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Socialist States of America still not learning the lessons

http://img.washingtonpost.com/busine...755_story.html

Hoppe-nian predictions in action!

Quote:

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.

In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.

Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.

Officials are also encouraging lenders to use more subjective judgment in determining whether to offer a loan and are seeking to make it easier for people who owe more than their properties are worth to refinance at today’s low interest rates, among other steps.

:dead: But that Hoppe is right in predicting the political elite acting like this, and that he explains en detail why it is acting like this and will never act any differently, offers no solace.

Not only are politicians totally unscrupulous for the reasons explained by Hoppe - they are also completely immune to any learning effects even if "history" means not events from several decades or centuries ago, but just 5 years.

"Laßt uns die alten Fehler eneut begehen, Genossen!" :up: :yeah: :salute:

I object to the thread title...........
According to the 'Book of Yubba' we ain't Socialist yet.

I dunno, I think you're socialist today, it's a Monday, isn't it? Oh, no, wait it's still Sunday over there, no, no, you're Fascist at the moment. :yep:

No. I was Fascist yesterday.
Today is Sunday here so I'm Agnostic today.
Tomorrow, which is Monday, I'll be Capitalist.
:D

Quote:

Originally Posted by privateer (Post 2037917)

I object to the thread title...........
According to the 'Book of Yubba' we ain't Socialist yet.

Damn, you beat me to it.:haha:

Last time I looked, promoting home ownership was something the right did...

And what did the wrong do?

Democracy IS socialism right because of its very basic mechanism by which it is running. The basic principle driving democracy, is redistribution income from private property to the non-private collective. And that is what socialism is about. The plebs demand it. The candidate promises it. Both are accomplices in crime. Democracy is the tyranny of the plebs. An ideal it became just in the past 100 years or so. Before, democracy was seen with utmost contempt and disgust, right back until the ancient Greeks. To say that the Greek "invented" democracy, is only one half of the truth. The other is that they saw it as a big evil that should be prevented, since it necessarily must ruin the state and corrupt society - in pretty much right the ways we see today.

Quote:

Originally Posted by privateer (Post 2037917)

I object to the thread title...........
According to the 'Book of Yubba' we ain't Socialist yet.

Soon very soon, you should check out what bite me said this weekend http://www.wnd.com/2013/04/biden-cal...w-world-order/ I really don't want to be living in the woods to get away from you guys the bugs suck here. You know why we haven't learned anything it is because we are still printing money.

Quote:

Originally Posted by privateer (Post 2037937)

And what did the wrong do?

:har:

We're a bunch of idiots, ya know?

I don't know if this is related. The subject doesn't interest me enough, but here's a video from ReasonTV channel:

Vernon Smith and Steve Gjerstad on Housing and the Never-Ending Recession

"All [economic] recoveries are associated with recoveries in housing...except for the Great Recession, this last one," says behavioral economist and Nobel Prize winner Vernon Smith.

Smith and colleague Steve Gjerstad spoke at Reason Weekend, the annual donor event held by Reason Foundation (the nonprofit that publishes Reason.com). They argue that the recession is far from over and that the lingering effects of the collapsed housing market will be felt for years to come.

http://www.youtube.com/watch?v=2GO559htQB4
35 minutes

Quote:

Originally Posted by yubba (Post 2037942)

Dude. Everyone uses the 'New World Order' thing.
Even the wrestling crowd did that on TV!
And do you believe that was true?
:har:
Oh, yea, it's a BIG snake all twined into a ball.
More then one point don't work with all the EVIL plans pointed out by you and others that are allowed internet access.

I'd point out the flaws in details but then they would only invent other crazy stuff that does not add up.

I don't trust this Goverment anymore then I trust common thieves I know.
That don't mean I believe they are able to pull off the stunts you believe they will do.

Quote:

Originally Posted by privateer (Post 2037951)

I don't trust this Goverment anymore then I trust common thieves I know.
That don't mean I believe they are able to pull off the stunts you believe they will do.

As I said way back when the moon landing pictures disappeared: I'll always believe screw-up before I believe cover-up. :sunny:

Has Tribesman been abducted by the aliens?

Quote:

Originally Posted by AndyJWest (Post 2037934)

Last time I looked, promoting home ownership was something the right did...

One would think that promoting responsible home ownership would be something that benefits us all. But promoting home ownership for the sake of such is irresponsible.

Like it or not, not everyone should have the RIGHT to owning a home. Such is still something that should be earned.

Looks like the elitists in Germany are denying the German people a right to have an airport that works!:D Leave it to the socialists to screw that up too!

http://news.msn.com/world/delays-gro...-shame-germans

The Berlin airport is the biggest and most expensive jokes of all major construction projects currently being... being... tried in Germany, yes. :haha: The new central station Stuttgart 21 or the so-called Elb-Philharmonie or the new blue-water harbour at Bremerhafen are just three other prominent examples where leaders' personal megalomania led them to not do the table homework and calculations properly. There are more examples.

But we got a new air port in Kassel-Calden. 270 million. With four regional airports and Frankfurt Main Hub nearby. The construction went smooth and within time table, almost. The reward : they have one plane per day. :D The thing was wanted but irresponsible politicians who are not even in politics any longer. The losses this thing creates every day, must be payed by the tax payer.

Hoppenian explanation in action! :yeah:

On the US housing issue, cheap credits given to crowds of people who could not afford it was one of the key reasons that triggered the crisis 2007/2008. It was not the factor leading and creating the crisis in the decades before, but it was one of the triggers that finally blew it up.

And now they do the same insane suicidal trick again, while already having flooded the market with devalued money. First you place the explosives. Then you arm the igniters.

People do not learn, they just do not learn. Instead the try to solve every issue with the same old hammer that they happen to have learned as their only tool available.

And those politicians proposing this "solution"? Will never be held accountable. Just not voting for somebody is not holding that someone responsible for what he did - in fact what it is is letting him get away with it.

And who said that people will not vote for the sweet-talkers next time? They promise what people want: private property that people originally cannot afford, and cheap credit. Let the party go on. A material gain falling from heaven without having been worked for. Manna for the people!

Bills? What do you mean by "bills"...?

Stimulus packages, and all that. I laugh about this nonsense. That is no reasonable economic concept. That is economic superstition.

The definition of insanity is...

Doing the same thing over and over and over again expecting a different result each time.:hmmm:

Quote:

Originally Posted by Skybird (Post 2038086)

true, but that is not what we are talking about here, which you would evident IF you had quoted the ENTIRE article you linked to.

Quote:

Before the crisis, about 40 percent of home buyers were first-time purchasers. That’s down to 30 percent, according to the National Association of Realtors.

From 2007 through 2012, new-home purchases fell 30 percent for people with credit scores above 780 (out of 800), according to Federal Reserve Governor Elizabeth Duke. But they declined 90 percent for people with scores between 680 and 620 — historically a respectable range for a credit score.

“If the only people who can get a loan have near-perfect credit and are putting down 25 percent, you’re leaving out of the market an entire population of creditworthy folks, which constrains demand and slows the recovery,” said Jim Parrott, who until January was the senior adviser on housing for the White House’s National Economic Council.

(...)

Deciding which borrowers get loans might seem like something that should be left up to the private market. But since the financial crisis in 2008, the government has shaped most of the housing market, insuring between 80 percent and 90 percent of all new loans, according to the industry publication Inside Mortgage Finance. It has done so primarily through the Federal Housing Administration, which is part of the executive branch, and taxpayer-backed mortgage giants Fannie Mae and Freddie Mac, run by an independent regulator.

The FHA historically has been dedicated to making homeownership affordable for people of moderate means. Under FHA terms, a borrower can get a home loan with a credit score as low as 500 or a down payment as small as 3.5 percent. If borrowers with FHA loans default on their payments, taxpayers are on the line — a guarantee that should provide confidence to banks to lend.

But banks are largely rejecting the lower end of the scale, and the average credit score on FHA loans has stood at about 700. After years of intensifying investigations into wrongdoing in mortgage lending, banks are concerned that they will be held responsible if borrowers cannot pay. Under some circumstances, the FHA can retract its insurance or take other legal action to penalize banks when loans default.

Since 2008, Banks have been exceedingly cautious, refusing to lend to borrowers which are very acceptable credit risks, which slows down the recovery. That is all we are talking about, not a return to the pre-2008 "wild west" days.