Government Price Fixing

[BuyerWillEPB]

I was astounded to find this .pdf today. An article in Sunday’s UT led me to it.

The most disturbing proposal was for a “Regional Land Bank” whose purpose is to buy up the foreclosures in San Diego “to create affordable buying opportunities.”

Huh? First of all, is it even legal for government to be buying all the foreclosed private properties? Secondly, how will doing that create affordable housing for average folks?

This is plain old price fixing to protect the RE investments of those who bought Pre-2003 (and to protect the high property taxes those house prices allow).

After reading this proposal, I’ve decided to leave San Diego. For awhile, I was seeing some progress with foreclosures rising and prices coming down. I was beginning to believe I could actually stay in San Diego. But now I can see how the whole system is rigged against us average first time home buyers. We are leaving San Diego as soon as I can get a transfer.

found here: The San Diego City-County Reinvestment Task Force (RTF)

And here: Panel urges fight on foreclosures

(exerpts below)

By Emmet Pierce
STAFF WRITER

September 21, 2007

Responding to the spike in home foreclosures that threatens many of the region’s
neighborhoods, the San Diego City-County Reinvestment Task Force yesterday forwarded a series of sweeping recommendations to the City Council and the county
Board of Supervisors.

Among them is a proposal to create a regional land bank to buy foreclosed properties and to prevent neighborhood blight. The homes then could be turned around to create affordable buying opportunities.

Alan Fisher, executive director of the nonprofit California Reinvestment Coalition, which advocates for low-income communities, said the San Diego County task force is the only public-private body in the state that is actively addressing problems created by the subprime loan crisis.

[temeculaguy]

Before you get your panties in a bunch, read the fine print. This panel forwarded proposals, nothing was passed and the panel has no power or money. This is an advisory panel that exists for the sole purpose of positive media spin. The City of San Diego doesn’t have the money to price fix the chocolate milk supply, let alone the price of real estate. The County is a little busy with the fire aftermath and it will spend it’s discretionary dollars to help those burned out, not foreclosed on. In fact assisting in the rebuilding of housing units is a contradiction to to trying to control supply, but they will do it.

No branch of the government can control the price of housing, the invisible hand of economics is not a bedtime story, it is an economic law that has never been denied despite great efforts. Local government cannot print money and does not have the ability to pull financial levers like the federal government and they have proven powerless. I wouldn’t plan my life around a local government advisory panel and I wouldn’t have given it any of my time had you not panicked over it, calm down, all is well, it’s just noise.

[Fearful]

No kidding – where is the money going to come from to buy up properties? 1,000 houses x $500K / house = $500M. Even assuming they turn around and sell those houses, they still have to come up with the funds to buy the inventory in the first place. If they hope to issue debt to get there, can you imagine what the interest rate on that debt would have to be? I would only begin to consider that debt at somewhere around 25%.

Now, if the federal government gets into this game, we are all in deep doodoo, because the only exit route for that much debt is inflation.

[Fearful]

No kidding – where is the money going to come from to buy up properties? 1,000 houses x $500K / house = $500M. Even assuming they turn around and sell those houses, they still have to come up with the funds to buy the inventory in the first place. If they hope to issue debt to get there, can you imagine what the interest rate on that debt would have to be? I would only begin to consider that debt at somewhere around 25%.

Now, if the federal government gets into this game, we are all in deep doodoo, because the only exit route for that much debt is inflation.

[Fearful]

No kidding – where is the money going to come from to buy up properties? 1,000 houses x $500K / house = $500M. Even assuming they turn around and sell those houses, they still have to come up with the funds to buy the inventory in the first place. If they hope to issue debt to get there, can you imagine what the interest rate on that debt would have to be? I would only begin to consider that debt at somewhere around 25%.

Now, if the federal government gets into this game, we are all in deep doodoo, because the only exit route for that much debt is inflation.

[Fearful]

No kidding – where is the money going to come from to buy up properties? 1,000 houses x $500K / house = $500M. Even assuming they turn around and sell those houses, they still have to come up with the funds to buy the inventory in the first place. If they hope to issue debt to get there, can you imagine what the interest rate on that debt would have to be? I would only begin to consider that debt at somewhere around 25%.

Now, if the federal government gets into this game, we are all in deep doodoo, because the only exit route for that much debt is inflation.

[temeculaguy]

Before you get your panties in a bunch, read the fine print. This panel forwarded proposals, nothing was passed and the panel has no power or money. This is an advisory panel that exists for the sole purpose of positive media spin. The City of San Diego doesn’t have the money to price fix the chocolate milk supply, let alone the price of real estate. The County is a little busy with the fire aftermath and it will spend it’s discretionary dollars to help those burned out, not foreclosed on. In fact assisting in the rebuilding of housing units is a contradiction to to trying to control supply, but they will do it.

No branch of the government can control the price of housing, the invisible hand of economics is not a bedtime story, it is an economic law that has never been denied despite great efforts. Local government cannot print money and does not have the ability to pull financial levers like the federal government and they have proven powerless. I wouldn’t plan my life around a local government advisory panel and I wouldn’t have given it any of my time had you not panicked over it, calm down, all is well, it’s just noise.

[temeculaguy]

Before you get your panties in a bunch, read the fine print. This panel forwarded proposals, nothing was passed and the panel has no power or money. This is an advisory panel that exists for the sole purpose of positive media spin. The City of San Diego doesn’t have the money to price fix the chocolate milk supply, let alone the price of real estate. The County is a little busy with the fire aftermath and it will spend it’s discretionary dollars to help those burned out, not foreclosed on. In fact assisting in the rebuilding of housing units is a contradiction to to trying to control supply, but they will do it.

No branch of the government can control the price of housing, the invisible hand of economics is not a bedtime story, it is an economic law that has never been denied despite great efforts. Local government cannot print money and does not have the ability to pull financial levers like the federal government and they have proven powerless. I wouldn’t plan my life around a local government advisory panel and I wouldn’t have given it any of my time had you not panicked over it, calm down, all is well, it’s just noise.

[temeculaguy]

Before you get your panties in a bunch, read the fine print. This panel forwarded proposals, nothing was passed and the panel has no power or money. This is an advisory panel that exists for the sole purpose of positive media spin. The City of San Diego doesn’t have the money to price fix the chocolate milk supply, let alone the price of real estate. The County is a little busy with the fire aftermath and it will spend it’s discretionary dollars to help those burned out, not foreclosed on. In fact assisting in the rebuilding of housing units is a contradiction to to trying to control supply, but they will do it.

No branch of the government can control the price of housing, the invisible hand of economics is not a bedtime story, it is an economic law that has never been denied despite great efforts. Local government cannot print money and does not have the ability to pull financial levers like the federal government and they have proven powerless. I wouldn’t plan my life around a local government advisory panel and I wouldn’t have given it any of my time had you not panicked over it, calm down, all is well, it’s just noise.

[4plexowner]

“Form a regional land bank to buy foreclosed properties to create affordable buying opportunities while guarding against neighborhood blight. Purchased homes could be rented at affordable rates and later sold at affordable prices.”

this is another scam like the Center City Development Corp – create an organization to spend the taxpayer’s money on something that makes no economic sense – create several six-figure income positions that will be filled with appropriately connected people and then have them hand out the tax-payer’s money to the businesses that just happen to be owned by those same appropriately connected people

these types of projects are always done in the ‘best interest’ of the taxpayer – in CCDC’s case they claim that there will be 70,000 people living downtown by 2020 to justify spending the taxpayer’s money subsidizing the over-building of downtown condos

this regional land bank is going to save us from ‘neighborhood blight’ – yeah, right …

~

I’m reminded of a scene in “Fiddler on the Roof”:

[the Rabbi is asked if there is a proper blessing for the Tsar]
Rabbi: A blessing for the Tsar? Of course! May God bless and keep the Tsar… far away from us!

replace ‘Tsar’ with ‘government meddling’

~

some other memorable quotes from Fiddler (http://www.imdb.com/title/tt0067093/quotes):

Perchik: Money is the world’s curse.
Tevye: May the Lord smite me with it. And may I never recover.

~

[to God after his horse goes lame]
Tevye: Sometimes I think, when it gets too quiet up there, You say to Yourself, “What kind of mischief can I play on My friend Tevye?”

~

Villager: An eye for an eye, and a tooth for a tooth.
Tevye: Very good. That way the whole world will be blind and toothless.

~

sorry for the digression into musical land – other classic musicals IMO: My Fair Lady, Music Man, Oliver

[SD Realtor]

man I gotta get me one of them there city jobs!

SD Realtor

[SD Realtor]

man I gotta get me one of them there city jobs!

SD Realtor

[SD Realtor]

man I gotta get me one of them there city jobs!

SD Realtor

[SD Realtor]

man I gotta get me one of them there city jobs!

SD Realtor

[4plexowner]

“Form a regional land bank to buy foreclosed properties to create affordable buying opportunities while guarding against neighborhood blight. Purchased homes could be rented at affordable rates and later sold at affordable prices.”

this is another scam like the Center City Development Corp – create an organization to spend the taxpayer’s money on something that makes no economic sense – create several six-figure income positions that will be filled with appropriately connected people and then have them hand out the tax-payer’s money to the businesses that just happen to be owned by those same appropriately connected people

these types of projects are always done in the ‘best interest’ of the taxpayer – in CCDC’s case they claim that there will be 70,000 people living downtown by 2020 to justify spending the taxpayer’s money subsidizing the over-building of downtown condos

this regional land bank is going to save us from ‘neighborhood blight’ – yeah, right …

~

I’m reminded of a scene in “Fiddler on the Roof”:

[the Rabbi is asked if there is a proper blessing for the Tsar]
Rabbi: A blessing for the Tsar? Of course! May God bless and keep the Tsar… far away from us!

replace ‘Tsar’ with ‘government meddling’

~

some other memorable quotes from Fiddler (http://www.imdb.com/title/tt0067093/quotes):

Perchik: Money is the world’s curse.
Tevye: May the Lord smite me with it. And may I never recover.

~

[to God after his horse goes lame]
Tevye: Sometimes I think, when it gets too quiet up there, You say to Yourself, “What kind of mischief can I play on My friend Tevye?”

~

Villager: An eye for an eye, and a tooth for a tooth.
Tevye: Very good. That way the whole world will be blind and toothless.

~

sorry for the digression into musical land – other classic musicals IMO: My Fair Lady, Music Man, Oliver

[4plexowner]

“Form a regional land bank to buy foreclosed properties to create affordable buying opportunities while guarding against neighborhood blight. Purchased homes could be rented at affordable rates and later sold at affordable prices.”

this is another scam like the Center City Development Corp – create an organization to spend the taxpayer’s money on something that makes no economic sense – create several six-figure income positions that will be filled with appropriately connected people and then have them hand out the tax-payer’s money to the businesses that just happen to be owned by those same appropriately connected people

these types of projects are always done in the ‘best interest’ of the taxpayer – in CCDC’s case they claim that there will be 70,000 people living downtown by 2020 to justify spending the taxpayer’s money subsidizing the over-building of downtown condos

this regional land bank is going to save us from ‘neighborhood blight’ – yeah, right …

~

I’m reminded of a scene in “Fiddler on the Roof”:

[the Rabbi is asked if there is a proper blessing for the Tsar]
Rabbi: A blessing for the Tsar? Of course! May God bless and keep the Tsar… far away from us!

replace ‘Tsar’ with ‘government meddling’

~

some other memorable quotes from Fiddler (http://www.imdb.com/title/tt0067093/quotes):

Perchik: Money is the world’s curse.
Tevye: May the Lord smite me with it. And may I never recover.

~

[to God after his horse goes lame]
Tevye: Sometimes I think, when it gets too quiet up there, You say to Yourself, “What kind of mischief can I play on My friend Tevye?”

~

Villager: An eye for an eye, and a tooth for a tooth.
Tevye: Very good. That way the whole world will be blind and toothless.

~

sorry for the digression into musical land – other classic musicals IMO: My Fair Lady, Music Man, Oliver

[4plexowner]

“Form a regional land bank to buy foreclosed properties to create affordable buying opportunities while guarding against neighborhood blight. Purchased homes could be rented at affordable rates and later sold at affordable prices.”

this is another scam like the Center City Development Corp – create an organization to spend the taxpayer’s money on something that makes no economic sense – create several six-figure income positions that will be filled with appropriately connected people and then have them hand out the tax-payer’s money to the businesses that just happen to be owned by those same appropriately connected people

these types of projects are always done in the ‘best interest’ of the taxpayer – in CCDC’s case they claim that there will be 70,000 people living downtown by 2020 to justify spending the taxpayer’s money subsidizing the over-building of downtown condos

this regional land bank is going to save us from ‘neighborhood blight’ – yeah, right …

~

I’m reminded of a scene in “Fiddler on the Roof”:

[the Rabbi is asked if there is a proper blessing for the Tsar]
Rabbi: A blessing for the Tsar? Of course! May God bless and keep the Tsar… far away from us!

replace ‘Tsar’ with ‘government meddling’

~

some other memorable quotes from Fiddler (http://www.imdb.com/title/tt0067093/quotes):

Perchik: Money is the world’s curse.
Tevye: May the Lord smite me with it. And may I never recover.

~

[to God after his horse goes lame]
Tevye: Sometimes I think, when it gets too quiet up there, You say to Yourself, “What kind of mischief can I play on My friend Tevye?”

~

Villager: An eye for an eye, and a tooth for a tooth.
Tevye: Very good. That way the whole world will be blind and toothless.

~

sorry for the digression into musical land – other classic musicals IMO: My Fair Lady, Music Man, Oliver

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