Government ultimately has two options; tax something and get less of it. Subsidize something and get more of it. This is a case of the latter; subsidize housing people could not otherwise afford and you get more housing people cannot afford.
The WaPo has the story of the damage one little congresscritter from a safe district can cause. Maxine Waters wants to "help." Hold onto your wallets. Excerpt:
A bill passed by the House this month called the Section 8 Voucher Reform Act contains mostly technical, though helpful, provisions: It changes the formula for how funds are distributed to housing authorities to achieve greater efficiency (last year $1.4 billion in Section 8 vouchers went unused); it allows a family to use a voucher as a down payment on a first-time home purchase; and it simplifies procedures for safety inspections, rent calculations and other aspects of the housing program.
9 comments:
it allows a family to use a voucher as a down payment on a first-time home purchase
Giving people more money does not put more people into houses. Building more houses puts more people into houses.
In reality this would mean that the government and not the free market would deceid who gets homes and who does not.
What did Maxine Waters get out of this? It's always something isn't it?
Lets create another bubble!!
Lets keep this bubble going longer!!
Geesh. These politicians don't get anything. If they want to solve the housing problem:
* Take a look at the relationship between builders and apartment complexes. (hint: many of the large builders also own a large percentage of rental units as apartments).
* Allow small builders more land. Right now, large land purchases tend to be more the norm. A small builder can't afford a large land purchase. A few years ago, builders tried to lock the small builders out by having an ordinance placed on the ballot. The ordinance stated that the smallest lot subdivision would be 2 acres unless there was land set aside for wildlife in the split(certain %). This locks out small builders because they couldn't build on 5 to 10 acre lots affordably. Large builders can pick up 50+ acres and commit 5 acres to open land.. and make cookie cutter houses for a big profit on the rest. I am not against open land, but a piece of open land 1 acre or less, bounded by houses, does nothing for wildlife.
* Stop doing 'creative' financing to get people who can't afford houses, into houses at the risk of their financial future.
By the way, who is going to pay for all of these 'programs'? How about the people above their magic threshold for qualification. Making houses more affordable by subsidizing a group also increases demand and thereby prices that everyone else has to pay. Looks like another assault on the Middle Class.
Up here in Sac, homeowners have allowed Section 8 recipients as renters in a need to find tenants. Unfortunately that has turned relatively new neighbors in Elk Grove/Laguna into "white trash" neighborhoods.
At 2:04 PM, BJ said...
By the way, who is going to pay for all of these 'programs'?
The Middle Class for sure. Waters is one of least most intellent congress people in Congress and that is saying something. She will just nail people making $50K or more a year as upper class.
The people who vote for her don't come close to making $50K a year assuming they work at all. Remember Waters represents South Central.
If you made $50K a year would you live any where in South Central?
I am almost sure the Cold War ended on Christmas morning in 1991. At least, this is what my beloved tee vee led me to believe.
But riddle me this: who won?
Bonus question: once you tax the snot out of me for socialize healthcare, what are you going to take to subsidize housing? I suppose I could survive on one kidney...if I had too.
Super bonus question: how am I expected to pay endless taxes, and raise children who will remain in the middle class? Does this government WANT to completely obliterate the "working-for-a-better-future" class, or is this simply the result of pure incompetence?
No problem!
Alfonso already went to China to convince them to buy MBSes from ginnie mae, "backed by the US govt". FHA bill will be passed, more restrictions lifted.
so what's going to happen is this:
1) continue subsidizing, but on a larger scale
2) more subprime loans with even less restrictions. payed at first by the Chinese, Japanese, Saudis, Quatar, who the heck knows who else.
3) Even higher interest rates on those as compared to treasuries.
4) Interest burden will be so great on this country that the spiral of death will begin.
very sad, but unless they change something up there it WILL happen. it's as obvious as the law of gravity.
who will the change come from? Politicians want votes, their interest is short term. Spiral of death is not coming yet, so they will continue to get votes by subsidizing and relaxing restrictions.
Who will pay? YOU! Either they will print money like there is no tomorrow and all your savings and other USD-denominated assets are going down the toilet, or they'll tax the HECK out of you in order to pay back those loans.
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