The Enemy Becomes An Ally? With Change There Is HOPE!
January 19th, 2009 Categories: Real Estate News
The credit market has been the biggest enemy to real estate over the last several years. However the credit market appears to be on the verge of becoming stable and this bodes well for real estate.
Banks continue to drag their feet in making mortgage loans but this too is starting to unwind with continued prodding from the Treasury Department and the Federal Reserve.
Billions have been poured into the system to make this happened which presents some interesting thoughts.
The media has written a great deal of high profile private market scams created and its impact on many people. Prosecutors do their thing in having these people jailed or under house arrest until their trial. There is portrayed the sense of injustice (which there is).
There is however little mention of public (government) mismanagement of the same ilk created by Congress (Mr. Dodd and Mr. Frank) with their concept of a “house in every pot”.
Scant media coverage has been directed to the government vehicle created to implement the process for this political fiasco…..Freddie Mac and Fannie Mae.
One would think that the various control mechanisms in place (prosecutors) would take steps to find out and punish those that created this mess. But those in charge of the controls are politically connected to the policy makers…..its a political society that does what it wants at any cost to the taxpayer, at any time, without fear or any accountability.
Who is to blame? The citizens. We are not vocal enough to right a wrong when it is made. We look the other way far too often. We play a part in the charade. We Have Lost Our Compass/
What is the cost of this Government (real estate) mismanagement to Ventura County? Sizable. Here is a rough idea of cost.
Over the last two years Ventura County has lost approximately $ 1.5 BILLION in home values (and this is a very conservative number). Multiply this by the number of Counties in California and then multiply by the other States/Counties and you have the cost of the political real estate fiasco fostered on us by Congress marshalled by Dodd and Frank just over a two year period. And now they head the committees that will legislate policy to get us out of this quagmire.
Things come in three’s so they say. After the waters settle expect double digit mortgage rates. Sooner or later this infusion of money has to be paid .
In the article hit-the-reset-button/ it was noted that it appears to be open season and money will flow. If anything gets done will be a miracle because there are no steps for accountability.
Schadenfreude. According to the dictionary “schadenfreude” is defined as the pleasurable emotion resulting from the misfortunes of others”.
When I first saw this term I thought it was a stretch until I started to think of the news and other media sources. And the term applies. Watching or listening there is the under tones of ’schadenfreude” in play. It has been quite evident during the credit down turn. But taking the people who created the problem to task has been mute.
Our news media both print and visual is a theater. There is no insightful investigation into problems or suggestions as to how to resolve these problems. Other avenues will fill the void (Internet?) maybe.
There is hope President Obama will resolve our problems. Some believe that he is going to end their mortgage payments, increase their income, and make everyone equal. That is not going to occur.
If he is treated with the disrespect and acrimony given President Bush by both Congress and the media we will face continued pickering and more of the same.
Let’s hope President Obama is given a chance. He is taking on a task that very few would undertake willingly.
We are faced with excessive government and its take over of major institutions. Russia and Venezuela are examples of what can occur. Once government senses its overall powers nothing will be left out. Governments have ravenous appetites to the detriment of its citizens.
To be sure President Obama best measures will not control the greed which will become grander with the willy-nelle released of monies without accountability. But he will do his best as a person as do all Presidents who have held that office.
Comments are welcomed.
