Hey, what's that stench? Oh, it's just the REIC doing their thing.
Tax breaks for buying a home. No cap-gains tax on home sale proceeds. No oversight of mortgage brokers, realtors or lenders. And a corrupt REIC allowed to spin out of control by a corrupt Congress.
The realtors and home builders made this mess. Congress went along for the ride. And if there's a move in Congress for a REIC bailout, you'll know why.
Top 10 Political Action Committees 2006
#1. National Association of Realtors
According to OpenSecrets, the NAR PAC spent $3,752,005 in the 2006 campaign: 49% to Democrats and 51% to Republicans. They raised $1,716,960 in contributions of $200 or more. The Realtors Political Action Committee (RPAC) is one of the largest trade association PACs, dating to 1943. Issues of interest range from accessibility to wireless 411 directory.
#3. National Association of Home Builders
According to OpenSecrets, the National Association of Home Builders PAC spent $2,900,500 in the 2006 campaign: 26% went to Democrats and 72% to Republicans. They raised $3,526,927 in contributions of $200 or more.
8 comments:
we can fight back by not buying new homes from anyone affiliated with the NAHB and not using a realtor to buy a used home
This plan is really a warm-up for what is coming...a massive multi-hundred billion dollar bail-out of epic proportions next year. This bursting bubble is going to severely impact the collateral (housing) that backs our ponzi-based economy.
The government will buy up all the empty McMansions from the homebuilders at full price and turn them into Section 8 housing for welfare queens and illegal immigrants. The dollar will crash like the NASDAQ did back in 2000 and lose 80% of its value. That means oil at $350/brl and milk at $25/gal. The Fed will continue to insist that there is no inflation. the rich will be fine with their assets, the poor will have welfare and free housing to tidy them over. The middle class will be wiped out once and for all.
Mission Accomplished,
George Bush
Here's something that may be of interest to the HP crowd. Some fifteen years ago there was a big housing crash here in Norway. You may get an impression of what it was like from this graph that shows Norwegian housing prices superimposed on Robert Shiller's famous graph of US housing prices since 1890.
Graph: http://tinyurl.com/3djq89
During this crash there was a sort of "bailout". Still the housing prices fell all the way down to pre-bubble levels.
First note that one significant difference between Norway and the US is that in Norway you can't just walk away from a house if you are defaulting on your loan; what the short-sale doesn't cover you still owe the bank.
The nature of the bailout was that the bag holders who had a huge debt were given special deals. So they had to sell their house short, and for the next five years they had to live at a bare minimum of living standards. All the money they made beyond supporting this minimum standard went into repaying the loan. After five years the rest of the debt was erased. There are more details, but the essence is that they actually became slaves of their debt for five years and had to start from scratch again.
Some people have interpreted the talk of bailout in the US to mean that all the irresponsible people would get to keep their big houses and cars. Well, Norway is a country that would be considered "socialist" by American standards. And if such an extreme bailout were to happen, however unlikely it seems, I think that it would not even be socialism; it would be pure communism. You pay your taxes and the government gives you shelter. In my book that's communism.
(As you can see from the graph, we're at it again! And far worse than the US. How do you think it will end this time?)
That stench is the investment banks and their plummeting stock prices.
how much bailing would be required to cover, 700 trillion dollars in wacky derivatives gone bad??
isn't it nice how they make up these little buz words on the fly ....
now when the fed bails out some of their buddies, they call it a injection for the purpose of maintaining liquidity.......
so now banks make injections.........hmmm .....
is that kind of like, it all depends what is ......is.........
If there's a bail-out, where is that money going to come from as joblesness increases across our country and wages (primarily in the private sector) remain stagnant?
A bail-out is only a short-term solution, to an every widening problem.
Bush is only interested in this now because many of his supporting henchman are starting to feel the pinch in the wallet themselves from the increasing housing crisis.
nationalized housing
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