Bank Failures in the United States

[Natural Elements]

"The Obama administration, in a major shift on housing policy, is abandoning George W. Bush’s vision of creating an “ownership society’’ and instead plans to pump $4.25 billion of economic stimulus money into creating tens of thousands of federally subsidized rental units in American cities.

The idea is to pay for the construction of low-rise rental apartment buildings and town houses, as well as the purchase of foreclosed homes that can be refurbished and rented to low- and moderate-income families at affordable rates.

Analysts say the approach takes a wrecking ball to Bush’s heavy emphasis on encouraging homeownership as a way to create national wealth and provide upward mobility for low- and working-class families, especially minorities. Housing and Urban Development Secretary Shaun Donovan’s recalibration of federal housing policy, they said, shows that the Obama White House has acknowledged that not everyone can or should own a home."

http://www.globalresearch.ca/index.p...t=va&aid=14842

[andr97]

You know in my country the situation with private houses is almost the same.A lot of people have to share 1 room flat with others in order to afford high rent sums, as for private houses, you may afford them only far from big cities,as near them the price is much more higher than an average salary

[Natural Elements]

Foreign banks can't save everyone
A big Spanish bank bought the remains of failed Texas thrift Guaranty. But most overseas giants have their own problems.

http://money.cnn.com/2009/08/21/news...ion=2009082119

[South]

So we're going to drop the plan of encouraging everyone to own a piece of the country so that everyone has a personal stake in it's success..

to...

Ghetto coast to coast. Inner city Chicago nationwide.

Boy, we really did pick a winner didn't we?

[Natural Elements]

That's globalisation South (sarcasm), a lot of our French historic castles are sold to foreign countries, that's sad to see that we are not able to keep our own monuments.

All countries are bankrupt these days...

[txshellie]

Originally Posted by Natural Elements

"The Obama administration, in a major shift on housing policy, is abandoning George W. Bush’s vision of creating an “ownership society’’ and instead plans to pump $4.25 billion of economic stimulus money into creating tens of thousands of federally subsidized rental units in American cities.

The idea is to pay for the construction of low-rise rental apartment buildings and town houses, as well as the purchase of foreclosed homes that can be refurbished and rented to low- and moderate-income families at affordable rates.

http://www.globalresearch.ca/index.p...t=va&aid=14842

Unless you are in one of the most expensive cities in the country, America is still an incredibly cheap place to live. It's too bad that tax payer dollars are going to programs like this. (I just heard a Scottish author mention that it's amazing that America is an incredible place where for $15,000 you can buy a lot and a mobile home and have a place to live -- maybe not a 5000 square foot mc mansion - but a place nevertheless.)

My husband is a property manager of over 125 units of rental property that run the gamut from $450 a month all bills paid one bedroom apartments to wonderful 4 bedroom 2-story four-squares that rent for about $1000-$1200 a month. They are all nice enough houses - well maintained, low density, etc etc. Paint between tenants... yadda yadda.

Some property owners we know participate in section-8 where people pay a small fraction of what a house would normally rent for and the government picks up the rest of the tab. I've never seen houses abused so badly.

It's a simple fact - if you get something without expending an appropriate amount of effort, you don't appreciate it.

No one I know - no matter their political leaning - would want to live next door to the projects. (That's the ol' "not in my backyard" syndrome.)

Why don't we just step back as a country for a change and let the system take care of itself. The foreclosures are selling - for what they were worth before the over-inflation of the early 2000's when lending relaxed down payment and proof of income requirements. Things will recover.

Last month housing sales were up.

And if the government is getting into the rental business what does that mean for everyone who saved and scrimped and bought a few rental properties to pay for their retirement? Or college for their kids. Wait! I keep forgetting that if you own an investment property, you must be a slum lord. <ironic smile>

Wow - I think this is my longest and most controversial post. Sorry for the rant.

[Natural Elements]

This all mess come from the bubbles created by the Fed and foreign investments, I don't even talk about how some investors speculate on crude oil raising the goods shipping cost, I am sure you know already the story. When you are on the bottom of the bubbles the consequences can be a nightmare for some people losing their jobs, their companies, etc

Now for the other people living in section 8 you mentionned I don't know, but that remind me the program of my government with HLM (Habitation à loyer modéré) sounds familar with section 8. Anyway I know what you are talking about...

Easy landing was a greedy/mistake from lenders and complicite regulations without documentations of incomes. The problem is that all of this affected the regular mortgage field and devaluated the properties.

Yes housing sales were up and 2nd mortgages increased but consider who they are: distress sales, bank owned houses, people taking off equity their homes and forclosures.

Do you think land lords are in better shape? Absolutly not, we are on the same boat, well not quite, but your see my point

[Bernard]

The FDIC is essentially bankrupt. It's going to be interesting when BoA and Citi finally croak.

FYI, check your bank's financial strength here:

http://www.thestreet.com/bank-safety...ngsindex&tab=3

Paraphrasing from another source:

If you have complete confidence in the FDIC, the bank rating should have little bearing on where you keep your money. If you don't have much confidence in them, you'll want to start looking for safety. Widespread "it doesn't matter, the FDIC will take care of it" sentiment has allowed the banks to take the risk they have without being gutted by withdrawals.

[Natural Elements]

Analyst Bove sees 150-200 more US bank failures

"A prominent banking analyst said Sunday that 150 to 200 more U.S. banks will fail in the current banking crisis, and the industry's payments to keep the Federal Deposit Insurance Corp afloat could eat up 25 percent of pretax income in 2010."

http://money.cnn.com/news/newsfeeds/...8_N2372264.htm