As of now, I am in control here, in the White House

Obama Seeks Housing Crisis, Part II

Do you know what I like to do?

Do you?

I will tell you.

I like to bang my head against the wall. And then, when it starts to hurt, I like to bang it some more. And then, when my skull cracks open and my brains fall out, I like to pick them up off the floor – three second rule applies here – and put them back in. And then?

That’s right. I like to bang my head against the wall some more.

I was reminded of this yesterday when I read the following headline in the Washington Post:

Obama administration pushes banks to make home loans to people with weaker credit

 
Thats what it said.

AS IF NOTHING EVER WENT WRONG THE LAST TIME WE TRIED THIS.

There’s no mystery to the current fix we’re in. Liberal policymakers – with the acquiescence of some Republicans and the benign neglect of others – decided it was beneath the dignity of people who can’t afford homes not to have them. And so they incentivized irresponsible lending by providing guarantees – AKA Fannie and Freddie Mac – that taxpayers will pick up the tab when the inevitable result of lending to people who can’t make their loan payments occurs.

But some people – me included – like to keep banging their heads against the wall. From the article:

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

Awww. This is really breaking my heart. Now young people already hanging out on their parents’ health insurance, after partying through their federally subsidized college years, must have a house of their where all their friends can come over and watch “Two and a Half Men” together without the landlord getting pissed off.

And who are these individuals with credit records weakened by the recession? Sounds to me like PEOPLE WITH BAD CREDIT. I can hear the loan interview:

Q  Was your credit weakened by the recession?

A  What? Yes, of course, the recession did it.

Q  Great. Sign here.

The Post piece continues:

“If you were going to tell people in low-income and moderate-income communities and communities of color there was a housing recovery, they would look at you as if you had two heads,” said John Taylor, president of the National Community Reinvestment Coalition, a nonprofit housing organization. “It is very difficult for people of low and moderate incomes to refinance or buy homes.”

OMG, then I would have TWO HEADS TO BANG AGAINST THE WALL. Pure heaven.

So let me translate this. This person is angry because people who don’t have enough money to buy homes can’t buy them.

You know, low and moderate income people are also being left out of the Lamborghini market. I say, let’s give them Lamborghinis too!

Banks WANT to lend money. That’s how they make money. Not by sitting on their cash like a bunch of financial finches warming their eggs. But they don’t lend money if they make a BUSINESS CALCULATION that the money ain’t coming back.

This all could get chocked up to typical misguided liberal do-gooderism if we hadn’t been down this road before and seen that it leads straight off a cliff.

cliff

I know what I’m going to do. I’m going to take advantage of one of these new loans and buy me a house with a really strong wall. And then?

You guessed it. I’m going to bang my head against it again and again, just to see if it hurts this time.

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41 Responses to Obama Seeks Housing Crisis, Part II

  1. Allow me to show a crass and selfish indifference to the realities of giving low-income, bad credit people money to buy a house. If the banks would only give out this mortgage money, the housing market would heat up and I might finally be able to sell my house for more than I paid for it.
    Yes. Yes. Yes. It’s all about me, me, and me.

    I don’t qualify for food stamps, free phones, have no use for free contraceptives or reduced college tuition. I can’t afford to buy a hybrid auto no matter what the tax credit would be. There is no shovel ready project anywhere on my property, don’t own a crumbling bridge or a pot-holed road.
    I’m not smart enough to get a federal grant to study the mating habits of earthworms, or to determine why boys like to jump from tall places.
    This is it, my big chance to finally get out from under.
    So, get out of the way and let the money chips fall where they may.

      • I would just as soon everything did not go further to hell…but what do I know. I am way upsidedown, too–I gather this is not such an issue in DC.

    • Srdem65, it’s much more fun to sell your house at a 20% loss and move into a 900 sq ft apartment – after you “give away” all your belongings at a garage sale for a 10th of purchase price. Trust me, I know.

    • But you’ll have to time it right, wait too long to sell and the house prices are going to sink like rocks in a lake. It’ll be worse than it is now.

      Where is the housing recovery? Only around DC? I’m sure not seeing it here in NJ. Prices have been holding steady for a while now and I don’t see the inventory flying off the shelves. What burns me is the people who are willing to just walk away from their houses. I’m currently listening to a generator hooked up to my neighbor’s house because they finally turned off the electric for non-payment. She’s living with her father (at age 50) and her son is living scott free next door while they wait for the bank to foreclose.

  2. Excellent article, Keith. Great analogy with the plight of the victimized professional student. Ain’t this collectivist government grand? Shaking down Peter the taxpayer, so they can bribe Paul, the layabout victimized classes of our society to keep them in office. Quite the scam the ruling class has going for them.

    • Yep, this is all about buying votes. It doesn’t even have to become a reality, It’s enough that Big O said it, now the dumb majority gets a warm fuzzy. The ideal situation for the left is that the right shoots it down, then the economy is better off, and the left has bought some votes. It’s really quite sick, and I don’t know how these people can look themselves in the mirror.

      I’ve been away from WHD for a while, was just despondent since the election. I was not surprised much by the outcome, the stupididty of the average american no longer surprises me. I think I can read the WHD now without wanting to do harsh things. I’m back.

  3. Upside down. This is all upside down. No where in the U.S.Constitution does it say the government should give individuals “stuff” let alone housing. However, the specificaaly stated right to keep and bear arms is being infringed.

  4. I learned in that documentary AMERICAN WINTER it costs the govt thousands if the bank forecloses, the person is thrown in the streets or to agencies or private charities, and it only costs a few hundred to prop the person up in the home until they can get job. I think way too many people were put into play…The people buying houses here, in significant part, are investors, not would-be homeowners. Yes, housing prices are rising–but is this healthy…?

    • The system for helping those with upside down mortgages or just during this horrible economy is all wrong. My husband lost his job in July. He got severance and unemployment. But the mortgage was our only monthly debt. So we called our mortgage company to try to maybe just pay the interest until he found a job. No go. Unless all of your assets are gone, including 401Ks, you aren’t eligible for anything.

  5. Keith, Don’t go banging your head against the wall. First, most walls are flimsy and won’t stand much pressure. Secondly, I am named rawheadrex because I spent most of my 40+ years in television news beating my head against walls and managers, both equal in poor quality, over errors in grammar and logic until my head was figuratively raw. We may have to share walls. I would be highly honored!
    As to the other, resurrecting and time-honored bad saying about government: This is pouring bad money after wasted money.

  6. And the GOP/Libertarian response to this madness will be…..?

    My son was caught up in the bubble and bought high, and when the market bottomed out in Florida he got transferred to DC and had to short sell even though for 7 years he never missed a mortgage payment. His credit is damaged now, so I wonder if this is meant to help situations like his ?

    I may just might buy that “vacation” home near my daughter now. Hey, if it doesn’t work out, I can always walk away, right? /sarc

  7. Could we have pick-up trucks instead of Lamborghinis? I could really use a pick-up but a sports car of any type would do me little good. If people have a right to a house, why don’t I have a right to a pick-up for our growing farm?

  8. First, I must comment that you make WAY too much sense. Get some strong medication so you can tolerate the complete re-obliteration of our economy. Obama did NOT accomplish the destruction of our economy so he will reinstitute the horrible policies that destroyed it the first time. He is upset that our economy is coming back despite his best efforts to nail the coffin shut in his first four years. Time is running out. He has less than four years to destroy this country that he hates so much.

    Second, couldn’t you find lemmings going over the cliff? Sheep just don’t seem descriptive enough. Here

    http://www.biblepicturegallery.com/samples/ca/teaching/x_teach/environ/Lemmings%20jumping%20off%20a%20cliff%20while%20one%20is%20stopped.gif

    or

    http://www.floppingaces.net/wp-content/uploads/foden20081026-lemmings20081024044209.jpg

    The second one is the BEST!

  9. I want the Lamborghini! I already have a home. If it wasn’t paid for I’d probably be losing it now since my wages are down and my hours are cut and my insurance is through the roof. But I think the Lamborghini will be fun.

  10. I especially liked this part of the article: “Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.”

    Can they really say this with a straight face?

  11. “Banks WANT to lend money. That’s how they make money.”

    I remember the blather about “redlining” in the Clinton years: the claim that mortgage lenders were turning people away for the sole reason that they were black. In other words, banks were turning down opportunities to gain more interest earnings simply because that money was being handed to them by the wrong color of hands.

    Of course banks would do that, wouldn’t they?

  12. Why do you bang your head at all Keith? Democrats have never and never will do anything sensible. How you cannot know this by now makes me want to bang my head.

  13. I couldn’t believe the headline when I read it yesterday. This is insanity, and surely a deliberate move on Barry’s part? Here in Canada, our government tightened up the rules regarding mortgages following the US housing crisis and the 2008 recession. But then, our Prime Minister holds a master’s degree in Economics. No-one is sure what kind of degree Barry holds, unless it’s a master’s in DA – Destroying America.