A recession is good for people who don't have a lot of money because they can buy stocks and homes on the cheap. Home prices are falling, but not enough and especially not enough in New York.
The Gov is working to stabilize home prices by creating safety nets for homeowner's who got into mortages that they now cannot afford. Government-backed lenders Fannie Mae and Freddie Mac have been given the leeway to lend more aggrressively to people facing foreclosure to help them get into homes they can afford.
Two effects of this policy: people get out of contractual agreements and the new terms lower profits for the bank. Losses in profits always trickle down to consumers (unless its Uncle Sam on the losing end.)
The second effect is that the indirect government bail-out will keep people in homes they never should have bought. The market should be correcting itself by gettting these folks who bought beyong their means out of their homes causing the price of homes to plunge starkly. That's when we step in and buy a house. This isn't going to happen.
Oh, yeah. And all this D.C. tampering is definetly being paid for with additional taxes.
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