Presidential Candidates’ Plans to Fix the “Subprime Crisis”

(seriously, this isn’t spam)

Don’t forget about Ron Paul.

spend six minutes and listen to his take on the subprime problem.

He is the only one who seems to recognize this.

I believe we’re in a recession. I think it’s going to get a lot worse if we continue to do the wrong things that we’ve done in the past. You have to understand that over-stimulation in an economy by artificially low interest rates by the Federal Reserve is the source of the recession.

The recession has been predictable. We just don’t know exactly when it will come. If you do the wrong thing, it’s going to last for a long time. The boom period comes when they just pour out easy credit and it teaches people to do the wrong things. There’s a lot of malinvestment, debt that goes in the wrong direction, consumers who do the wrong things, and businessmen who do the wrong thing.

So we have to attack this and understand the importance of Austrian theory of the business cycle. If you don’t, we’re going to continue to do this and the longer you delay the recession, the worse the recession is, and we’ve delayed a serious recession for a long time.

Here ya go Jay- your social sites will follow tommorow;

http://www.brokeriptv.com/jay-.....an-connect

http://www.realestatezealot.co.....on-ph.html

http://activerain.com/blogsvie.....oenix-Real

I completely agree! Here’s the kicker- putting a 90 day moratorium on foreclosures doesn’t fix the original problem that got the debtors into foreclosure in the first place! All it’s doing to prolonging the inevitable. Then what happens when the 90 days are completed? We’ll have a BIG surge of foreclosures hitting the market- certain to plunge neighborhoods even worse. I’m ok allowing the debtors to not be taxed on forgiven debt. But messing with the foreclosure process has problems written all over it.

None of those plans sound very well thought out. And since none of the candidates have any hope of being in office for a year, well, we will be in a different situation by then. I don’t think it will be better, unfortunately. But then, I am in a unique market, Detroit, and we are ‘ahead’ of most of the rest of the country in terms of the real estate slowdown. That does not mean we will emerge sooner than other markets, of course.

As for the government keeping their hands out of this, that is tough. I think we do need some kind of government assistance. Too much is at stake in terms of the nation’s economy.

Jay,
As a Canadian outsider looking in, I think that you have the right perspective on the American real estate fiasco. Leave the market alone. It moves too fast for a lumbering bureaucracy to react to.
Plus, nobody jumped up to help the poor buyers when prices were spiraling into the stratosphere; so why are they wanting to help the sellers keep their profits? Doesn’t seem “fair” to me.
The problem that you’re facing is that these sub-prime mortgages are a hot topic, and politicians love photo-ops. As a generalization, the American public vote for the most charismatic person who tells them what they want to hear. Right now they want to hear how they are going to keep their homes.
I have to ask… who’s the moron who came up with the idea of lending more money than the value of the secuirty to people who don’t qualify in the first place? Sub-prime is not a smart idea at all!

Best of luck America. You’re really going to need it in this election.

John

There’s an election this year?

With how front-loaded this election season has been, I fully expect the 2012 primary season to begin at 1pm on January 20th, 2009…minutes after the swearing in of President Obama/Clinton/McCain/Romney.