Three Ways to Fix the Housing Crisis

Don't forget to feed the animals. The roof is leaking.. We can't pay our mortgage! Take it easy........

A mortgage is what? I see now...wow....

Bulls@$t. all you have to do is look at the waste and poor managment in programs such as Social Security, TARP, Katrina relief, Funding for both wars, and etc and you will see the Government has not got the ability to handle this

Bring Morgage Rate to 4%!!!

How about: 4. Let house prices fall to the level that is in line with historical incomes, so that buyers will finally get off the sidelines. The longer they prolong the inevitable bottom, the longer this recession will last. In California, we are not even close to a bottom in prime areas, and you can't prop. up a median price of $750K+ with HHI of $75K or less and 11% unemployment.

This is more smoke and mirrors. the market reponds to all this fed money and it does not change the fact that people who dont have enough money to support their lifestyles and untill the idividual debt is reduced and people live within their means, the economy will continue to decline this upswing is temporary.

Yeah, putting the government in charge would be a grrrrrrrrrr 8 idea ... Look at how they have handled things so far...

I think we should at this point bail out the Government, Right? WOW!

Oh and to all of the people who have been paying their mortgage on time, we give you...NOTHING!!! Just keep on paying so that we can use your money to help those who are unfortunate. Sure, you may slip in the next few months as well, but when you do, we'll give you a better deal, but only then. The real issue is that the government is not offering the same deals to those who have been responsible in paying their loans. The same deal should be offered to those who are responsible and this will cause a lasting rebound.

The government activities are only helping to let the air out of the housing bubble slowly. The housing crisis will not end until home affordability returns. Historically low mortgage rates are only a short term solution (not sustainable). Don't be fooled by the "historically low interest rate" argument to buy housing today. Foreclosure moratoriums also just delay the inevitable - these people could not afford their houses in the first place - they never really owned them.

jharrington32 is right on. Nobody ever mentions that solution. The reason neighborhoods are falling apart is because these foreclosed homes and REO homes are still asking ridiculous prices. Nobody wants their precious bubble prices to go away, so everyone is sitting tight while complaining that noone is buying the dump next door for 8x median income. CA is the WORST offender of this. Prices still need to fall 50% from HERE at least to come in line with reality.

Yea! Just foreclose and live in a box man...Call somebody, "ya know?" The fed can help ya, just give him a call, man. Take it EZ dude.

GVT, HAS BEEN A LANDLORD FOR DECADES,,"5 TO 10 MILLION PUBLIC HOUSING UNITS, PAY "ZERO"TAXES.. THAT GET TORN DOWN EVERY 20 YEARS, AND REBUILD AND STILL "ZERO TAXES". FROM "HIGH RISE "TO "ROW"TO "MIXED INCOME".. WHATS NEXT..MILLION DOLLAR FORCLOSED "COMMUNITY HOUSING"".....IS IT ANY WONDER NO ONE CAN AFFORD ,A MORTGAGE.SCHOOL TAX ,COUNTY TAX INCOME TAX, HEAD TAX. . ,REPAIRS, INSURANCE, GARBAGE,.ETC,ETC,ETC, .MY HOME WAS BUILT IN 1929.. "YOURS""... AND YOU GET A LITTLE TIRED OF BEING THE "ORPHAN" IN SOCIETY.WHERE "PROGRAMS"ARE FOR THE BANKRUPT.... ....

GVT, HAS BEEN A LANDLORD FOR DECADES,,"5 TO 10 MILLION PUBLIC HOUSING UNITS, PAY "ZERO"TAXES.. THAT GET TORN DOWN EVERY 20 YEARS, AND REBUILD AND STILL "ZERO TAXES". FROM "HIGH RISE "TO "ROW"TO "MIXED INCOME".. WHATS NEXT..MILLION DOLLAR FORCLOSED "COMMUNITY HOUSING"".....IS IT ANY WONDER NO ONE CAN AFFORD ,A MORTGAGE.SCHOOL TAX ,COUNTY TAX INCOME TAX, HEAD TAX. . ,REPAIRS, INSURANCE, GARBAGE,.ETC,ETC,ETC, .MY HOME WAS BUILT IN 1929.. "YOURS""... AND YOU GET A LITTLE TIRED OF BEING THE "ORPHAN" IN SOCIETY.WHERE "PROGRAMS"ARE FOR THE BANKRUPT.... ....

Government do this, the government do that. Its the government meddling in the economy (make that intrusion in the economy - low interest rates etc ) that caused the problem. This "solution" is the disease. The government should mind its own business and let market forces resolve the problem. But nooo, like the mother in law, it cant. Get a life government and mind your own business.

jharrington32 is right on. Nobody ever mentions that solution. The reason neighborhoods are falling apart is because these foreclosed homes and REO homes are still asking ridiculous prices. Nobody wants their precious bubble prices to go away, so everyone is sitting tight while complaining that noone is buying the dump next door for 8x median income. CA is the WORST offender of this. Prices still need to fall 50% from HERE at least to come in line with reality.

After 50T bailout, the governt will assume all debts from everyone, the economy will grow and people start to spend like crazy on credit cards and houses. This is called addiction.

This professor is much better at indentifying the problem than trying to fix it. 4% mortgages for those who put at least 10% down will do much more to stabilize prices than anything else. Rates should be even lower for those who put 20% down. Gov't should not prop up unsustainable prices.

Government do this, the government do that. Its the government meddling in the economy (make that intrusion in the economy - low interest rates etc ) that caused the problem. This "solution" is the disease. The government should mind its own business and let market forces resolve the problem. But nooo, like the mother in law, it cant. Get a life government and mind your own business.

Let's try a different approach to all of the mayhem created by the truly greedy and dishonest banking industry(more specifically: mortgage brokers). Here's a huge what if. But what if we did not allow the banks to be bailed out but instead allowed them to borrow from the national treasury at 1% APR. Put more of the onus on them to pay back a loan instead of making John Q Public bail them out!!!