Obama Throws in the Kitchen Sinkby Gerri Willis
It's time for some straight talk on the President's housing plan that he announced to great fanfare today.
To put it in the simplest terms: it's not going to work.
Why do I say that? Prior record. I’ll show you the programs the government has already put in place to rescue housing, and their impact.
So far, President Obama has spent a total of $1.64 trillion to stabilize the housing market - enough for the Federal Government to buy nearly 10 million homes outright.
That's more than all the homes lost to foreclosure since the housing bubble burst.
Think about that: the government has spent enough money to buy nearly 10 million homes outright - more than all the homes lost to foreclosure in the past five years.
Here's what we got for that money:
That's a lot of your taxpayer dollars down the tube.
So let's look at the impact. Did this government spending fix the housing market or at least stabilize it?
Home prices in major markets are down 33% on average in major markets, according to Case Shiller Weiss.
Meanwhile the national median price has gone nowhere but down. Home sales are running at a rate of 4.6 million a year.
There were 7 million a year at the top of the market and a good market is considered 6 million in sales a year.
Foreclosures this year are expected to tally 1 million -- more than 2011.
The evidence is in and it’s not good.
The housing market is still going down, not up. Government programs have failed so to prescribe more of the same? Crazy.
I'll tell you what this document really is – it’s a campaign document. A lot of promises that are sure to go unfilled, but put into the marketplace to make people feel good.
There is one thing that would cure the housing market, and it doesn't involve bailouts -- and it's simple: jobs.
Regular incomes would allow Americans to buy homes and that would get the cycle started again.
Spending all this money isn't going to do it.