ST Alpha - "If the Federal Reserve said in the morning to you that they want to buy 30% of your house (and base that 30% on the highest boom time price your house" (Reading a Post)

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If the Federal Reserve said in the morning to you that they want to buy 30% of your house (and base that 30% on the highest boom time price your house

Posted by Loyola Oct 18 '10, 15:14

would have achieved if sold) would you go for it? You use the money to clear your mortgage and whenever the house is sold again in the future, the Fed gets 30% of the sale price.

Responses:

Another idea popped into my head: what if we impose a moritorium on building new homes? -- nm - mara Oct 18, 15:48 9
- Cutting off the head to cure a runny nose -- nm - Lon_cHaneY Oct 18, 15:57
- If there's no market for them, they don't build. Or, instead of selling them as condos, they rent them as apartments. -- nm - jnine Oct 18, 15:55 2
  - bargains for upscale renters as many condo projects (gotta have granite counters for those buyers) are now rented instead -- nm - zeitgeist Oct 18, 16:10
  - more building permits means more tax revenue for cities and towns. you could expect municipalities to freak right out.... - bankers Oct 18, 16:01
- it's called "home builders going bankrupt". -- nm - Reagen Oct 18, 15:53
- [deleted]
- ahem. -- nm - Construction Industry Oct 18, 15:49 2
  - don't forget us!....nm - bankers Oct 18, 15:50
  - True. But they'd still have commercial buildings, and additions/renovations. -- nm - mara Oct 18, 15:50
maybe, but i'd have to also tell them they were idiots who should just back the eff off and allow the market to work.....nm - tremendous machine Oct 18, 15:45 4
- I'm working from the point of view that a great deal of culpability for the property crash can be directly attributed to low interest rates which - Loyola Oct 18, 16:00 2
  - the reality is, there is no easy fix. if it takes years, it takes years.... - x Oct 18, 16:04 1
    - We were talking about this in the pub Sunday. It'd be interesting to work it up properly, cost it out for mortgages involved, give it to the local - Loyola Oct 18, 16:10
- sfan...nm - x Oct 18, 15:46
Do I need to have an existing mortgage to qualify? -- nm - MojaveMeg Oct 18, 15:34 3
- Probably. And probably only for mortgages taken out 2002-2009. -- nm - Loyola Oct 18, 15:36 2
  - this is a terrible idea. you're basically punishing people without debt. -- nm - mafic Oct 18, 15:48 1
    - Well that's the thing, but it's the quickest way of turning the on switch on the economy again. - Loyola Oct 18, 16:07
No way. -- nm - Dr.Vermin Oct 18, 15:28 5
- Why not? -- nm - Will Hunting Oct 18, 15:29 4
  - Due to all the improvements we've made to this house, it's never been worth more than it will when we sell it. It would be a poor deal for us. -- nm - Dr.Vermin Oct 18, 15:40 2
    - It's higher value than it was 3 years ago? - Will Hunting Oct 18, 15:41 1
      - Oh yes. And I'm fine taking money from the gov't, when it's profitable. :) -- nm - Dr.Vermin Oct 18, 15:44
  - socialism! -- nm - mafic Oct 18, 15:33
Yeah. My rough calcs on my house would be about $20k more in profit for me. - Will Hunting Oct 18, 15:20
all this ends up doing is artificially inflating real estate prices. - mafic Oct 18, 15:19 4
- I think it has the added benefit of helping real estate find its floor faster. - Loyola Oct 18, 15:27 2
  - when you flood the market with free money, all it does is knock prices up in the short term. - mafic Oct 18, 15:47 1
    - very often artificial intervention is little but a short term mug's game...nm - x Oct 18, 15:49
- seriously. If your house is worth less now, you sell it immediately. -- nm - Reagen Oct 18, 15:20
are they going to be dicks about the color i can paint it or something? -- nm - TFox Oct 18, 15:17 1
- No not at all, they won't even ask to sleep over or anything. -- nm - Loyola Oct 18, 15:18

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If the Federal Reserve said in the morning to you that they want to buy 30% of your house (and base that 30% on the highest boom time price your house

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