San Diego Housing Bubble News and Analysis

We're in so deep, I don't think our grandkids will get the bill... But props to China for financing the deficit spending.

If it were only China. Debt must either be defaulted or paid back. I think most people understand that we will eventually start defaulting on our debt. For those who prefer not to think about it, well there is always hope!

As to the matter at hand, this is a very serious problem, one for which the govt has no real solution; except to keep the drunken party going. To me this is worse than the mistakes we've made in Iraq by far. Fannie and Freddie are toast and we are all going to be on the hook for the bill. It just puts home ownership even more out of reach for hard working savers, by attempting to keep the mortgage market dysfunctional.

As I said over on Jim's blog a week or two ago. This recession was baked into the cake when the fraudulent loans were inked.

Barnaby it will indeed get worse. Much worse, you are correct.

Just wait until next year because my friend, you ain't seen nothing yet.

barnaby - I agree. Iraq will seem like pocket change.

I don't think its politically viable, letters to congress or not, to avoid a government guarantee of the GSE's.

Bailouts generally happen because those who don't support them get voted out (by which I mean they lose office).

This is part of the problem with democracy.

It does not always sync with particular interests.

I don't think its politically viable, letters to congress or not, to avoid a government guarantee of the GSE's.

The malaise of ignorance, I know it well. Its viable if enough people realize how they are being screwed to bail out a powerful, but small group of people at the expense of almost everyone else.

I get so tired of hearing the, "Oh its inevitable crap!" We do live in a semi-democratic system. A couple of tens of thousands of emails from angry constituents would force Boxer and Feinstein to pull their support. They are our representatives, make them act like it. Be part of the solution, no matter how insignificant you feel, unless you are pro bailout, if you choose not to voice your concern you are rubber stamping it.

Then next time you are at the gas pump and wonder why its 60 bucks to fill your Saturn and 200 a week in groceries to feed your small family, you'll at least console yourself with the fact that you attempted to do something.

Letters to politicians do have an impact. A groundswell of public opinion shot down the "amnesty bill for illegals" (although I liked 80% of it), and has had a huge impact on shaping the current bailout bill. Without all the criticism and angry pushback, Senators Dodd, Schumer, and Shelby would have given us a much more generous bill. It has been so watered down that it won't really help that many FBs. Its biggest drawback is symbolic--another step down the slippery slope of moral hazard.

EconProf, we already fell down the slope broke our femur and are attempting to limp across the moral hazard bridge (recently reinforced with actual steel beams from the Bear Stearns building in Manhattan.)

This bill won't "save" housing. All it will do is save two extremely imprudent corporations that lent out their investors money far to freely.

The only fix for housing is lower prices. Legislation like this does nothing to fix the problem. I agree that protest is what has kept numb nuts and ass munch from trying offer free sammiches to everyone!

What bothers me so much is that I hear from so many people that nothing they can do will make a difference. Maybe if I spread the word that a pro-gay initiative was being tucked into the bill we would get some real protest! As well as 18 pages of replies to this thread!

i agree with barnaby. can't complain unless you try to do something about it.

anyone have a letter that they want to share that other piggs can leverage for sending notes to feinstein, etc.?

sorry for being so lazy.

Also note that the Dodd housing bailout bill has a sneaky provision in it that will report ALL credit card transactions to the IRS.

JC I don't like form letters. Personally I feel five to eight sentences, or less, explaining your position is best. Since interns are the ones that read the email and tally opinions for their boss, form letters get discounted and long ones aren't going to get digested at a level that mis worth the effort.

Its the frequency of the anger that matters, not the amplitude.
Josh

Agree 100% with Barnaby33.

I've sent numerous letters, e-mails and made multiple phone calls to our senators and representatives, and only received their "yes, we're here to help the poor homeowners" replies. Like you said, at least we can say we tried.

Those who don't do anything have no right to complain.

Here's an easy way to get your representatives' contact information (enter your zip code in the field on the left):

http://www.congress.org/congressorg/home/

Of course I have a right to complain.

and I have a right to laugh at you for it...