The Housing Bubble Always Pops Thrice…

…or something.

We’ve been Through the Looking Glass for so long now I forget how many times we’ve bumped the fake bottom in 07.  Shedlock has the awesome charts, here we are in Housing starts in ’11-

housing starts CR

Someone should have played the Frozen soundtrack for Bernanke and Yellen and we would’ve been on the plateau end of a nice recovery by now. Let it Fxckin’ Go already. Instead we have miles to go to bottom out housing prices.

Importantly, extra requirements were added so well documented citizens have to jump through hoops, and if you have good credit they don’t want you-

…New government rules have mortgage lenders checking, and double-checking, the income status of borrowers. Now more than ever, lenders want to ensure that home buyers have the ability to repay their loan obligations…

Personally I think all that was needed was removing the high risk low underwriting loans backed by tax dollars. Jamie Dimon wants to lend to everyone with a pulse? Great, but not on my back jack. But instead we got extra regs and the undocumented applications got bumped up and okayed increasing the risks of another national bubble and accompanying collapse even more likely, while hampering the middle class ability to function (as does everything Ive seen DC do since 1999):

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April 7, 2016. Tags: , , , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Foreclosures, Housing, Immigration, Labor Department, migrant crisis, Obama Administration, Politics, Popular Culture, refugee, TARP, Taxes, Wall St. 2 comments.

Arne Duncan, Secretary of Education, on Team Obama College Loan Plans, charter schools, merit pay for teachers…

Vodpod videos no longer available.

…increasing Pell Grants by 94 million over next few years, taking subsidies from banks and giving them to students….He says they will reform FAFSA application for next Fall, that would be an improvement for sure….

Insight on how President Obama’s administration plans to spend a record $5B to transform schools, with Arne Duncan, U.S. secretary of education.

more about “Arne Duncan, Secretary of Education o…“, posted with vodpod

April 20, 2009. Tags: , , , , , , , , , , . Department of Education, Finance, Obama Administration, Uncategorized. 1 comment.

Important Update: Budget: Student Loans…

From a savvy commenter and we thank them!!!! It is NOT the total private lending being affected, that apparently continues with its insane lack of caps on interest rates unabated, it is only FFEL a federally guaranteed partially subsidized through fees program being hurt, that seems counterproductive ? But then again the entire Obama Budget plan sounds counterproductive to me!

The excessively high interest rates you refer to are not part of the FFEL program. Those private loans would not be impacted by the budget proposal, and are free-market products. The FFEL loans have capped interests rates that fluctuate from one budget year to the other, as set by Congress, but have been in the single digits for several years.

The savings by eliminating FFEL are direct subsidies to lenders who risk financial loss by defaulted loans due to the narrow profit margins mandated by the interest rates capped by Congress.

There are those who argue that FFEL is actually cheaper for the taxpayer than direct lending because of the borrower-education and default aversion programs that that FFEL participants provide that is practically non-existent in direct lending, resulting in fewer loans going bad. Depends on whose numbers you are looking at.

HUGE GINORMOUS CHANGES TO STUDENT LOANS IN THE BUDGET!!

Via BondBuyer.com:

The $3.55 trillion budget request, which was summarized in a 134-page overview released yesterday, would also phase out the Federal Family Education Loan program and require all new student loans to be originated by the Department of Education and financed with Treasury borrowing. That action would effectively kill the market for federally guaranteed student loans, municipal market participants said.

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February 28, 2009. Tags: , , , , , , , , , , , , , , , . Cabinet, Department of Education, Economy, Finance, Hillary Clinton, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. 6 comments.

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