[blahblahblah]

I don’t think politicians worry about delivering on promises to voters one bit, at least at the congressional level. Just look at the re-election rate statistics. If you are a house member in 2008, your re-election chances are 94%. Only 6 in 100 lose their job every four years. They just make promises and then do whatever their lobbyist benefactors want them to afterwards. They know the public will forget all about those broken promises the next time election day rolls around.

Also, I’ve never heard a single politician run on a platform of keeping home prices high. If anything they run on a platform of “increasing home ownership” which is just code for more government backing of loans.

I am not saying this is good, I’m just saying it’s reality.

[blahblahblah]

I don’t think politicians worry about delivering on promises to voters one bit, at least at the congressional level. Just look at the re-election rate statistics. If you are a house member in 2008, your re-election chances are 94%. Only 6 in 100 lose their job every four years. They just make promises and then do whatever their lobbyist benefactors want them to afterwards. They know the public will forget all about those broken promises the next time election day rolls around.

Also, I’ve never heard a single politician run on a platform of keeping home prices high. If anything they run on a platform of “increasing home ownership” which is just code for more government backing of loans.

I am not saying this is good, I’m just saying it’s reality.

[blahblahblah]

We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high.

Governments seldom get rid of any program or bureau once they have it. When is the last time you saw in the news that the federal government was shutting down some department to save money? The only tool they have is the money printing machine, and they’re going to use it.

[blahblahblah]

We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high.

Governments seldom get rid of any program or bureau once they have it. When is the last time you saw in the news that the federal government was shutting down some department to save money? The only tool they have is the money printing machine, and they’re going to use it.

[blahblahblah]

We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high.

Governments seldom get rid of any program or bureau once they have it. When is the last time you saw in the news that the federal government was shutting down some department to save money? The only tool they have is the money printing machine, and they’re going to use it.

[blahblahblah]

We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high.

Governments seldom get rid of any program or bureau once they have it. When is the last time you saw in the news that the federal government was shutting down some department to save money? The only tool they have is the money printing machine, and they’re going to use it.

[blahblahblah]

We really don’t want to truly deflate the housing bubble. That would PO the baby boomers, big-time. There’s only one thing that will get people more excited than the chance of getting a free lunch, and that’s the chance they’ll lose a free lunch.

Don’t forget the state governments. What would they do if property taxes suddenly plunged as house values reduced 50%? And don’t forget the banks. What would happen to them if they had to realize 50% losses on their mortgage portolios? The baby boomer homeowners are only a small (and not very influential) part of the pressure to keep home prices high.

Governments seldom get rid of any program or bureau once they have it. When is the last time you saw in the news that the federal government was shutting down some department to save money? The only tool they have is the money printing machine, and they’re going to use it.

[blahblahblah]

But this misses the whole point of FNM and FRE and FHA. They are there to funnel money into housing demand, to make home prices higher than they would otherwise be. Since most voters own homes, and most voters really want to see their home prices high, not low, pols direct various institutions to do things that increase house prices. If they pulled the guarantee from FHA loans, pols would replace it with something else. If they didn’t, home prices would really collapse, and voters and banks would besiege Congress.

State governments also need home values high for property taxes. Realtors need them high for commissions. Banks need them high because they make more interest (as long as they don’t have to suffer the result of defaults).

What do you think will happen? A sudden return to sanity, 20% downpayments, and getting your mortgage from your local banker? Or more intervention, more chicanery, more government guarantees? Who stands to gain in each case?

[blahblahblah]

But this misses the whole point of FNM and FRE and FHA. They are there to funnel money into housing demand, to make home prices higher than they would otherwise be. Since most voters own homes, and most voters really want to see their home prices high, not low, pols direct various institutions to do things that increase house prices. If they pulled the guarantee from FHA loans, pols would replace it with something else. If they didn’t, home prices would really collapse, and voters and banks would besiege Congress.

State governments also need home values high for property taxes. Realtors need them high for commissions. Banks need them high because they make more interest (as long as they don’t have to suffer the result of defaults).

What do you think will happen? A sudden return to sanity, 20% downpayments, and getting your mortgage from your local banker? Or more intervention, more chicanery, more government guarantees? Who stands to gain in each case?

[blahblahblah]

But this misses the whole point of FNM and FRE and FHA. They are there to funnel money into housing demand, to make home prices higher than they would otherwise be. Since most voters own homes, and most voters really want to see their home prices high, not low, pols direct various institutions to do things that increase house prices. If they pulled the guarantee from FHA loans, pols would replace it with something else. If they didn’t, home prices would really collapse, and voters and banks would besiege Congress.

State governments also need home values high for property taxes. Realtors need them high for commissions. Banks need them high because they make more interest (as long as they don’t have to suffer the result of defaults).

What do you think will happen? A sudden return to sanity, 20% downpayments, and getting your mortgage from your local banker? Or more intervention, more chicanery, more government guarantees? Who stands to gain in each case?

[blahblahblah]

But this misses the whole point of FNM and FRE and FHA. They are there to funnel money into housing demand, to make home prices higher than they would otherwise be. Since most voters own homes, and most voters really want to see their home prices high, not low, pols direct various institutions to do things that increase house prices. If they pulled the guarantee from FHA loans, pols would replace it with something else. If they didn’t, home prices would really collapse, and voters and banks would besiege Congress.

State governments also need home values high for property taxes. Realtors need them high for commissions. Banks need them high because they make more interest (as long as they don’t have to suffer the result of defaults).

What do you think will happen? A sudden return to sanity, 20% downpayments, and getting your mortgage from your local banker? Or more intervention, more chicanery, more government guarantees? Who stands to gain in each case?

[blahblahblah]

But this misses the whole point of FNM and FRE and FHA. They are there to funnel money into housing demand, to make home prices higher than they would otherwise be. Since most voters own homes, and most voters really want to see their home prices high, not low, pols direct various institutions to do things that increase house prices. If they pulled the guarantee from FHA loans, pols would replace it with something else. If they didn’t, home prices would really collapse, and voters and banks would besiege Congress.

State governments also need home values high for property taxes. Realtors need them high for commissions. Banks need them high because they make more interest (as long as they don’t have to suffer the result of defaults).

What do you think will happen? A sudden return to sanity, 20% downpayments, and getting your mortgage from your local banker? Or more intervention, more chicanery, more government guarantees? Who stands to gain in each case?

[blahblahblah]

Not buying until rent to ratio more make sense. Me & my wife pay $850 rent in total for a nice older in RQ 2000sqfts house sharing with 2 other housemates.

If i have to buy the same house, it would cost me $2,400 to 2,500 a month.

Well actually it looks like you’re pretty close to even now. Assuming that you get a few hundred a month in tax deductions from the interest and property taxes and keep your roommates (I’m assuming they’re paying $850 also), you might only be paying $100-200 more a month and you’d own the place. Not too shabby.

[blahblahblah]

Not buying until rent to ratio more make sense. Me & my wife pay $850 rent in total for a nice older in RQ 2000sqfts house sharing with 2 other housemates.

If i have to buy the same house, it would cost me $2,400 to 2,500 a month.

Well actually it looks like you’re pretty close to even now. Assuming that you get a few hundred a month in tax deductions from the interest and property taxes and keep your roommates (I’m assuming they’re paying $850 also), you might only be paying $100-200 more a month and you’d own the place. Not too shabby.

[blahblahblah]

Not buying until rent to ratio more make sense. Me & my wife pay $850 rent in total for a nice older in RQ 2000sqfts house sharing with 2 other housemates.

If i have to buy the same house, it would cost me $2,400 to 2,500 a month.

Well actually it looks like you’re pretty close to even now. Assuming that you get a few hundred a month in tax deductions from the interest and property taxes and keep your roommates (I’m assuming they’re paying $850 also), you might only be paying $100-200 more a month and you’d own the place. Not too shabby.

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