Socialism for the rich...
...free market for the poor
http://colorlines.com/archives/2013/...sing_boom.html |
Damn rich people trying to make money! We should stop them!
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yeah, that's not FAIR. Everyone should be able to buy a house regardless of their income!
oh, wait... we already tried that. |
This article is written by someone who has almost no idea of what they are talking about. Facts and analysis are completely disregarded in favor of conflicting statements and tired, worn-out cliches. Just one paragraph easily illustrates this:
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And what does $50-100MM priced apartments on Park Avenue have to do with investors buying up homes on Main Street? Oh yeah I forgot, gotta get that token Rich envy/blame thing in there somewhere. Alas, I got snookered by the troll bait. |
" but I wasn't aware that foreclosing on collateral was a money making venture for banks"
Lol. |
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In most states any equity gets returned to the homeowner. Banks get back what they have in it. You can't foreclose for more than your mortgage.
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" when the fed expands the money supply who gets that free money? Are they buying someone else's trash"
They expand the money supply buy setting the fed funds target rate. I think you are confused with QE1,2,3. |
Has anyone stopped to think who these evil "institutional investors" are?
That's right, it's you and me via our 401k's and retirement funds from our employers. Are a few individual wealthy people buying distressed priced properties, sure. Hell, China's been buying commercial property in the US for decades. Actually, you could spin this story another way.. if these investors are buying these houses for the purposes of providing rental properties to people, then the folks who went into foreclosure should be happy because now, they can get back into a house, which they wouldn't be able to do otherwise because i'd assume their credit is no longer acceptable to buy a home. So from that angle, these evil rich people are doing a good thing, no? And you can't say they will be able to charge higher than market prices for rent, because as more and more rental properties are available, then people have a choice and the market place will set the price for rental rates. good ol' supply and demand. |
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While there is some truth to your second statement, there are also many, many, many investors that got CRUSHED in 2008. Many banks and other institutions held Fannie/Freddie stock. Whether or not the government should have let investors eat losses is certainly debatable. That said, "investors", especially in the case of mortgage backed securities, includes just about all of us (pensions, life insurance, 401k bond funds). It's not just the Rich that are investors. The "Rich" are not the same consistent group of people. |
also, if you have equity in the home, why would you be in foreclosure? The only way to have equity is if you owe less than the house is worth? couldn't you just sell the house and cash out, or refi? I don't get that one. what am i missing?
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He cashed in favors from family and raised the money to get out of foreclosure but the bank kept stalling him. They could never give him a firm figure to get out of foreclosure because they couldn't keep up with how quickly the fees accumulated. IOW stalling him and tacking on more fees. He eventually paid and got out of foreclosure, then sold the house and paid back family with the equity. The bank was Chase. |
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Did Wes really think his posting was going to change anyone's mind? Is it likely that I'll get you to see it differently? Probably not. Shame on me (and Wes). How often do you have political debates and honestly change someone's opinion or have them change yours?
Truth is, arguing (incessantly in some cases) about politics/economics is a distraction from real life, the here and now. That's why for the most part, I've given such debate up as a waste of time and frivolous. I regress now & then - my mistake today. But I'm going to focus the remainder of today on my real life clients, going to a nice dinner with the wife, getting the boat ready for tomorrow and touching base with the boys to see if they want to go and/or otherwise see how their life is going. I'll leave the debate about theoretical groups of people, generalized macro economic theory, short simple sound bites about highly complex issues to others for now. We'd all probably be a little happier doing the same (not that I'm telling anyone what to do). |
Andy, your last post was exactly correct imho. Enjoy your dinner, wife, boys and boat.
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Andy, I don't think most of the postings here are "to change someone's mind." I do enjoy learning from the education and experience of those here on WW, yourself included.
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Truth is, arguing (incessantly in some cases) about politics/economics is a distraction from real life, the here and now. That's why for the most part, I've given such debate up as a waste of time and frivolous. I regress now & then - my mistake today. But I'm going to focus the remainder of today on my real life clients, going to a nice dinner with the wife, getting the boat ready for tomorrow and touching base with the boys to see if they want to go and/or otherwise see how their life is going.
I think this is my favortie thing I have read in the last week. Focus on the imoportant things. |
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