I really only have one rule on this blog, and that’s to not discuss politics. But when politics and real estate collide, that rule goes out the window.
In case you hadn’t heard, there is a Presidential election this year. (I know, it seems like the campaigning started two years ago…)
Forbes.com published an article Wednesday (sorry, I’m behind in my feed reader) that briefly outlines what each major candidate plans to do about the sub-prime lending crisis. I’ll give you their thoughts, then you get mine…
Mitt Romney, John McCain and Mike Huckabee haven’t announced formal plans. They support the current “Bush-Paulson” plan that calls for a short-term freeze in some rates and deferring much to local government.
Rudy Giuliani wants “kid gloves” when it comes to government regulation.
Barack Obama wants to create a “universal mortgage credit” giving homeowners making under $50K that don’t itemize a 10% tax credit. He also proposes a government fund to help some avoid foreclosure. He has other plans for government oversight and regulation as well.
Hillary Clinton wants a 90–day moratorium on foreclosure proceedings, a five-year freeze on interest rates and a $5 billion government sponsored fund to help out borrowers with negative equity. She also wants to increase the size of the Federal Housing Authority.
John Edwards supports current freeze plans and wants to add halting of foreclosures until lenders provide assistance to borrowers such as reducing interest rates, converting loans or forgiving parts of a loan. He also wants increased government tracking and oversight.
The Phoenix Real Estate Guy:
I don’t know where Hillary is getting her $5 billion from. The last thing the tax code needs is to be added to. Personally, I wish government would just stay the hell out of the real estate market. “Markets”, be they stock, real estate or pork bellies tend to reach equilibrium on their own. More government intervention is just likely to chase the problem, and much like a dog chasing its tail, it’ll never catch it and wouldn’t know what to do with it if it did.
Let the markets adjust as they will. Fundamental economic laws of supply and demand will play out and things will eventually settle down.
[tags]Presidential race, subprime crisis, talking heads[/tags]