The Senate held the first of many to come housing bubble hearings yesterday, parading in the corrupt REIC shills who claimed "all is well, all is well".
Question: Will Congress in the end clean up the corrupt REIC mess, or is this like the bank robber investigating the bank robbery?
September 14, 2006
HousingPanic Stupid Question of the Day
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23 comments:
Years ago, many of the DC area slumlords WERE THE Congressmen and Senators hiding behind Management companies. It was very nice bread and butter money racket before the highroller big big bucks "K" street mafia.
Clean it up..dream on!
I don't think they will clean anything up, but I think they will send some people to prison just to look tough on the issue. The people who get sent down the river will probably not be the head honchos of corruption but their underlings.
No, just a slap on the wrist; like what Richard's mom do to him when he don't go to school.LOL
It's like the turd flusihing the toilet.
Congress won't do anything about it.
Keith, this rates a full headline on your main page:
(unwrap)
http://www.latimes.com/business/
la-fi-country14sep14,1,885362.
story?coll=la-headlines-business
I don't believe the members of Congress, the executive branch or the supreme court give a crap. It's just playing games for power.
I think the representatives for the super rich will be able to swing something so banks and builders end up with no responsibility and the idiot buyers won't be able to walk away from their homes. They will be forced by chagnes of the law to take responsibility for their excess. The home owners will get kicked out, but for the rest of their lives (any maybe even their children's lives) they will pay on the home they couldn't afford. Seems to be the NEW American thing to do.
How many Americans trust their government today? After this I think it will drop to less than 50%.
Question: What happens when people don't believe in their system of government? Answer: The trully powerful offer a better option which will really concentrate the wealth in a few hands.
Golly! The 'Senate is going to investigate corruption! At least it's a subject they have experience with!
That's like Ken Lay investigating Worldcom!
The government will do whatever it can to prop up the housing market and keep a wave of foreclosures from materializing. There is no such thing as allowing the country to swallow a bitter pill when you are an elected representative whose fate depends on your constituents potential bitterness. The politicians will have to get new jobs if they allow the country to take it's medicine, and they really don't want to have to get new jobs. A soft landing should be impossible by all economic logic, but politicians will do whatever they can to make it happen. If that means pressuring the Fed to keep rates low and passing legislation to bail out mortgage lenders, with the end result being a continued devaluation of the dollar, so be it. That's what they are going to do. In the meantime, hearings are just going to be theater, designed to make it look as if they are doing oversight and to instill a little bit of confidence in the ever gullible populace.
Q. Where's richard today?
A. His mom grounded him from the computer. He has to take a nap now.
Richard's off at the 9/11 Ground Zero site taking readings with his geiger counter
why do you guys raz Richard so Bad?
He is a good guy.
LOL - maybe the aliens abducted him.
Congress is "investigating" so that they can say they did. Strictly a CYA operation.
In the end, only minor players at the very, very low end of the food chain will suffer, be it FB's(a lot of those) or REIC(few of those.) DC hearings are just ear/eye candy for the gullible.
Saw the hearings.
The majority of participants , with the possible acception of OFHEO, seemed more interested in keeping the party going.
Majority seemed to think that the Fed MUST keep interest rates low to allow the cancer to grow rather than let the Fed take care of inflation and let home prices get in line with wages.
They literally DO NOT CARE that Americans are involved in a toxic struggle between low pay and outrageous home prices.
They are making a concerted effort to ensure that Americans will be absolute debt slaves forever.
If there is ONE Senator out there who cares about this problem, will he please stand up?
Is there ANYBODY who is concerned about the disconnect between wages and home prices?
Is there ANYBODY who will allow this market to correct without interference from Congress?
Over the next few weeks, we will see just how vast Congressional disdain is for working Americans.
They took your jobs, your health care and now are becoming actively involved in ensuring that you will never again be able to comfortably afford a home in this country.
The number of people whose wage is too low to afford a home at today's prices is actually much greater than the number of people who do not own a home because of this. Consequently, there are way more people interested in seeing home values go up, then come down. In fact, many, many people are banking on having home prices go up to allow them to retire, get out of debt, give them spending money, etc. The pressure on the politicians is way greater from the side of the fence that wants to see home prices go up. That's why its such a vicious trap that has been set.
how did you watch the hearings? I tried to fire it up on cspan but their site was not working
Tabasco jenkins sais......."The pressure on the politicians is way greater from the side of the fence that wants to see home prices go up. That's why its such a vicious trap that has been set."
He who has money,even if only from the housing atm, can contribute to the election compaigns. The poor slob who is in foreclosure/bankruptcy cannot. Like a Baltimore representative once said
"put in $25,000, pull out a vote"
KEITH, DONT YOU GET IT! YOU MISSED THE FREAKING BOOM TRAIN! LET'S SAY A TRAIN IS GOING FROM LA TO NY. YOU MISSED THE TRAIN & YOU ARE STUCKED IN LA. NOW, YOU ARE JUMPING FOR JOY BECAUSE THE TRAIN BROKE DOWN IN PITTSBURG. REMEMBER THIS, YOU ARE STILL IN LA LA LAND!
THANK YOU!
Or a shakedown for Campaign Contributions (TM)?
(Like what happened after the Microsoft Antitrust hearings. The word went out that a couple megs of Campaign Contributions (TM) properly steered could help your firm avoid the same fate.)
I wonder if the mortgage banks are going to lobby (with Campaign Contributions) to make mortgage debts inheritable...
Saw the hearings.
Here's my impression:
the Senate is not concerned with "cleaning up the REIC mess".
they are concerned with propping up the bubble.
Senator Sarbanes actually had the nerve to ask the HB and NAR if they felt they had enough access to the Fed (ie. to convince Fed to lower interest rates to prop this obscene bubble that is killing Americans.)
We are SCREWED if the Gov. gets involved in this.
Remember, the gov. does not care about individual Americans. They care about whatever industry is making money right now.
Therefore, they care about
the REIC and those hearings proved it.
It will be interesting to see how they handle the lending hearings next week. Want a bet that nothing comes of that?
Want a bet that they make sure these lending practises continue or even get worse just to make sure the price of homes will not fall too far too fast?
The hearing was sickening to listen to.
They created the bubble and now they want to make sure it lasts.
China and the rest of the MBS buyers are our only hope now for sane, affordable housing in the US.
Keith, I watched them on basic cable TV.
But if you're not in the States, it's not an option I guess.
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