The Democratic party, not unlike than the Republican party, is becoming more and more extreme.
As the housing correction churns on and housing prices fall to where they should be, the government is considering legislation to purchase these bad debts, these mortgage securities, taking them off the books of the financial institutions.
There are many reasons a mortgage bailout is a bad idea, but an excellent article at homeguide123.com, forwarded by patrick.net outlines the three biggest reasons why it is a bad idea.
Notice I didn't say crash or drop.
It infuriates me to hear a "real state market expert," from a major real estate sales firm or mortgage company, get on the radio or television and say things such as now is the best time to buy, or the market has never seen such low prices. Of course they are going to say that because these "experts" have an agenda.
I hate to say "I told you so," but I did...
The economy is now taking a beating as the situation with the housing market worsens. It all started about a month ago with record defaults in the sub-prime lending market. Simply put, people purchased homes they could not afford. I should say it all started with the mortgage boom back in 2003. Rates were at an all time low and housing prices were also low.
The housing market in Washington State is terrible as it is in many places around the company. Real estate prices are skyrocketing out of control in this area (the greater Puget sound), way beyond what most people can afford. There are "condos," glorified apartments really, selling for $175,000 in some of the worst areas in these parts (Casino Road for the locals). These apartment conversions were built in the 60's, are barely 1000 square feet and are, as mentioned, located in one of the worst parts of this area. A house is going to set you back $300,000 dollars minimum.
