Idiot Obama Is Trying To Reinflate The Housing Bubble and Create An Even Worse Crash
Idiot Obama is setting mortgage rates so unrealistically low that he will cause re-inflation of the housing bubble when what we need is the opposite.
Home prices need to come down to the level of the 1990s, or drop another 30 to 40 percent for an average used home price just over $100,00 to $110,000.
No true bubble is cured until there is serious deflation and we have just begun to see it.
Fannie Mae is still putting out no money down and 5 percent down mortgages, which is what got us into this mess.
And Brainless Barry’s cram-down in which banks have to write down mortgages just means more banks will lose even more money.
Banks will lose money on the new mortgages being written because people will default when they lose their jobs to China.
Then taxpayers will have to give even more money to the banks.
Obama must get rid of Fannie Mae and GNMA; require 20 percent down payment on new homes; and limit credit card greed by the banks.
Until then Obama is just setting us up for another round of real estate crashes and bank failures.
That will require even bigger taxpayer bailouts, and our dollars and life savings will become Obama Paper, which equals toilet paper.
But you canot invest in real estate to get out of cash because real estate will crash again, and stocks and bonds have truly become toilet paper.
Brainless Barry, you really screwed us.
Entry filed under: ann coulter, bailout, bankruptcy, Barack Obama, Blogroll, Fannie Mae, finance, Freddie Mac. Tags: bailout, bankruptcy, Barack Obama, budget deficit, citibank, Community Reinvestment Act, CRA, democrats, hyperinflation, mortgage bailout, mortgage crisis, mortgages, news, politics, tax increase, taxes, toilet paper.