Originally Posted by
Benny Profane
Wow.
I always have to remind myself how uninformed most Americans are about the world around them, even with the constant stream of all kinds of media available to them. Do yourself a favor, dude, and google FHA, Fannie and Freddie, and Fed monetary stimulus.
You live in California, right? Here, I'll help you start by telling you one thing. There are hundreds of people surrounding you in your market that either bought their homes with FHA (the government) sponsored 3.5 down payment loans for up to about $700,000, with very relaxed credit score requirements (around 600 minimum). Or, they are seriously considering buying a home using that financing. This never happened before'09. Well, it did, but it was done by private banks, and they were called "subprime" loans. Remember "subprime" loans? Now your government is a subprime lender, the only one out there. FHA loans were actually doled out quite conservatively to the middle and lower classes for much lower amounts and much higher credit requirements before the crash. This is how your government, or you and I and the rest of us paying taxes, is propping up the market. (And bailing out the banks, too, but we won't go there now)
Fuck it, though. I'm still hoping this ski condo thing crashes soon. Maybe after the election. I'm pretty confident that a lot of the lies and behind the scenes machinations propping up prices will be dropped. I hope.