Perhaps there isn't a housing crisis?
From Matrix blog
By Matrix, Friday, April 17, 2009.
Editor's note: This item was originally posted at the Matrix blog by Jonathan J. Miller.
I always thought the word "crisis" wasn't the right word for the situation we find ourselves in these days. I see this more as a housing "reset." It's when the issue crosses over into the mortgage/credit arena; then we are in a crisis -- sort of a technical malfunction. Massive de-leveraging equals a crisis, I suppose.
There's a good article in Forbes called, oddly enough: "The Housing Crisis Isn't A Crisis": "This brings us to Zywicki's disagreement with the Obama administration. Treasury Secretary Timothy Geithner, National Economic Council Director Lawrence Summers and the other adepts in the administration all argue that the bursting of the housing bubble amounts to a national tragedy. According to President Obama himself, the 'crisis' is 'unraveling homeownership, the middle class and the American Dream itself.' "
And we start to realize how much power the financial services sector wields over Washington policymakers. This is best explained in Simon Johnson's "The Quiet Coup," an article in The Atlantic.
Of course, many find it easier to simply blame the person in closest proximity in this fun piece in Salon by Erica Ferencik: "They shoot real estate agents, don't they?" Ferencik bills herself as "a recovering stand-up comedian and featured guest on NPR's "Morning Stories." I recently plugged her novel, "Cracks in the Foundation," which is a good read. Erica promised me an Orange Julius or a mention of my eventual first book in her blog, whichever comes first.
Originally posted at Matrix, Copyright (c) Jonathan Miller.
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Submitted by Bill Fooks on April 17, 2009 - 1:34pm.
Bill Fooks
TFT realty Marketing Service
Warwick, RI http://www.fooksteam.com
I think a crisis is good for everyone. Those who got in over their head are learning a lesson. Those who believed the government, are learning not to believe. Bankers are learning to be bankers again. Sales people are learning to be slaes people again, instead of order takers. Politicians, like crisis, to make them feel important and powerful.They can buy votes with their solutions.
We have to have a crisis!! We good sales people can figure this out if they just leave us alone. It will be an exciting year.
Submitted by Bill Fooks on April 17, 2009 - 1:34pm.
Bill Fooks
TFT realty Marketing Service
Warwick, RI http://www.fooksteam.com
I think a crisis is good for everyone. Those who got in over their head are learning a lesson. Those who believed the government, are learning not to believe. Bankers are learning to be bankers again. Sales people are learning to be slaes people again, instead of order takers. Politicians, like crisis, to make them feel important and powerful.They can buy votes with their solutions.
We have to have a crisis!! We good sales people can figure this out if they just leave us alone. It will be an exciting year.
Submitted by David Weaver on April 17, 2009 - 7:22pm.
Bill, Maybe in Warwick, RI you don't have a crisis, but here in Buckeye, AZ we do. I am one of Mr. Obama's responsible homeowners. I put 20% down and proved my income and had assets in the bank when I closed on my home in Sept of 2006 for the purchase price of $317K. I've never been late on my payments.
A local realtor just listed a bank owned home of my floorplan for $85K. You can't buy the land and materials to build a 2600 square foot home for that.
I'm $169K underwater, I can't sell nor can I refinance as the presidents plan says I can't be more than 5% underwater. My American Dream is my retirement nightmare.
You are wrong on both counts, your aren't thinking and a crisis is not good for anyone.
The loss of wealth in this country due to the GREED of Wall Street, Fannie Mae, Freddie Mac and the non-conforming lenders all with the approval of our Government to increase home ownership in this country is staggering.
Where is the outrage? If you have a home in Arizona, California, Florida or Nevada, you don't qualify for the Making Home Affordable program introduced in Arizona by our president in February, because most homeowners are way more than 5% underwater.
Our president offered hope and a solution to homeowners while here in Arizona, but we were not told that we didn't qualify, until he was out of town. You think he planned it that way?
Remember elections have their consequences.
Jonathan, there are over 15 million homeowners who owe more than their homes are worth in the US and growing. If you don't think that this is a crisis on a national level, think again.
The crisis is not even close to being over as the 5/1, 7/1, 10/1 and 10yr interest only loans reset in the next few years. Loan mods only delay the time that the homeowner will default and face foreclosure.
Until real wages increase, home prices cannot increase. Check you lenders guidelines and wake up.
Submitted by Larry Whited Sr. on April 28, 2009 - 3:40am.
Our entire population will suffer at some level because of the unregulated high risk loan practices of this decade.
Unfortunately we will also suffer from our government’s overreaction and extreme regulation for the next decade.
We would not have to suffer through the latter if Wall Street and the Bankers had not perpetrated the former. Greed always has an ugly outcome in the end.
We need a new Glass-Steaglle Act to prevent this disaster in the future.
Everyone should do a Google search to understand the Glass-Steaglle Act and then tell their congress reps and senators how they feel about it.
Larry A. Whited, Sr., CRB, CRS, GRI
President & Founder
www.maxUnet.com & www.WebMLS.net
A Virtual Real Estate Franchise System
** Virtual Is the Future **
P.O. Box 757
West Chester Ohio 45071
Direct - (513) 543-2727 Fax - (513) 297-7497