Today, March 3rd, January reports from the NAR of home sales DROPPED 7.7% to 80.4, the lowest since 2001, where pending home sales went down 6.4%. This was double what economists were predicting. But what are we supposed to do about this? Well, Obama and congress is planning to buy mortgages from bad banks based on the troubled assets relief program (the abandoned TARP program that originally was conceived by Geitner in the last quarter of last year). So what should we do? wait? No, what we need to do is A. stop trying to buy off these mortgages which people don't want, let the fail if the people took out loans they 1, didn't know what would happen if they took out these loans, or 2, knew what would happen and took it out anyways. The next step we should do is encourage people to buy up foreclosed homes and fix them up. Why do i sugest that? Because many people know that this is a VERY profitable trade and not only does it improve the forclosed home's value, it gets rid of the problems of the houses AROUND the now previously foreclosed houses.
So how do we get around doing this? How about we cut the property taxes, if we get rid of the tax i'm sure we'll save thousands on every home. This would also reduce the crime rate as many foreclosed homes are broken into (one funny story where a foreclosed house was broken into and a party broke out, was heard last week). As long as there are people wanting to buy (a massive amount of people who buy the foreclosed houses and re-sell them are sure to find other people who want to buy them, like their workers?) this 'bubble' will be stable, and not only that but this would get 'credit' flowing again, as the housing crisis was the cause of the credit freeze. This is essentially a cure-all for all of the root problems of the current economic climate. Now that is climate change
So how do we get around doing this? How about we cut the property taxes, if we get rid of the tax i'm sure we'll save thousands on every home. This would also reduce the crime rate as many foreclosed homes are broken into (one funny story where a foreclosed house was broken into and a party broke out, was heard last week). As long as there are people wanting to buy (a massive amount of people who buy the foreclosed houses and re-sell them are sure to find other people who want to buy them, like their workers?) this 'bubble' will be stable, and not only that but this would get 'credit' flowing again, as the housing crisis was the cause of the credit freeze. This is essentially a cure-all for all of the root problems of the current economic climate. Now that is climate change
Posts
No comments:
Post a Comment