Mar 02 2009
Obamanomics – How Liberals Made Homes Affordable To The Poor
How do you make homes affordable to the poor? You tank the real estate market of course. Here is what decades of liberal democrat rule has accomplished in making homes affordable to the poor in Detroit:
It may be tough to get financing for a new car these days, but in Detroit you can buy a house with a credit card.
The median price of a home sold in Detroit in December was $7,500, according to Realcomp, a listing service.
Not $75,000. Remove a zero—it’s seven thousand five hundred dollars, substantially less than the lowest-price car on the new-car market.
For all those who don’t think Obama and the Dems in DC can ruin our economy much more than they have, think again. Is this Change we can believe in?
Back in the 1980’s liberals tried to make fun of “Reaganomics” but one thing was never really made clear to the American people. Reagan was just the President we needed, right when we needed him. Why? Because his college education was in economics. We had a President that could actually understand what the economists were saying and could speak their language.
Now, we have a President with a law degree that doesn’t know a Laffer Curve from a hole in the ground. His economic advisers are the people who created this mess in the first place.
I believe we could use a President like Walter E. Williams. Not just because he is an economist, but because he also has excellent communications skills. He can put things in terms that the people can understand.
AJ,
For more kicks, read Dr. Housing Bubble. Centered right here in the Liberal Land of Fruits and nuts:
http://www.doctorhousingbubble.com/
He (maybe, don’t know) has a section called “Real Homes of Genius”. It documents wildly overprice houses in the path of reality.
Out here in the Liberal Mecca of Southern California we have watched our homes devalue by 50%. Keep your credit card warm for a nice place in Santa Monica or San Diego!!!
I wish prices would drop that much here, Boghie. My neighborhood has flattened out and houses stay on the market a little longer but two 3br ranch homes just sold a block from me (one sold, one “sale pending”) for over a million each. And those houses were built around 1960. The thing that is keeping this neighborhood up are the schools. The combination of elementary, junior high, and high school here have kept this a very desirable neighborhood as it is probably the best combination in the state of California.
Prices are starting to come down in some of the surrounding areas but nothing like they are out in far suburbia. Anyone living more than an hour’s commute from Silicon Valley has seen their house tumble in value but the values in the corridor from San Jose to Mountain View and up to Los Altos and Cupertino have been holding up well. Folks living in Tracy, Manteca, and anyplace East of Walnut Creek are getting hammered. Same with South of the area in places like Gilroy, Salinas, and Watsonville.
I still don’t think this housing market is as bad for California as the one in the early 1990’s was. I was living down there and when McDonnell Douglass laid off 15,000 one Friday in Long Beach, the “For Sale” signs were like a picket fence.
Looks like the banks are starting to push back against federal bailouts.
The gist of the story is that the government has done a bait and switch. The banks took the money under the Bush administration with one set of criteria and now that Obama is in office, they want to change the deal now that the banks are already on the hook for the money. As a result, the banks are working as fast as they can to get the money back to the government and get out from under Congress’ thumb.
They fear the changes in the rules will make banks that took the money less competitive than the ones who didn’t and some claim they were pressured into taking the cash.