The greatest theft in American history…

[Arraya]

http://theautomaticearth.blogspot.com/2009/10/october-24-2009-greatest-theft-in.html
That principle is: the US government is busy actively raising home prices. And there we are back to what I’ve been saying about Fannie and Freddie for the longest time. While the reason given by Washington is that its involvement is driven by a desire to “stabilize” the markets, that is at best only part of the truth. What the White House and Capitol Hill are trying to do is “stabilizing” the markets at a level that they find acceptable. Which, if we recognize that their policies increase the number of homes on the market as well as their prices, evokes the image of a hamster on a flywheel. And that hamster WILL get tired at some point.

Who loses in this set-up? First, homebuyers, since they pay much more for their homes than if the government would stay out of the market. Then again, what obligations do the buyers really have? They get a home for free, more or less, and often with a non-recourse loan to boot. In the end, the by far biggest losers are the American taxpayers, who have to watch helplessly as their own chosen government shifts a fast increasing share of the losses of the housing market onto their tab, all solely for the benefit of the one and only party that stands to profit.

That is, the banks. Which can unload repossessed properties at much higher prices, given the tax credits. Which can keep properties and loans at greatly elevated prices on their books, which allows them to fool their shareholders and depositors into thinking they are far more healthy then they would be without government involvement. Who can use the artificially raised “values” on their books for highly leveraged financial wagers that if they pay off allow for multi-billion dollar bonuses, and if they don’t can be channeled back to the taxpayers’ account.

Why is this so important for the government? Why does Barney Frank proudly declare that the nation has a solemn commitment to those alleged “stable” housing prices?

Because without them, a huge chunk of America’s 8000+ banks will be toast. More importantly, much of Tim Geithner’s speed-dial list will be gone. He’ll have no-one left to talk to before breakfast.

[scaredyclassic]

i read the link. I concur.

[scaredyclassic]

i read the link. I concur.

[scaredyclassic]

i read the link. I concur.

[scaredyclassic]

i read the link. I concur.

[scaredyclassic]

i read the link. I concur.

[CA renter]

From the link:

There is no better and easier way to rob people blind then to make them think you’re doing them a favor. Giving them an $8000 credit on a home priced at $250,000, that without that credit would cost them no more than $100,000, will be preferred over the cheaper home. Hey, it’s free money. Isn’t it?
——————-

This has been my contention all along. The $8,000 tax credit is raising prices by far more than $8,000 because it is “qualifying” a huge number of people who otherwise would not be able to get a mortgage. Add to this the fact that banks have been told to keep homes off the market, and the market is 100% manipulated against the buyers.

IMHO, the only economic reason to buy right now is the fear that all this manipulation will cause our dollar to fall. So far, that’s been the case, but I’m beginning to worry that too many people are on the “falling dollar” bandwagon, and have started to lighten up a bit in my short dollar hedge.

[CA renter]

From the link:

There is no better and easier way to rob people blind then to make them think you’re doing them a favor. Giving them an $8000 credit on a home priced at $250,000, that without that credit would cost them no more than $100,000, will be preferred over the cheaper home. Hey, it’s free money. Isn’t it?
——————-

This has been my contention all along. The $8,000 tax credit is raising prices by far more than $8,000 because it is “qualifying” a huge number of people who otherwise would not be able to get a mortgage. Add to this the fact that banks have been told to keep homes off the market, and the market is 100% manipulated against the buyers.

IMHO, the only economic reason to buy right now is the fear that all this manipulation will cause our dollar to fall. So far, that’s been the case, but I’m beginning to worry that too many people are on the “falling dollar” bandwagon, and have started to lighten up a bit in my short dollar hedge.

[CA renter]

From the link:

There is no better and easier way to rob people blind then to make them think you’re doing them a favor. Giving them an $8000 credit on a home priced at $250,000, that without that credit would cost them no more than $100,000, will be preferred over the cheaper home. Hey, it’s free money. Isn’t it?
——————-

This has been my contention all along. The $8,000 tax credit is raising prices by far more than $8,000 because it is “qualifying” a huge number of people who otherwise would not be able to get a mortgage. Add to this the fact that banks have been told to keep homes off the market, and the market is 100% manipulated against the buyers.

IMHO, the only economic reason to buy right now is the fear that all this manipulation will cause our dollar to fall. So far, that’s been the case, but I’m beginning to worry that too many people are on the “falling dollar” bandwagon, and have started to lighten up a bit in my short dollar hedge.

[CA renter]

From the link:

There is no better and easier way to rob people blind then to make them think you’re doing them a favor. Giving them an $8000 credit on a home priced at $250,000, that without that credit would cost them no more than $100,000, will be preferred over the cheaper home. Hey, it’s free money. Isn’t it?
——————-

This has been my contention all along. The $8,000 tax credit is raising prices by far more than $8,000 because it is “qualifying” a huge number of people who otherwise would not be able to get a mortgage. Add to this the fact that banks have been told to keep homes off the market, and the market is 100% manipulated against the buyers.

IMHO, the only economic reason to buy right now is the fear that all this manipulation will cause our dollar to fall. So far, that’s been the case, but I’m beginning to worry that too many people are on the “falling dollar” bandwagon, and have started to lighten up a bit in my short dollar hedge.

[CA renter]

From the link:

There is no better and easier way to rob people blind then to make them think you’re doing them a favor. Giving them an $8000 credit on a home priced at $250,000, that without that credit would cost them no more than $100,000, will be preferred over the cheaper home. Hey, it’s free money. Isn’t it?
——————-

This has been my contention all along. The $8,000 tax credit is raising prices by far more than $8,000 because it is “qualifying” a huge number of people who otherwise would not be able to get a mortgage. Add to this the fact that banks have been told to keep homes off the market, and the market is 100% manipulated against the buyers.

IMHO, the only economic reason to buy right now is the fear that all this manipulation will cause our dollar to fall. So far, that’s been the case, but I’m beginning to worry that too many people are on the “falling dollar” bandwagon, and have started to lighten up a bit in my short dollar hedge.

[SD Realtor]

We all lose Arraya. We all lose. It is very very sad and I cannot disagree more with the way our government is operating now and has operated before.

[SD Realtor]

We all lose Arraya. We all lose. It is very very sad and I cannot disagree more with the way our government is operating now and has operated before.

[SD Realtor]

We all lose Arraya. We all lose. It is very very sad and I cannot disagree more with the way our government is operating now and has operated before.

[SD Realtor]

We all lose Arraya. We all lose. It is very very sad and I cannot disagree more with the way our government is operating now and has operated before.

[Author]

Posts