How Obama causes thge housing recession.

[The Rabbi]

Home prices did not go anywhere near as crazy in the 80s and 90s as they did in the 00s. The decline was nowhere near as dramatic in the 90s because valuation never got as nuts.

Case Shiller Home Prices | Flickr - Photo Sharing!

It's not always about politics.

The magnitude is not very important. What is important is what happened to correct the situation. In 1990 the gov't took over failed S&Ls and auctioned their inventories. In 2008 the gov't propped up homeowners and bailed out banks.
There's the difference right there.

The magnitude is most definitely important. That's what financial market and economic history tells us. The larger the bubble, the greater the crash. It's arguable that the Housing Bubble was the biggest asset bubble in US history, given the discrepancy from intrinsic valuations and ubiquity of ownership.

Think economics and finance, not politics.

The greater the crash, the stronger the recovery.
That's supposed to be how it works.
And how do you determine "intrinsic worth" of a house, which is a unique item? It is worth what someone will pay for it. Not more, not less.

 

[EdwardBaiamonte]

.

George W. Bush started the housing bubble by dropping interest rates to zero,

actually thats done by the Fed, not the president. Sorry to rock your world


Also, try to understand the subject was about what BO hasn't done to end the housing crisis, not who started it long ago. Why not reread for comprehension??

Thats not the subject. YOU clearly stated it was that he started it. Never once did you mention the phrase "done to end" until now. Why not read for comprehension?

OP:
"we are in a housing depression because BO has prevented recovery by eliminating the free market in housing."

therefore: what he hasn't done to end it is let the free market end it.

Slow??

 

[EdwardBaiamonte]

The greater the crash, the stronger the recovery.
That's supposed to be how it works.

except this time because the president had 2 communist parents, voted to the left of Bernie Sanders, and had no understanding of how the free market could end the current depression.

 

[starcraftzzz]

actually thats done by the Fed, not the president. Sorry to rock your world


Also, try to understand the subject was about what BO hasn't done to end the housing crisis, not who started it long ago. Why not reread for comprehension??

Thats not the subject. YOU clearly stated it was that he started it. Never once did you mention the phrase "done to end" until now. Why not read for comprehension?

OP:
"we are in a housing depression because BO has prevented recovery by eliminating the free market in housing."

therefore: what he hasn't done to end it is let the free market end it.

Slow??

the free market caused this mess retard

 

[starcraftzzz]

Exactly which policies have slowed the recovery?

could you answer Toro?

There have been various mortgage adjustment programs designed to support the housing market. Home prices have to be allowed to adjust. Propping home prices up delays the inevitable.

home prices are adjusting so basically ur now blaming obama for things that never happened

 

[starcraftzzz]

I guess Toro has no answer to his claim of Obama slowing the recovery.

Corporate executives are saying that several new policies such as healthcare reform and Dodd-Frank have increased uncertainty and thus investment and the recovery.

so are you a tool now who believes what ever corporations tell u?

 

[Toro]

I guess Toro has no answer to his claim of Obama slowing the recovery.

Corporate executives are saying that several new policies such as healthcare reform and Dodd-Frank have increased uncertainty and thus investment and the recovery.

so are you a tool now who believes what ever corporations tell u?

If corporations are telling us that they are not investing because of the uncertainty of their future cost structure caused by new government regulations, yes I believe them.

 

[Toro]

Thats not the subject. YOU clearly stated it was that he started it. Never once did you mention the phrase "done to end" until now. Why not read for comprehension?

OP:
"we are in a housing depression because BO has prevented recovery by eliminating the free market in housing."

therefore: what he hasn't done to end it is let the free market end it.

Slow??

the free market caused this mess retard

The free market did not cause this mess. The primary culprit is the Fed. The Fed sets interest rates on the short end of the curve and influences rates on the long end, off which mortgage credit is priced. This is a government entity attempting to influence and control the price of credit. That is not a free market. I'd place Wall Street a distant second but second nonetheless. Deregulation also contributed to this mess. But both pale compared to the mispricing and thus misallocation of credit by the Fed.

 

[starcraftzzz]

Corporate executives are saying that several new policies such as healthcare reform and Dodd-Frank have increased uncertainty and thus investment and the recovery.

so are you a tool now who believes what ever corporations tell u?

If corporations are telling us that they are not investing because of the uncertainty of their future cost structure caused by new government regulations, yes I believe them.

so u are a tool who doesn't think for herself, good to know

 

[Toro]

The magnitude is not very important. What is important is what happened to correct the situation. In 1990 the gov't took over failed S&Ls and auctioned their inventories. In 2008 the gov't propped up homeowners and bailed out banks.
There's the difference right there.

The magnitude is most definitely important. That's what financial market and economic history tells us. The larger the bubble, the greater the crash. It's arguable that the Housing Bubble was the biggest asset bubble in US history, given the discrepancy from intrinsic valuations and ubiquity of ownership.

Think economics and finance, not politics.

The greater the crash, the stronger the recovery.
That's supposed to be how it works.
And how do you determine "intrinsic worth" of a house, which is a unique item? It is worth what someone will pay for it. Not more, not less.

Not after a balance sheet recession. It's the exact opposite in fact. After a balance sheet recession, the excess capacity caused by overinvestment mutes the recovery. It takes time for the excess supply to be absorbed and the bad debt expunged. That's why this and the prior recovery have been weaker than average.

 

[Toro]

so are you a tool now who believes what ever corporations tell u?

If corporations are telling us that they are not investing because of the uncertainty of their future cost structure caused by new government regulations, yes I believe them.

so u are a tool who doesn't think for herself, good to know

I've spent a good part of my career listening to what corporate executives say. They are far more insightful on the economy than ignorant hacks with a political axe to grind.

 

[starcraftzzz]

If corporations are telling us that they are not investing because of the uncertainty of their future cost structure caused by new government regulations, yes I believe them.

so u are a tool who doesn't think for herself, good to know

I've spent a good part of my career listening to what corporate executives say. They are far more insightful on the economy than ignorant hacks with a political axe to grind.

yep because ceos don't have a political axe to grind. so i repeat u are a tool who doesn't think for herself,

 

[The Rabbi]

The magnitude is most definitely important. That's what financial market and economic history tells us. The larger the bubble, the greater the crash. It's arguable that the Housing Bubble was the biggest asset bubble in US history, given the discrepancy from intrinsic valuations and ubiquity of ownership.

Think economics and finance, not politics.

The greater the crash, the stronger the recovery.
That's supposed to be how it works.
And how do you determine "intrinsic worth" of a house, which is a unique item? It is worth what someone will pay for it. Not more, not less.

Not after a balance sheet recession. It's the exact opposite in fact. After a balance sheet recession, the excess capacity caused by overinvestment mutes the recovery. It takes time for the excess supply to be absorbed and the bad debt expunged. That's why this and the prior recovery have been weaker than average.

That's the same in every recession. At the top of the business cycle companies invest in plants and equipment that have very marginal utility. When demand craters companies bankrupt and the assets are sold off cheap. Those cheap assets become the basis for the next upturn.
But when gov't interferes and props up inefficient organizations it short circuits that process, producing the kind of recovery we see today.

 

[ItsjustmeIthink]

This is so true, we are in a housing depression because BO has prevented recovery by eliminating the free market in housing. Had it been allowed to work the market would have cleared long long ago and the economy would be booming now.

UNTRUE. UNTRUE. UNTRUE. Its just...not true.

Its untrue because I think you're assuming that the housing market was in a NATURAL STATE and if it had been left alone Capitalism self-regulatory "Boom and Bust" cycle would have kicked in. But irresponaible lending and Gov't backed Fannie&Freddie alone had taken it far from its natural cycle.

Truth is, people just over-exterted themselves, if some of the people that had taken those subprime loans had some common sense, it probably never would have happened.

 

[Toro]

The greater the crash, the stronger the recovery.
That's supposed to be how it works.
And how do you determine "intrinsic worth" of a house, which is a unique item? It is worth what someone will pay for it. Not more, not less.

Not after a balance sheet recession. It's the exact opposite in fact. After a balance sheet recession, the excess capacity caused by overinvestment mutes the recovery. It takes time for the excess supply to be absorbed and the bad debt expunged. That's why this and the prior recovery have been weaker than average.

That's the same in every recession. At the top of the business cycle companies invest in plants and equipment that have very marginal utility. When demand craters companies bankrupt and the assets are sold off cheap. Those cheap assets become the basis for the next upturn.
But when gov't interferes and props up inefficient organizations it short circuits that process, producing the kind of recovery we see today.

No, this is different. The recessions from WWII to the end of the century were driven by an inventory/inflation cycle. The last two recessions have been driven more so by adjustments in asset prices.

 

[Toro]

so u are a tool who doesn't think for herself, good to know

I've spent a good part of my career listening to what corporate executives say. They are far more insightful on the economy than ignorant hacks with a political axe to grind.

yep because ceos don't have a political axe to grind. so i repeat u are a tool who doesn't think for herself,

CEOs are interested first and foremost in making money, not in electing Presidents. If you don't understand this, you know little about business.

 

[starcraftzzz]

I've spent a good part of my career listening to what corporate executives say. They are far more insightful on the economy than ignorant hacks with a political axe to grind.

yep because ceos don't have a political axe to grind. so i repeat u are a tool who doesn't think for herself,

CEOs are interested first and foremost in making money, not in electing Presidents. If you don't understand this, you know little about business.

i see so according you everyone who is not a ceos are interested first and foremost in lecting Presidents
come back later u retard

 

[Toro]

yep because ceos don't have a political axe to grind. so i repeat u are a tool who doesn't think for herself,

CEOs are interested first and foremost in making money, not in electing Presidents. If you don't understand this, you know little about business.

i see so according you everyone who is not a ceos are interested first and foremost in lecting Presidents
come back later u retard

Now, I understand you teenage Democrats in high school haven't had much exposure to life and the real world, but when CEOs make public statements that uncertainty is causing them to delay investment, they are not doing it because they don't like the President, s0n.

 

[ItsjustmeIthink]

I've spent a good part of my career listening to what corporate executives say. They are far more insightful on the economy than ignorant hacks with a political axe to grind.

yep because ceos don't have a political axe to grind. so i repeat u are a tool who doesn't think for herself,

CEOs are interested first and foremost in making money, not in electing Presidents. If you don't understand this, you know little about business.

Correction: CEO's foremost PUBLIC interest is making money.

As having a candidiate in office thats loyal to you has more potential than simply doing the day-to-day money grind.

 

[IndependntLogic]

This is so true, we are in a housing depression because BO has prevented recovery by eliminating the free market in housing. Had it been allowed to work the market would have cleared long long ago and the economy would be booming now.

LOL! Love it. This is now the thrid or fourth thing that the truly whack, have claimed he went back in time and caused before taking office.
Thank you for the laughs!