(Poll of real estate investors near the bottom of this post…)
The economy of the United States is at its best when most free. The government is at its best (economically) when it guarantees transparency and accuracy and is otherwise uninvolved.
Unfortunately, neither of these are the case at present.
The U.S. economy has been hamstrung by insanely foolish regulation for many years now, much of which originated as a ridiculous attempt to control the free market subsequent to the Great Depression.
It didn’t work then. It’s not working now. And it will never work in the future.
I’ll have some very specific pieces of evidence to share with you regarding the genesis and development of this situation. But in the mean time, please participate in this completely anonymous poll:
[poll id="4"]
Also, here’s a question for discussion: Why has there been such a strong public outcry against the $700 Billion bailout plan? (This morning, I heard two congressmen give statistics about the amount of constituent communications they are receiving about this: One congressman said he’s receiving emails 50 to 1 AGAINST the bill. Another said his ratio is 300 to 1 AGAINST the bailout bill.) Why do you think that the most vocal supporters are politicians and the most vocal opponents are normal citizens?
Maybe public opinion is like mine- that these banks should reap what they sow! Credit is a privelege but the banks and lenders have treated customers so shabbily, let alone us investors. Lenders have been predatory in many instances and want their cake and to eat it too. I have been trying to close a couple of short sales where I have thru my own efforts gone out and gotten an end buyer who is willing to pay more than what I can buy it on short sale. But because of the lenders wanting ALL the money in a deal, I am hamstrung on the one side by lenders controlling all $ in the deal to the extent that they are cutting commissions when I am bringing them a deal and working 10x as hard to get the short sale done as compared to a straight deal w/ no lender approval needed. On the other side of the deal, I cannot make a spread since the end buyer’s lender has seasoning requirements that preclude me buying and selling prior to holding for at least 90 days. The lenders however, hava gotten a waiver from FHA to allow them to sell without the 90 day seasoning- what about us investors or anyone else for that matter. The lenders have a lobby but we don’t- whatever happened to equal treatment under the law? I just feel that the lenders should reap what they sow and let them deal with their problems and work things out in a capitalistic way.
The public is right on about the bailout. Let’s really look at the kitchen table:
1. High energy costs
2. High unsecured credit lines
3. Two income families not able to make ends meet
4. More older Americans working just to survive
5. College graduates graduate with debt but low income to support debt
6. High taxes on the middle class. Double taxes on business.
7. Health care costs rising faster than inflation or wages
8. Housing rose faster then wages.
9. No more credit is available for the American Family. Because the income to debt ratio is maxed at 65% while the remainder is taxes.
9. No bailout for the American Family.
NO bailout for the Banking system – because the Central Bank as we are told is an Independent Authority for our Money Supply.
So where does this leave the American Family? Well, $700 billion can immediately go to the pockets of the American Family and “trickle up economics is born”. So, who cares if my mortgage get’s called. My pocket is about to lined with the $150,000 cash rebate from the American Government!
The credit market should correct. A squeeze must take place. There is no more credit for Tom, Dick or Harry. Banks should call Mortgage loans. This must take place for a true free market.
We are after all a Country lead by conservative principals right? I mean, come on, our Country wants less Government, right?
Give me break.
No Welfare for Wealthy corporations. None. It’s smart to stay away from Oligarchy and stick to democracy in it’s purest form.
Why is Caitlyn so upset? Do you think she would send me most of the money in her wallet so I can spend it on bad loans? Why would she think the rest of us should send our wallets to Washington to do the same? Bad math, and even most of us “little people” can see that. Just plain bad math. The strong will survive, and the American people as a whole are stronger than the banks and the government. Have we forgot this? Have her look up some of “Robert Ringers” newsletter ramblings for some insights to reality. P.S. My wallet offer still stands Caitlyn.
Well…my own personal credit is shot. Soz…
I’ll just have to wholesale until I can shortsale…
And then shortsale until I can buy a Benz.
And if credit is still tight by then – and mine hasn’t improved
as much as my income…
I’ll just have to pay Cash for a Camaro ~(teh new, 2010
Camaro that is on its magnificent way from Chevrolet)
Oh…cry me a river… ^^
Why is the public against the bailout?…Even a 5 year old knows that you don’t take good money and buy bad lemonade and hope it tastes better with time…
Her eis the solution: Repeal the CRA [what caused most of this problem] AND implement Former Speaker Newt Gingrich’s plan.