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Well folks first then banks then the auto industry and now housing.
The Wall Street Journal has reported that -- Sam was considering taken on a new job.
We have lord Lawson M a reporter nick tomorrow's joins us now with more on the story this this story in today's Wall Street Journal and it.
So the government has a new plan but yet all of the other plans have not worked yet this -- seems.
What is the reaction so far to your piece.
Right well the idea here is pretty straight for the government right now is having to sell tens of thousands of homes every month.
Through Fannie Mae Freddie Mac and federal agencies.
And the idea is why not just sell them to investors and get them to take on the job as -- -- have them right now these homes hold them off the market that way you're not.
Artificially depressing prices with a lot of foreclosures coming on.
And places where you just don't have enough buyers right now.
To soak up that supply.
It's it's Kelly a lot of people if it is a long overdue step how likely is it that this plan actually comes the floor.
I think right now this is kind of in the college some on our phase at the White House they're thinking about it.
Conceptually it looks good on Paper but as you know we've tried a lot of different things on housing they are sometimes -- much harder to do.
In reality -- and they are in theory and so that's the question here as well they action aside -- right the housing market is in bad enough shape.
And in some of these places like Phoenix or Miami or Detroit it actually makes sense to get investors to hold these properties off the market.
Rent them out for a while make money while you're renting them and then someone wants prices have stabilized I don't know if -- really happened but they're definitely taking it seriously.
You know I think my feeling is that.
Anatomy to get any program out there that might help this log jam and housing get moving again is is is great with me my fears that.
And I've been I'm working on a similar types sort of -- writing about it all week.
The fear is that the pendulum swung so far.
In the other direction during the 050607.
-- with the no income -- is the the expectation natural home would would increase in value 1015% per year.
Now that pendulum has swung back in the other direction.
And it's a natural Al com.
-- -- -- Reaches some little ground where the lenders are okay allowing risks you can't but seems to be the real problem is that a lot of people who maybe five or six years ago were able to get.
A mortgage now even well.
A lot of other analysts are okay they don't fit into the boxes that the lenders have created the pendulum has swung so for back in the other direction but no one can get a mortgage right now.
Yeah that is all right that's exactly right you have a lot of people they they took a hit on their income in the past couple years.
But they have the down payment -- of their credit's okay and it's tough to -- -- right now banks are afraid to lend especially if we're looking at all these foreclosures coming on.
And putting more pressure on prices and so.
The government's only kind of throwing the kitchen sink -- this coming back to the drawing -- and -- -- what else can we do.
And journalist and things could really solved two problems that ones because you have on the one hand home prices that are falling more than we'd like -- you know again not surprising but it's hurting a lot of people's home equity in making a -- date jobs on the other hand you do see rents moving up especially in some markets suburban markets some markets that are doing better so.
You know to the extent you can kind of shift since it -- of -- these problems let people out of their house or out of that negative negative equity situation and renting something -- -- -- Better price is there any expectation -- is there any reason for us to believe.
That this program is more plausible.
More efficient more successful than any of the handful of programs that they've already -- at this issue.
-- Yeah I don't know that's that's the S 64 million dollar question here it's hard to know if where really going to be able to make that much of a difference you'd have to get a lot of these homes off the market if you just do with a couple thousand then frankly it's probably not gonna move the needle here.
Beat the thing or a what I've learned over the course of my -- during last week is.
It's the lakers -- -- what the mortgage lenders themselves the residential mortgage lenders they feel quite in the middle -- like to start giving won't again.
It's the secondary folks to Citibank the Bank of America's they got so burned in the past few years the -- They've now establish the parameters they're not willing to -- the loans from the mortgage lenders so the mortgage lenders are stuck between people who they feel well perhaps I could give this person I like to go up a box a little.
Nick I can't lay responded and I've got some breaking news but I do want to let -- go next tomorrow thank you very much in the wall -- regional the pieces up the Wall Street Journal not.
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