I realize this is a political blog, but since I was on FOX Business on Friday, talking about the subprime mortgage and housing crisis, credit rating agencies, fmr. Federal Reserve Chmn Alan Greenspan, etc, I figure I can throw this article/info into the mix here on the blog.
If you want a summation of the whole situation — people were buying houses that they couldn’t afford, and now the credit rating agencies that facilitated this are under massive scrutiny, along with 30+ various investigations related to the whole affair — from ones on Capitol Hill, to those by the Securities and Exchange Commission. (The exact same thing happened in 2001, after the Enron fiasco — and apparently didn’t do enough good.) Fmr. Federal Reserve Chairman Alan Greenspan’s view was that it “helped minorities.” Gee, that’s great. And now the government is paying billions to bail them out of something they couldn’t afford in the first place — and chances are that the money folks are going to get won’t be enough to make or break their mortgage payments, anyway.
Want a more significant, valuable, far more solid long term solution to helping these people? Go with GW Bush’s tax cuts.
I was talking at a dinner function recently with someone from West Virginia who has a house on 20 acres of property that he says is now only worth about $500,000 (down from about double that a year or so ago).
But if you want a housing market that’s about as safe as putting money into a savings account — only with a higher generation of interest — look no further than New York City. We’re talking bidding wars.
This video says it all: http://firstname.lastname@example.org