So, if you are like me, you may be wondering exactly what caused the housing problem, who's responsible and why I have to pay for it. As I understand, basically ACORN, and other polictical active organizations forced the banks, with legal action, to loan money to those who otherwise would not qualify for loans, then Fanny Mae and Freddy Mac repackaged these loans into a faulty investment vehicle. Then when too many of these loans defaulted, the banks went bankrupt. Now the government is bailing out the banks, so they don't have to close, with our tax dollars.
I found these videos that explain the housing crisis in clear understandable terms. When you view all three you get a haunting picture of the full-circle effect of what is really to blame for the financial mess we're in.
This first one is long, but WELL worth the time. http://www.hulu.com/watch/59026/cnbc-originals-house-of-cards
Here are more KEY elements of the story. http://www.youtube.com/watch?v=ivmL-lXNy64
Here is an important projection of what might be in store for our country.
http://www.youtube.com/watch?v=lqkMfToY9Pk
Please watch all three videos. The first one does not give a complete story and does not address the ACORN involvement at all. The second does not go into detail about the complex investment strategy required to fund these "ninja" loans, and the third is commentary that ties everything together and forces you to look at the ramifications of such unethical practices.
Now, what will fix this mess? I believe it is buying homes we can afford. Most of my out of town relatives cannot believe it, but you can find a home for less than the price of a used car in the Pittsburgh suburbs. Most of the listings my husband and I look at are in the 10 to 15K range. That my friend is AFFORDABLE housing. not these 250 to 500K mansions sitting on a postage stamp sized lot cut from what used to be farmland. Not only that, zillow.com shows favorable home values in the Pittsburgh area and Business Week reports Pittsburgh as one of the best places to ride out this recession.
Are these ten-thousand-dollar homes pristine? No, but they certainly are livable. Most need very little in the way of upgrades and can be presentable by throwing as little as 2 or 3 grand at them. Do they have pools? No. Do they have new infrastructure? No, but people are living and working in them.
The simple fact is that you spend more for a newly build house. If you really want to go green, reuse what is already here and buy a used house. That keeps way more cash in your pocket, and saves way more natural resources than tossing your Dasani bottle in the recycling bin.
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