Thoughts and Fears about Stimulas for Home owners
This week the Obama administration announced plans to help homeowners avoid foreclosure. I saw the Chairperson of the FDIC, Sheila Bair, talk about it on CNN and I heard people talk about it on KQED Forum. People have been talking about the plans and try to figure out what is really in the package. Even with the package being announced, people are not sure how it is really going to work.
I ask the question, "How important is it that the Stimulus package be fare in the way it helps homeowners?" When I was listening to KQED I was getting angry. I am not a home owner. I have been sitting in Silicon Valley watching house prices get further and further out of my reach. The housing bubble had a lot of air around here. I am angry at the idea of those house prices not getting to the bottom. I am angry that my tax dollars will be keeping the price of the house I buy someday higher. It is if I can ever afford to buy a house. I am worried my tax dollars will build the wealth of home owners.
Today on CNN I saw Housing Secretary Shaun Donovan say, "This package helps all Americans." Then he went on and talked about how all house prices go down when I house is foreclosed on and all homeowners should support this. I guess I am not an American because I do not own a house.
I am not too worried about the fairness of who gets help and who does not. I am not worried that we are not helping people who will stay current without help. Helping them is a waste of taxpayers money. I am reading a lot from these homeowners in the papers.
My fear is clear, I am worried that house prices will not reach the bottom. I have spent the last decade watching home ownership get further and further away from me. Even as my career has improved and my salary has increased, I still not afford to buy a condo without help. I am worried that if house prices do not hit the bottom there will be another bubble. I am worried that fixing the Crisis will not fix the problem. I am worried that we will back at this point again if we do not fix it correctly.
Also Read: WSJ Dukes of Moral Hazard
I ask the question, "How important is it that the Stimulus package be fare in the way it helps homeowners?" When I was listening to KQED I was getting angry. I am not a home owner. I have been sitting in Silicon Valley watching house prices get further and further out of my reach. The housing bubble had a lot of air around here. I am angry at the idea of those house prices not getting to the bottom. I am angry that my tax dollars will be keeping the price of the house I buy someday higher. It is if I can ever afford to buy a house. I am worried my tax dollars will build the wealth of home owners.
Today on CNN I saw Housing Secretary Shaun Donovan say, "This package helps all Americans." Then he went on and talked about how all house prices go down when I house is foreclosed on and all homeowners should support this. I guess I am not an American because I do not own a house.
I am not too worried about the fairness of who gets help and who does not. I am not worried that we are not helping people who will stay current without help. Helping them is a waste of taxpayers money. I am reading a lot from these homeowners in the papers.
My fear is clear, I am worried that house prices will not reach the bottom. I have spent the last decade watching home ownership get further and further away from me. Even as my career has improved and my salary has increased, I still not afford to buy a condo without help. I am worried that if house prices do not hit the bottom there will be another bubble. I am worried that fixing the Crisis will not fix the problem. I am worried that we will back at this point again if we do not fix it correctly.
Also Read: WSJ Dukes of Moral Hazard
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