October 3, 2008

Obama-Biden and the Death of Mortgage Loans to You or Anyone Else

File Under "An agreeable man is one who agrees with me." Donald Sensing explains the death of the mortgage market under the Obama-Biden plan:

(Excerpt - More at the link)A better way to destroy the mortgage market than what Biden-Obama propose could not possibly be imagined. For what Joe said (said twice, count 'em above, twice) is that the government will decide, completely arbitrarily, what the future value of a home will be by adjusting the principal balance to be repaid. Because Joe will never adjust the principal upward, there will be no bottom. Lenders will not be able to predict with assurance whether they will even be able to recover their principal, much less recover their opportunity costs of the loaned money plus enough profit to run the business. - Sense of Events: Biden promises to destroy the American housing market

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Posted by Vanderleun at October 3, 2008 4:30 PM | TrackBack
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AMERICAN DIGEST HOME

"It is impossible to speak in such a way that you cannot be misunderstood." -- Karl Popper N.B.: Comments are moderated and may not appear immediately. Comments that exceed the obscenity or stupidity limits will be either edited or expunged.

The Law of Unintended Consequences will gain momentum, and before long there will be no recognizable realestate retail market, no mortgage loan business, and no speculative housing construction. As Ralphie narrated: "No turkey sandwiches. No turkey salad. No turkey gravy. Turkey hash...".

The price of housing might become impossible to compute, and the market forces that were impossibly false in one direction will become impossibly false in the other. This bill is worse than kudzu.

Dan Patterson

Posted by: Dan Patterson at October 3, 2008 4:53 PM

Too much government money chasing something causes all kinds of problems.

That is why health insurance and college education are becoming unaffordable.

If the Democrats chase all of the money from the housing market, it will be a good thing. Houses will be cheaper.

Suburban developments called Stonehenge will not consist of 4500 sq ft McMansions on quarter acre lots, fifteen miles from the nearest job.

Liberals in the suburbs of New York, San Francisco, and LA will be impoverished.

A win-win if you ask me.

Posted by: Fat Man at October 3, 2008 8:27 PM

All housing will become rent-to-own and thus the problem will just go away.

Posted by: Alan Kellogg at October 4, 2008 2:07 PM
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"It is impossible to speak in such a way that you cannot be misunderstood." -- Karl Popper N.B.: Comments are moderated to combat spam and may not appear immediately. Comments that exceed the obscenity or stupidity limits will be either edited or expunged.










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