Obama Housing Fix: Live in Your Car

It certainly seemed more like a State of the Campaign address. Obama referenced a guy, one Bryan Ritterby from Michigan who lost his job but found work at a factory that failed when it "only manufactured luxury yachts but now manufactures wind turbines. Wind turbines will save us. Everyone sing the Obama song. Now Bryan is soooo happy and I'm a great president because I won't abandon workers like Bryan Ritterby. 

Instead he'll tax to business owners like Joe the Plumber.

How self serving is that little quip, somehow left out of the official, NYT transcript? Michigan is about as Mitt Romney territory as anyone could ask for. Evil luxury yacht manufacturers fail. Green technologies win. Evidence says otherwise (how much did we pay for Solyndra?) but Obama simply dismisses that with a concession that sometimes it takes a while to pan out and some businesses fail. No! Really? Solyndra cost taxpayers over $500,000,000! How much is the entire green energy costing us? 

The state of the Union is being largely ignored in Washington.

WAIT!  That was a State of the Union Address?  I thought it was a campaign speech!  Sorry, he spews fabulous rhetoric but, even my family, full of dems, is going the other way in 2012.  We have GOT to have someone who can run this country like a business and get us back on track.  Housing should have been front and center during this term and we've been waiting in the back row, with our hands held high, yet to be called upon.  

Honestly, voting doesn't mean what it used to anymore.  We don't have viable options either way.  It's a sad state of affairs for us.  We need someone at the helm who will do FOR the people--not go in with their own personal agenda.  This is the absolute worst I've ever seen this country but, I do believe that the American people are quickly landing on the same-page--more so than before.

Great post, Phil!

Phil -- You got it right. Highway to hell. Just 'touching' upon the issue of the housing crisis only affirms that the POTUS and all his minions are out of touch. Live in your car?  Better not be a VOLT!

Lenn Harley said and I agree:

"The housing industry, particularly the residential housing industry is largely run by Republicans since we that fuel the industry sales and revenues are primarily self employed small business persons

I'm curious what NAR or other real estate brokers suggest as a solution to fix the "housing crises" I thought most  Republicans, like you are "captalists", "free market economies"  "supply and demand" small government" etc.

It sounds like you want the government to "fix" bad investments, "bidding wars" "paying over asking Price" "waiving contingencies" "speculating in real estate,""trying to time the market" "flipping" "creative financing"

Any home buyer who thought buying a home was the equivalent of a winning lottery ticket or was advised by their agent that prices only go up and never down were ill advised.

Thank goodness for the diversified employment base, foreign buyers and the stabilizing influence of equity-requiring Manhattan coop boards.

@ Carla #8 "If they bought their house for $250,000 and fair market value is now $200,000 . . . hmmmmm.  Underwater home owners don't matter to Obama, nor to anyone in politics".

Should Obama and taxpayers buy it from them for $250,000? Maybe they should stay 10-15 years since real estate markets go in 10-15 year cycles. Booms and Busts, bull and bear markets.

I bought my place in 1989 for $200,000 in 1993 it was worth $130,000. Because of a "fire sale" sale similar units sold for $108,000  Today it's worth $750,000. I also had an ARM wiith negative amoratization and I also lost my retirement savings by picking bad tech stocks.

"Mitt Romney said let the housing market bottom then it will correct.  I agree with him on that but I doubt I will vote for him.

Investing and buying real estate is a long-term investment/home not an entitlement.

Personally, none of the government, Democrat or Republican is doing a very good job of solving anything,  Obama didn't create the housing crisis; however, he and everyone else in office push it to the side.  It simply doesn't matter to them or...they don't know what to do to fix it.  This is all about politics and getting re-elected.  

Oh sure, we can pretend American workers are the greatest, (and we were!), but sadly, the bar has risen to Chinese and Indian heights that few Americans are willing to touch. I wish it weren't true, but here we are - terribly arrogant and spoiled - and unemployed and losing our homes. And if we don't get in touch with our inner hard-working spirit, we'll be calling parking lots the new sub-divisions. Seriously, we need to get our kids off Facebook and focused ON education and excellence. Obama has made that clear. And China has made it their triumph.

http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html

I chose not to watch it.  I assumed it was his first re-election campaign speech.  Guess I was right.

J. Philip - He sounds good and talks a good game, but why do so many who are supposed to help run the country ignore what so many say is one of the main root problems of our current economy?

@ Mitchell ... my point is/was how can the 're-fi' help those people underwater.  I don't suggest taxpayers should pay the difference.  I suggest that people listen with both ears and understand how the people who really could benefit don't have a snowballs chance with a re-fi.

I will have to catch a re-run.  I'm sure he will touch on all the issue's soon.

The speech was filled with platitudes. The current administration's intent is to make the people dependant. Obamacare, rent your home from the government, take government handouts. Jobs is the thing. If people don't have jobs they can't buy much of anything. The people have to decide for themselves what they want. Do they want a government that is going to take care of them (nanny state)? Or do they want a government that allows them the freedom to create the life they want? 

The State of the Union is almost always a "rah rah...look at all we've (or in this case "I've" might be more appropriate) done in the past year", and in an election year that's amplified exponentially. Since there certainly hasn't been much success in helping our industry out, I wasn't surprised it was glossed over. I share your frustration and can only hope some aspects of the housing market will be addressed this year, and sooner rather than later.

@ Carla, My point is it's not the mortgage that is the problem for most people it's they can't deal with losing equity (on paper) The house is the same house and they should enjoy it the same whether it's worth $200K or $250K. The mortgage payment doesn't change when the house value is lowered on paper. It is only a problem if they have to sell in the short term. Patience used to be a virtue. Now everyone wants instant gratification. It's not the first time we had a housing crises or a recession they usually go hand-in hand and it won't be the last. History always repeats itself but most Americans either have short term memories or are too young to remember the last "crises"

50+ comments on this thread all negative gloom and doom and complaining. This won't help that won't help. Unfortunately I did not read one comment with a solution to the "housing crises" except perhaps Jennifer #49's comment that education leads to good jobs. She's right many Americans are arrogant and spoiled. They make fun of a Harvard education and admire the likes of "Joe the plumber"  who is not even a licensed plumber.

@ Mitchell. Great comments. However, a blog post such as this is not a forum for intellectual discussion of ones views based on education and experience. Blogs like this one are only staging grounds for heated rhetoric and sound bites. Just look back at all the open complaints about our peers and the occasional wonder of why the public views as they do.

Even as Philip offers a conclusion to his post with his "ideas" on correcting a problem that has well begun to correct itself under our current President, he will be unable to point to any political canidate that embraces his views or would have done a better job given the state of the union when Obama became President.

While I like and respect Philip, he must be trying to appeal to his market in Westchester and I wish him good luck. Westchester median income is well below that of the $250,000 threshold of the target income to have a slight tax increase. So, I don't even understand his targeted market. And, as most agents in real estate are locked out of affordable health care insurance, their strong stance here against the health care plan that is due to come into effect seems a bit odd to me.

However, I do appreciate your well articulated thoughts and decided to give you the - clap, clap, clap. I think you deserve. Good Luck. And, Best Wishes.

Go G I A N T S ! ! !

Philip,

I'm ok with provocative and I enjoy discussions and your posts. It gets boring when everyone agrees. I'm pro business but I am not against all government regulations unlike many activerain members. Apparently you're not either.

It was the Bush administration that made JP Morgan Chase, Citi and BofA bigger monopolies while throwing Lehman Brothers under the bus. In fact in my market there was no housing crises until the demise of Lehman. It wasn't really a crises just prices declined steep and fast after Lehman closed. Unlike other markets that had a gradual decline based on sub-prime mortgages and other mortgage related reasons. Lehman was a big employer here. I had clients there. We are almost back to pre Lehman prices and some sellers depending on the neighborhood and buildings not including ultra luxury condos that bought 06/07 that sold in the last 6 months are making a profit.

It may be the worst crises in 50 years according to Case Schiller in many markets but I don't consider their data accurate or credible. Personally I thought the 70's and early 90's were much worse. At least here. NYC went bankrupt in the 70's and the housing market decline and recession of the early 90's (following the bubble go go 80 Reagan years) was worse for housing because back then we had a glut of inventory. Tons of empty brand new buildings including mine were built in the 80's remained unsold for a decade. This time there was not a glut of overbuilding in Manhattan. Florida, Arizona, Las Vegas, parts of California have a glut from building and sprawl. Stop new construction and inventory eventually gets absorbed. A 10 year old home is considered old in Florida, everyone wants brand new.

@Gregory. Thanks I appreciate your comment.