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New Housing Program Is Aimed At The Unemployed

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http://www.nytimes.com/2011/07/08/business/new-housing-program-is-aimed-at-the-unemployed.html?ref=business

A day after President Obama announced admitted his housing programs had fallen short, his administration unveiled an initiative to help unemployed homeowners stay in their homes.

The program announced Thursday will allow eligible homeowners to postpone all or part of their mortgage payments for a year or more. Currently, several government programs allow those homeowners to postpone payments for a few months, far shorter than it takes many unemployed people to find another job.

“Providing the option for a year of forbearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home,” said Shaun Donovan, Housing and Urban Development secretary.

The program was announced as the Obama administration has come under pressure to improve its programs to help struggling homeowners avoid foreclosure, programs that critics insist are woefully inadequate.

One major problem is that the administration’s signature foreclosure-prevention program, the Home Affordable Modification Program, was designed to help homeowners saddled with mortgage loans that they could no longer afford. But for the past two years, the main cause of foreclosure has been unemployment, not subprime loans.

At times like this I just wish we had some of the greats still with us, I'd love to know what the likes of Galbraith, Hayek, Keynes, Von Mises would have to say on all this.

Yet more manipulation of the market, the correct market price has to be avoided at all costs meaning the final collapse will be even greater.

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http://www.zerohedge.com/article/obama-administration-extend-mortgage-free-living-americas-unemployed-one-year

From USA Today: "The administration today will announce that two programs providing unemployed homeowners a few months' forbearance on their mortgages will be extended to 12 months, said three administration officials speaking anonymously because the program has not been announced. Thousands of homeowners could benefit from the additional time, although not all jobless homeowners will be eligible. The action is being taken as part of the administration's effort to help prevent foreclosures while unemployment remains above 9% and the economy struggles to rebound." What would be great if in addition to such openly socialist policies the administration would enforce the implementation of sinking funds for said unemployed workers, who instead of taking unemployment benefits from the government and converting it into less than edible iPads, would actually set aside money for that eventual mortgage payment. Of course that will never happen: after all why redirect freshly issued fiat from being recycled into the economy and do the responsible thing when nobody in America expects to pay their mortgage payments ever again.

It appears even American politicians get confused with homeowners and those with a mortgage.

I wonder on what criteria you won't qualify.

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I cannot see the problem. We have unemployed people. We have stone in the ground and timber in the forests. Organise them so that some create the materials and others build the houses. There is zero cost involved because they form a self-contained system. You solve homelessness and unemployment in one hit.

This is what leadership is about. Organising and leading the people, not reacting to media events. About time a leader did his job, good for him.

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Yet more manipulation of the market, the correct market price has to be avoided at all costs meaning the final collapse will be even greater.

“Providing the option for a year of forbearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home,” said Shaun Donovan, Housing and Urban Development secretary.

So it's a race against suppressed unemployment & income figures. The peeps can always shed their debt and rent a home, but that's anathema to the bank fluffers.

Problem is the fluffers will remain insane longer than the peeps can retain their sanity.

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I cannot see the problem. We have unemployed people. We have stone in the ground and timber in the forests. Organise them so that some create the materials and others build the houses. There is zero cost involved because they form a self-contained system. You solve homelessness and unemployment in one hit.

This is what leadership is about. Organising and leading the people, not reacting to media events. About time a leader did his job, good for him.

Hang on - what he's proposing is simply the flip-side of the policy of keeping insolvent banks out of bankruptcy.

In your system there is only zero cost when bank finance is unnecessary.

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I cannot see the problem. We have unemployed people. We have stone in the ground and timber in the forests. Organise them so that some create the materials and others build the houses. There is zero cost involved because they form a self-contained system. You solve homelessness and unemployment in one hit.

This is what leadership is about. Organising and leading the people, not reacting to media events. About time a leader did his job, good for him.

10/10 point. Its an incredible failure of leadership to organize.

Franklin D. Roosevelt

First Inaugural Address

Saturday, March 4, 1933

http://www.bartleby.com/124/pres49.html

.... Yet our distress comes from no failure of substance. We are stricken by no plague of locusts. Compared with the perils which our forefathers conquered because they believed and were not afraid, we have still much to be thankful for. Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply. Primarily this is because the rulers of the exchange of mankind's goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. 4

True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish....

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Well, those are impressive words. But how did Roosevelt's vision end up in 1937? And in 1941?

With a rebalancing of the economy and a move away from a ponzi based system centred around debt.

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With a rebalancing of the economy and a move away from a ponzi based system centred around debt.

Huh?

What you want to happen in the future probably does depend on what happened in the past. But what you claim happened in the past is fiction, so your future is ... fantasy.

1937 - second round of the depression in the US.

1941 - declaration of war by the US on Japan and Germany.

Liberals will always be with us. But really against us.

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Huh?

What you want to happen in the future probably does depend on what happened in the past. But what you claim happened in the past is fiction, so your future is ... fantasy.

1937 - second round of the depression in the US.

1941 - declaration of war by the US on Japan and Germany.

Liberals will always be with us. But really against us.

It did work in that era. Whether the same plans and programs would work today is questionable. For example its hard to imagine a modern Western government carrying out an effective public works program with more than a million workers. Not with their bureaucracy today.

On the other hand the public wealth distribution programs like social security, I believe could work today.

http://finance.yahoo.com/news/Pawlenty-5-Percent-Growth-dg-4192262000.html?x=0

GDP GROWTH

1934: 10.9 percent

1935: 8.9 percent

1936: 13.0 percent

1937: 5.1 percent

1938: -3.4% back in recession.

1939: 8.1 percent

1940: 8.8 percent

1941: 17.1 percent

1942: 18.5 percent

1943: 16.4 percent

1944: 8.1 percent

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I cannot see the problem. We have unemployed people. We have stone in the ground and timber in the forests. Organise them so that some create the materials and others build the houses. There is zero cost involved because they form a self-contained system. You solve homelessness and unemployment in one hit.

This is what leadership is about. Organising and leading the people, not reacting to media events. About time a leader did his job, good for him.

The problem is america has 20+ years of excess housing supply/capacity. This is a further misallocation of resources. Capital should be geared toward exportable goods.

Unless your post is sarcasm, in which case my words are misallocated too.

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Hang on - what he's proposing is simply the flip-side of the policy of keeping insolvent banks out of bankruptcy.

No, it's all about keeping insolvent banks out of bankruptcy. Many, if not most, of these people would be better off if they handed the keys back to the bank and bought a cheaper house when the economy finally recovers; instead they'll be encouraged to stay in their house where the mortgage is much higher than the value, so that the bank doesn't have to write off the loan then repossess and sell.

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It did work in that era. Whether the same plans and programs would work today is questionable. For example its hard to imagine a modern Western government carrying out an effective public works program with more than a million workers. Not with their bureaucracy today.

On the other hand the public wealth distribution programs like social security, I believe could work today.

http://finance.yahoo.com/news/Pawlenty-5-Percent-Growth-dg-4192262000.html?x=0

GDP GROWTH

1934: 10.9 percent

1935: 8.9 percent

1936: 13.0 percent

1937: 5.1 percent

1938: -3.4% back in recession.

1939: 8.1 percent WAR

1940: 8.8 percent WAR

1941: 17.1 percent WAR

1942: 18.5 percent WAR

1943: 16.4 percent WAR

1944: 8.1 percent WAR

Also notice what's missing from that plan.

To be honest to have a public building works programme would require 1m bureaucrat just to plan it.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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