Guess someone got a memo that the latest hot-button issue for voters is their collapsing home equity. Being pre-election, the first hearing is Wednesday. Of course, this will turn into a full-blown Senate investigation in 2008 (pre-general-election). But damn, that was quick. Wonder if HP will be subpoenaed?
Lawmakers to probe housing "bubble," mortgages
WASHINGTON (Reuters) - U.S. lawmakers will question some leading government and industry economists about the perils of a possible 'housing bubble' in a Wednesday hearing.
Lawmakers wanted the session "because we've heard a great deal about the possibility of a housing bubble for several years now," said Sen. Wayne Allard, a Republican from Colorado.
The hearing, "The Housing Bubble and its Implications for the Economy," will be held in an open session of the Senate Banking Committee at 10 a.m..
Next week, the same committee will hold a hearing on the growth of innovative mortgage products that have mushroomed along with the housing sector.
Lawmakers behind Wednesday's hearing said that they were concerned that a steady flow of soft housing data could put the nation's economy in peril.
House prices increased by their smallest margin in over six years during the second quarter of 2006, a recent government study found. Sales of new and existing homes, too, are much slower than their recent break-neck pace.
"The economy has been buoyed for some time by unrealistic expectations about the appreciation of housing prices," said Jack Reed, a Democrat from Rhode Island, who is helping sponsor the meeting. "Now that the housing market is cooling, the economy may be headed for a bumpy landing."
The lawmakers will hear from several chief economists like Richard Brown of the Federal Deposit Insurance Corporation, Patrick Lawler of the Office of Federal Housing Enterprise Oversight, Dave Seiders of the National Association of Homebuilders and Tom Stevens of the National Association of Realtors.
The witness list has not been confirmed for the hearing on non-traditional mortgages tentatively scheduled to be held next Wednesday, September 20.
Sen. Allard said that hearing would help lawmakers who "want to get a better understanding of these (mortgage) products and what they mean for the homebuyer, the financial institutions and the economy."
September 13, 2006
HOLY CRAP SUPER FLASH: The 2008 Senate housing bubble hearings HP has predicted moved up to THIS WEDNESDAY
Subscribe to:
Post Comments (Atom)
38 comments:
it almost seems like a joke
email cspan and request they air the hearing live!!!!
events@c-span.org
or call
(202)-737-3220
http://tinyurl.com/qchnp
Committee: US Senate Committee on Banking, Housing, and Urban Affairs
Title: The Housing Bubble and Its Implications for the Economy
Date: 9/13/06
Time: 10:00 AM
Place: 538 Dirksen Senate Office Building
Agenda:
U.S. Senate
Subcommittee on Housing and Transportation
and the
Subcommittee on Economic Policy
Publication: Printable Hearing not available at this time
Witnesses
Panel 1
Mr. Richard Brown , Chief Economist, Federal Deposit Insurance Corporation
Mr. Patrick Lawler , Chief Economist, Office of Federal Housing Enterprise Oversight
Mr. Dave Seiders , Chief Economist, National Association of Homebuilders
Mr. Tom Stevens , President, National Association of Realtors
Why is it that we only put up a light AFTER someone got run over.
Exhibit A: Washington, D.C. - why don't they just go for a drive in the Northern Virginia suburbs?
I can't believe this is happening: HP has gone mainstream!!!!!!!!
I bet you they're going to invite David Liar to testify. It's interesting what he's going to say.
their witness list includes the dude from the homebuilders and the head dude from the NAR
yup, that'll give some good honest, unbiased testimony
Like asking the tulip salesmen to testify
this may be a big joke, with tons of lies, spin and BS
Anon 3:17:21,
Well said Anon. I guess it is because of our belief that - if ain't broke, don't fix it. They don't incorporate the "what-if" analysis in the system.
Keith, were you invited by the Senate. I wish you were, in order to represent the real people - no spinning. Bring Bork and Richard with you, except that Richard is not suppose to miss school. Mommy will get angry. LOL.
http://www.nypost.com/business/home_fires_dying_business_roddy_boyd.htm
Listen guys - this is it. This will be straw that broke the camel's back. I mean if the Senate will listen to their BS and concludes that there's no bubble, I will move and live in the Bahamas.
It doesnt matter what the believe or say, the market will do as the market does. If they say "no bubble all is well" do you think sales will pick back up? Also they will look even more foolish in 6 months when the data is even more clear and people are howling for blood.
I was gonna let this thread go by till I read this...
"Bring Bork and Richard with you, except that Richard is not suppose to miss school."
Too funny dude!
Let's see, how is this game played? Oh yes, the guys that make the rules that got us into this mess act like they care. And after the meeting they all go out for drinks together and schedule a round of golf. How rich is the poorest senator anyway?
This is what the fat white maggots in Washington consider important....
1) Resurrecting a corpse (RE)
2) Gay marriage
3) Abortion
4) No child left behind
5) Shaking down old ladies at airports
No wonder Rome is burning......
Ask the criminals on how to solve the problem, good plan.
Like having Osama run the 911 commision.
Keith, I sure am glad you never sleep. Where else would I get news like this.
We all all know how this will turn out! Just like securing the boarders.
Senator regarding the charge that I said prices will never go down and they are not making anymore land, I would like to invoke my rights under the Fifth Amendment.
GOP Senator 1: Good Morning. Mr. Sieders, do you believe there is a housing bubble?
Sieders: Absolutly Not. It is a myth created by the left wing media in conspircy with the North East liberal elite to scare ordinary Americans into not buying anymore houses so that George Soros and Warren Buffet can buy up all your houses at 10 cents on the dollar and then rent them back to you at inflated prices, plus they will make you read the Koran.
GOP Senator 2: Good Answer. Mr. Seiders, do you believe if prices decline there will be a soft landing?
Seiders: Absolutly. Are statistics show inflation is under control, unemployment is low, the economy is booming, and lower gas prices means more money for consumers to give us, I'm to invest in housing payments.
Nancy Pelosi (D): Mr Seiders, why does every economist on the planet that does not actually make thier money from real estate or mortgage state that we are infact right in the middle of a massive house bubble collapse? What is everyone on this panel connected directly to the real estate industry? Why did the CEO of Countrywide just state the real estate cycles never end in a soft landing? Why ...
GOP Senator 1: Times Up! Thank you Nancy you anti-American, terrorist, baby killer, tree hugging, liberal, muslim loving, lesbian Pelosi. As you did not probably phrase your question Mr Seiders does not need to answer that question.
Nancy Pelosi: That is outragous..
Senator 2: Shut up you slut, we have turned off you microphone as those kind of outburst at prohibited.
Senator 1: Know Mr Seiders, what do you recommend?
Seiders: I believe Americans should not be afraid to purchase 3,4, or even 5 houses. There a good loan programs that will allow you to purchase a home for each of your children today at low payments and as real estate increases at %20 per year then all your children will be retired by the time the graduate high school. I've purchased 3 homes for my daughter and she just took our her own Home Equity loan at age 16 to purchase a new BMW.
GOP Senator 2: Nice. What color?
Seiders: White, convertable.
GOP Senator 2: There you have it, great adivce.
GOP Senator 1: In conclusion, all is well. Keep buying housing, all is well, we will recommend lowering the requirements for home equity loans.
Dont get excited and party on. They might use this to bring some kind of legislation to bail out all SOB's that bid the prices so high. And we all end up paying for it.....
Careful what you ask. You might get it !!!
These hearings will expose a little-known element in this saga. The Federal Reserve, which now oversees Fannie Mae and Freddie Mac, was implicit in the lowered lending standards that lead to many of the problem loans and other excesses. Every calamity needs a fall guy, so if Bernanke has any brains, he will try to get ahead of this one before they start applying the tar and feathers.
Of course the sleazy Democrats will use the hearings as a springboard to appeal for bail-outs for the idiots who signed up on these loans, and will probably offer to pay for them by curtailing mortgage tax deductions used by the "rich".
Your right Anon. They've stayed out of this so far, even though they RIGGED it to make it happen.
They KNEW it was the ONLY way for Americans to make money the past ten years.
So they let the party go on and tirned a blind eye to the lending catastrophe. To hell with the rest of the economy and future generations that might want to buy a house in line with their incomes one day.
It was all "screw everyone and every part of the economy long term" for some good , cheery, lying, numbers short term.
Now it's time to pay the piper and get back on track. A SEVERE correction is needed.
If they are looking for ways to prop this bubble, OMG I'll be beside myself. They will be screwing every sensible American and rewarding the stupidest of the stupid.
The only honorable POSITIVE thing they could do now is get rid of the toxic loan situation and let housing prices fall to the level where people can afford to buy again with 20% downpayments at 2-3 X median income. Period.
If they go in that direction, I'll have respect.
However, I saw most of the session where Congressmen were asking Bernanke questions. All the questions I heard sounded like a bunch of bozo homeowners who were afraid they'd be losing home equity if he raised rates.
They were SERIOUSLY afraid of falling home prices. To hell with the financial health of future buyers.
If our lawmakers do anything to try to prop this market up artificially now that the crash is underway, I say let's throw every last one of the SOB's out of office. QUICKLY.
Herer's another point that makes me mighty suspicious about these hearings:
A paper was circulated amongst lawmakers in 2003 regarding the possibilty of a housing/lending bubble.
It adressed every unhealthy trend in housing/lending that the blogs have been noting for a couple years now.
Makes me wonder about the timing of these hearings.
The timing being: Precisely when the bubble is BURSTING they suddenly decide to address it?
Makes it seem like their primary motivation may be to prop this bad baby up.
Anon 7:26-
How is bailing idiots who bought these homes that different from mortgage deductions?
As a homeowner who never understood the reason for a mortgage deduction, frankly, I wish they'd throw it out.
That and the 250K capital gains exclusion.
They are only used to push the price of homes higher.
Anonymous said...
These hearings will expose a little-known element in this saga. The Federal Reserve, which now oversees Fannie Mae and Freddie Mac, was implicit in the lowered lending standards that lead to many of the problem loans and other excesses. Every calamity needs a fall guy, so if Bernanke has any brains, he will try to get ahead of this one before they start applying the tar and feathers.
Of course the sleazy Democrats will use the hearings as a springboard to appeal for bail-outs for the idiots who signed up on these loans, and will probably offer to pay for them by curtailing mortgage tax deductions used by the "rich".
Yeah! Only the greedy Republicans with trust funds and parents who were able to own the prime areas long before the common man could, should be allowed to benefit.
Kudos for you for figure out how to screw the working Joe again.
One of the main reasons for a Senate debate is MONEY. Tax revenues will vanish from capital gains. I sent in $65,000 in capital gains taxes last year from selling property. How 'bout everyone else?
The Senate is freaking! And I ain't buying anymore property! Thank you Greenspan and your bubbles!
Lower tax revenue= A HUGE PROBLEM.
This will be well beyond a recession. Instant Depression, just add less money.
This is just the warmup before this years election. I think we will see serious investigations between now and this time 2008 (as HP predicted). I believe it will be a huge election issue in 2008 for all of the reasons that have been mentioned for months on this blog. And I don't believe congress will be slapping people on the wrists. I think we will see serious investigaions leading to jail time. The politicians will need to look tough as concern over lower home values rises in the polls.
I hate election year politics. They will all act as if they give a crap about the housing bubble losers and try to placate them with some feel good legislation which will either fail by one vote in the senate or get buried in committee. They must appease the stupidest people in this country because, well, that's their voting base.
Richard,
You're a good sport dude. Once in a while, we have to loosen up, especially in times like this. Oops, it didn't really affect me at all, since I'm not one of those yahoos who bought a McMansion with no down and option ARM.
I will move and live in the Bahamas.
There is a bubble there to I have already looked at RE.
This would not have happend if people were required to put 20% down and actually qualify for the worst case scenerio payment of their mortgage.
This hearing will be like finding a Pubic Hair in a can of Coke. IE Clarence Thomas.
Anyone else see dollar bills falling from the air..as in Bail out??
why do you think the bankruptcy laws got an overhaul last year making it harder to go Chapter 7
why do you think the IRS is starting an outsourcing project using private collection agencies to collect unpaid taxes
why do you think Bob Toll sold so many shares of his stock last year
why do you think Greenspan advocated that the lumpen go out and refinance their fixed rate mortgages into variable rate mortgages last year
why do you think one political party is trying hard right now to make the tax cuts permanent
they've know for a while this was smoke and mirrors but everyone is hooked on the easy money - junkies
nation of hucksters
look for a phased in reduction in the percentage amount of mortgage interest and local/State property tax that can be listed on the schedule A in the years to come so that the Feds can make up for the shortfall of tax revenues
This would not have happend if people were required to put 20% down and actually qualify for the worst case scenerio payment of their mortgage.
______________________
+++++This is what I think. We would never have had this housing bubble if these exotic loans had not been created.
Why does the MSM pick up on the word "innovative" as in "innovative" mortage products?
Innovative like the crack dealer's "First baggie is free! Then, bring in three friends get another one free!"
Or the Mafia's "innovative persuasive and business marketing techniques"
In normal times these mortages would be called "usurious, deceptive, dangerous and fradulent".
"Innovation" is OK for Goldman with skeptical PhD quants.
A mortgage is not an iPod.
No innovation in mortgages, like there's no crying in baseball.
Anon 6:10:46 AM
LOL!!! Thats really funny. Make my BMW that new one that runs on hydrogen or Gas.
Anon 7:29:34 PM
You are 100% correct. Language like that should never enter into contracts/financing involving the biggest investment you will make in your lifetime.
I want to hear standardized, regulated, oversight, and I want the lender to crawl up the borrowers butt like they did 15 years ago.
Once the secondary , MBS buyers disappear, the lenders will HAVE to "crawl up the borrowers butts".
That's the million dollar question. When will these MBS buyers go away?
Post a Comment