patrick.net

Why is that article blaming Obama?

That's not Fair! Boo Hoo Hoo, Obama is a nice Kenyan, that would never do anything to hurt this country. He wont do anything to help it either, BUT STILL! You people are just BIASED and get your news from FAUX news. Ben Bernake is a Republican appointed by Bush, if I can inject enough irrelevant shit to the facts, then just MAYBE I can spin you into thinking this is a good thing.

You must want Bauhner to be President! IS that what you want HUH????

You're hurting Elizabeth Warren. You Teabagger!!!!

signed
Your Common Lib

combined with http://patrick.net/?p=903626
government is certainly figuring out how to screw everyone again into another fatal bubble.

EMan says

combined with http://patrick.net/?p=903626

government is certainly figuring out how to screw everyone again into another fatal bubble.

This will just bring rents down again, which will bring house prices down and so continues the spiral down to 1975 level.

if deflation is what we will have it might help economy than. lately our government has been very big on creating inflation so I'm very skeptical they would create any deflationary measures.

EMan says

so I'm very skeptical they would create any deflationary measures.

You assume they are following a recipe. When they are only sticking their finger and tasting as they go along.
This is more Oregano and Garlic, the problem is, it's supposed to be an apple pie.

I think this is a good idea. Firstly, when rents go up, those who are barely hanging on as is, such who work for minimum wage or seniors on fixed incomes, get priced out. It's like a rental gentrification. A better approach might be to increase low income housing availability, but the need is so great on that front, the vouchers would be used up the first day just with people already on waiting lists.

Secondly, housing needs to deflate in price. Incomes are going down, and long term, high unemployment will drive them down further, so the cost of living can't remain static. Deflation has to set in at least in most sectors of the economy. Taking posession of the homes from banks and renting them out would cushion the blow by preventing rental bubbles that would harm the most vulnerable along the way.

This is brilliant plan!

Rent out houses to people who will not take care of the properties.
After a two years all of the houses will have to either be completely gutted and rehabbed or torn down( just like Section 8 houses end up).

This will simultaneously stimulate the construction industry and remove inventory from the housing market.

C Boy says

This will simultaneously stimulate the construction industry and remove inventory from the housing market.

You mean Halliburton and the Mexican work force.

Tenouncetrout says

C Boy says

This will simultaneously stimulate the construction industry and remove inventory from the housing market.

You mean Halliburton and the Mexican work force.

I'm sure government will pay banks so little to rent these out under subsidies that it will in no way cost tax payers billions more. Never been a better time to have friends in high places.

C Boy says

This will simultaneously stimulate the construction industry and remove inventory from the housing market.

I really don't believe that the construction industry is bad. They are all getting paid in cash. My father is in the construction industry and he has never feared not having a job because as he said; there will always be enough white collar workers that cannot hold a hammer. And with everyone being convinced that college/white collar work is the only way to go, it will always be booming (just not new constructions).

vain says

C Boy says

This will simultaneously stimulate the construction industry and remove inventory from the housing market.

I really don't believe that the construction industry is bad. They are all getting paid in cash. My father is in the construction industry and he has never feared not having a job because as he said; there will always be enough white collar workers that cannot hold a hammer. And with everyone being convinced that college/white collar work is the only way to go, it will always be booming (just not new constructions).

Construction employment is actually up in Texas if you believe the official stats.

This is due to the increase in the number of Federal and State funded construction jobs.

The semi-skilled jobs building houses were all cash jobs as you said.
Those have almost disappeared, but so has the illegal immigrant workforce as well.

as if government hasn't done enough to screw everything up already.

EMan says

government is certainly figuring out how to screw everyone again into another fatal bubble.

Not everyone, just those who didn't cause the mess and were responsible.

Just back from a trip to Chicago over the weekend. Two years ago I was living there watching new condo developments fail to sell. $350K for 2br/2ba with underground parking in a transition hood was the ask.

The 10 buildings that were marketed this way are now all "for lease".