Big government missed the boat years ago
With all the housing mess making the news it seems that most anything that can be said has already been said. The problem is that the Federal Government keeps making the news with their take on how Big Brother can fix things so more in fact keeps getting written.
But here's my take. I say it took the Government too long to step in: they shoulda stopped all this nonsense years ago. How's that? They let home prices get too high. That's right: too high.
Both the Senate and the House have versions whereby you and me pitch in to buy foreclosed houses that aren't selling, paint them or whatever and then magically sell them to the public. I guess Big Brother has a better Listing Agent. What our elected officials are attempting to do is stop home prices from falling further by buying them from troubled lenders who want some of their money back. Let's swoop in with $400 billion and buy all these homes to prop up the prices. Artificially, of course, but propped up nonetheless. But the cows left the barn a few years ago. Big Brother shoulda stopped housing prices from going up so high in the first place, that way they wouldn't have fallen so far. Doesn't that make sense?
In California for instance where home prices routinely increased by 20% every year, or more, then why didn't the government put a stop to that nonsense and limit price increases to 2% per year? Hmmm? I mean, if it's okay for the government to attempt to manipulate the market by keeping prices from going too low then the reverse has to be true if indeed government price-fixing is an acceptable practice, is it not?
You know what else? The government ought to make gasoline, the unleaded premium kind, a buck a gallon. And my milk is too high, too. Don't get me started on my Corn Pops. I also think it should be against the law the tip the waiter 20% so have the government step in and max out tips at 15%. And to be fair to the waiter it would be a required 15% regardless of the service the waiter provided. Screw open markets.
Hey, it sort of works in other countries.Real estate finance expert David Reed is president of CD REED Mortgage Bankers in Austin, TX and author of Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You and Mortgages 101: Quick Answers to over 250 Critical Questions About Your Home Loan.