Jun 14, 2009
Has Obama Made the Housing Market Worse than Bush Did?
AUTHOR: Patty Cramer
Reading the title of this article will immediately infuriate many of you but let me play devils advocate. When Obama came into office, mortgage rates were trending lower and he did everything in his power to give every American citizen a chance to have access to those rates. For the first few months of his presidency, rates hovered around 4.9% and all was well in the housing market, right? With rates that low, surely there would be a sparked interest in real estate and home prices would bottom. Well, for the months of February and March, home prices did not bottom! In fact, 27 of 30 major markets were down month over month from February to March (this is the latest data we have).
To compound matters, mortgage rates were likely to head higher as the 10 year treasury rate started its uptrend at the beginning of 2009. Well, to put a ceiling on mortgage rates, Ben Bernanke announced that the Federal Reserve was going to buy back over $1 trillion in mortgage backed securities. Obama could have easily stepped in and stopped our printing press of a Fed chairman but he did not. As we fast forward to today, mortgage rates are now following the 10 year treasury rate and are trending higher QUICKLY.
To compound matters, many of the home owners who were trying to refinance at lower rates or modify their mortgage are now stuck. The rate they were quoted at just two weeks ago has increased almost a full percentage point. This has sent the mortgage market in a tailspin. Had Obama and Bernanke let free markets work, mortgage rates would have inched higher since March. Unfortunately, they tried to hold rates down which has caused them to shoot up almost a full percentage point in just two weeks.
This is horrible news for the housing market as prices are sure to fall even more. So, has Obama made the housing market worse than Bush did?
If you believe in a free market economy, then any government intervention is bad for the economy because in a true free market system, that system will always work itself out. Perhaps if left alone, the real estate market would have crashed 60% across the board and already be on the way back up or perhaps we would have only dropped 20% and still be on a steady fall down. We’ll never know, our Presidents have never left the economy alone.
Obama has made every thing worse. In my opinion he is incompedent to be our president in the fact he does not have enough experience in any field to be our leader. I also do not believe he is a national citizen of this country. I do not understand how and why he is getting away with not showing his long form b/c. He is hiding somethinng and so many others think so to. I think he got government funds from out citizens to go to college and if we could prove this we could prove what a fraud he is. Why cannot we demand he show it as our sitting president? He iis a fraud.
I agree 100 % with Honeybunny. This man has made EVERYTHING worse, in his effort to destroy This country and all our freedoms!!!!
Isn’t it odd that all the folks who spout the “Rash Limpballs” drivel seem to be borderline literate?
Yes, Obama, the Usurper, is responsible for the housing crisis. He was primary in snowballing the mortgage loans to low-income families in it’s infancy, but the media did not disclose this information during his campaign. If they did, the Usurper may not have conned his way into the White House. Shame on all the Usurper’s advocates!
Obama is trying to bring corporatism to America.
The theory and practice of organizing society into “corporations” subordinate to the state. According to corporatist theory, workers and employers would be organized into industrial and professional corporations serving as organs of political representation and controlling to a large extent the persons and activities within their jurisdiction. However, as the “corporate state” was put into effect in fascist Italy between World Wars I and II, it reflected the will of the country’s dictator, Benito Mussolini, rather than the adjusted interests of economic groups.
I too would like to see his “for real” birth certificate and would like to question his experience leading up to him becoming president. He promised so many changes and so far, the onces he has made, are not a success. I don’t understand how his aunt is still in the USA being supported on our tax dollars; and I don’t understand how he thinks making all the illegal aliens citizens and “giving” them free health care and monthly incomes and govt housing is good. Again, on the hard-working American (real Americans)citizens tax dollars > No wonder, Medicare looks bleak. Benefits that have been worked for and paid in to for years are going to go to illegal aliens. So then, what do we, the American Citizen, live on when Social Security runs out. I have worked for 42 years and my future looks bleak. I love this country and I support the young people who have fought for it and it breaks my heart when others don’t support them.. People have forgotten what being a good patriot actually means. We have so many young people today who want everything handed to them, they don’t want to work for anything, they are dropping out of school in large numbers, and they are just cruising around looking for trouble. Lee Greenwood said it best: “I’m proud to be an American where at least I know I’m free, and I won’t forget the men who died to give that life to me” > “God bless the USA” oh! STOP trying to interfere with our right to be a Christian. Our country was founded so that we could practice our religion without fear. If someone is an aethiest and doesn’t want to hear Gods word on the radio or on television, all they have to do is change the channel or turn to another station > we have shut-ins that want to
hear God’s word, that can’t get out > where are their rights? There are so many questions I have and so many concerns, I pray for our country everyday > GOD BLESS THE USA !!!!!
Obama is for Arabs. He couldn’t handle the “pirates”; nor can he handle “Kim” or Amandijad. His voting record is “present”. Now he wants everything done right away. He might be our president for 4 terms like Roosevelt. What a shame.
Rates would never have gotten as low as they did had the government not intervened. Those low rates significantly slowed down the rate of decline in the Real Estate market. They weren’t intended to be around forever. The first time buyer credit, from the government, has also sparked a great deal of activity. Stop the whining.
If you think 5.5% is high, just wait 6 months. CarterII to the rescue. Not.
I have been an investor and Realtor in upstate SC for over 9 years and have never seen so much BS pushed on banking and real estate in such a short period of time.I mean you have politicains who have no degree in finance or economics trying to run banks?? Many of the practices of the current administration have been rebuked by the NAR (national association of realtors) as well as the NAMB (national association of mortgage brokers) by 100% of the members. They are making it harder for people to acquire loans when in fact they are supposed to be doing just the opposite. And this isn’t something Obama can blame on Bush all of these policies are ENTIRELY his administrations. Obama is going to have to eventually man up and start taking responsibility for some of the problems and realize americans are getting tired of of the blame game. I pasted below one such article of the NAR’s opposition to one of his policies……………………………
Dear Fellow REALTOR®,
You may have seen news reports about President Obama’s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.
As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.
As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.
This communication is the first part of our response, we will continue to update you as the situation and events warrant.
Sincerely,
Charles McMillan, CIPS, GRI
2009 NAR President
When McCain ran for president the first time, the democrats made him show his long form birth certificate to verify if he qulifies to run for the office because he was born in Panama in U.S. military hospital in the Panama Canal Zone, where his father was serving in the Navy. That was, in fact, American-controlled territory at the time.
More importantly, his parents were both American citizens, so he could have been born on Mars and still been an American at birth. And a sense of the Senate resolution took care of any lingering doubts.
Why Congress doesn’t insist Obama do the same.
Show the original b/c, not the certification of live birth.
The certification of live birth shows:
1. No attending physician signature or license number
2. No address for the attending physician or hospital
3. No parent signature
4. No parent DOB or age of parent or parent place of birth.
5. Father’s race would not be “African”, that is country of origin. Race would be black or Negro (1960’s)
6. Was this a single birth or multiple birth.
7. No Registrars name or signature.
Barack Obama is not even legally a black American. He only has one black great-great-grandmother on his father’s side while the other 7 were Arab.
That makes him 50% white, 43.75% Arab, and 6.25% black. 12.5% is the minimum required to legally claim any racial status in America.
Obama would quallify as the first Arab-American president, NOT the first black president. That is why they keep saying “African-American” and NOT black because they know he is African Arab and not African black.
amen
Yes.
We now know what to do when obama’s four years are up. GET HIM OUT OF THERE!!!!!!!!!!!!!!! or band together NOW and have him show his REAL birth certificate!!!!!!!!