Comments on: A Government Role in the Mortgage Market? http://jeffreymiron.com/2010/08/a-government-role-in-the-mortgage-market/ Libertarianism A to Z Sun, 06 May 2012 22:53:22 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Colorado http://jeffreymiron.com/2010/08/a-government-role-in-the-mortgage-market/comment-page-1/#comment-1888 Colorado Fri, 20 Aug 2010 00:28:25 +0000 http://jeffreymiron.com/?p=1558#comment-1888 The redistribution is not just to the poor. The well-to-do also get FHA and Fanny Mae loans. Do we really need the government to redistribute to that group? And is anyone really getting ahead? If the government subsidizes your mortgage the lower payments make the purchase more desirable. Therefore you pay more for the house off-setting the lower payments. And the driving up of house prices causes problems when you want to trade up. Is this really helping anyone? When the $8000 rebate went off earlier this year, houses in the lower price ranges dropped nearly $8000 here. The redistribution is not just to the poor. The well-to-do also get FHA and Fanny Mae loans. Do we really need the government to redistribute to that group?

And is anyone really getting ahead? If the government subsidizes your mortgage the lower payments make the purchase more desirable. Therefore you pay more for the house off-setting the lower payments. And the driving up of house prices causes problems when you want to trade up. Is this really helping anyone? When the $8000 rebate went off earlier this year, houses in the lower price ranges dropped nearly $8000 here.

]]> By: Cliff Nelson http://jeffreymiron.com/2010/08/a-government-role-in-the-mortgage-market/comment-page-1/#comment-1885 Cliff Nelson Wed, 18 Aug 2010 20:53:11 +0000 http://jeffreymiron.com/?p=1558#comment-1885 I think a large issue now is bank solvency which, I think, is contrary to your cries that the efforts are an attempt to redistribute wealth to the poor. Also, I have been meaning to ask if would you be kind enough to explain this "redistribution" that has occurred using a chart with data to demonstrate your point? Thanks, I think a large issue now is bank solvency which, I think, is contrary to your cries that the efforts are an attempt to redistribute wealth to the poor.

Also, I have been meaning to ask if would you be kind enough to explain this “redistribution” that has occurred using a chart with data to demonstrate your point?

Thanks,

]]> By: freedomfighter http://jeffreymiron.com/2010/08/a-government-role-in-the-mortgage-market/comment-page-1/#comment-1884 freedomfighter Wed, 18 Aug 2010 20:05:21 +0000 http://jeffreymiron.com/?p=1558#comment-1884 The government has one metric- get re-elected. Liberals have been told by their masters in the blacks-as-victims community that the liberals need to subsidize getting people into homes, since minorities were barred from home ownership for so long. Like all liberal logic, this is so disastrously flawed that it actually ends up working against getting more minorities into homes in the long run. Just back off, government, the market will work here- whites voted for Obama in droves, and will let a minority live in their neighborhoods now. The old racists are dying off- time to get rid of the destructive policies of the past, and give minorities a real chance to build a life. The government has one metric- get re-elected. Liberals have been told by their masters in the blacks-as-victims community that the liberals need to subsidize getting people into homes, since minorities were barred from home ownership for so long.

Like all liberal logic, this is so disastrously flawed that it actually ends up working against getting more minorities into homes in the long run.

Just back off, government, the market will work here- whites voted for Obama in droves, and will let a minority live in their neighborhoods now. The old racists are dying off- time to get rid of the destructive policies of the past, and give minorities a real chance to build a life.

]]> By: happyjuggler0 http://jeffreymiron.com/2010/08/a-government-role-in-the-mortgage-market/comment-page-1/#comment-1883 happyjuggler0 Wed, 18 Aug 2010 19:35:56 +0000 http://jeffreymiron.com/?p=1558#comment-1883 "property owners take pride in their property and neighborhoods, leading to greater value for everyone" This is true if they have equity in their home. However, the current/recent downturn in many local housing markets shows that there are plenty of people underwater in their homes who vandalize their homes before they are kicked out. Large numbers of for sale signs are also a blight on neighborhoods and increase the risk of various crimes. As such, there is a strong case to be made that making it harder to buy a house via larger down payments is the way to go, assuming the quote above regarding improved neighborhoods is the goal. The higher the percentage of equity one has, the less likely one is to walk away from one's mortgage in a downturn. “property owners take pride in their property and neighborhoods, leading to greater value for everyone”

This is true if they have equity in their home. However, the current/recent downturn in many local housing markets shows that there are plenty of people underwater in their homes who vandalize their homes before they are kicked out. Large numbers of for sale signs are also a blight on neighborhoods and increase the risk of various crimes.

As such, there is a strong case to be made that making it harder to buy a house via larger down payments is the way to go, assuming the quote above regarding improved neighborhoods is the goal. The higher the percentage of equity one has, the less likely one is to walk away from one’s mortgage in a downturn.

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