Government Considers Ways to Rent Foreclosed Homes (government nationalizing the housing industry?)

government manipulation of the housing market and loans and banks created a bubble

guaranteed by the goverment the banks lose money and then government comes in and buys up all the worthless loans dirt cheap


no bank is stupid or will even take a risk when they know better they are in business to make money.

the fly in that ointment is the federal guarantees to those mortgages.

everyone just loves to hate on the banks but that is worthy of the most greedy banker whats more really now just how many people hate the government more than the banks.

reply to post by beezzer


they do more that that the control the air you breath the water you drink and hell even what kind of lightbulb you can buy and a myiad of other stupid stuff.

i do hate people who push for bigger more powerful government i think they have enough and need to start giving some back..........ok well they need to start giving a hell of a lot back.

reply to post by neo96

I think we're seeing their (the government) plans backfire. The more that they encroach, the more people are waking up to the concept that government wants into everything. They gave student loans. The currently have healthcare. They want housing.
Next thing they'll do (just to make it easy on us) ishave the government into our banking accounts to facilitate direct deposits for rent, healthcare (read the bill! it'ss in there) and food.

reply to post by beezzer


too few know whats going on and see it for what it is.

and too few see they hey the moneys gone and those morons cant keep adding more to what they already have and cant pay for.

soon the us is going to look like greece the people want their cake and eat it too even tho the piggy bank is broke.

everything they do destroys this country even further it is indeed about the money.

who wants it
who works for it
who has their hands out for it
who steals it
and who thinks it grows on trees.

because they "deserve it".

Sorry to interrupt this threads love notes to bankers but here is realism.

The rich/elite control the government. They had about 100% control under Bush, now I would say it' down to about 50%.

Banks have it good all because of the programs their very well paid lobbyist pushed.

There's not many products you can sell where the government will cover your losses in case you made the wrong decision.

Why do the rich always want to start pulling government resources from the very poor.

Why don't you start pulling government resources from the very rich.

If you two REALLY disliked government, why don't you support pulling tax breaks on the top 1%.

reply to post by Daughter2


It might feel nice to rail against the banks as if they are totally to blame for this mess and if it does make you feel better, cool. Its not an accurate description of what happened. The government was the primary cause of this mess.

- in the 70s the banks were quite happy making loans to qualified buyers. Jimmy Carter and the government came in and via the community reinvestment act mandated that banks give over 40% of their loans to minoritys and disadvantaged folks. Banks asked the government to change the credit qualifications as well as the regulations regarding their loan portfolios and the gov said no. This caused the banks to spend a ton of money actually looking for folks from certain zip codes who would be reasonable credit risks.

- in the 90s, Clinton and Janet Reno upped the rate to over 50% of loans that the banks had to give to disadvantaged/minority folks. Again the banking industry requested relaxed credit standards and modifications to the regs over bank loan portfolios. The gov said no again

- Now the banks can't find enough folks in these neighborhoods to qualify for traditional loans. They need to give loans to these folks or they will be put out of business by the government - called redlining. The banks create these nonsense no money down, interest only loans and essentially give them to anyone in order to stay in business. Knowing that the loans are crap, they are more than happy to sell them to investment banks who will package them into CDOs and create a new market in debt securities.

- With all of these new borrorowers in the market the housing market boomed and folks began to totally speculate on the market. When it went flat and then down, folks were getting into the end of their 3 year interest only fixed rate and were now looking at a house they could not sell with a monthly bill they could not afford.

What the banks did with these loans relative to securitizing them is another story entirely. The point here is that there are 4 legs to this stool, the government, the banks, the borrorower who bought a house that with 6th grade math he could figure out that he could not afford and the ratings agencies who were corrupted by both the bankers and the government.

Originally posted by neo96
reply to post by beezzer

 

i do hate people who push for bigger more powerful government i think they have enough and need to start giving some back..........ok well they need to start giving a hell of a lot back.

Well, let's start with the banks giving a hell of a lot back. They can start to cover their own losses for their bad decisions. They thought they had a nice little scam going - make bad loans and then have the taxpayer fund it.

Originally posted by Daughter2
Sorry to interrupt this threads love notes to bankers but here is realism.

Progressive version of realism, but do carry on. . . .

The rich/elite control the government. They had about 100% control under Bush, now I would say it' down to about 50%.

Proof? Or mere speculation. Or are you just making things up.

Banks have it good all because of the programs their very well paid lobbyist pushed.

Banks have been failing. You should watch something other than MSNBC.

There's not many products you can sell where the government will cover your losses in case you made the wrong decision.

So the government should act as a safety net when people are stupid? If that's the case, we are all screwed. I don't want my tax dollars going to someone because they aren't smart enough to make a decision.

Why do the rich always want to start pulling government resources from the very poor.

Huh?

Why don't you start pulling government resources from the very rich.

The government shouldn't have "resources" to begin with.

If you two REALLY disliked government, why don't you support pulling tax breaks on the top 1%.

Because the rich aren't the government.

Because the rich aren't the government.

i have listened to that nonsense for 3 days straight on here by alot of people.

doesnt really matter how many times and how many people say it

its total crap.

anyone who beleives that nonsense do tell where does the money government spends come from.?

answer the taxpayer

this is a great site click on the tabs at the top and bottom.

www.usdebtclock.org...

small business assets: $4.5 trillion dollars
corporate assets: $13.2 trillion dollars
household assets: $58.0 trillion dollars

reply to post by Daughter2


If I sit down at a black jack table and the dealer tells me the truth when he says "the last 5 guys who sat in that seat got dealt a black jack on their first hand" and I bet all my money and get a 13, do I have any right to be angry with the dealer?

When some gent walks into the bank and wants to get a loan, he knows what the payment is, he knows a relative range of what the payment will be once the rate adjusts (obviously he should be thinking worse case scenario). Now he knows that the market is going up and his cousin Joey, neighbor and coworker have all bought houses and pulled money out. He buys the house, BETTING that the market will continue to go up. If the market goes down and he can't sell the house or afford the payment once the rate adjusts and loses his house, whos to blame?

Speculation is great - if you have money to lose. You can make a lot of money and you can lose a lot of money, which is why you don't speculate with money you can't afford to lose

Nobody put a gun to anyone's head and forced them to sign loan papers.

This exact scenario was in the last chapter of Creature from Jekyll.

I think you're over complicating a simple situation. If you want to find the evil, follow the money. The ones that made the most profit are usually the ones pulling the strings and the their motives are simple...greed. Plus governments (local,county state etc.) have been selling and renting repossessed homes for non payment of taxes for decades. This is nothing new. My question is what do you think they should with this homes... just sit there.

Well kids, looks like it's going to happen. . .

WASHINGTON (AP) -- The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.

The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent roughly 250,000 homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration. All of the homes are foreclosures.

The U.S. government rescued the two mortgage giants in September 2008 and has funded them since the financial crisis. Fannie and Freddie own or guarantee about half of the nation's mortgages and nearly all new mortgages.

Converting the homes into rentals may reduce "credit losses and help stabilize neighborhoods and home values," said Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie.

hosted.ap.org...

*egads*
I hate being right.