Think Obama's plan for the housing market will work?
http://finance.yahoo.com/news/Obama-unveils-plan-for-rb-14400636.html
Answers
115 points
YankeeDoodle answered 9 months ago …
Sounds like it will encourage more people to "have a hard time" keeping up with their payments which I don't think will help.
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131 points
nikhil answered 9 months ago …
I think it will work. He has been giving people hope. If you have a leader who can speak well and can encourage people to do things, people will follow.
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3963 points
MNSL answered 9 months ago …
We have to wait and see whether it is going to work or not.
I think market will adjust itself in the long run. However it will help in some extent.
First of all capital market has to be improved. Then economy should be improved. Finally there will be demand for assets, commodities and houses. It all depends on world growth rate. In addition still most assets are over priced. Sooner than later these assets will have to revalue. Policy makers should take action to reduce all types of business running cost including commercial rent and technology cost.
Some banks will take long period to adjust their balance sheets. We can not rely on some big insurance giants as well. We do not know what instruments they are trading and extent of their liability.
4085 points
EthanR answered 9 months ago …
I will have an article on the Obama housing plan in Friday's www.thetycoonreport.com
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368 points
ads answered 9 months ago …
Be sure to read Ethan's article, as it is good (as are most of his articles appearing in the Tycoon Report). On that same note, I agree with YankeeDoodle, it sounds like it might encourage people to let things slide so they can get help, when in fact most of those people had screwed up and taken on more than they should have and without fully understanding what they were signing.
Frankly, it amazes me how most people when they make large purchases, don't read the details or don't learn all the facts behind the deal. Be it buying houses (and not reading the full details of the mortgage and evaluating the future implications of it), investing in stocks (without really learning about the company that you are investing into instead of buying because some talking head on the TV said it is a good investment (even though many of them either don't truly have a clue or have ulterior motives)), or any number of other purchases or investments that people make. Reminds me of a quote by William J. O’Neil-
"Since the market tends to go in the opposite direction of what the majority of people think, I would say 95% of all these people you hear on TV shows are giving you their personal opinion. And personal opinions are almost always worthless … facts and markets are far more reliable."
731 points
thinker70 answered 9 months ago …
In a word, NO1 WHY, because it is too complicated and offers too many opportunities for manipulation, greed and self serving by various parties. Government interference in the free market is ALWAYS bad and usually backfires with unintended results the architects never considered, Ask yourself where you can find an example of CENTRAL PLANNING ever working out well?
The economy as a whole is in such a mess that plenty of people who fall through the cracks will be UPSET because they do not qualify for some of the relief, yet it is their taxes that are providing it, a recipe for social unrest that may surpass anything we hve seen since the Great depression!
