The housing crash can be saved with one action

Discussion in 'Economics' started by chsbla, Feb 24, 2008.

  1. chsbla


    Well not saved, but a bottom can be established a lot sooner.

    What we forget about are the 11+Million illegal immigrants that are currently living in this country. Most only have checking accounts/prepaid debit cards. That is if they are lucky enough to fake a SSN and have it slide by the teller.

    I am not for amnesty, I am from Colorado and have seen first hand the damage that Illegals do to the state, increased insurance, higher health care, higher taxes to pay for social services as well as education.

    However from a monetary perspective, if we were to provide legal status to those 11+million workers, they would qualify for bank accounts, loans, real paychecks. Every illegal wants this, they want to be able to purchase a home that they can live in with their family, that they can raise their children in. Hispanics are well known for their family values and would start to purchase real estate if they were given the opportunity. THey will start by purchasing the sub 150k homes, thus establishing a bottom to the housing crisis. The demand for houses on the low end will start to push prices of houses up. Hispanics also have a large sense of pride/honor and will try to make their payments on time in order to establish good credit and provide for their future generations.
    i'm not for amnesty but it looks damn good as a way to stop the bleeding from the housing crunch....thoughts?
  2. It has some merit. You also have to take into account a scenario whereby an influx of new Hispanic buyers can scare away "white people" who could create an additional supply of homes for sale. The Hispanic demand would be offset by additional Caucasian supply, (subprime & prime).....does that make some sense? Maybe. We'll see.
  3. You forget about credit. Banks don't give stated income and subprime loans out easily anymore. It'll take 2 years alone to put together worthwhile W2s. Not to mention, these are lower wage earners, so they won't qualify for anything with even 20% down that these markets have to offer (unless they move to Ohio?)

    Your idea won't work for housing. But perhaps getting immigrants to pay taxes will fix the wage gap, solving the outflow of money problem. Seperate issue altogether.
  4. chsbla


    nothing will change people who bought houses that were outside their ability to repay. they will fail, nothing you can do, their fault

    I am talking about getting buyers into the sub 150k range. Your splits and duplexs, this will give a base that current housing prices won't be able to fall below.
    predatory lending sucked, but so did people believing in the pipe dream of 20% appreciation every year.
    its time to pay the piper and people only have themself to blame
  5. bellman


  6. bellman


    propping up the housing market isn't a good reason to grant amnesty... i'm not saying there aren't good reasons to do so, nor am i disputing that it would increase the average price of housing, which it obviously would.

  7. chsbla


    i said i'm against it from a political view, but its looking like a great way to help the credit crunch without as many negatives as the current options...

  8. Arrest these illegals and deport them. They donot deserve anything here and not our homes. They came here illegally and broke our laws, no ifs and buts.

    Whats the matter with you ? Our citizens are not entitled to houses first?
  9. chsbla


    Please let me know how you plan to pay for this? I'm all for getting rid of Illegals, but its not realistic. So i'm trying to find benefit to the situation

    Our citizens are the current problem, everyone sitting on the sidelines/selling.
    We need new buyers in the you agree or disagree on that?

    If you are any good at financial mgmt then you should be able to separate emotions from the ability to make $$$. And giving them legal status would make $$
    #10     Feb 24, 2008