FSBO BLOG

The Federal govt keeps talking about getting the unemployment rate down, and the past stimulus just doesn’t seem to work. That’s because all of the benefit went to banks and they are hoarding the money. In todays bad news about June/July US home sales you need to read between the lines. 30% of the sales were with cash (no bank involved), these are mainly investors buying at bargain prices. These investors then hire workers to fix them up, increase the value. This helps the unemployed and neighborhood values (which reduces the number of underwater properties).  These investors are begging to buy more and help the whole situation, but the banks won’t lend and the Fed Govt can’t figure out how to help. I’ll tell you how. I call it the ‘Theo Plan’. Raise short term rates charged to banks and use the proceeds to offer investors a 1% mortgage rate with 20% down to buy bank/FNMA owed properties. I sound like a broken record but this solves the following problems: 1.Unemployment 2.housing inventories 3.tax receipts to Fed & State govt 4.foreclosure rate 4.real estate, stock market/401K values 5.the list could go on and on.

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This entry was posted on Tuesday, August 24th, 2010 at 10:12 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.