A big part of the real estate market is the money flows that come from mortgage lenders. With most of the U.S. housing market funded with loans (as opposed to cash buyers), the strength of the real estate market is only as strong as the underlying financial markets. So you can only imagine how those of us in the real estate profession are sitting on the edge of our seats awaiting the final approval of the $700B Bailout of the financial markets by the Federal Government.
People Who Think The $700B Bailout Is Critical
There are many people who believe this bailout is critical. There are three blogs articles at the Tallahassee Real Estate Blog that you can read that tell the story of why the bailout is critical, how we got into this mess to begin with, and why the bailout has not been approved up to this point.
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Bailing Out The Banks? Actually Bailing Out America!
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Discover How The Sub Prime Mortgage Mess Has Destroyed The U.S. Financial Markets – 1 Funny Cartoon For A Not-So-Funny Affair
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Discover How The $700B Bailout Kills Three Birds With One Stone
Some People Think A Major Market Correction Is Needed
Just as some feel that our country must do this bailout now, others feel the opposite is true. By involving the government, these people feel that we are thwarting the very processes that have made capitalism so strong for our country. A great opinion on this side of the argument can be found on the Short Sale Blogger site.
How Do You Think The Federal Government’s Decision Will Affect The Housing Market?
I would love to encourage comments and feedback below by our readers on 1) Which side of the argument are you on? and 2) How do you think the decision will go and what will result from it?
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{ 4 comments… read them below or add one }
Tender spot hurting a lot? Other side too? bruises on your face and body throbbing? Is that blood running out your nose, skirt above your head in the wind, panties torn and soiled, titties swelling and turning blue by the minute, lost on the roadside, hoping not to die? Did you recognize the tail lights of the limo that threw you off? Was it the same limo that picked you up at election time, promising a good decent clean ride? Will you ever learn? Last time these guys did this to you, your babies were killed in Iraq and your retirement fund spent to do it, your taxes went up, you did not get destroyed by the weapons of mass destruction, they were never found. Poor little America. Our heart-felt prayers from Canada go out to you!
Well I won’t help if I can find any way out of it. After all this horse hocky I don’t want to hear another word about social security.
The people who created this mess are the same one’s telling everyone that they can fix it. There are no guarantees that the 700 billion will do anything but make a few more rich people.
Many economists say flatly that it isn’t a good idea. Read what Ron Paul has to say about this mess. After the crash we may have less money but it will be worth more. ther is always a silver lining in the darkest clouds.
I’m not so sure that I disagree with your sentiment onlyme. I just know that I personally do not want to see all the jobs lost that the credit crunch will create (in all industries that rely on credit, not just the housing/finance industries). Many economists who have looked at Paulsen’s plan believe that the government will actually profit on the deal, because the street has panicked. His plan (http://www.manausa.com/blog/29/government-bank-bailout/) is to buy mortgages from the WS banks at forty cents on the dollar, and then sell the mortgages when the markets stabilize. So even if 1/2 of the loans default (and no loan will default to $0) these purchases will be profitable.
I understand Uncle B’s weak feeling. But it’s OK, we’ll like you keep your oil….for now.