That is good enough already. Please no more. I disagree. The government is not BACK STOPPING anything neither should they be at this point.
None of these programs are designed to actually work but appear to make us think that the government is actually doing something to try to boost the psychology of people.
Where was the FRONT STOPPING when home prices were appreciating too fast during the last 8 years? Nobody was complaining then were they? No one was saying maybe this growth is too fast too much and may lead to a crash in the next few years.
Instead, we heard brain dead people from the NAR say things like, there is a housing shortage, or there in no more land to build on, or better buy now before you get priced out the market, or at worst we will have a soft landing here in CA because EVERYONE wants to live here…SELF INTEREST not based upon sound mathematical modeling.
Let the (houses) bodies hit the floor, let the houses) bodies hit the floor….let the houses)bodies hit the floor….
This government interference in trying to artificially stimulate an asset such as a house (again) is going to delay the inevitable and create a huge spike in interest rate pricing as the T bond is on the verge of blowing. It is the next bubble waiting to pop as we increase our debt by throwing it into glory holes (AIG, GM, FORD, CITI, etc).
Sooner than later our debt purchasers are going to see that our T bonds are sub prime and want sub prime returns….
SD, What do you think interest rates in the 9% range is going to do to housing prices on top of foreclosures in the pipe being held back by banks to reduce inventory? On top of people losing their jobs?
