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94 Comments
- Ocyris, on 11/05/2009, -9/+42Yes, let's make this problem even more convoluted by effectively making the government the largest landlord in the country.
What could possibly go wrong? - pwarnock, on 11/05/2009, -7/+33I should've bought the house I couldn't afford 5 1/2 years ago.
- codyman, on 11/06/2009, -2/+20They say buying a home is part of the American Dream
But buying a gated community track home on a interest only loan all while having two new BMWs in the driveway when you wife is a homemaker and you dabble in stocks... is part of the American Delusion - AdrenalineJunky, on 11/06/2009, -9/+21Far better than foreclosing and selling the homes to prudent savers who avoided buying homes they knew they couldn't afford.....
/sarcasm
//keep it coming, Comrades
///how long til we get idiots showing up saying that the houses should just be given to the deadbeat "owners"
////oh, I see, it has already started - Ocyris, on 11/06/2009, -4/+16nice straw-man
- AgeofMastery, on 11/06/2009, -5/+17I love all the comments about "irresponsible home buyers". Obviously nobody is in danger of losing their house because they lost their job due the the economy going to hell. Or should everyone do their financial planning with a major economic collapse figured in?
- plizard, on 11/06/2009, -2/+12with hope and some change
- robojerk, on 11/06/2009, -0/+9My theory is that this is to keep house prices inflated.
Some area like Southern California still have tons of empty homes that no one is buying. Their just trying to re inflate the bubble to keep the prices high. - fragMasterFlash, on 11/06/2009, -1/+10"Why should Fannie get to keep them?"
Hello? They own the frickin mortgage that has been defaulted upon. If anything this saves the taxpayers the cost of foreclosure processing and the inevitable decline in property value when the home sits empty. - neo912, on 11/06/2009, -0/+9Actually if you've lived in your house for 5 years or more you can get a $6500 tax credit this next year as part of the new bill they just passed today. Plus the $8000 credit has been extended till April.
- ousthouse, on 11/06/2009, -7/+15"Or should everyone do their financial planning with a major economic collapse figured in?"
Yes. - brad3378, on 11/06/2009, -1/+9There's still time to take advantage of an $8000 Tax credit if you're a first time home buyer, but you better hurry.
Unfortunately for me, existing homeowners such as myself are not eligible. The best thing we can do is take advantage of historically low interest rates and refinance our mortgages. - minoss, on 11/06/2009, -1/+8Blaming Fannie and Freddie is not blaming the poor, it's blaming the huge push by government policies that created the housing bubble.
- kaelyiesta, on 11/06/2009, -5/+12The same people that benefit when we enact more government programs that cause these problems in the first place.
- AdrenalineJunky, on 11/06/2009, -4/+10These "owners" never really owned anything. They were just debt slaves who paid more than they could afford, and they knew or should have known it. There was never any possibility that they would ever truly own these homes. They're actually in worse shape than renters, because they are actually responsible for the upkeep. SUCKERS! American dream, my ass.
Why should these people keep the homes? There are PLENTY of prudent savers out there who could buy them if houses were allowed to adjust to historical norms (which are still far below where house prices are now!). Let's reward the people who actually THINK before they spend their money, instead of benefiting the leeches of society who just spend and spend with no regard for their capability to pay. - brad3378, on 11/06/2009, -5/+10Who benefits when these ex homeowners get evicted from their homes, have their credit destroyed, and become homeless because they don't have good enough credit to rent an apartment?
- johndi, on 11/06/2009, -1/+6A safety net of 3 - 6 months has been recommended for as long as I can remember. I didn't take it seriously until I got laid off in 2002. The one thing it taught me was you'd damn well better plan for the hard times.
People were given good advice and like me most chose to ignore it. Recessions happen quite frequently. Hell, even global recessions are common at about one per decade. If you're not planning to weather them out then you're planning to fail. Next you'll be telling me it's a good idea to build houses below sea level and in flood plains. Check the flood plain maps before you buy a house and have enough saved for the hard times. - xjeffx, on 11/06/2009, -1/+5It's not the economy collapsing or being laid off that is the issue with so many homeowners now. It's that they bought into these silly adjustable-rate loans and other programs without preparing for what WOULD happen in several years.
They could still be employed safely and not be able to afford the payments that these programs switch to.
Most people should have seen that coming since they signed the paperwork knowing very well what would happen after several years. - DrLeePhD, on 11/06/2009, -5/+9sure, give the owner now lessee a year lease to not mow the lawn, clean the windows, and let the twelve cats pee all over the carpet. Then try to sell the house for profit.
Fannie Mae: "We're bankrupt but still working to find new ways to lose your money." - iamacyborg, on 11/06/2009, -2/+6The American Dream (revised): Vote politicians into office who will use the state's monopoly on legal violence to appropriate money from your neighbors for programs that benefit you (with a fat cut for the bureaucrats that make the magic happen).
@Ocyris - don't forget false dichotomy! - Barackalypse, on 11/06/2009, -0/+4I don't see how transferring ownership to a LESS credit worthy organization will help any. Oh, nevermind, they're the Government so they can just inflate their way out of the problem. That will only hurt people who were stupid enough to save money. I think I'm going to convert all my assets to copper, then after the dollar is dead I can sell it to China for Yuan.
- MysticKatDaddy, on 11/06/2009, -2/+6how the hell are they going to pay the rent when they can't pay their mortgage?
- AgeofMastery, on 11/06/2009, -5/+9So one should always assume they will lose their job and go broke? That makes house buying pretty much a no go for 99% of the population doesn't it jackass
- superkendall, on 11/06/2009, -6/+9So the people do not lose houses because they were irresponsible - and get a sweet cheap rent payment that no-one else can get on top of it. That's awesome.
- iamacyborg, on 11/06/2009, -8/+11Here's the entire video log of Peter Schiff explaining why this is a stupid idea. He starts talking about the program at 1:25
http://www.youtube.com/watch?v=5wFamjmNUNI - inactive, on 11/06/2009, -0/+3Well they own GM and a dozen banks already, why the housing and healthcare market as well?
- stonebear, on 11/06/2009, -0/+3How can they have any pudding if they don't eat their meat?
- AgeofMastery, on 11/06/2009, -3/+5So letting houses become empty and boarded up is better than getting money out of them via rental? Brilliant logic.
- SPECOPS, on 11/06/2009, -0/+2for the first 15 years, most of the mortgage payment is interest, I'm sure they can fiddle the numbers around w/o any interest or low interest (I'm sure FM isn't going to have high interest loans for themselves) to get it MUCH lower than the original mortgage payment, plus no insurance payment, or PMI, nor any property taxes.
- Cputerace, on 11/06/2009, -0/+2But this is the Government. There are never any unintended consequences.
/s - appleofdischord, on 11/06/2009, -1/+3Couldn't do worse than private industry has.
- Manchowder, on 11/06/2009, -2/+4The owner is the one who holds the mortgage. But who holds the mortgage? Well ... the mortgage broker created the mortgage, then sold it to Fannie and Freddie or an investment bank, who then traded to another investment bank to turn it into a CDO, who then took our derivatives to sell off the risk of default on that CDO, who then subdivided ownership of the CDO rents so that the renter pays multiple investors at once ... so who owns the house again?
- sangjmoon, on 11/06/2009, -7/+9Fannie Mae is the major cause of the current financial crisis. It should be gradually eliminated.
- minoss, on 11/06/2009, -1/+3Losing over $100 billion at the tax payer's expense this last 2 years is FAR from sound government policy. Not too mention how much in loses they have yet to realize because they're keeping homes on their books at far above market value.
- superkendall, on 11/06/2009, -6/+8You mean drag out the bleeding. The people couldn't afford mortgagees, how can they afford rent for a whole house? Or are they getting some kind of sweet deal that no responsible person would ever get...
Government interference just drags out problems, or makes them worse than they would have been. - lukas88, on 11/06/2009, -1/+3"It looks like you can't make your mortgage payments, so we are just going to give you the home for free."
Awesome idea with no downside to it - Ocyris, on 11/06/2009, -0/+2If they need this their credit is already in the dumpster.
- BerateBirthers, on 11/06/2009, -0/+2@minoss: from our taxes. However, we just need to get the rich to start paying their fair share.
Before Reagan's deficits, the rich paid 50%. During the booms of the 40s and 50s, the rich paid 90%. We barely ask for a third. - inactive, on 11/06/2009, -1/+3Americans have blown up a more diverse amount of people than any other country, we may be bastards but we don't discriminate!
- AgeofMastery, on 11/06/2009, -0/+2They'll get their money back .Letting them sit vacant, become run down and lose more value in an already weak market accomplishes what for the bank?
- minoss, on 11/06/2009, -0/+2This a troll? Where exactly do you think the government gets money to spend?
- Arkons24, on 11/07/2009, -0/+2Not really sure what your arguments have to do with this topic. That everything democrats touch is gold and everything republicans touch turns to *****?? So Bush caused the tech bubble collapse despite being in office for only 3 months prior. Wow that's grasping. I guess by your logic we can blame Obama for our current economic plight then? Of course we can't because that would be stupid.
Sorry buddy, the world doesn't work drawn down party lines. Arguing about what recessions happened during what presidency is a pretty pointless conversation. Nearly every president in the last century has sat through some form of recession while in office; even Clinton came into the presidency with a recession. You think that the republicans caused every one and that the democrats that did have recessions during their terms were just victims of the republicans before them? Damn that's a myopic viewpoint. You should win an award.
Recessions have extremely little to do with presidents and mostly to do with the federal reserve and the legislation du jour in congress. Regulation, whether it is being put in place or taken away has very little to do with what actually happens. Most of the big pointless regulation has been swept away and won't be coming back because despite what you and Matt Taibbi think, everyone, including Obama, knows that most of the regulation that was done away with was out dated and that the financial inventions that were created are good for everyone. New regulation coming in will be focused on increasing transparency and hopefully breaking up some of the bigger banks which is what everyone who knows anything about what happened is asking for. The problem is that it will be all meaningless unless the budget gets balanced and the fed hikes interest rates.
Vote in one hand and ***** in the other. - Cputerace, on 11/06/2009, -0/+2But Government actions never have any unintended consequences!
/s - ousthouse, on 11/07/2009, -0/+2@AgeofMastery
Most home mortgages last 30 years. It's almost certain that during the next 30 years there will be at least one economic crisis. - dutchguilder2, on 11/06/2009, -0/+2Rumor on Wall Street is that there are more mortgage owners than there are mortgages. It seems there may have been some sleight-of-hand accounting (I'm shocked, shocked!) when all those bundled mortgages, derivatives, and CDOs were being passed around.
- AdrenalineJunky, on 11/06/2009, -0/+2Sort of true, Ghostalker. But only sort of.
The people who use credit to buy things keep the economy going as long as they can eventually pay off their debts. It is true that buying on credit allows them to buy things earlier than they otherwise would have, and being in debt encourages them to work harder (whether encouraging hard work over quality of life is a good thing is another topic entirely... personally I refuse to be a debt slave).
However, when they start buying with credit that they can never be reasonably expected to pay off, they instead simply contribute to asset price bubbles which inevitably come crashing down.
So there is a level of credit that is helpful to the economy, and there is a level that is toxic or potentially even fatal to the economy. We've exceeded the toxic level, and we're well on our way to the fatal level with all these bailouts. - nofreedom4theUS, on 11/06/2009, -0/+2So you mean the banks not only own our money supply, but also the homes we live in! Nice of them to let us rent them! SWEET.
- Spindig, on 11/08/2009, -0/+2If they want to do a progam like this, they should sell to private landlord companies. We don't need to be in the homeowner rental business on top of everything else.
- shane956, on 11/06/2009, -0/+1what they dont take into account is the huge parties everyone's gonna throw a year from now. gonna cost more to fix em up
- BerateBirthers, on 11/06/2009, -1/+2I think you mean "why not?" With healthcare, we've only approached 15% of GDP under the government's wing. A few more business (private banking seems like a good one), and we're on our way.
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