress and Obama made it clear…..”The crisis will go on and on”…….

Discussion in 'Economics' started by jueco2005, Feb 2, 2009.

Congress and Obama have shown their unwilliness to help

  1. We can only wait for the housing market to clear

    12 vote(s)
  2. Congress will ultimatly help house owners

    4 vote(s)
  3. We need other markets to reach equilibrium points as well.

    17 vote(s)
  4. No opinion

    2 vote(s)
  1. Congress and Obama made it clear…..”The crisis will go on and on”…….

    The true cause of the economic crisis has been left unattended by our leaders.

    - As long as housing prices keep falling and properties being foreclosured upon…………there will be turmoil in the banking industry.

    - Only when housing prices have fallen to their equilibrium levels (equilibrium= what people can pay for them) will banks start to recover slowly and so will the rest of the economy.

    But Congress and Obama made it clear that they have no intention on helping the housing market to reach its equilibrium point fast enough.

    We shall only wait until prices fall no more………….only then we will know a bottom has been reached and a long way to full recovery awaits us.
  2. It's called conditioning the masses.
  3. Obama is incompetent. Even more so then Clinton was.
  4. The housing "equilibrium" will be reached when potential buyers perceive VALUE... not when NObama, et al, try to force the housing market to plateau at an artificially high level....

    The Administration is BUSTING ITS BALLS to try to stop the decline at a higher level than "value"... because the economy and tax receipts are keyed to an economic level of excessive spending and borrowing... therefore, "they" are in a panic to "get things going again in a hurry"...

    Their proposal for all of this is to "stimulate credit"... that is FORCE CHEAP, POORLY QUALIFIED LOANS onto weak borrowers to make the economy "look better"... (What? So those same poorly qualified borrowers can DEFAULT ONCE AGAIN?)

    Jimmy Rogers asserts that the Gummint should NOT intervene.... (1) because it won't work anyway, (2) the markets will bottom when the excesses have been wrung out and VALUE is perceived by buyers... not before, and (3) the Gummint will make things much worse for everybody from the intervention effort.

    I think he's likely correct.

    But of course, the Gummint is always under the gun to "do something"... after all, there's an election around the corner.

    (Too bad theire isn't a smilie for 'PUKE'... I'd use it often.)
  5. Equilibrium is not what people can pay for housing, its what they WANT to pay for housing.

    You want to get to equilibrium? RAISE INTEREST RATES!
  6. Congress and Obama made it clear…..”The crisis will go on and on”…….

    I hope he doesn't mean the "crisis" of new sod and seed for the national mall.
  7. Not really my friend. Equilibrium for houses has a ceiling...........what I can pay for it. If inflated......consumers wont be able to pay........they will foreclosure as it is happening now. Raising interest rates was something foolish done in the 1930's which precipitated the recession into a depression.

    An adjustment is necessary now .........and govt could help so that people dont find themselves homeless as houses go empty. But they have made it clear that they have no intention on doing so.

  8. Housing prices are still WAAAYYYY inflated... from the "money pump on steroids since 1982".... and of course, Affirmative Action Lending [sponsored and vehemently defended by DemoCraps] since 1999.

    Nothing will be "right" or "fair" until the RE bubble excesses have been wrung out. Before he died, Sir John Templeton said, "... housing prices will trough at 10% of their peak prices..." Maybe he's right.... happened in Japan. (Can you imagine? That $800,000 McMansion you bought going for only $80K?.... Ouch!)
  9. The bottom will come when it stops falling? how astute
  10. tradersboredom

    tradersboredom Guest

    healthy housing market prices rise with income or job creation.

    interest low or tease rates or housing rising on speculation are not sustainable as it has shown in the sub prime mess.

    there is less need for banks if nobody needs to borrow money or not qualified to borrow for mortgages.


    #10     Feb 2, 2009