I live in Massachusetts and I don't think my state ever votes anything but Democrat in a presidential election. I think our state motto is "Vote Democrat"...I think it's on every license plate. So when our president makes an error in judgment The Boston Globe almost never reports it. The error here are the new economic programs that are going to lift our business out of the gutter and bring back "the good ole days" when everyone could get a loan.
Right now if you have a mortgage rate above 4.5% you are probably looking for a lower rate. Treasury Bills are getting so close to zero that it's almost ridiculous. You sometimes feel stupid if you are the only person you know who still pays their mortgage. And with the HASP and HARP easy money programs that promise (and rarely deliver) low interest rates on a refi you wonder when the end will come.
Previously occupied home sales are down 26% or is it 27% this month. How can the news get any worse. I usually just hear about new home sale sales are up (let's face it...how could they go down since builders stopped building a couple of years ago) and mortgage loan applications are up (sure...look at the re-fis...not new sales mortgages). All in all our president has his work cut out for him.
I propose this to President Obama: The US Government just holds ALL the mortgages in the country (that's what it's coming to anyway) and everyone pays just .01%. That's right...basically zero. Our dollar is worth almost nothing so what difference does it make anyway? This way everyone cuts their living expenses way, way, WAY down...and that actually increases spending because everyone feels like they are rich again. This is only for current owners...and you must be a current owner by March 31, 2011.
Do you think that would solve the problem? The banks get ALL their loans bought, the homeowners get a break, and Obama just might get re-elected...I mean...he needs to do something fast...NO?