foolishly think that we made a very bad mistake, with the GI Bill and FHA low down payment RE loans.
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Daniel, there are a few "positive externalities" that you & Felix forgot to mention: first, while your main focus the economic are very important, they may not be the most significant. As for the economic, you will find from almost all studies of CLT/Affordable housing programs, that their new home owners are much MORE likely to stay current on their mortgage payments, and ALL their other debts. More so than other owners and almost all renters. Surprising, but true.
But, what is also significant is that new home owners also tend to have less divorces, commit fewer crimes, earn more and stay employed - self & as employee - more. May be far more important, if they have kids, the kids also commit fewer crimes, do better in school, get more higher education degrees, attend churches and play more community sports. They tend to stay out of trouble.
Not all of course, just as not all crack producers own their crack houses. Please note, most owners of crack houses do not stay long enough to pay off their 30 yr loans. So, eliminating those long term RE loans will not affect "those people" as much as the rest of U.S.
But, a LOT more new home owners, especially with children, do much better in life & society, by all of {y}our Judeo-Christian family values. Has that no "economic" value to you, and U.S.?
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Said you, Daniel:
"It would be if there could be no private-label securitization market, or if banks never held non-insured mortgages on their balance sheets."
Said we: Well, Daniel, almost ALL of the non-agency securitized RE loans, and packages of those loans, WERE "insured" - by "credit default swaps". You know the ones, issued by AIG, da BearSterns, Leyman, and a few other undeclared bankrupts.
And, most of the bank/lender BKs, for smaller local banks, now have been and will be for a few more years, caused by "commercial" and construction loans that are NOT Federally insured. What are there now, 700+ small banks on the FDIC "problem" list?
When some of those first non-agency "securitized" subprime and ARM loans went South, there were "calls" on the CDO's that may actually have been met. That didn't last long, did it? What did AIG cost U.S..., US$ 100+ Billion. How much has Bear Stearns cost U.S.? How much has Lehman cost U.S.?
How much is Goldberg still "billing" U.S. in order to to "cover" their/our RE loan losses?
So, let you & U.S. assume, for the moment - we'll pass on the assumption, thanks - that a non-agency/private securitization RE market did exist - you do agree, do you not, that since Jan 08 it has not. How much would it cost U.S. for those new RE loans to be "insured" - whether by CDO's and/or any other means, including increase interest rates, larger downs, or reserves for loan losses? After this RE market and non-agency securitization collapse, how much will THAT "protection" now cost U.S.
As the late night adv oft told U.S.: "But, it'll cost ya..!"
"It would be if there could be no private-label securitization market, or if banks never held non-insured mortgages on their balance sheets."
Said we: Well, Daniel, almost ALL of the non-agency securitized RE loans, and packages of those loans, WERE "insured" - by "credit default swaps". You know the ones, issued by AIG, da BearSterns, Leyman, and a few other undeclared bankrupts.
And, most of the bank/lender BKs, for smaller local banks, now have been and will be for a few more years, caused by "commercial" and construction loans that are NOT Federally insured. What are there now, 700+ small banks on the FDIC "problem" list?
When some of those first non-agency "securitized" subprime and ARM loans went South, there were "calls" on the CDO's that may actually have been met. That didn't last long, did it? What did AIG cost U.S..., US$ 100+ Billion. How much has Bear Stearns cost U.S.? How much has Lehman cost U.S.?
How much is Goldberg still "billing" U.S. in order to to "cover" their/our RE loan losses?
So, let you & U.S. assume, for the moment - we'll pass on the assumption, thanks - that a non-agency/private securitization RE market did exist - you do agree, do you not, that since Jan 08 it has not. How much would it cost U.S. for those new RE loans to be "insured" - whether by CDO's and/or any other means, including increase interest rates, larger downs, or reserves for loan losses? After this RE market and non-agency securitization collapse, how much will THAT "protection" now cost U.S.
As the late night adv oft told U.S.: "But, it'll cost ya..!"
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Said you, Daniel: "Eating spinach has benefits too, yet there aren't tax credits for buying spinach or giant government-sponsored entities that help to subsidize spinach prices."
Said we: Are you VERY sure about that, Daniel?
With all the govt guaranteed price supports: for cotton, oil, tobacco, milk, cheese, and almost everything grown or raised..., we MISSED spinach?
All those govt subsidies were created by U.S. when Popeye was watched by all of U.S. for his loving to eat his spinach..., and Olive Oil, too!!!
MOG, could we have missed out on subsidizing "Olive Oil" too?
And, you do know, do you not, that in many states buying spinach is exempt from the retail sales tax? So, we STILL are being encouraged to eat our spinach !!!
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Said you, Daniel: "Eating spinach has benefits too, yet there aren't tax credits for buying spinach or giant government-sponsored entities that help to subsidize spinach prices."
Said we: Are you VERY sure about that, Daniel?
With all the govt guaranteed price supports: for cotton, oil, tobacco, milk, cheese, and almost everything grown or raised..., we MISSED spinach?
All those govt subsidies were created by U.S. when Popeye was watched by all of U.S. for his loving to eat his spinach..., and Olive Oil, too!!!
MOG, could we have missed out on subsidizing "Olive Oil" too?
And, you do know, do you not, that in many states buying spinach is exempt from the retail sales tax? So, we STILL are being encouraged to eat our spinach !!!
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Should the Government Encourage Home Ownership?
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