Comments on: It’s Time to Uproot the Real Cause of the Mortgage Crisis http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/ Mon, 23 Nov 2009 03:35:52 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Carl http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-2/#comment-185095 Carl Thu, 15 Jan 2009 16:18:03 +0000 http://pajamasmedia.com/?p=42117#comment-185095 "As Professor Liebowitz said in testimony before Congress this past summer, the government’s entire housing policy was based “on a false claim, or lie” that mortgage lenders were discriminating against minorities." What has been happening for over a decade or more: The Growing Farce of Fair Housing http://www.fff.org/freedom/0798d.asp still happens today: http://stategonecrazy.com/ “As Professor Liebowitz said in testimony before Congress this past summer, the government’s entire housing policy was based “on a false claim, or lie” that mortgage lenders were discriminating against minorities.”

What has been happening for over a decade or more:

The Growing Farce of Fair Housing
http://www.fff.org/freedom/0798d.asp

still happens today:

http://stategonecrazy.com/

]]> By: cjrian http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-2/#comment-174607 cjrian Thu, 25 Dec 2008 05:32:44 +0000 http://pajamasmedia.com/?p=42117#comment-174607 Equality of opportunity and equality of results are two very separate and distinct dogmas. Msgrs Frank, Dodd, Pelosi, Watt, etc equate them to be one and the same. Naturally these "leaders" don't want blame assigned. If root causes were corrected these problems could be resolved and the blame would weigh like an anchor around their necks. They prefer that we all pay for these "unexplainable" events. The gall of leadership like this is appalling. Equality of opportunity and equality of results are two very separate and distinct dogmas. Msgrs Frank, Dodd, Pelosi, Watt, etc equate them to be one and the same. Naturally these “leaders” don’t want blame assigned. If root causes were corrected these problems could be resolved and the blame would weigh like an anchor around their necks. They prefer that we all pay for these “unexplainable” events. The gall of leadership like this is appalling.

]]> By: Roderick Reilly http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-2/#comment-174487 Roderick Reilly Wed, 24 Dec 2008 22:28:34 +0000 http://pajamasmedia.com/?p=42117#comment-174487 Seeming to place the blame on the backs of the economically disadvantaged may seem tacky, but many posters here have pointed out that the practice intended for this group was expanded to all potential homebuyers. Also, the well-intended program to allow the "poor" to be able to buy homes was poorly conceived and fraught with problems. At the root of the sub-prime/disadvantaged buyer concept is the pernicious philosophy that those who are working class or less should be entitled to the trappings of middle class life, even if they themselves don't have the means to sustain it. Such practices drain us all as well as creating resentment from those others who actually earned their homes, cars, upscale apartments (Section 8 is that well-meaning but bone-headed program to provide subsidized rentals to those who would otherwise be living in public housing) and high-end consumer goods. It makes a lot more sense to do what is necessary to expand the economy to provide more opportunities for the "disadvantaged" to earn incomes that enable them to afford better everything without any subsidies. If such groups must be targeted for preferential treatment within the context of a growth-oriented economic policy, it might make short-term sense. Seeming to place the blame on the backs of the economically disadvantaged may seem tacky, but many posters here have pointed out that the practice intended for this group was expanded to all potential homebuyers. Also, the well-intended program to allow the “poor” to be able to buy homes was poorly conceived and fraught with problems.

At the root of the sub-prime/disadvantaged buyer concept is the pernicious philosophy that those who are working class or less should be entitled to the trappings of middle class life, even if they themselves don’t have the means to sustain it. Such practices drain us all as well as creating resentment from those others who actually earned their homes, cars, upscale apartments (Section 8 is that well-meaning but bone-headed program to provide subsidized rentals to those who would otherwise be living in public housing) and high-end consumer goods.

It makes a lot more sense to do what is necessary to expand the economy to provide more opportunities for the “disadvantaged” to earn incomes that enable them to afford better everything without any subsidies. If such groups must be targeted for preferential treatment within the context of a growth-oriented economic policy, it might make short-term sense.

]]> By: Rashputin http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-174202 Rashputin Wed, 24 Dec 2008 10:18:55 +0000 http://pajamasmedia.com/?p=42117#comment-174202 "My conservative friends, wake up — quit bringing a knife to a gun fight!" That's just silly. It's not like you can't buy yourself a Senate seat and then vote for change. have a nice day “My conservative friends, wake up — quit bringing a knife to a gun fight!”

That’s just silly. It’s not like you can’t buy yourself a Senate seat and then vote for change.

have a nice day

]]> By: AZgirl http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-174181 AZgirl Wed, 24 Dec 2008 08:04:23 +0000 http://pajamasmedia.com/?p=42117#comment-174181 It seems to me that many people who bought houses did so based upon the monthly payment they could afford at the time. The system seemed to work for years until the ARMs reset. In many cases rental rates for anyone... including minorities... are higher than the monthly payments they were making month after month after month. You rarely heard about defaults until the interest rates went through the roof. Were these just unsustainable "teaser rates"? I know what these people were thinking... "Even if when the ARM resets, if I'm not making more money by then, my house will have appreciated so much that I can just sell it and move into something I can afford." We all know how well that line of thinking worked out. What tears me up is that these people were making the monthly payments they could afford. They didn't default on their loans until the rates went so high that they couldn't afford to feed themselves. It seems to me that many people who bought houses did so based upon the monthly payment they could afford at the time. The system seemed to work for years until the ARMs reset.

In many cases rental rates for anyone… including minorities… are higher than the monthly payments they were making month after month after month. You rarely heard about defaults until the interest rates went through the roof.

Were these just unsustainable “teaser rates”? I know what these people were thinking… “Even if when the ARM resets, if I’m not making more money by then, my house will have appreciated so much that I can just sell it and move into something I can afford.”

We all know how well that line of thinking worked out.

What tears me up is that these people were making the monthly payments they could afford. They didn’t default on their loans until the rates went so high that they couldn’t afford to feed themselves.

]]> By: G Alston http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-173783 G Alston Tue, 23 Dec 2008 09:49:54 +0000 http://pajamasmedia.com/?p=42117#comment-173783 Another view is substantially correct. Artificial price inflation played a role. I read articles in 2006-2007 regarding crooked appraisal practices where the appraisers would value (e.g.) a $100k house at $125k because their pay was based on the loan value. Another view is substantially correct. Artificial price inflation played a role. I read articles in 2006-2007 regarding crooked appraisal practices where the appraisers would value (e.g.) a $100k house at $125k because their pay was based on the loan value.

]]> By: don L http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-173585 don L Mon, 22 Dec 2008 20:30:45 +0000 http://pajamasmedia.com/?p=42117#comment-173585 Regardless who's to blame the standard liberal cure of doubling up on error needs to be implemented. If low mortgages and cheap money caused it, we need more of the same - I call for a negative prime rate to save America and jump start this economy. (Gosh Mommy, if it starts where do I drive to?) Regardless who’s to blame the standard liberal cure of doubling up on error needs to be implemented. If low mortgages and cheap money caused it, we need more of the same – I call for a negative prime rate to save America and jump start this economy. (Gosh Mommy, if it starts where do I drive to?)

]]> By: spike http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-173497 spike Mon, 22 Dec 2008 17:34:56 +0000 http://pajamasmedia.com/?p=42117#comment-173497 42, 43, and 44 are all winners in my book-and for those of you who keep playing the race card against anyone criticizing the CRA, the incompetent management history of fannie and freddie, and the socialist cult of the obamessiah, try to understand that you're only playing with yourselves; the rest of us have opted out of your silly intellectually dishonest and morally bankrupt game. time to grow up 42, 43, and 44 are all winners in my book-and for those of you who keep playing the race card against anyone criticizing the CRA, the incompetent management history of fannie and freddie, and the socialist cult of the obamessiah, try to understand that you’re only playing with yourselves; the rest of us have opted out of your silly intellectually dishonest and morally bankrupt game. time to grow up

]]> By: tanarg http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-173350 tanarg Mon, 22 Dec 2008 12:14:33 +0000 http://pajamasmedia.com/?p=42117#comment-173350 Looks like 43. John: wins the brass ring. Looks like 43. John: wins the brass ring.

]]> By: The Historian http://pajamasmedia.com/blog/its-time-to-uproot-the-real-cause-of-the-mortgage-bailout/comment-page-1/#comment-173268 The Historian Mon, 22 Dec 2008 04:33:40 +0000 http://pajamasmedia.com/?p=42117#comment-173268 DISASTER ON THEIR WATCH MERITS A RAISE? We need to get rid of our reprehensible representatives and the earliest opportunity: http://greensrealworld.blogspot.com/2008/12/economy-in-crisis-congress-gets-raise.html DISASTER ON THEIR WATCH MERITS A RAISE?
We need to get rid of our reprehensible representatives and the earliest opportunity:

http://greensrealworld.blogspot.com/2008/12/economy-in-crisis-congress-gets-raise.html

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