President Obama "we Can't Just Re Inflate The Housing Bubble"

[SleepyHead]

Obama warns on housing: 'We can't just re-inflate a housing bubble'

By Michael O'Brien, Political Reporter, NBC News

Video after the jump. (scroll down)

http://nbcpolitics.n...ing-bubble?lite

The president called for a series of reforms for both borrowers and lenders, which he said would help boost homeownership and protect the housing market from another crash similar to the one which devastated American financial system and prompted the onset of the 2008 recession.

"As home prices rise, we can't just re-inflate a housing bubble," the president told a crowd at a high school in Phoenix. "That's the second thing I'm here to talk about today: laying a rock-solid foundation to make sure the kind of crisis we just went through never happens again."

As to lenders, Obama endorsed a bipartisan effort in the Senate to reform mortgage-backing giants Fannie Mae and Freddie Mac, which were taken into government conservatorship at the height of the financial crisis.

President Barack Obama talks about the U.S. housing market Tuesday in Phoenix, Ariz., saying that he supports reform efforts in Congress that would end Fannie Mae and Freddie Mac "as we know them."

He also called for the government to decrease its role in the housing market.

Edited August 6, 2013 by sleeping dog

[The Knimbies who say No]

And Osborne will say the same thing since Govt. seems to talk about the housing bubble in the past tense, as if it's all over.

[okaycuckoo]

Winding down RBS is a good puzzle.

[Executive Sadman]

And Osborne will say the same thing since Govt. seems to talk about the housing bubble in the past tense, as if it's all over.

Isnt Funding for lending pretty much Fannie...except when fannie was created housing costs bore some resemblance to building costs, rather than bearing resemblance to a financial bubble in its penultimate stage...and still fannie needed bailing out.

The creators of Fannie were just interfering busy bodies. Cameron OTOH is financially illiterate scum of the highest order. One really does hope it all goes pop before the chinless scumbag gets to hand over to the traitor johnson.

[SleepyHead]

Watching the video, he says some good things, then completely contradicts himself.

First he says - house prices don't generally go up forever, it was crazy.

Second he says- We need to fix our immigration system, cos that pushes up house prices.

I mean, is this guy a complete dork or what?

[Executive Sadman]

Watching the video, he says some good things, then completely contradicts himself.

First he says - house prices don't generally go up forever, it was crazy.

Second he says- We need to fix our immigration system, cos that pushes up house prices.

I mean, is this guy a complete dork or what?

Yes, but think of his audience.

[MarkG]

I mean, is this guy a complete dork or what?

You only just noticed?

[SleepyHead]

Yes, but think of his audience.

Good point. They did applaud both of his entirely contradictory points.

[SleepyHead]

You only just noticed?

Long suspected. But still manage to be surprised by how dumb... dumb can be. If you know what I mean.

[R K]

"As home prices rise, we can't just re-inflate a housing bubble,"

He needs to talk to 'Jeffrey'. It's the centre-piece of Gidiot's economic policy.

[mfp123]

its not what you say but what you do.

Gordon Brown, 1997: ‘I will not allow house prices to get out of control and put at risk the sustainability of the recovery"

1997 to 2007 saw the biggest housing boom ever seen.

[zugzwang]

But Bernanke hasn't just re-inflated the housing bubble.

He's re-inflated the derivatives bubble, the stock market bubble, oil and gasoline bubbles, food prices, agricultural commodities, gold and silver (partially unwound) etc.

[(Blizzard)]

As home prices rise, we can't just re-inflate a housing bubble

Edited August 7, 2013 by (Blizzard)

[@contradevian]

But Bernanke hasn't just re-inflated the housing bubble.

He's re-inflated the derivatives bubble, the stock market bubble, oil and gasoline bubbles, food prices, agricultural commodities, gold and silver (partially unwound) etc.

SSome nice bounces off the moving average there, should have "got in"

[SHERWICK]

its not what you say but what you do.

Gordon Brown, 1997: ‘I will not allow house prices to get out of control and put at risk the sustainability of the recovery"

1997 to 2007 saw the biggest housing boom ever seen.

Gordon Brown actually said: "I will allow house prices to get out of control and put at risk the sustainability of the recovery".

[Jack's Creation]

SSome nice bounces off the moving average there, should have "got in"

.

[tomandlu]

Watching the video, he says some good things, then completely contradicts himself.

First he says - house prices don't generally go up forever, it was crazy.

Second he says- We need to fix our immigration system, cos that pushes up house prices.

I mean, is this guy a complete dork or what?

I don't see it like that. Isn't he saying that continually rising house prices will eventually blow up in your face, so we need to fix stuff that acts as an upward pressure on prices to prevent that?

[SleepyHead]

I don't see it like that. Isn't he saying that continually rising house prices will eventually blow up in your face, so we need to fix stuff that acts as an upward pressure on prices to prevent that?

But that's exactly my point.

What he's saying is, we still want house prices to go up, we just don't want fraudulent lending to cause it, because that's caused financial disaster. Instead he wants house prices to go up by allowing mass immigration to create more demand.

He doesn't seem to get it.... still.

High housing costs is the reason The West cannot compete in the world jobs market.

[tomandlu]

What he's saying is, we still want house prices to go up, we just don't want fraudulent lending to cause it, because that's caused financial disaster. Instead he wants house prices to go up by allowing mass immigration to create more demand.

Ah - I'd misinterpreted the immigration bit. It does seem odd, unless by 'value' he means 'someone who might be interested in buying your house at a reasonable price'. I was always slightly mystified by HPI in countries where supply wasn't as constrained as in the UK.

[byron78]

its not what you say but what you do.

Gordon Brown, 1997: ‘I will not allow house prices to get out of control and put at risk the sustainability of the recovery"

1997 to 2007 saw the biggest housing boom ever seen.

Indeed.

This happened WORLDWIDE though - certainly wasn't a UK only thing.

Not meaning to defend Gordon The Moron, but he alone didn't have the power to fuel all that.

What definitely has happened since 2008 is that some countries have let their housing markets correct., some haven't, and some have actually implemented policies that would directly inflate the bubble more (Gidiot Osbourne I'm looking at you).

I can't believe we've somehow managed to elect a shower of idiots more idiotic than the shower of idiots they replaced, but there you go. A lot of voters are idiots.

Edited August 7, 2013 by byron78