Barney Frank – Obama will stem foreclosures

I understand the natural political reaction to trouble and sorrow is to throw money at it to cure it, but the cure for housing lies, from my very limited perspective, in streamlining foreclosures, not stemming them. As soon as we can get property out of the possession of people who can’t afford it and need a subsidy to stay in it and into the hands of people with the capability of paying for it (admittedly, at painfully reduced prices), the sooner we’ll get back on track. In Greenwich alone, I wouldn’t be surprised to see fifty new spec houses in various stages of foreclosure in the next six months. These will hang around and drag down the price of everything around them. Foreclose them, sell them off, get rid of the inventory and let’s start again. The current plan will prolong the agony but do nothing to address the cause, which is too many over-priced houses and too few buyers.

That’s just my opinion and I am more than willing to admit that maybe the economists in Washington know far more than I do. They’ve hidden that knowledge so far, but perhaps they’re jut getting ready to spring it on us, dazzling us all.

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One response to “Barney Frank – Obama will stem foreclosures

  1. The trick to getting through this mess is to go THROUGH it…not push it off with funds for those who still won’t be able to afford what they have even if you subsidize it for 6 months.

    I feel as bad as the next guy for those who are losing their homes…but when you get in over your head, you got in over your head…

    There’s consequences to that and unfortunately when it comes to getting in over your head with a HOME, the consequence is losing the home.

    The fastest way through this is to let it play out (and help it to play out as quickly as possible so that we can start moving back in the other direction).

    The economy is what it is and it does what it does based on supply/demand “things are worth what you’re willing to pay” economics. Lower the inventory and prices will go up…the only way to lower the inventory is to drop prices to spur investment by first-time homeowners and investors, get it done with, and move on (and up).