The asking of this question really goes to the core of the financial mess we put ourselves into over the past eight years. It is not just the housing crisis that must be dealt with by this President and Congress. There is so much more than the housing crisis. It seems many are only focused in on what impacts them immediately and that is a normal response. It is our piece of the dysfunctional pie that most concerns us. That said, this nation, this government and the people face not only a housing crisis, but a plethora of immediate critical issues that need to be addressed. It is no easy task and most assuredly will not be completed in any President's first year in office. It is certainly a task that deserves more than some simplistic, myopic grade from people who still think this President was born in Kenya, is Muslim, or have no idea that the Boston Tea Party was more about the lack of representation than the actual tax.
It's all about priorities. Do you really believe that people loosing their jobs, then their homes, have Healthcare foremost in their minds? He has wasted an entire year!! Look for the hidden agenda. He wants a huge bureaucracy, which will give him thousands of new union supporters. Why can we not start with some regulations to cover Tort Reform, Pre-Existing Conditions, and Loss of Coverage? For those who can afford/don't want insurance, a fund that provides for catastrophic coverage. And let's be honest, lots of people with big cars and big TVs claim "poor" when it comes to insurance. I was unhappy with the Bush administration bailouts, but Obama has spent tons more. And no end in sight. As a bank employee, I can tell you first-hand the pressure the government put on us to lend to shaky borrowers. (And we all know what that means.) Frankly, people who can't make simple calculations to know if they can afford the house don't deserve the house! It's a privilege, not a right. We don't all get what we want. And who really pays? Those of us working super hard to maintain our homes and make our payments, only to get burned by the low comps caused by foreclosures. People who have lost their jobs, of course, are blameless and I pray for them. Oh - what IS that Unemployment Rate? Stayed well under 8%, right?
Another point: NO ONE in this country is denied critical care. My sister the E.R. nurse has confirmed that. In many cases the payment plans never happen, so we already pick up that tab. AARP supports ObamaCare? Of course, they sell supplemental insurance. Both parties are in bed with corporations and industries, so please stop acting like it's just the GOP. GE anyone?
The focus in 2010 should be jobs and housing: reasonable appraisals and looser credit for GOOD buyers. It's simple: People who are worried about their income will not buy new houses. And the Home Buyer's Credit needs to be higher to really motivate, and also to mitigate the damage already done to home values.
I say throw all the DC bums out and start fresh. Perhaps the Massachusetts Miracle is the beginning of Common Sense prevailing. I sure hope so, cause it's gonna get a LOT worse before it gets better if he keeps going.
Loan Mods are a huge failure Fannie and Freddie have a blank check from the US Treasury and they pay executives millions in bonuses. There is none of the promised transparency in this administration. It is completly owned by Wall St.
I'm a young, prospective home buyer that looked for about 6 months, but decided to wait because of the turbulent economy. Great, give me a tax credit (which I would only get about $2k from) and that is really going to inspire me to buy a $350k home. If I lose my job then I'll end up bankrupt and in a box.
Obama needs a serious reality check. He needs to focus on balancing the budget (because we can't have $1.5 trillion dollar yearly deficits forever) and let the private sector fix itself. If certain businesses overextended themselves, let them fail and we'll make the ones that did what is right stronger.
Also, I personally disagree with FHA loans. If a bank isn't going to take a chance on someone putting 3.5% down, then why are we federally subsidizing loans for people who are much more likely to default?
1. Get the government completely out of the housing business.
2. Obama needs to focus on balancing the budget.
3. Let the private sector fix itself.
The tax credit (in my opinion) did not create many new buyers, but shifted buyers that were going to buy anyway. Some buyers just bought homes a bit earlier than they planned ... the Nov '09 extension and expansion of the program will result in the same thing. We'll know for sure later this year, if/when the number of sales drops off after the program expires.
The Mortgage Relief plan is a joke ... just look at the results. Around 10% of those "eligible", were enrolled (Oct '09). The program had to be modified in November '09 because it was too complicated.
The program relies upon the lenders cooperating with the borrowers. If the lender agrees to modify a loan, they provide a temporary period of time (usually 6-12 months) where the payment is adjusted, after which time the payment goes back to what it was. The borrower now owes more on the mortgage than they did at the beginning of the modifcation, because the lender just shifts the difference not paid, to the mortgage balance, and extends the period of the loan.
The lender still makes their money (if the home owner continues to pay).
The home owner MAY benefit from the temporarily reduced payment, but only if the borrower (who is normally suffering a temporary disability or job loss) can get their income back to a level where they can afford the payment, again.
Many people who receive a modification, still lose their home (thru short sale or foreclosure) ... which is one of the continuing problems in the real estate market.
What makes these plans even worse, is they cost all tax payers. We (the tax payers) pay much more than $8,000 for each $8,000 tax credit paid.
Michael Mulvey -US Army (Retired) Full-Time Realtor Pasadena, MD
Actually, I voted for McCain/Palin and I definitely do not agree with many of the President policies. I can assure you that I will not be voting for him. But, just as I can sense what is a bad policy, I can sense prejudice.
All what you said might have happen, not a historian to check on them or not, but the fact is you took the position to select and pick specifically black racism, accusing a specific race and group is alarming.
You yourself said it "Racism come in all colors"... well, where are the other colors, how about other organizations? You just want to focus strictly on the African American community.
Nobody here is defending these black organizations for what they did. But, the fact is that you decided to bring them out (and they happen to be all African American) shows your bias. You vehemently (and angrily) went after a specific race (regarless if they wrong).
It would be like me pointing out a list of murderers and how mad I am at, but then I only listed persons of African American descent. Did they do yes? Absolutely, that is 100% fact. Well, so did other races as well, no? But the fact that I chose to point out only black murders shows that I see the world from only one color and my anger is focused only at a specific race.
That Debbie, is exactly what you did. You accuse other people of playing the racism card... well you Debbie, are the master of that.
He should have put more regulation on Fanny and Freddie and not had the dopes Barney Frank or Chris Dodd in charge of anything pertaining to these two failures as Guarantors. That is what cause this entire mess. They encouraged Fanny and Freddie to lend to people who had no business buying a home and then bundled these bad loans and sold them to the Teachers Unions, and other innocent people that "Trusted" these 2 govenment agencies to do the right thing. They sold these loans to Europeans as bonds they would get a good return on. Knowing they were not worth the paper they were written on. Nothing has been fixed.
They have tightened their underwriting guidelines and required higher credit scores. Big deal.
President Obama was more interested in his ObamaCare than in creating Jobs or the Housing Market. Without a Job you cannot get a loan......yet. F = Failure and throw him out in 2012. Better still Impeach Him.
He promised to end the war......he increased troops in Afganistan. Many military families are loosing their homes here as well. The Middle-East Wars have been going on since ancient times. You cannot tame a wild animal. That is what they are and will continue to be. He is throwing good money after bad at the war...just like the housing market. He is NOT a leader to follow.
Chicago has more deaths in a week that in Afganistan. Check the facts on that one. That is Obama's home town. Vote him OUT. We put the lid on Acorn as a result of their own demise. That should limit his votes considerably. Failure as a President.
Capitalism - You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income
Anita Dunn, Van Jones, Bernie Sanders, George Soros, Rev. Wright, Father Fleugher, Bill Ayers, etc., etc.
You folks take a wild guess where the president is headed. If he doesn't reverse course tonight then he will have learned nothing in his first year and reveals himself for the leftist ideolouge that he is. And if he blames Bush tonight again for this mess IM GOING TO GET VIOLENTLY ILL!!!!!!!
Why the American people voted for this and didn't see it coming is beyond me. Wake up, the progressive/socialist with their money and influence have infiltrated both political parties. This has been tried before thoughout history and its a failed and bankrupt system. Don't listen to the ideolouges on both sides. Its like anything else you have to trust but verify and do your own research.
We deserve better. We the American people have woken up and THIS WILL NOT STAND!!!!!!!
You are right I'm afraid. A year of failing, then blaming, then demonizing, then punishing. And with full control of Congress. Obama IS Chavez Lite - which may appeal to some who opine here, unfortunately. Leadership qualities are absent. He makes the private sector very nervous. Companies do not expand and hire when they are uncertain about how much more the Government will tax and control. Without the jobs, the real estate market will continue to languish -- at best. Hope and change? I hope Congress will change in 2010! This guy needs some checks and balances -- and a whole new set of priorities.
Would you rather have trickle down wealth or trickle up poverty? Obama is claiming the mantle of the former but is causing the latter. Then again , we are not to judge a liberal by thier results , only thier intent. That being said, the answer is smaller Government in everyones life.
The Dems and the Repubs are one in the same and are controled by the uber rich. The Federal Reserve System (which is not federal nor has any reserves) needs to be abolished and we need to be put back onto the gold standard instead of being able to print funny money to no apperant end. The Goverment has NO intention of helping Americans or the housing market, they want control of your life. Once everyone is on Goverment health care (welfare) they have just about acomplished this goal.
Unfortunately, to may people will not figure it out soon enough and will be wiped out totally and have no choice but to look to big brother for a hand out. If anyone is interested , there is a CD selling on ebay called THE CREATURE FROM JEYKLL ISLAND and is a synopsis about how and why the Federal Reserve System was created. It opened my eyes to what I already was seeing happen. I wish you all the best of luck and hope you all are taking the proper precations to survive what is comming soon. The best piece of real estate you can invest in is between your ears so educate yourself while you still can. God bless.
He took over an eight years mess and people expect him to change it in a year. Ifd he could run ten more times I would vote for him ten more times. He is an honest person, he needs the support of the American people not a nehgative attitude.
That's what I think.
If government just stay away and let free market does what it does best. Everything will be corrected by now. Home become more affordable. Bad financial institutions go belly up and we have better many financial institutionals. No more government guarantees loans. (This is one reason why college tuition become unaffordable).
Yes, it will be painful, but home becomes more affordable. We will go back to where people need to put down a big down payment to get a home.
Government does not create jobs, government does not create wealth, government steals from those who produce and rewards those who do not.
His continual assault on workers, business and employers is destroying jobs, opportunity and the economy.
The new lead based laws added thousands in cost to rehab and repair of existing homes, further decreasing their value.
If he gets his Cap and Tax through we will be telling people in $40,000 homes that they have to invest $20-30,000 in them to meet the new energy efficiency standards in order to be allowed to sell your own damn home!
This guy is the opposite of Midas, everything he touches turns to @#*%!
Well said! It's hard to view what is happening as anything other than deliberate and methodical "FUNDAMENTAL CHANGE." Congress is clearly and quickly vesting enormous and unprecedented power in the Government. More even than I worried about.
Some would say "Yes - that's what we need!" Others would say "Oh, no, that's what we feared!" Others would say "Oh, is THAT what he meant?" It's all about the third group in the next election.
I frankly don't think Congress cares a whit about the thousands of lost jobs in the private student loan sector as many more union workers will be a much more reliable voting pool. Same for illegals and same for felons.
The White House and Congress are in full campaign mode. Why else would Obama be darting about to different states trying to convince people about HealthCare when it's already a done deal??? Waste of time, money and focus? You make the call.
I've asked before: is it really far fetched to worry that some day medical procedures, loans, and who knows what else may be meted out according to your political party? Can anyone guarantee that will not happen??
It seems as though the same people that once despised the idea of "Big Brother" are cheering this movement onward without objective thought and it's very sad. Perhaps failing to consider, of course, that these very powers will be inherited by the next majority in charge.
And now CEOs that have identified the negative impact of higher taxes on their corporations are being ordered to DC to turn over work-papers and communications with clients? Are you kidding me??
This Administration has already demonstrated it's willingness to void private sector contracts. Think that's no big deal? Well, someday it may be your contract. And people, mortgages ARE contracts.
I just hope reasonable Americans will begin to consider that while the train may have left the station, it may be in the best interest of the Republic as a whole to try to slow it down before it leaves the tracks. If we're honest, we need to admit that the outcome of all of these initiatives is uncertain -- at best.
God Bless America!
P.S. Please read what Gary has posted and think about it.
Without government involvement, where would they be if the government did not extend unemployment? For the most part, the answer is WORKING. We need to provide both small business and industry tax incentives for hiring employees and for keeping jobs in the US instead of just punishing them with excess taxation.
People who work pay taxes & can afford to buy houses. I would vote for a "Fair Tax" (or flat consumption tax) and get rid of most of the IRS.
Unemployment rates are the highest in decades. Unemployed people don't buy houses. Short sales are NOT a happy thing. Who makes money on them, hmmm? Anyone? Anyone? Bill? And what do they do to comps for homes that are paid on time? Interest rates have been very low for several years -- and still home sales are stagnant at best. (And FYI, the President does not set interest rates.) Also, credit and appraisals are still tight for good buyers. Maybe you were just one of the lucky ones....
Hey, he's the one who made all the promises. None kept, not even "transparency." Forget healthcare - it's the economy, stupid. And let's not forget that the Home Buyer Credit actually started in 2008.
This blog is lots of fun, and I find it interesting that most of those who praise Obama don't provide specific accomplishments - just rhetoric or yet more Bush-bashing, while those against his agenda provide specific examples of where he has failed. Just sayin...
That seems like an "F" to me.
I saw something that said it cost $900,000 for each modification. Can I give a "Z" for that score? "F" seems way to high.
What needs to be done is the same thing that has ALWAYS been done. Let the market find its own balance.
If people do not pay their bills they lose the asset. It is that simple. Do not save the people who made bad decisions. Let the houses be foreclosed and be bought by someone who can afford it.
While at it, stop all loans to those who would not meet non-fha financing requirements. Maybe have fha offer lower down payments, but keep the rest of the stricter credit requirements intact.
bad credit rating = renter (simple equation)
The bottom line is that this Administration and Current Congress (and the previous administration / Congress) have wasted hundreds of Billions of Dollars and until the big house gets their house in order, needing more money is not the solution to the problems.
The phony economy of the mid 2000's enabled local, state and the Federal Government to receive hundreds of Billions of dollars and they pissed it away.
That's the bottom line... You guys act like the Government has been starving for the past two decades which just is not the case.
Anybody who can't see / understand that has obviously never built a house on their own or run a budget with projections.
Would you give a GC who promised you everything for $1 Million another $4 Million after doing a crappy job and shoddy work??
When times were good, nobody was keeping tabs on the drunken orgy taking place in capital town U.S.A... now that it's bad people are paying attention and pissed. It's no different then incompetent contractors who are not watched when doing a job.... they'll drag it on and drain your money.
So... stop the whining / lame excuses and crying for more money.
You left wing socialist whiners need to whine more about getting a better return on investment then demanding more money.
I know you don't like to read anything but what is coming out of the Socialist Channels but here you go:
Obviously enough money was not spent on education for basic Accounting and Finance principles...
The money was there and even more was spent but that's what you get for having people in control that have lived off of other people their whole lives.
Effort: He is trying to do what he thinks is best, but since I don't agree with his policies, I believe that he is trying to do what he thinks is best for the party and not what is best for America. If I had to set the bias aside, I would give a B for effort.
Results: Since he has only achieved one "stated" goal, and I think it will be overturned by the courts, then that is a solid F. Even Carter got more done.
Leadership: A good leader will inspire men (and women) to follow into the fray. Obama has lost all but his most ardent supporters. He would be a dismal Military leader....all talk but no action. Again, he does have some supporters and while the numbers continue to dwindle, they are there...That gets him a D.
Finally on integrity. Ummmmm. F sorry.
All in all, I guess I could give the man a D +, but even that is generous. I disagree with his policies and KNOW them to be poison for the future of our nation, I know him to be a socialist and propagandist, (I read his books) and I KNOW him to be a skilled liar, but beyond that....a really nice guy.
Just the opinion of a Pasco County Realtor,
Gary De Pury
I took my OWN decision and had nobody else to blame for that (not the politicians, not my real estate agent, not my coworkers).
As it turned out, it was the right decision for me personally. I saw many of my friends suffer and stress through the home crisis and beg help from the banks and the government.
My company went through a round of layoffs and many people lost their jobs. I was one of the lucky ones that survived and dedicated myself to work harder (as a way to survive). When the elections came around in 2008, the economy was in the tanks. Since then (whether it is Obama or not), things have turned around for my industry and my company is back growing and profitable. The past few months, business has picked up and morale is higher. As a matter of fact, we are starting to hire. Our stock has risen from the lows and hit new highs, which provided additional income. On top of that, my hard work was rewarded with a promotion and my salary increased!
So, do I personally feel better now than before... the answer is YES! Was this thanks to Obama? I am not going to get into that discussion, some will say yes, some will say no.
But what I am going to tell you is that I TOOK MY OWN DECISIONS and DID WHAT WAS BEST FOR #1 (MYSELF). I did not hear about Politicians telling me to do one thing or the other, I did not give in to the pressure to purchase a house, I managed everthing that I could control around me, I watched my own pocket, I worked hard... and as I result in 2010, I am better off than I was in 2009 and 2008.
Give him a break - He inherited this situation and he is working on changing course of the country.
He's a tool of the uber-rich. GW was a tool of the uber-rich. Sometimes I think we Americans could be convinced that up is down and down is up.
How did Realtors cause Wall Street to experience this little liguididty hiccup, which is the cause of this whole mess. The uber-rich decided to not lend anymore because suddenly their assets looked shakey. Remember it was the money folks chasing profit that created the mortgage backed security and then figured out a way to slice and dice them into various risk factors.
Also remember that somebody on Wall Street thought up the brilliant concept of betting that the extended creditor would default. So I can lend my money to a person that doesn't qualify and buy a policy that will pay me my principal and maybe a profit too. In fact I don't even have to have any money lent to buy a policy that will pay me if a debtor defaults. Sweet!
And here we have fools (I have to be blunt) that think the President or Realtors caused this or hold the keys to turning it around as quickly as it crashed. Fools!
PT Barnum's quote is rumbling through my brain! "Never under estimate the stupidity of the American public"
What the heck are they waiting for on taxes?
Business is waiting for the rules to be established before they hire in numbers.
She replied "As a matter of fact, i have! i have been divorced 3 times, owned 2 Chryslers, i voted for Obama and now i drive a Toyota."
Really, Gabriel? This is like saying, without arsonists, where would fire departments be?
The Republicans have the thinnest bench in the National League; when your leading candidates are Newt "ethics violations" Gingrich and Sarah "Grizzly" Palin, maybe it's time to go Yankee and see if John Edwards or Hillary Clinton are free agents.
I think we'd all be a lot better off if the government would stop doing anything - they are mucking things up so badly and it will take us years to undo, if ever we can. What a huge mess.
Stop drinking the DNC kool-aid!
1. There were 54 consecutive months of growth during the 2 terms of GW Bush, although household incomes didnâ€™t grow as much as they could have.
2. Democrats had the majority in both houses of congress during the last 2 years of the Bush administration.
3. The republicans could not block anything this president has tried to do, or wants to do (until the new Massachusetts Senator is sworn in)â€¦ the dems have a large majority in the house and have/had a super majority in the senate. The president couldnâ€™t get his own party to agree.
Last â€¦ look at the facts, not the democrat talking points. Iâ€™d like to think the president would do what is best for all Americans. If he would really do that, heâ€™d have the support he needs. But heâ€™s a just another politician.
Michael Mulvey â€“ Pasadena, MD
I will add that I'm glad it's not my job or the job of any of the contributors here to make the decisions that Obama has had to make.
When Alan Greenspan admitted that he had no idea that what happened could happen and that the economy was acting in a way that was not in the textbooks, all bets were off and obviouls Bush was lost. It seems that the money people just decided that they were taking all thier marbles and going home. With out access to credit the whole system tripped. Who benefited from the credit default swaps that AIG held? Who got paid when Wall Street failed?
Going forward the banks need to lend under realistic criteria. By creating and supporting the too-large-to-fail banks we are faced with too little competition, in my opinion. When the government stops buying mortgage backed securities the interest rates will be set by the large banks. As we are seeing now, they still only care for their profits not anything else. The consumer credit reforms going into effect in February has shown us that the banks will get their pound of flesh before regulation kicks in. Jacking up interest rates from 8 to 10 percent to 20 and 30 percent for people with outstanding balances. These few banks have become a vortex siphoning money out of the consumer.
The banks need better regulation and money needs to be decentralized. Chase had profits of 11 Billion in one of the worst years in America's history. 11 Billion while people all over the country are losing jobs and houses.
Maybe itâ€™s time to go back to regional banks. Lend local money to local people and keep the collected interest in the local economy.
Also pass a 95% tax on any bonus over one million dollars. If a five star general like Petraeus can be paid $200,000 with a Phd. from Princeton why does a banker deserve hundreds of millions of dollars in pay and bonuses. Thereâ€™s a cost to our society for allowing the brightest amongst us to be sucked into one industry that pays such large salaries for accomplishing short sighted goals.
He feels your pain. He cries for you at night. He fights for your rights so you get that unemployment check.
He knows how it feels to be out of a job. He knows how it feels to loose his house .He knows what it is like sleeping on the streets. He knows what it is like going hungry. He is there with the poor lining with the food stamps getting his free meal. He does not pay taxes because he claims he is not making any. He does not have insurance for like you he cannot afford it. He knows that getting medical attention is better if it is free than paying for it. He knows that getting paid by the government and staying home and sharing his grief with you and get paid should continue for eternity and beyond.
He is angry at the wealthy. He is angry at the military. He is angry and jealous of anyone making a good living. He finds fault with government. He belongs nowhere. He incites and ignores people that do not agree with him. But when you take a real look at him he is just a real nice guy. The one you like to avoid. The one that talks on both side of his lips . The one that finds fault with everyone yet has not sliver of originality or back bone to stand on. He is the slippery slope the one that makes most everything look like a piece of cake long as he takes the first slice.
It doesn't really matter whether "over-regulation" will lead to the extinction of chickens, but it does matter if under-regulation presents a danger to the public - to the people.
If there aren't enough chickens to produce enough eggs to eat, nearly everyone goes hungry, and all of society is in danger.
No suggestion was made that folks in true need should be cut off from goverment funding. We need a safety net. A much smaller targeted fraud free one.
According to the US Bureau of Statistics.
Start: (February 2001): 4.6%
End (January 2009): 8.5%
NET CHANGE: +3.9%
Start: (February 2009): 8.9%
To date (June 2010): 9.6%
NET CHANGE: +0.7%