Greenspan: Give Homeowners Financial Aid

[Amerigo Vespucci]

Source: The Huffington Post

KEVIN FREKING | December 16, 2007 02:03 PM EST | AP

WASHINGTON — Alan Greenspan, former chairman of the Federal Reserve, suggested Sunday that a tax break or other government financial help for homeowners facing the mortgage crunch would be the best political fix for the economy.

He cautioned against meddling with home prices or interest rates to address the housing problem.

Greenspan did not specifically call for a tax cut. Instead, he called for the government to apply money to the severe housing market slump. Such a cash infusion would typically come through a tax break or a new government spending program.

"Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this," Greenspan said during an appearance on ABC's "This Week."

Read more: http://www.huffingtonpost.com/huff-wires/20071216/greenspan-economy/

[PSPS]

1. "Cash is available"

Where? On the well-worn Chinese credit card bush has been literally using to death?

Why not just come out and say, "vote for republicans and we'll buy you a house!" Maybe that's what they're thinking they'll do in addition to the usual, "vote for republicans or we'll kill you!"

[Zynx]

7. I will say this:

If there is not substantial relief to the housing market, the reduction in economic activity might cost us more revenue and more in future bailouts than a fix right now. When recessions strike, government revenue collapses. I would be in favor of a bandaid now to save an amputation later.

[acmavm]

2. Whoa! Wait a minute! Hold up! Pause! What about us homeowners who

didn't go out and buy something we couldn't afford? What about if we've been paying for years and suddenly find ourselves faced with unemployment or illness? Do we get help too?

I feel bad for those who got caught up in this mess but so help me, they should have done the math. I did. That's why I bought a house ten years ago that was built in 1910 and was kept up very very well. (I still have two old time gas jets in my house that have been turned into light fixtures.)

I'm making my payments and I'm employed. But what about people like me who are caught up in layoffs and outsourcing? If they are going to lose their homes will they get help as well?

[Zynx]

8. I think we should bail out those with home values in the bottom quartile

of their respective markets. Screw those who went out there and bought their "dream house".

[Lance_Boyle]

13. that might include

responsible borrowers with fixed-rate mortgages, too, who "settled for" houses they could afford, that happen to be in the bottom quartile of their local housing market. As one of those homeowners, I could almost get behind that idea.

[joeglow3]

14. EXACTLY!!!

This kind of bugs me. When we bought our house 7 years, we were VERY responsible, even though agents tried to get us to buy bigger homes and banks tried to loan us more money. Now, after be VERY responsible, we would like to upgrade our house, but can’t because home prices have sky-rocketed. The market NEEDS a correction, but bailing people out will prevent that. Thus, while I should be able to get a nicer house due to me being willing to live way below my means, I cannot.

[treestar]

3. Is he against assisting the poor?

Interesting, because if we're going to help someone, it should be the very poorest and those without health care, rather than those at least well off enough to buy a house.

[swag]

4. Yay. Mr. "Free Market" is for government intervention.

What a fucking asshole.

[bluerum]

5. When are people going to wake up. Go after the loan sharks who sold

the mortgages. All this crap about pushing more cash to the homeowners is bullshit. Homeowners will just going turn the cash over to the institutions that own the mortgage backed securities. This seems like another scam to funnel cash to the rich - and keep them from losing 2% of their net worth.

What a fucking scam. The only people who really get screwed are the homeowners who lose their homes and us, the people who provide the payoff for the investment industry.

Bastards. They have us coming and going.

[Javaman]

6. Translation:

greenspan is trying to unfuck his willful fuck up.

you know, legacy and all that.

[lonestarnot]

9. Nutfuckery is just nutfuckery; no two ways about that.

[redqueen]

10. Sorry kids... no money for health care, but maybe we can bail all those greedy

people who bought more house than they could afford with those newfangled, fancy-schmancy loans.

Oopsie! So sorry... maybe next time...

[Acadia Blue]

11. He cowardly went along with Monkey man, and helped create

this disaster. People were warning that we should not give the richest tax breaks during war, but GReenie went alont. Now, oh yea...now he says "its ok to reaise taxes." ha haha

[EFerrari]

12. This old whore should be playing golf somewhere. n/t

[neverforget]

15. I play by the rules, make my payment on time and what do I get? A house

that is depreciating and, if this plan were to go through, more taxes to bail out the irresponsible. Sounds like a good plan. Go f-yourself Greenspan.