Government Optimistic Housing Market Will Recover In 1,000 Years Or Less.

http://blogs.wsj.com/economics/2010/04/24/number-of-the-week-103-months-to-clear-housing-inventory/
Real Time Economics

103: The number of months it would take to sell off all the foreclosed homes in banks’ possession, plus all the homes likely to end up there over the next couple years, at the current rate of sales.

What they left out of this article, is that they are talking about the best most optimistic scenarios they can create. Reality is likely to turn out to be less optimistic.

I can see why the government loudly proclaims the housing market is in complete recovery every time a new house sells. With the federal governments efforts to HAMPER (Home Affordable Modification Program with Every Resource) the housing market recovery, we can expect a complete housing recovery within the next 100 years. Now how is that for swift and divisive action? What more can you expect from a government that doesn't understand the economic disaster that they created, that they didn't see the economic disaster coming, and that they now proclaim they will fix this economic disaster with the same skills that got us into the economic disaster in the first place?

Don't you just love big government regulation?

Federal Government Penalizes Environmental Friendly Home Construction And Causes Unemployment To Soar.

http://online.wsj.com/article/SB10001424052748704398804575071381513802938.html
Two of the Three Little Pigs Would Have Trouble Getting a Loan

Complicating matters, government-backed mortgage-finance giants Fannie Mae and Freddie Mac adopted a new code of conduct for appraisers last spring. In the past, mortgage brokers could call on appraisers who had developed a niche by tracking oddball homes.

Which is another way of saying that the federal government forbade appraisers who were not knowledgeable about a home to get expert help in appraising the home. So if appraisers are not knowledgeable, then no home loan can be made. So everybody who made homes using recycled material, or anything even remotely earth friendly, are being penalized. Which discourages building environmentally friendly homes. Which encourages environmentally unfriendly home construction methods.

So, what do you expect from a government that cares so much about the environment that it is planning on penalizing everyone who breathes?

American Taxpayers Need To Continue To Subsidize Incompetent Federal Bureaucracies.

http://www.themoneytimes.com/featured/20100227/fannie-mae-reports-744bn-loss-2009-asks-153bn-treasury-id-10101874.html
Fannie Mae reports $74.4bn loss in 2009; asks $15.3bn from Treasury

The nation's largest mortgage finance company Fannie Mae reported a total loss of $74.4 billion in 2009 as compared to $59.8 billion last year.

The fourth quarter results of Freddie Mac exhibited a total loss of $7.8 billion, thus, making the total losses for 2009 to be $21.6 billion.

The losses for Fannie Mae are expected to continue. The mortgage monolith told Reuters, "We expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury."

In plain English, NOT bureaucratic mumbo jumbo, "net worth deficit" means losses. Fannie Mae and Freddie Mac are losing money now, and expects to continue losing money in the future. Fannie Mae and Freddie Mac expect to lose billions of dollars per year. The unspoken part of that report, is that they expect everyone who is NOT losing money, to give them more money so they can continue to lose billions of dollars per year for the foreseeable future.

Is this any way to run a business? Is this any way to run a country?

Millions To Lose Homes. Proof That The Foreclosure Prevention Program Is A Success.

http://www.washingtonpost.com/wp-dyn/content/article/2010/02/17/AR2010021705166.html?hpid=topnews
Administration pushed to expand foreclosure-prevention program

Like everything else the government does (like saving the economy), the government rushes to create programs that don't do what they claim they will do.

A case in point is the foreclosure prevention program. This program is set to expire in 2 years. With millions of homes in foreclosure, the first year of the program may have saved 200,000 homes. (May have. With the unemployment problem decades away from being solved, many people may still lose their homes.) At this rate, the program may have helped another 400,000 people. Which will still leave millions who will lose the homes.

But you shouldn't be concerned. The government will shortly be starting another "Brainwash America" tour to explain how the government will have saved hundreds of thousands of home owners from foreclosure.

p.s. The people who can't figure out a simple program to save home owners, are the same people who in a matter of days wrote a complicated Health Care Deform bill that is supposed to manage health care for decades to come.

Home On The Street.

http://www.nytimes.com/2010/02/03/business/03walk.html
No Help in Sight, More Homeowners Walk Away

After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration’s loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing (why not default on loans).

Barack Hussein Obama's loan modification plan to save homeowners from foreclosure is working as well as his stimulus / bailout (welfare for the wealthy) plan worked last year to save jobs (millions more are now unemployed after passage of the bill).

But what can you expect from someone who either doesn't care, or doesn't understand the situation.

The problem is, that the housing bubble we were in just burst.

A long time ago, in a federal government far, far away, it was decided that it was racist to prevent people who couldn't afford homes from buying homes. In fact, the federal government was threatening banks that didn't want to make NINJA (No Income No Job or Assets) loans. Since the federal government was forcing banks to make loans they knew were going to go bad, the federal government allowed the banks to sell off those loans to other institutions (wall street wizards) to spread the poverty.

By allowing people who couldn't afford homes to buy homes, demand for homes when up. Prices of homes went up. New home construction went up.

Then the housing bubble burst. The wall street wizards couldn't hide the fact that the initial home loans were bad (people started defaulting on their loans). Which started the crash of the housing bubble.

As the housing bubble crashed, the economy crashed. People who used to be able to afford homes couldn't. People who couldn't afford homes were hit even worse. More and more people were walking away from their homes. As more people gave up their homes, the number of homes available for purchase increased. This was driving down the prices of homes. Now, people who could afford homes, were watching the value of their home drop below what they owed on their homes. So even more people are considering walking away from their homes. And thus the downward spiral continues.

And there you have it. Government policy to help people buy homes has caused the great depression we are in right now. So as usual, the economists are shocked and stunned that "hope and change" couldn't compete with honest reality.

Bribing People To Spend Will Save Economy.

http://online.wsj.com/article/SB10001424052748703808904575024974181771514.html?mod=WSJ_Markets_LEFTTopNews
Existing-Home Sales Tumble

Existing-home sales plunged in December, dropping lower than expected after three straight increases that were fed by a fat government tax credit.

Considering Barack Hussein Obama saved the economy a year ago, all the government funded economists can do is expect the economy to improve.

http://news.yahoo.com/s/ap/20100125/ap_on_bi_ge/us_home_sales
December home sales down nearly 17 percent

Sales of previously occupied homes took the largest monthly drop in more than 40 years last month, sinking more dramatically than expected after lawmakers gave buyers additional time to use a tax credit.

Do you think the drop in home sales has anything to do with the end of the $8,000 credit / bribe to home buyers?

How many people can afford to buy a home? All of the people who could afford homes when using the credit, bought homes when the credit was $8,000. That program expired. Congress in their infinite wisdumb is extending the home buyer credit for a lesser amount. So all the people who couldn't afford homes when the credit was $8,000 still won't be able to afford homes.

Government lackeys are proclaiming the increase in home sales because of the credit / bribe is proof the economy is recovering. However, they are stunned that the improved sales ended when the credit / bribe ended.

Currently we still have record high unemployment, home foreclosures and business failures. Do you think a one time credit / bribe to homeowners will be enough to kick start the economy?

Government Assists Banks In Defrauding Delinquent Homeowners Out Of Additional Payments.

http://www.nytimes.com/2010/01/02/business/economy/02modify.html?em
U.S. Loan Effort Is Seen as Adding to Housing Woes

Like every other program that the government creates, the solution is worse than the problem.

In February 2009 Barack Hussein Obama created a $75 billion program that was supposed to "Make Housing Affordable".

What it actually did was deceive people who are living in homes they can't afford, to make extra payments in the hope something will be done. Well, something was done. After the trial period, the homeowners were still foreclosed on and forced out of their homes. Which means that instead of saving their money and planning on moving into homes they could afford, they made additional futile payments on homes they were going to lose.

Millions of people were deceived into believing they would be bailed out by the federal government. They should have known they were not part of the too big to fail group that gets the bailout money (and therefor they are part of the too small to succeed and too small to care about group).

The Treasury Department, led by tax cheat Timothy Geithner, claims the program is effective and it is doing what it was intended to do.

In 2008, before the program was put in place, more than 1.7 million homeowners were forced out of their homes. In 2009 after the program was put in place, more than 2 million homeowners were forced out of their homes. The projection for 2010 is that more than 2.4 million homeowners will be forced out of their homes.

Please tell me again what the program is intended to do.