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quick1kungfu (December 31, 1969 at 5:59 pm)
The parallel investor and speculation market put undue upward pressure on prices. We know this for a fact! Every time a home was 'flipped' it served as a basis for a new 'comp' and the process repeated itself. Home prices were propped up just like building a house of cards. Now taxpayers will have to fork over more of their hard earned money so that the GSE's (FNMA & FHLMC) can bail out banks - are you kidding me?
quick1kungfu (December 31, 1969 at 5:59 pm)
Were appraisers feeling pressure by lenders to support the 'target' price (aka loan amount) given to them in advance by the lending institution - YES!
quick1kungfu (December 31, 1969 at 5:59 pm)
But how in the world did housing prices rise to such an astronomical level in the first place? Who fell asleep at the wheel regarding over-inflated real estate appraisals? Did regulation created under the Financial Institution Reform, Recovery and Enforcement act (FIRREA) created after the Savings and Loan crisis do more to help lenders loan money and almost nothing to protect borrowers from overpaying - YES!
quick1kungfu (December 31, 1969 at 5:59 pm)
Portfolio Pollution_FIRREA helps lenders - not buyers. So much of the headlines today talk about the mortgage mess and how countless numbers of borrowers are nearing foreclosure. Sure, the government and Treasury Secretary Paulson have made efforts to curb the rising tide of foreclosures for all borrowers in financial trouble (not just sub-prime) and that's a great start.
pooptalkerlive (December 31, 1969 at 5:59 pm)
No body gets it. Not even Moore. Everything is out of our hands and the Politicians. The average american makes 27k a year, the average house 250k that puts police, fireman and nurses out.There are no jobs any more! Detroit, Miami, Stockton Cali, Holmes all going back to the bank, and no decent careers. you cant pay someone 8 12 an hour and then have 80 20 health insurance then say, whats the problem. Its deeper then this, you get the point. AMERICA SHOULD BE IN A DEEP REVOLUTION RIGHT NOW.
wawbwc (December 31, 1969 at 5:59 pm)
"I want to close down the Federal Reserve"--- Ron Paul
DeepzThinker (December 31, 1969 at 5:59 pm)
The Truth: Mumbo-jumbo double-speak to shift insuring a way "overvalued" mortgage industry over to the US government.. [read: overtaxed taxpayer]Alternatives.. Let the over valued mortgage industry fail. Then build a stronger system of dealing with fraud, manias, financial panics, and other unsustainable economic theories. |
