New mortgage limits: Another hurdle for the housing market? - MSN Real Estate There's no reason for me to even pick parts of this article to rebut. The entire thing is horrendous. Have we not learned that Keynesian economics is a fairy tale? Have the Austrians made no impact at all on mainstream thought even though their ideas have been consistently proven right while mainstream economics (Keynesian) is consistently proven wrong. Does it take a genius to see that the very cause of the housing problem, namely government securities and artificial interest rates, can't fix the problem. The problem is debt, and the only solution proposed is more debt. How is this insanity still the prevailing "wisdom"?
It looks like the state is reducing their role in the housing market, which will raise costs from their artificially low level. Sucks for me cause I'm trying to buy in NYC right now, but this appears to be a step away from central planning.
That isn't the point I'm making. The point is that this step away from central planning (a very small step) is seen as a bad thing. Quotes from the article. The problem in the first place was loans that were too easy to get. The correction is making loans harder to obtain. The very thing they say are "obstacles" are actually the solutions. Not good in any way? WTF!?! It's good because it's absolutely needed. The government is actually still doing lots of damage by keeping the housing bubble from deflating like it needs to. The housing market is struggling BECAUSE of high loan limits, among other things, and this person is saying we need more of what caused the downturn in order to fix the downturn. The economy doesn't need people consuming just for the sake of consuming. That right there is our whole economic problem summed up in one sentence. The economy desperately needs people to stop consuming, and start saving again. Capital needs to be redirected where the market needs it. The market needs to correct itself but it's not allowed to do so because of government intervention. This will only make the problems worse in the long run. It blows me away that this way of thinking is still seen as legitimate and the way to economic progress. It's insanity to me. Ron Paul is our only hope.
Nobody cares in America. People are too worried about getting more hours for their jobs, fast cars, fancy foods, how to be richer, how to have a bigger house. There are people like me though, who are called crazy for telling people money is whats going to bring this nation down hard.
Psh. The government is reducing the level which they "insure" banks mortgages sold by banks to homeowners from $729,750 to $625,500.. This move will essentially make it more difficult to get into more expensive homes (because of additional risk to lenders) and will end up reducing the value of those homes in the long run. They government has created an artificial mess.