NYT article: Housing Woes Bring a New Cry: Let the Market Fall

[zk]

A NEW cry? A NEW F’ING CRY?! Are you f’ing kidding me?!

They ignore everybody crying “let the market fall” for years. Ignore them to the extent that they appear not to have noticed them. Then, after years of ignoring them (and as soon as I give up waiting and buy a house) they say, “hey, I got an idea. A great new idea. Let the market fall.” If even the democrats are considering this move, what will the republicans do after they gain control of congress in November?

I was basically mocked for suggesting in this thread

http://piggington.com/effect_of_the_election_on_the_housing_market

that the republicans might be less willing to prop up the housing market than the democrats. But the tide seems to be turning, both on the democrats and on the perception of the viability and desirability of propping up the housing market.

I guess we’ll see.

[TexasLine]

“When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity.””

Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?

I mean, since Bush and the Democrat Congress,…started “propping” up the industry. 😉

No politics here…I just think it’s about time someone in power had the guts to let capitalism work…oh wait,…this was just a news article.

Never mind. Let the stimulasis continue. I think we should spend 50 Billion on new roads next.

[TexasLine]

“When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity.””

Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?

I mean, since Bush and the Democrat Congress,…started “propping” up the industry. 😉

No politics here…I just think it’s about time someone in power had the guts to let capitalism work…oh wait,…this was just a news article.

Never mind. Let the stimulasis continue. I think we should spend 50 Billion on new roads next.

[TexasLine]

“When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity.””

Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?

I mean, since Bush and the Democrat Congress,…started “propping” up the industry. 😉

No politics here…I just think it’s about time someone in power had the guts to let capitalism work…oh wait,…this was just a news article.

Never mind. Let the stimulasis continue. I think we should spend 50 Billion on new roads next.

[TexasLine]

“When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity.””

Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?

I mean, since Bush and the Democrat Congress,…started “propping” up the industry. 😉

No politics here…I just think it’s about time someone in power had the guts to let capitalism work…oh wait,…this was just a news article.

Never mind. Let the stimulasis continue. I think we should spend 50 Billion on new roads next.

[TexasLine]

“When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

“Housing needs to go back to reasonable levels,” said Anthony B. Sanders, a professor of real estate finance at George Mason University. “If we keep trying to stimulate the market, that’s the definition of insanity.””

Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?

I mean, since Bush and the Democrat Congress,…started “propping” up the industry. 😉

No politics here…I just think it’s about time someone in power had the guts to let capitalism work…oh wait,…this was just a news article.

Never mind. Let the stimulasis continue. I think we should spend 50 Billion on new roads next.

[zk]

[quote=TexasLine]
Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?
[/quote]

Which conservative politicians (in office) have been saying that?

[zk]

[quote=TexasLine]
Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?
[/quote]

Which conservative politicians (in office) have been saying that?

[zk]

[quote=TexasLine]
Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?
[/quote]

Which conservative politicians (in office) have been saying that?

[zk]

[quote=TexasLine]
Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?
[/quote]

Which conservative politicians (in office) have been saying that?

[zk]

[quote=TexasLine]
Well, duh…hasn’t every conservative voice in America been saying his for the last, well let me see…I guess since Obama started “propping” up the industry?
[/quote]

Which conservative politicians (in office) have been saying that?

[CA renter]

Guess “nobody could have seen this coming” either. It was **always** about saving the nation’s wealthiest; it was never about saving Joe Sixpack’s house. Once again, Americans have been duped, IMHO.

[quote=CA renter]Part of my prediction for 2010 on the HBB:

The GSEs will become the ultra-super-SIV, and principal reductions will become the norm on GSE loans. IMHO, one of the reasons inventory has been kept off the market is because the PTB wanted housing prices high enough that borrowers can refi into GSE loans. I believe a good portion of the toxic loans now belongs to the GSEs, and they can now do what they’ve wanted to do, without the complications of multiple layers of investors in the private, securitized market.

http://www.thehousingbubbleblog.com/?p=5808#comment-1725591
——————

IMHO, the PTB are not stupid. They know we cannot prop up the housing market forever; and forcing U.S. workers to continually overpay for housing will prevent us from competing with other countries with lower wages.

We need to allow for lower wages, and we cannot do that until we let housing prices fall to afordable levels (at these reduced wages).

IMHO, all the moratoriums, govt programs, inventory suppression, etc. were required to get as many private bank loans refinanced into publicly guaranteed or held loans (FHA or GSEs). They had to keep prices artificially inflated for political reasons — the prices had to drop AFTER the risks were already transferred, or the public would have been up in arms about making Goldman Sachs (or the public pensions) whole on the taxpayers’ dime. They needed to refi a $500K loan (from the private lenders) into a $500K (or $450K) loan (to the public lender), or else there would have been a public outcry.

Once they’ve done everything they can to save the banks, they will allow the housing market to fall again, IMHO. They’ve had over two years to work on this, and I believe they are near the end of their “risk-transfer” program.

This was never about saving Joe Sixpack. It was always about saving the banks.

Not sure why anyone would have ever questioned the existence of the “shadow inventory.” Where there’s smoke, there’s fire; and there was plenty of smoke.[/quote]

[CA renter]

Guess “nobody could have seen this coming” either. It was **always** about saving the nation’s wealthiest; it was never about saving Joe Sixpack’s house. Once again, Americans have been duped, IMHO.

[quote=CA renter]Part of my prediction for 2010 on the HBB:

The GSEs will become the ultra-super-SIV, and principal reductions will become the norm on GSE loans. IMHO, one of the reasons inventory has been kept off the market is because the PTB wanted housing prices high enough that borrowers can refi into GSE loans. I believe a good portion of the toxic loans now belongs to the GSEs, and they can now do what they’ve wanted to do, without the complications of multiple layers of investors in the private, securitized market.

http://www.thehousingbubbleblog.com/?p=5808#comment-1725591
——————

IMHO, the PTB are not stupid. They know we cannot prop up the housing market forever; and forcing U.S. workers to continually overpay for housing will prevent us from competing with other countries with lower wages.

We need to allow for lower wages, and we cannot do that until we let housing prices fall to afordable levels (at these reduced wages).

IMHO, all the moratoriums, govt programs, inventory suppression, etc. were required to get as many private bank loans refinanced into publicly guaranteed or held loans (FHA or GSEs). They had to keep prices artificially inflated for political reasons — the prices had to drop AFTER the risks were already transferred, or the public would have been up in arms about making Goldman Sachs (or the public pensions) whole on the taxpayers’ dime. They needed to refi a $500K loan (from the private lenders) into a $500K (or $450K) loan (to the public lender), or else there would have been a public outcry.

Once they’ve done everything they can to save the banks, they will allow the housing market to fall again, IMHO. They’ve had over two years to work on this, and I believe they are near the end of their “risk-transfer” program.

This was never about saving Joe Sixpack. It was always about saving the banks.

Not sure why anyone would have ever questioned the existence of the “shadow inventory.” Where there’s smoke, there’s fire; and there was plenty of smoke.[/quote]

[CA renter]

Guess “nobody could have seen this coming” either. It was **always** about saving the nation’s wealthiest; it was never about saving Joe Sixpack’s house. Once again, Americans have been duped, IMHO.

[quote=CA renter]Part of my prediction for 2010 on the HBB:

The GSEs will become the ultra-super-SIV, and principal reductions will become the norm on GSE loans. IMHO, one of the reasons inventory has been kept off the market is because the PTB wanted housing prices high enough that borrowers can refi into GSE loans. I believe a good portion of the toxic loans now belongs to the GSEs, and they can now do what they’ve wanted to do, without the complications of multiple layers of investors in the private, securitized market.

http://www.thehousingbubbleblog.com/?p=5808#comment-1725591
——————

IMHO, the PTB are not stupid. They know we cannot prop up the housing market forever; and forcing U.S. workers to continually overpay for housing will prevent us from competing with other countries with lower wages.

We need to allow for lower wages, and we cannot do that until we let housing prices fall to afordable levels (at these reduced wages).

IMHO, all the moratoriums, govt programs, inventory suppression, etc. were required to get as many private bank loans refinanced into publicly guaranteed or held loans (FHA or GSEs). They had to keep prices artificially inflated for political reasons — the prices had to drop AFTER the risks were already transferred, or the public would have been up in arms about making Goldman Sachs (or the public pensions) whole on the taxpayers’ dime. They needed to refi a $500K loan (from the private lenders) into a $500K (or $450K) loan (to the public lender), or else there would have been a public outcry.

Once they’ve done everything they can to save the banks, they will allow the housing market to fall again, IMHO. They’ve had over two years to work on this, and I believe they are near the end of their “risk-transfer” program.

This was never about saving Joe Sixpack. It was always about saving the banks.

Not sure why anyone would have ever questioned the existence of the “shadow inventory.” Where there’s smoke, there’s fire; and there was plenty of smoke.[/quote]

[CA renter]

Guess “nobody could have seen this coming” either. It was **always** about saving the nation’s wealthiest; it was never about saving Joe Sixpack’s house. Once again, Americans have been duped, IMHO.

[quote=CA renter]Part of my prediction for 2010 on the HBB:

The GSEs will become the ultra-super-SIV, and principal reductions will become the norm on GSE loans. IMHO, one of the reasons inventory has been kept off the market is because the PTB wanted housing prices high enough that borrowers can refi into GSE loans. I believe a good portion of the toxic loans now belongs to the GSEs, and they can now do what they’ve wanted to do, without the complications of multiple layers of investors in the private, securitized market.

http://www.thehousingbubbleblog.com/?p=5808#comment-1725591
——————

IMHO, the PTB are not stupid. They know we cannot prop up the housing market forever; and forcing U.S. workers to continually overpay for housing will prevent us from competing with other countries with lower wages.

We need to allow for lower wages, and we cannot do that until we let housing prices fall to afordable levels (at these reduced wages).

IMHO, all the moratoriums, govt programs, inventory suppression, etc. were required to get as many private bank loans refinanced into publicly guaranteed or held loans (FHA or GSEs). They had to keep prices artificially inflated for political reasons — the prices had to drop AFTER the risks were already transferred, or the public would have been up in arms about making Goldman Sachs (or the public pensions) whole on the taxpayers’ dime. They needed to refi a $500K loan (from the private lenders) into a $500K (or $450K) loan (to the public lender), or else there would have been a public outcry.

Once they’ve done everything they can to save the banks, they will allow the housing market to fall again, IMHO. They’ve had over two years to work on this, and I believe they are near the end of their “risk-transfer” program.

This was never about saving Joe Sixpack. It was always about saving the banks.

Not sure why anyone would have ever questioned the existence of the “shadow inventory.” Where there’s smoke, there’s fire; and there was plenty of smoke.[/quote]

[Author]

Posts