Green shoots! New home construction down 10%! (Congress, wages, salaries, drug)
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The builders want that credit back and Congress is currently debating that very issue with their current "emergency" spending bill.
If the governement isn't subsidizing various sectors then the numbers go down..hence the need for government intervention, not to kickstart the sector but to support it like a drug addict
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by HappyTexan
The builders want that credit back and Congress is currently debating that very issue with their current "emergency" spending bill.
If the governement isn't subsidizing various sectors then the numbers go down..hence the need for government intervention, not to kickstart the sector but to support it like a drug addict
Housing should be left totally to the private market. There are many builders and many banks to loan money. There is no reason for the government to have any further involvement in it. Close Fannie, close Freddie.
There are too many empty houses now. Why would you build more of them?
Well, sure Kev!
Why do you suppose there are empty houses? Well, it is because alot of people lost thier homes and contintue to do so.
How did this happen?
1. The federal mandate to FANNIE MAE and FREDDIE MAC that low income "buyers" unable to purchase homes be allowed to do so. This was initiated in the Carter administration and took on its champions in the Senate and Congress- Barney Frank and Chris Dodd.
2. The addition of all the "new buyers" fueled an increase in demand which drove up the prices of existing housing as well as new homes.
3. Buyers bought interest only homes with variable interest rates. Interest rates went up, and they were unable to keep up payments.
4. Banks created financial instruments with buying and selling bundled mortgage products (courtesy of FANNIE MAE and FREDDIE MAC) which contained these high risk mortgages.
5. Add job losses from the initiation of the recession- Viola! Housing market meltdown.
What did we learn from this?
1. People who cannot afford homes should not buy homes
2. The federal government should not be dictating unwise lending practices
3. Chris Dodd and Barney Frank should have intervened on the lending insanity to those who could not afford homes, but did not
4. Socialism does not work
It is just another example of liberal "altruism" nearly neutering the entire nation through fiscal insanity. All we need is more of such "altruistic" social programs from Obama to kill the nation off permanently.
This is great news and was expected by many of us. The financial media are constantly wrong just like most economists seem to be for the last few years. House prices going down is a good thing too.
Housing is still overpriced in many US markets compared to market supply and prevailing wages.
It needs to fall more - perhaps even a lot more.
That will certainly have its consequences, but it would be pure folly for the government to continue its various charades that have been attempting to artificially prop up housing prices.
This is great news and was expected by many of us. The financial media are constantly wrong just like most economists seem to be for the last few years. House prices going down is a good thing too.
I agree. Home prices need to get back in line with salaries.
3x salary at most and then it's affordable.
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