bostonbubble.com Forum Index bostonbubble.com
Boston Bubble - Boston Real Estate Analysis
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

SPONSORED LINKS

Advertise on Boston Bubble
Buyer brokers and motivated
sellers, reach potential buyers.
www.bostonbubble.com

YOUR AD HERE

 
Go to: Boston real estate bubble fact list with references
More Boston Bubble News...
DISCLAIMER: The information provided on this website and in the associated forums comes with ABSOLUTELY NO WARRANTY, expressed or implied. You assume all risk for your own use of the information provided as the accuracy of the information is in no way guaranteed. As always, cross check information that you would deem useful against multiple, reliable, independent resources. The opinions expressed belong to the individual authors and not necessarily to other parties.

Housing: Frank talk from Barney Frank

 
Post new topic   Reply to topic    bostonbubble.com Forum Index -> News & Reference Suggestions
View previous topic :: View next topic  
Author Message
Hank



Joined: 27 Apr 2007
Posts: 37

PostPosted: Mon Aug 25, 2008 11:43 am GMT    Post subject: Housing: Frank talk from Barney Frank Reply with quote

Our favorite Rep. is in the headlines again.
Housing: Frank talk from Barney Frank

And the Economist has a nice write up on Japan's stagnation and what it means to the US as we enter a similar state.
Lessons from a “lost decade”
Back to top
View user's profile Send private message
Renting in Mass



Joined: 26 Jun 2008
Posts: 381
Location: In a house I bought in December 2011

PostPosted: Mon Aug 25, 2008 8:00 pm GMT    Post subject: Reply with quote

Thanks for the link.

Let's talk about this quote:

Q. Why should responsible homeowners be forced to spend even a nickel of their tax dollars giving irresponsible borrowers a break on their mortgages?

A. Here's why: Foreclosures do damage in concentric circles. The pain hits hardest on the people whose houses foreclose, but it also hits the entire neighborhood. If you're a hard-working person making your mortgage payments and people around you are getting foreclosed, then your neighborhood starts to deteriorate.

The value of your home falls, and the entire city suffers because homes that used to generate property taxes are now eating up tax dollars. And when that happens, the whole economy suffers. So doing something about foreclosures helps the broader economy, not just the individual.

What if you're a hard working person who has been renting and saving money and would like to buy an affordable house? Oh, sorry, you get screwed!

Does a foreclosed house really eat tax dollars? Sure, it's value goes down (and less taxes are collected), but it's not like it starts generating negative tax dollars. And doesn't the same thing happen when prices fall, regardless of whether there was a foreclosure?

This quote also bothers me:

I believe Fannie and Freddie are better off than the market thinks. Over the long term the market is a very rational distributor of resources, but in the short term it can fall prey to hysteria. Sometimes you need to deal with that.

Part of the problem is rumormongering by short-sellers


Right, hysteria and short sellers are the root of the problems with Freddie and Fannie. You really have to have disdain for the public to say something like that and expect people to believe it.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    bostonbubble.com Forum Index -> News & Reference Suggestions All times are GMT
Page 1 of 1

 
Jump to:  
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


Forum posts are owned by the original posters.
Forum boards are Copyright 2005 - present, bostonbubble.com.
Privacy policy in effect.
Powered by phpBB © 2001, 2005 phpBB Group