Comments on: Presidential Candidates’ Plans to Fix the “Subprime Crisis”

By: John Carle

John Carle — Thu, 29 Jan 2009 03:49:16 +0000

Well, the election is over… and I think you have yourselves a good man there.
Let’s hope he can do what needs to be done.

By: GO Zone Jeremy

GO Zone Jeremy — Sun, 22 Jun 2008 17:16:55 +0000

Out of those proposals…Obama seems the least intrusive…good thing Hilary or Edwards didn’t win the nomination.

By: The Fed Can’t Fix Home Prices | The Phoenix Real Estate Guy

The Fed Can’t Fix Home Prices | The Phoenix Real Estate Guy — Thu, 13 Mar 2008 05:28:02 +0000

[...] I’ve said before, I think the government needs to leave the market alone and let market dynamics and [...]

By: Kevin Boer

Kevin Boer — Tue, 29 Jan 2008 05:25:13 +0000

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.

By: Jay - The Phoenix Real Estate Guy

Jay - The Phoenix Real Estate Guy — Tue, 29 Jan 2008 00:36:48 +0000

John – thanks so much for sharing an “outsiders” opinion.

“As a generalization, the American public vote for the most charismatic person who tells them what they want to hear.”

That is difficult to argue against…

Everyone – the problem I see with “just a little bit” of government intervention is where the line gets drawn. One man (or woman’s) idea of a “little bit” may be completely different than mine. Government in general has a hard time knowing when to stop. (Tried reading the income tax code lately?)

Maybe hand’s off isn’t the ultimate solution. But Shailesh said it well. Stated income loans and disregard for debt-income ratios have gone a long way toward putting us in the mess we’re in. The idea of granting mortgages to people with no income, employment or credit was just plain stupid.

By: John in Edmonton

John in Edmonton — Mon, 28 Jan 2008 20:14:39 +0000

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

By: Jayson

Jayson — Mon, 28 Jan 2008 20:08:20 +0000

I’m not too sure about which plan will work and which will fail but I do think the government needs to help the market out…at least a little. Maybe something as small as enforcing better lending standards and working to educate consumers about spending habits, what they can afford etc..

I just think we’re too far along and too many industries are at stake to sit back and wait for a correction, but I’ve been wrong before.

Have any government programs worked in the past – New Deal??

By: Maureen Francis

Maureen Francis — Mon, 28 Jan 2008 19:19:32 +0000

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.

By: Shailesh

Shailesh — Mon, 28 Jan 2008 17:30:36 +0000

Jay,

Two ways to fix the subprime mess:

1. Do away with STATED income loans for everyone other than self-employed borrowers with greater than 680 credit scores
2. Strictly enforce 30/40 DTI rule

Problem solved. No need for government oversight or extra regulation.

By: AZ Foreclosure Realtor

AZ Foreclosure Realtor — Mon, 28 Jan 2008 15:31:52 +0000

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.