Comments on: Bailout Does Not Address The Problem: Too Many Houses

By: twist

twist — Tue, 23 Sep 2008 14:14:01 +0000

John-

OT- but you'll like this one:

McCain2019s Economic Plan For Nation: "Everyone Marry A Beer Heiress"

By: surak

surak — Mon, 22 Sep 2008 23:32:04 +0000

Twist,

Is the 20 to 30% base on a national average? If so, then the bubble areas would have to fall further?

By: John M.

John M. — Mon, 22 Sep 2008 22:43:49 +0000

twist - I think you've missed the real problem -- it's the folks we've got trying to rein in run-away bond-age ;) "Dodd, Democrats Question Lack of Court Access in Plan", by Greg Stohr, Bloomberg, September 22, 2008.

"I think that may be illegal, not to be able to challenge things," Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, told reporters. "I'm not sure that would hold up anyway."

Really should go check out The Onion again. Nobody else seems to have a handle on anything.

By: twist

twist — Mon, 22 Sep 2008 21:52:27 +0000

h.pylori2-

Nouriel Roubini believes that home prices will fall another 20%-30%, and so do I.

By: DCBeacon

DCBeacon — Mon, 22 Sep 2008 21:42:31 +0000

We’ve seen house prices in DC decline by about 15% and then level off for the last few months. Despite this, my wife and I REFUSE to buy overpriced homes just because some knife catchers are still out there. And this bail out plan has us about to exit the buying market all together, we’re so pissed.

If we are any indication of what the conservative middle class is feeling, this plan will not work and prices will eventually not just fall, but crash.

Anti-spam word: burn

By: h.pylori2

h.pylori2 — Mon, 22 Sep 2008 20:15:49 +0000

Twist – Huge assumption that prices will continue to decline. I agree that they should and maintain that middle class workers have been priced out of decent neighborhoods. However, I have not seen any evidence of major (read affordable) price declines in any major market. So to all of the experts out there, when can we expect to see these prices declines? My only current experiences are in Denver (almost no price decline) and Miami (not nearly enough, although it seems big!)

Otherwise and as usual, I agree on all points, especially on the house is a home thing, we sold our souls on granite and McMansions.

With high inflation on the horizon…anti-spam word BOOM!

By: John M.

John M. — Mon, 22 Sep 2008 16:16:41 +0000

Coffee - Yes, and those are some of the reasons I've been calling Paulson's plan The Splurge.

By: Coffee

Coffee — Mon, 22 Sep 2008 15:48:23 +0000

unintended consequence are the destruction of the value of the dollar and soaring long term interest. Mortgage rates (conf)up 1% already, FHA doing better up .75% from rates one week ago. (DianaK might be right, we will not see mtg rates below 5 this year)

Gold up 140$ in 3 trading days.

So instead of making homes more affordable, through lower i rates, this Bailout of wall street will hit main street right in the pocket book. Higher cost of money, gasoline prices up 30 cents in 4 days, so inflation is Paulson’s solution.

By: John M.

John M. — Mon, 22 Sep 2008 15:18:13 +0000

toysarefun -

I think the consensus is that America’s savers (the fiscally conservative middle class) are the only ones left with money, so the bailout will shake all the spare cash out of them to bail out the rich and the poor.

That is … the plan is to destroy America’s middle class.

By: toysarefun

toysarefun — Mon, 22 Sep 2008 15:04:01 +0000

What kind of other bailout can a person hypothesize? I’m thinking welfare for the poor instead of the rich next time around.
I just don’t think the American economic model is sustainable in it’s current form. It should be as easy as looking at the outputs and the inputs, crunching a few numbers and taking the sink or swim route. But, with all this personal and corporate greed and overconsumption taking precedence it’s hard to say what comes next anymore.