Tuesday, February 28, 2012

Affordable Social Housing

Prices fell in 18 of 20 US cities in final months of 2011, prices back to 2002 level

When home prices reach 1995 levels, this is where we will see them level off. We still have a ways to go. Why 1995? Well that`s when Government FORCED the banks to open up billions of dollars a year in new credit to millions of Americans who previously did not qualify for credit or the start of the Affordable Social Housing mortgage foreclosure crisis which was - and still is the root cause of this recession. Affordable Social Housing was Championed by Affordable Social Democrats in Congress leading up to the bust in `08.

April 2001: The Bush Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity." (2002 Budget Analytic Perspectives, pg. 142)

September 2003: Then-House Financial Services Committee Ranking Member Barney Frank (D-MA) strongly disagrees with the Administration's assessment, saying "these two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis … The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." (Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae," The New York Times, 9/11/03)

July 2005: Then-Minority Leader Harry Reid rejects legislation reforming GSEs, "while I favor improving oversight by our federal housing regulators to ensure safety and soundness, we cannot pass legislation that could limit Americans from owning homes and potentially harm our economy in the process." ("Dems Rip New Fannie Mae Regulatory Measure," United Press International, 7/28/05)

August 2007: Senate Committee on Banking, Housing and Urban Affairs Chairman Christopher Dodd ignores the President's warnings and calls on him to "immediately reconsider his ill-advised" position. (Eric Dash, "Fannie Mae's Offer To Help Ease Credit Squeeze Is Rejected, As Critics Complain Of Opportunism," The New York Times, 8/11/07)

September 2008: Democrats in Congress forget their previous objections to GSE reforms, as Senator Dodd questions "why weren't we doing more, why did we wait almost a year before there were any significant steps taken to try to deal with this problem? … I have a lot of questions about where was the administration over the last eight years." (Dawn Kopecki, "Fannie Mae, Freddie 'House Of Cards' Prompts Takeover," Bloomberg, 9/9/08)

http://finance.yahoo.com/news/home-prices-fell-december-most-140231740.html

2 comments:

  1. Why do I say FORCED? Comments from a Bill Clinton Press Conference in the mid 1990`s:

    The proposed reform package we are unveiling today follows the President's directive and fulfills the promise of the law. It will channel billions of dollars a year in new credit into America's distressed communities.

    Here comes the FORCED part:

    Q With regard to enforcement actions for an institution that's not applying for a merger, what specific enforcement actions might you envision being taken if it's in substantial noncompliance?

    MR. LUDWIG: Well, we'll have the full panoply of all our enforcement armorarium, which includes cease and desist orders and civil money penalties in some cases.

    Q So you could apply those, because you hadn't up until --

    MR. LUDWIG: We have not, and it has not been part of the regulation. It will be part of this regulation.

    http://clinton6.nara.gov/1993/12/1993-12-08-briefing-by-bentsen-and-rubin.text.html

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  2. Cease and disist order threats and civil money penalties for substancial noncompliance from the Clinton Administration and the Fed against all US banks constitutes FORCE...

    Home prices will level off in another 5 or 6 years. Maybe longer... Government caused this...

    What we should NOT have in the land of the free. A Government so powerful that it can REGULATE all our banks into bankruptcy causing recessions and bailouts - spreading the wealth or as Obama puts it, "A more just or FAIR society..." Democrats destroy everything they touch...

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