Congress’ Love Affair with Convenient Solutions 17 comments
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Anyone ever get the impression that Congress is only interested in providing “convenient solutions to convenient problems”, instead of addressing the underlying causes in a way that actually resolves the situation?
Where was Congress when speculators, cheap money and weak lending standards were driving up housing prices and creating a future economic crisis? They were all out celebrating the housing as evidence of their ability to manage the economy of course, because pointing out the obvious wouldn’t have been that popular with voters. Now they’re trying to use a housing bill to solve the problem that they could’ve prevented in the first place. I wonder what they’ll do when the housing bill only extends the housing downturn, since it doesn’t address the issue of people in houses they can’t afford, negative equity, etc, etc.
Now gas prices are shooting up and everyone is looking for an easy culprit to blame, an easy solution that will make everything okay. So now Congress is suddenly very interested in speculators and credit standards (margin requirements for futures trading), and are now claiming to be able to fix the problem by ridding the market of speculators. Because telling voters the truth about energy demand, stagnant oil production and domestic and international consumption gaps wouldn’t be very popular with voters either.
Until Congress decides to wake-up and start working on the real causes of economic problems, we as voters shouldn’t expect very much from them in terms of effective solutions. You can’t solve a problem by ignoring reality and focusing on what’s convenient and appetizing.
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This article has 17 comments:
Congress CAN do something about speculators driving up the prices of commodities.
And Congress could have done something about the speculators in the housing market.
You should read this:
www.star-telegram.com/...
and this:
www.commerce.senate.go...
Then ask your congressman to require 100% margin in commodity futures contracts an make delivery of the commodity mandatory.
The housing bill, as well as continued FHA DPA activity will certainly extend the downturn, but the bill DOES address negative equity, as well as affordability.
Potentially, a high-risk borrower could get out from under a high-start-rate adjustable into a lower rate AND that loan would be based on a smaller principal amount.
The real question is
Cut demand and the prices will drop, strengthen the dollar and prices will drop.
> jack
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So long as this doesn't change, they're going to keep on soaring, too. As I like to say, it's not "speculating" when you're betting on a SURE THING.
When signing for a loan, there is a nice little form that lines out what your payments will be for the worse case scenario. Its mandatory for all ARM's. Why can't the stupid people look at that form and say, "Gosh, my payments can go from $400/month to $1000 per month in 3 years and you know, I can't afford that!". Is it too difficult to understand? Is that the problem? Are you telling me that the average American is just too stupid to be trusted to make financial decisions on their own??????? I'm not sure what worries/sickens me more: having to pay for this crap or you and your like's overall disbelief in American's basic ability to think.
1) They need to propose action, wether or not they believe it will work. Inaction is the worst option.
2) The proposal needs to sound good on the news and align with party predispositions, contibuting to short term approval.
The horizon is the next election after which implementing the proposal can be swept away, which in most cases is the best thing to do with it.
Based on this bail out, I think I'm going to buy a $2,000,000 home and then realize in a few months that damn, I can't make the payments. Then I'll let the government come in and bail me out. Get to live in a mansion for a few months rent free. Yee haw. What next? A Cadillac for free? Free handouts for all. Free healthcare, free college, free food!!!! I'm starting to feel like a Democrat again!!
The concept would require Congressmen to be at least capable of conscious thought!
See; www.strategicnine.com/...
They blame each other for not getting anything done and eveyone buys that arguement. Both parties love this system because it allows them to work very few hours, collect big paychecks and pensions. They live like rockstars, always trying to keep the camera on them and get votes.
The American people are loyal to their party like their sports teams. Even when they stink they still support them. That has to change
Until this two party system collapses it will be more of the same. I believe we should vote out every incumbent. We need a revolt in the Congress not a resolution.