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Home prices are taking a double-dip and may "bounce along the bottom" for a while, but never...

Home prices are taking a double-dip and may "bounce along the bottom" for a while, but never fear - the government may be starting another housing bubble. Most federal high-risk mortgages have been quietly shifted to the FHA - which just announced its intention to push nearly half its home purchase volume into subprime territory by 2014-2017, essentially a guarantee to put taxpayers at risk again.
Comments (15)
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    I'm sure the younger generation will be happy the the Gov't will insure house prices stay artificially high, to protect the Bank's balance sheets vs the American dream for our children.

     

    Then, on the Local level, we can have the Gov't spend money on "Affordable Housing" programs as well, thereby picking and choosing winners and losers by buying votes with taxpayer money.

     

    Please, Just make it stop.
    30 Nov 2010, 06:31 PM Reply Like
  • Donald Ingram
    , contributor
    Comments (3481) | Send Message
     
    Just another game of kicking the can!
    30 Nov 2010, 06:33 PM Reply Like
  • The_Hammer
    , contributor
    Comments (4202) | Send Message
     
    It's true the sleezeballs are pumping very little down loans. I have seen two recently one is a $484K house with a $478k LOAN!!!
    what's that? 1.5% down! How do these scumbags keep getting away with this fraud?
    30 Nov 2010, 06:56 PM Reply Like
  • Duude
    , contributor
    Comments (3393) | Send Message
     
    The FHA has been pushing 3% down payment loans for people with credit scores as low as 500. I expect the FHA will work these loans down to an even more manageable mortgage later by forgiving part of the principal. Isn't it great the government can be so generous with taxpayer money?
    30 Nov 2010, 07:16 PM Reply Like
  • mdmrjsds
    , contributor
    Comments (502) | Send Message
     
    What taxpayer money? It's all printed by the Fed, and therefore free.
    Wwwhhhhheeeeee!

     

    ;-)
    30 Nov 2010, 08:13 PM Reply Like
  • HiSpeed
    , contributor
    Comments (1138) | Send Message
     
    Home-loan rates could be 2% but it wouldn't matter because people without jobs don't buy homes at any price or interest rate.
    30 Nov 2010, 08:18 PM Reply Like
  • j_remington
    , contributor
    Comments (1343) | Send Message
     
    The FHA will hold all the junk. Later they will be packaged and sold to the highest bidders like PIMCO. The US citizen is once again getting smacked by Obama socialism.
    30 Nov 2010, 08:30 PM Reply Like
  • philais
    , contributor
    Comments (193) | Send Message
     
    Actually it is economic fascism.
    30 Nov 2010, 08:42 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    www.google.com/imgres?...
    30 Nov 2010, 08:43 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4056) | Send Message
     
    ‎”Although gold and silver are not by nature money, money is by nature gold and silver.”
    - Karl Marx
    30 Nov 2010, 09:00 PM Reply Like
  • marc heilweil
    , contributor
    Comments (129) | Send Message
     
    I believe the authors are incorrect. I expect that sound practices will be used when the time comes. Further we are unlikely to see another major housing bubble on a national scale for another 35 years Indeed I would propose that community banks that underwrite and hold single family mortgages be allowed to hold less capital against them . Such a measure would make it more profitable for banks and thrifts. Indeed a contributing cause to our debacle was the FDIC ruling that lessened the capital requirement for securitised mortgages as opposed to direct mortgages. I might add that given the importance of this issue we do not need ideology to blind us from practical sensible solutions.
    30 Nov 2010, 09:23 PM Reply Like
  • JohnLocke
    , contributor
    Comments (381) | Send Message
     
    Written like someone who has a vested interest in the same old shell game continuing...

     

    What sound practices and at what time are you are you referring to?
    30 Nov 2010, 09:30 PM Reply Like
  • sickofthehype
    , contributor
    Comments (426) | Send Message
     
    35 years? Wow, you're a regular fortune teller. Let me guess where you pulled that figure from...

     

    The next housing boom is literally right around the corner yet nobody sees it coming. The inflation genie is out of the bottle and is about to get a little crazy. Just watch. Asset inflation is the main agenda, and it will happen - but of course, with a cost.
    30 Nov 2010, 10:53 PM Reply Like
  • Bill S. Friend
    , contributor
    Comments (714) | Send Message
     
    OK Im going to say it again, they need to make all mortages assumable, and new loan originations should be at or near zero just like wall street gets from the government.
    30 Nov 2010, 10:18 PM Reply Like
  • sickofthehype
    , contributor
    Comments (426) | Send Message
     
    unfortunately any assumption would still fall back on the original borrower in the event of non-payment.. oops, bad idea.
    30 Nov 2010, 10:51 PM Reply Like
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