Forget Federal Gov Bailouts … beware Local Govt

[PadreBrian]

oops. But, yeah, 13 Billion, put that on SD’s tab. lol!

[asragov]

SDR-

“It will not affect prices” is not the “wrong response”.

The basic point is that our government is not effective enough to even marshal a token response, much less one that will cost us much money or affect prices. It is able to divert our resources to stay in a state of perpetual war, sell public lands and property cheaply, and to inflate the currency, but the mortgage mess is a much more difficult issue.

At the local San Diego government level, there is simply gargantuan incompetence. At the federal level, there will be far less money spent than on Iraq, interest on the debt, or is lost through inflation.

It is very hard to figure out who exactly needs to be bailed out – homeowners are certainly unlikely beneficiaries. I do believe that the risk is much more diffuse this time around, vs. the RTC days (to include European investors, Asian sovereign funds, etc. etc.), so a concentrated bailout is hard to picture.

The bulk of the losses I believe will be sustained by individual homeowners, banks, and investors. Taxpayers after that, because the problem is too complex and difficult for government to deal with:

http://www.cnbc.com/id/20720037

[SD Realtor]

asragov… still not there yet. It doesn’t matter to me who sustains the bulk of the losses. Nor does it matter to me about the incompetence of all levels of government. A house is a house is a house…. of course. It is an asset. If it had wheels it would be a motorhome. If it had wheels but you couldn’t sleep in it then it would be a car. Less money then Iraq at the federal level, and local incompetence at the city council level has no bearing on the topic at hand.

We can handwave it all we want but when all these programs are aggregated together, and believe me brother just as there is a tidal wave of foreclosures coming, there WILL be more programs… if people like Hillary’s health care program they will throw a freeking ticker tape parade when she comes up with a cure for housing. Watching Bush backtrack on his stance is more of the same. What about pushing FHA insurance up on jumbo loans in the future? That has nothing to do with a bailout but don’t you think that would help tilt the scales on someome who is on the fence?

Again, it is not the point of whether alone or even together these programs will make a difference. The FHA currently has 700 BILLION of insured loans. My friend that 700 billion is insured by YOU and by ME. That will go up and under current legislation it will include higher limits. Guess who will oversee that, who will regulate that? Yes those same idiots that you refer to above. It doesn’t matter if 1 person is bailed out or if 100000 is bailed out… it is not just the bail out, it is also future policy.

To not recognize how ultimately bad this is and will get is well… kind of unfortunate…

SD Realtor

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