Hambone10
Hooter
Posts: 40,279
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I Root For: My Kids
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RE: Ryan v Obama: A stark contrast of visions
(04-05-2012 03:44 PM)Max Power Wrote: And you cons keep ignoring the fact only 6% of subprime loans were handed out by CRA-covered lenders to lower income people. But you can never pass up an opportunity to blame poors, can't you?
Blaming cra doesn't mean blaming poor people... Blaming cra means that adding non-economic factors into a purely economic transaction is a bad idea. People who can't afford their mortgage aren't necessarily poor... They may just have too much house, or too many houses (flippers). All of this false economy creates false wealth predicated on inflated housing prices... Of course democrats were all a flutter when that hpa worked in their favor, but when it came back to reality, they want to pretend that it was the house that fell, and not the foundation of sand underneath.
So you know... People like you pay me lots of money for what I know about this subject...
And case in point... If, in order to get more people into homes, the government lowers restrictions on equity and forces banks to make these loans or suffer consequences... They can't ONLY make loans to blacks and Hispanics with 10% down rather than 20, and at 5 times their income rather than 4, and squeeze them into it by making it adjustable or balloon... Because otherwise, they don't qualify and the government penalizes the banks... They ALSO have to make those same concessions to those evil white people who are just looking to pimp and flip the house... Pesky equal rights and all... All of this new activity creates artificial price appreciation... Putting more homes out of the reach of the people the plans were designed to help, meanwhile, the evil wealthy white people are taking out home equity loans... Because the hpa allowed them to take most of their original money out of the deal and put it into the stock market, or another house... And the rich get richer... And the poor get poorer, because not only do home prices, but rents rise...
Sucks but true
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04-05-2012 08:46 PM |
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Fo Shizzle
Pragmatic Classical Liberal
Posts: 42,023
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I Root For: ECU PIRATES
Location: North Carolina
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RE: Ryan v Obama: A stark contrast of visions
(04-05-2012 08:46 PM)Hambone10 Wrote: (04-05-2012 03:44 PM)Max Power Wrote: And you cons keep ignoring the fact only 6% of subprime loans were handed out by CRA-covered lenders to lower income people. But you can never pass up an opportunity to blame poors, can't you?
Blaming cra doesn't mean blaming poor people... Blaming cra means that adding non-economic factors into a purely economic transaction is a bad idea. People who can't afford their mortgage aren't necessarily poor... They may just have too much house, or too many houses (flippers). All of this false economy creates false wealth predicated on inflated housing prices... Of course democrats were all a flutter when that hpa worked in their favor, but when it came back to reality, they want to pretend that it was the house that fell, and not the foundation of sand underneath.
So you know... People like you pay me lots of money for what I know about this subject...
And case in point... If, in order to get more people into homes, the government lowers restrictions on equity and forces banks to make these loans or suffer consequences... They can't ONLY make loans to blacks and Hispanics with 10% down rather than 20, and at 5 times their income rather than 4, and squeeze them into it by making it adjustable or balloon... Because otherwise, they don't qualify and the government penalizes the banks... They ALSO have to make those same concessions to those evil white people who are just looking to pimp and flip the house... Pesky equal rights and all... All of this new activity creates artificial price appreciation... Putting more homes out of the reach of the people the plans were designed to help, meanwhile, the evil wealthy white people are taking out home equity loans... Because the hpa allowed them to take most of their original money out of the deal and put it into the stock market, or another house... And the rich get richer... And the poor get poorer, because not only do home prices, but rents rise...
Sucks but true
Don't bother to relay the consequences of what interfering in the marketplace does... to Max. He believes that it is the divine mandate of government to have it's damn fingers in everything. God forbid we be able to fend for ourselves by the sweat of our labor......
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04-05-2012 11:20 PM |
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