Why bash obama; isn't the housing market improving?

Asked by Michael Russell, 75006 Sun May 2, 2010

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Bob Hope, Home Buyer, New York
Sun May 2, 2010
BEST ANSWER
When the economy is bad, interest rates go down. When there are a lot of foreclosures and an inflated market, prices go down.
Logically, this will cause affordability and an eventual improvement in the housing market.
Without the credit, prices would have gone even lower and may have caused a bigger, healthier comeback for the housing market. The natural cause and effect of a bad market has its healthy returns too.
Instead, we are looking at a superficial comeback paid for by yours trully.
Historically, every national real estate slump has had a healthy recovery without using taxpayer dollars. The only gain in spending all this money is in the prevention of poor political ratings.
2 votes
T.E. & Naima…, Agent, Dallas, TX
Thu May 13, 2010
I liked Don and Cathy's answers - it isn't any of Obama's doing. His was wringing his hands over forcing everyone to buy health insurance while the housing industry was wallowing in the mire created by Bernanke after greed overtook common sense.

Greed in California infected Nevada and quickly spread to many places, primarily Blue States (with the notable exception of D/FW and the other Red States. Yes, Red States have suffered some as the economy plummeted into recession after Bernanke choked off the speculation with exorbitant interest rates that collapsed ARMs and option ARMs. The Wall Street speculation in junk mortgage portfolios based on these loans made by greedy GSEs, like FHLMC and FNMA, eventually collapsed and took down Iceland and several overseas government bettors, too.

Backtracking immediately might have propped up the mess long enough to stabilize, but Bernanke has his foot on the throat of the housing speculation monster (and he killed it). Unfortunately, the victims in the belly of the beast died along with it.

So, did Obama do anything to fix this? No. He told us during his campaign that his mother was cheated by insurance companies and denied coverage. His answer was to force us all to go to those same insurance companies and pay them our money, too. He fiddled while southern California "burned" and McCarron was dead. Did he help D/FW? No, but it is improving.

Should he have done anything? I prefer to remember "It's the economy, stupid"
1 vote
Scott Godzyk, Agent, Manchester, NH
Mon May 3, 2010
Mainly because he has very little to do with the housing market improving. If anything he has hindered its recovery by placing moratoriums last year that merely delayed foreclosures to this year and had no teeth in helping the people who needed assistance in dealing with the banks. By doing so they delayed the recovery. As far as bashing Obama it is not for real estate. It is for mortgaging my child's as well as everyones childrens futures by bailing out companies that caused this mess in the first place. It is attitude of not listening to what the people want and what they dont want and doing it anyway, it is this flawed health care bill and othr policies that he pushes through at the cost of us hardworking people and our children.
Web Reference:  http://www.ScottSellsNH.com
1 vote
Cathy Bureau, Agent, San Antonio, TX
Sun May 2, 2010
I guess the short answer is yes, the market is improving but does it have anything to do with Obama, no. The costs outweigh the benefits of a record high budget deficit and funds commitment and means our kids and future generations will pay the bill, impairing their quality of living. It wouldn't surprise me if we see even higher taxes soon once the actuary tables are proven to be wrong (as it seems to be historically speaking with this administration) so we may even see a smaller paycheck shortly once we are in better economic times.

I also think HAFA is a joke; read my blog. In short. those who are struggling the most aren't getting the help they need. SInce the banks were bailed out they don't feel the pressure to lend money or help those in short sale situations. The idea that a bank would be awarded a $1,000 bonus to comply with guidelines is a joke. Why would they care about $1000 on an asset usually over $150,000? It will cost them more than $1000 to implement a system and human resources to meet those guidelines, yet he asks for an applause for creating a program to expedite short sales.


Cathy Bureau, MBA, REALTOR, Green, SFR
Broker-Owner
GREEN Home Realty
(210) 378-2489
Cbureau@greenhomerealtyco.com


He spends too much time in front of the camera listing to his own siloliquies and not enough time actually anaylzying and assessing actuaries and economic effects of socialistic programs.
1 vote
Zl1vette, , Carrollton, TX
Mon May 2, 2011
This actually goes back to the Carter and Clinton Administrations. Look up the "Community Reinvestment Act", which was a clever name for blackmailing banks, and ultimately the taxpayers, into funding loans for those who could not afford them. The liberals were filing discrimination charges against banks who would not loan money to minorities with bad credit scores, and compelling the banks to loan money without income verification. Naturally as all of the "free money" flowed, those who had no business borrowing it did so anyway. When they could not pay back their loans, they defaulted and wanted a taxpayer funded bailout. By trying to artificially inflate the housing market, Obama has actually made the situation worse.
0 votes
Don Tepper, Agent, Burke, VA
Sun May 2, 2010
Bash Obama for what? Health care reform? Immigration reform? Financial services reform? Nuclear nonproliferation treaty? Environmental issues? Afghanistan?

All of those can be debated, and there are valid arguments on various sides.

But few would argue that Obama had any role in the events leading up to the housing mess. And under his watch--not that he's really had much influence over it--interest rates have remained low. Congress did pass a number of pieces of legislation--ranging from the home buyer tax credit to other attempts to provide alternatives for homeowners facing foreclosure--which Obama signed.

Besides, America in general seems far more concerned about employment and unemployment. Those play directly into the housing market.

Is the housing market improving? Probably, but Dan's pretty astute and I agree with his uncertainty.

A president's power is pretty limited in many areas. Psychologically, I guess if things were going great Obama would be more popular, and if things were going worse Obama would be less popular . . . whether or not he or his policies had any real effect on conditions.

And there are plenty of far more important issues--such as a few I touched on above--that Obama's policies and positions can be debated.
0 votes
Ron Rovtar, Agent, Boulder, CO
Sun May 2, 2010
Hi Michael:

I think there are a number of answers to this question. But, I think the main one is that, as a species, the human race tends to place a lot of importance on the recent past. A number of psychological studies seem to support this idea.

Right now, we are still licking our wounds and wondering if things will really get better. Many of us wonder if recent economic improvements will hold or if we will backslide into the muck or recession. In other words, we remain frightened, blaming an obvious scapegoat (whoever happens to be president). However, this is not really a positive approach and we really should and will start looking forward soon.

Sorry to get all psychological on you, but I really think the answer has more to do with us than with the president. As things get better and we relax a bit, I think we will stop being so hard on leadership and just get on with our daily lives.

Best,
Ron
0 votes
Dan Chase, Home Buyer, Texas City, TX
Sun May 2, 2010
Michael, the truth is that no one really knows what the housing market is doing. It was just partially removed from life support. What will it do now? Will it thrive and revive or go into a deep coma? Only time will tell.

I expect a lot slower sales now. Many who wanted to buy already did to get the free cash money. I expect a large volume change now that the free money is gone, and not in the plus category.

Wait until fall, see what happens and ask this again.
0 votes
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