It is quite remarkable that no one expects the housing crisis to be addressed in the presidential campaign. It is clear that the banks have gotten over on everyone with the real estate companies jumping on board to side with the banks. I am sure we will see a different tune in Las Vegas after people are held accountable and are taxed for the amount of debt relief they get with a short sale or foreclosure. Currently the Las Vegas market is seeing short sales as the preferred method of sale and with 60% of the home owners underwater ( according to the article linked below) what else could be expected? It is as if we are living in bubble that has little to do with reality. It is as if the politicians are trying to ignore the issue because they know the banks and the self righteous can sway the election.
It is clear the housing crisis in Nevada is no where near being over and will not be for several years. The short sale will not be the saving grace as it will only continue to burden the economy as people are taxed on the forgiven debt. If they are not taxed it will be because they are insolvent and likely incapable of buying another home. It may even prove difficult for many short sellers to find quality rental space.
In an attempt to be positive we can hope that much of they housing back log owned by the banks and by Fannie Mae is being cleared from the market by massive purchases from private investment firms (as we see happening in Florida) . This could possible speed up the process of market clearing and start to move the market toward equilibrium as well as transfer more and more of the country's wealth to the elites. Rather than let the banks fail, as should have been the case, and let private investors take over, they government has chosen to prop up the banks with taxpayer funds and feed sweet deals on real estate to massive equity firms. If the banks would have been allowed to fail and be taken over by private investors we would have seen far more measures taken to reduce mortgage debt and keep homeowners in their property. We would have seen recovery long ago and the market would be on the upswing again even in Las Vegas.
But of course politicians and elitists alike are so attached to the banks and big money there was no way we would see the major banks fail. Bear Sterns was used at the excuse to keep dying banks alive. It was all smoke and mirrors and we have seen nothing but the rich getting richer and taking over more and more of the country's capital. The average American has been wiped out and in Las Vegas people are going to be suffering for many more years. The housing will never get back to the levels we saw in 2006 but banks are free to go about their business and leaving the home owner to hold the bag.
Banks were rescued and banks have killed the economy. All the government programs that were to help the homeowner helped virtually one. The only beneficiary has been the banking institutions and those on Wall Street. It has been criminal but there is no accountability. Laws put into place in Nevada were meant to help homeowners have only served to prolong the housing meltdown. It is now a war of attrition with home owners and citizens of the state losing out because the banks have deeper pockets. The banks are going about business as usual pretending they are abiding by new rules and pretending they are doing something to help the recovery. The truth is that banks are not doing a thing to help the recovery and they are actually delaying the recovery. The float just enough propaganda to get stories out about a few people that have been given sweet deals so other people will hope and wait. They get people to jump through hoops over and over again in the hopes that the exasperated homeowner will finally just have to give up and move on. This again is a win for the banks. It is of course a loss for the economy and a loss for the neighborhood.
It is clear that no one really gave a dam about finding a solution the housing crisis because where the money goes so goes the power. No politician when facing re election will ever step on the toes of the banks. They will spin everything they can to give the impression they are on the side of the people but they will conspire in private to keep the money in their hands. It is clear we have become a state run by big money. Follow the money and you will see the undeniable ties between the governments and Wall Street. The system survives because people have been brainwashed into believing middle class, now lower middle class, something to be hailed as wonderful. People are willing to accept wages which will not pay for normal living standards so billions and even trillions can be paid for government election campaigns and CEO bonuses. How could it be structured that the executives of failing companies (ex. Citibank) have their CEO paid hundreds of millions of dollars?
I can see the entire system is based on corporate and state/government bedfellows. Even the real estate companies and the NAR (National Association of Realtors) are buying into the government/banking rhetoric. We see that the propaganda from them all could be produce for each other because they all repeat the same things. They want everyone to be satisfied with high unemployment, a short sale, and a tax break, even though it means moving to an apartment and having no savings left for retirement.
We have lost sight of why our country was founded in the first place and we have become exactly what we were dead set against. The Revolution is such a distant memory but I am sure those who were willing to fight and die to be free from the Queen would abhor our current situation.
Few housing solutions offered in presidential race - CBS News
Thursday, November 1, 2012
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