Real estate housing and economic news round up for July 24 2012…
It’s been awhile since I posted one of these types of articles. Actually it was before the site crashed or got hacked. Not sure which it was but I do know that several IP addresses in a western European country are blocked. Hey what doesn’t kill me only makes me stronger…
I Know You Think You Are Helping
Consider this quote from a recent Washington Post article:
Despite a strengthening market, the real estate mess that we are experiencing will last for another two to three years. The solution to this seemingly intractable problem lies with market forces and not government action. And the recovery, now in its third year, by all accounts, certainly has been prolonged by the government’s interference in the market.
One sign of insanity is to keep trying the same thing over and over again but expect that somehow you will get a different result. So far, the government has failed to make changes that will help heal the real estate market and the economy.
It seems they are far too concerned about Wall Street instead of Main Street. Sadly, some may actually believe the hype from Washington:
It’s now been almost four years since irresponsibility in certain corners of Wall Street nearly caused our entire economy to collapse. Today, it’s pretty clear to most of us that the rules we once had in place to protect our financial system were old and poorly enforced. They allowed dangerous risk-taking to go unchecked. And when the largest financial institutions did fail, they left hardworking taxpayers holding the bag. And as we dug our way out of the worst recession of our lives, President Obama promised to reform the system so this never happened again.
The truth is both political parties have let the American people down. In the upcoming election we have one candidate that is a Wall Street insider and another that says he is going to change things but never actually does a thing.
Not much of a choice is it?
The Difference Between Getting a Mortgage & Running for President?
Hey, it used to be that getting a mortgage was way too easy. And that lead to a disaster in real estate…
In light of the debate over whether GOP presidential candidate Mitt Romney should provide more than the one year of filed tax returns he’s provided so far, here’s a dispatch from the retail mortgage banking trenches: two years of filed tax returns are required to get a mortgage in America.
Romney hasn’t even provided enough taxes to get a home loan in the country he wants to run.
If you want to buy a home, should it mean giving out more personal information than someone running for President?
Hey don’t get me wrong. I think Obama is just as full of it as Mittens. Especially since Obama likes to act like he has worked so hard to help the struggling real estate market and home owners facing foreclosure according to a Bloomberg article:
The Home Affordable Modification Program has brought little meaningful improvement, with fewer than 800,000 ongoing permanent modifications as of March 31, 2012, a number that is growing at the glacial pace of just 12,000 per month.
Yeah Obama likes to talk a big game. But as the Washington Post points out, it seems everything the government does actually winds up hurting the real estate market.
Libor and the Banks Screwing Everybody
I have not been writing much lately. Bad stuff in my personal life, busy with new listings, working on behind the scenes stuff for this website. Yet I must mention Libor. Some of the big international banks have been caught price fixing. Well doing back room deals to manipulate interest rates. Which means you probably paid more for something. Either in the price or in the interest rate if you used credit.
However, I just read that prosecutors & regulators are close to making Libor arrests. But think about how arrests have been made for the economic mess we are in today…
Speaking of Economic Mess
The ranks of America’s poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.
Well that is from a survey of economists that AP just ran. Census Bureau data on poverty in America will be released in the fall. And it isn’t just the poverty level increasing:
How much longer will this crap continue?
The Take Away
I shared all kinds of depressing stuff today. But the truth needs to be shared. Whether we are talking about the economy, real estate or whatever, I am not one to sugar coat it. Yet every gray cloud has a silver lining.
Right now the bad news and crummy economy actually makes it a great time to buy real estate.
Mortgage rates are at historically low levels…
Home price are much more affordable than just a few years ago…
Rents are forecast to keep rising…
Fannie Mae just said that housing is the bright spot in the economy…
Something to consider…