Today Obama unveiled a $75 billion mortgage plan. It is a silly plan based on politics not common sense. In his Inaugural Address he said, “Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age.” He is now guilty of the same mistakes that put us in our current financial predicament because he doesn’t want to make “hard choices.”
Housing in America has become overvalued. This is a foreseeable result of government policies. After 9/11 Greenspan held interest rates too low, government incentives favor housing debt, and private actors created a speculative bubble in housing. As a result, housing prices had to drop—and drop they did. Now Obama wants to make housing prices increase even though the market is can’t sustain higher prices. He is trying to put out the fire of mortgage problems by pouring gas on it. To get to a stable economic system, housing prices need to find the floor, not be artificially increased.
Just an example of Obama not being willing to make the hard choices he excoriated others for making.
That could very well be the stupidest thing I have ever heard, we need a property value in this country as a backbone for any improvement. That big red number you see listed under the national deficit? That doesn’t go away by cutting taxes and leveling the value of property or commodities in this country. Why don’t you try and be a little more eternally vigilant of the facts, not a right wing opinion mill. You sound like fox news, which I am almost willing to bet you just paraphrased in this post.
Mr. Josh,
What is your argument? You said it what I wrote was stupid, why? Because “we need property value as a backbone of any improvement.” That’s not true, if it were we could just add an extra zero to the price of any property and then be sitting pretty–financial problems solved. The value of property needs to be solved in the marketplace. Further promoting distortions in the property market will not get us to a sustainable level of property values. What is of paramount importance is finding the sustainable level of property values, not artificially propping in them up as government policy and private mistakes have done over the past few years. Such high prices were not sustainable.