Author Topic: Obama to insist market provides 30-year mortgages  (Read 761 times)

0 Members and 1 Guest are viewing this topic.

Offline Rapunzel

  • Hero Member
  • ****
  • Posts: 71,719
Obama to insist market provides 30-year mortgages
« on: August 05, 2013, 11:18:03 PM »

Offline Oceander

  • Technical
  • Hero Member
  • ****
  • Posts: 47,370
  • Chief Dork
Re: Obama to insist market provides 30-year mortgages
« Reply #1 on: August 05, 2013, 11:31:12 PM »

Offline Rapunzel

  • Hero Member
  • ****
  • Posts: 71,719
Re: Obama to insist market provides 30-year mortgages
« Reply #2 on: August 05, 2013, 11:34:56 PM »
Bull Pucky.  That is precisely what they said about Fannie and Freddie, and the federal taxpayer still ended up eating the lion's share.

Scary isn't it... but not surprising given it was Mr. Obama in his VERY short stint as an attorney who sued Citibank for Acorn to force them to give home loans to people who could not afford them.

Offline sinkspur

  • Hero Member
  • ****
  • Posts: 28,691
Re: Obama to insist market provides 30-year mortgages
« Reply #3 on: August 05, 2013, 11:36:52 PM »
Why would anybody invest in a financial entity that had a mortgage portfolio if he knew he'd be the first one to take a bath in an economic downturn?

Roy Moore's "spiritual warfare" is driving past a junior high without stopping.

Offline Oceander

  • Technical
  • Hero Member
  • ****
  • Posts: 47,370
  • Chief Dork
Re: Obama to insist market provides 30-year mortgages
« Reply #4 on: August 05, 2013, 11:42:41 PM »
Why would anybody invest in a financial entity that had a mortgage portfolio if he knew he'd be the first one to take a bath in an economic downturn?



A rational investor would if s/he got first dibs on the upside in an amount comensurate with the risk of having to eat the downside.  The problem here is not the mere existence of risk - every investment entails risk - but the lack of any real offsetting upside.  What Obama wants to do is to find patsies - "private" investors who will backstop his socialist fantasies by agreeing to bear all the risk for only a smidgeon of reward.  Of course the only takers will end up being crony capitalists, who will invest with borrowed money - money either gulled from the middle class via pension investment funds or backstopped elsewhere by the federal taxpayers - and whos profits will come through servicing fees, not through interest received in excess of principal repayments.

Offline truth_seeker

  • Hero Member
  • ****
  • Posts: 19,393
  • Common Sense Results Oriented Conservative Veteran
    • The place where argument addicts can go
Re: Obama to insist market provides 30-year mortgages
« Reply #5 on: August 05, 2013, 11:58:16 PM »
Nothing new about 30 year mortgages, at all. Strength in real estate is helping the recovery.

The annualized rate of price increases is not sustainable, causing some buyers to back out of purchases.

The multiple offer buying frenzy has stalled. A high fraction of purchases are for all cash, and by investors.

The total number of sales has not increased. Some new homes are again being built in mid  to upper mid prices.

Offline silverhair

  • Members
  • ***
  • Posts: 20
Re: Obama to insist market provides 30-year mortgages
« Reply #6 on: August 06, 2013, 09:31:43 AM »
Scary isn't it... but not surprising given it was Mr. Obama in his VERY short stint as an attorney who sued Citibank for Acorn to force them to give home loans to people who could not afford them.

That is just plain not true!

http://www.snopes.com/politics/obama/loans.asp
« Last Edit: August 06, 2013, 09:39:08 AM by silverhair »

Offline massadvj

  • Editorial Advisor
  • Hero Member
  • *****
  • Posts: 12,194
    • Auktion Online
Re: Obama to insist market provides 30-year mortgages
« Reply #7 on: August 06, 2013, 09:53:10 AM »
Why would anybody invest in a financial entity that had a mortgage portfolio if he knew he'd be the first one to take a bath in an economic downturn?

Why should investors have the expectation that it's government's job to make sure their investments are safe?  When you invest, you put your capital AT RISK.  Why should the government protect you from yourself?

Government guarantees and regulation have driven investors into a state of complacency, and that is not good.  People should be better stewards of their own money, and they would be if there were no such things as FDIC, mortgage guarantees and the like.

And OC is absolutely correct in saying if they don't bail out the mortgages, they'll just bail out the banks and the taxpayers will pay one way or another.  Except when they bail out the banks they pay off another set of middle men so it's actually worse.
"She only coughs when she lies."

Offline flowers

  • Hero Member
  • ****
  • Posts: 18,786
Re: Obama to insist market provides 30-year mortgages
« Reply #8 on: August 06, 2013, 01:27:13 PM »
Scary isn't it... but not surprising given it was Mr. Obama in his VERY short stint as an attorney who sued Citibank for Acorn to force them to give home loans to people who could not afford them.
Most people don't know he was involved it that one.

 :th_10444:


Offline Rapunzel

  • Hero Member
  • ****
  • Posts: 71,719
Re: Obama to insist market provides 30-year mortgages
« Reply #9 on: August 06, 2013, 01:45:23 PM »
Most people don't know he was involved it that one.

 :th_10444:

No, they don't... because the media protected him at every turn.


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf