Stimulus, Recovery, TARP, Tax Cuts, Cash Grants, WPA, CCC….enough. Fix the problem where it started: housing. Put all of the other garbage on the back burner and get a “Bad Bank” setup. This is the first step in getting to the bottom of what ails us. Sure, it was necessary to pour some capital into the banks to keep the doors open but that will only go but so far and we’ll need to do it again even if we set up a bad bank – but we’ve got to get over this. We in Manassas are keenly aware of the ramifications of this housing bust – I would even argue that this was ground zero for it. What we saw going on here in terms of mortgage lending and other practices are what is wrong with our country but on a small scale.
There is simply no substitute for letting this mess run its course. Recessions and economic turmoil are often the only way that bad debts and asset bubbles get squeezed out of the mix. Pouring money into the hole in the economy is a poor substitute for letting things take their natural course. I’m not arguing that the government should stand idly by while millions of Americans suffer but the Government should not even attempt to substitute deficit spending for the natural contraction in the economy in an attempt to head off what will naturally happen. Put some money towards stimulus but let us keep our eye on the ball.
In practical terms, this would mean tabling the current “recovery” bill and bringing legislation forward that has a hope in hell of fixing the problem on a longer-term basis. This would also include, at some point, a serious colonoscopy of those responsible for regulating those activities.
February 1, 2009 at 1:21 pm
a
February 1, 2009 at 5:17 pm
What is the capital of Iceland?
Answer: $25
Economic times are tough around the world.
February 2, 2009 at 10:35 am
Hey Andy, what is the city going to do about the new wall going up?
February 4, 2009 at 5:56 pm
FYI -The Manassas Commissioner of the Revenue’s Annual Report FY2008
is now online and it contains some interesting information.
For example: (Page 38 – Table 5:Average Assessed Value History
of Residential Property). In 2003, all residential had a per unit value
of $200,410 — in 2008 it was $301,200. It indicates, on average,
that if you owned your home in 2003 and haven’t refinanced – drawn
money out – despite the horrid market of the past two years –
you still have had a good increase in value over the past five years.
Compared to 2003, we are OK, but compared to 2006-7,
residential values are a train wreck. (In the 1980’s and 1990’s an
annual change of three percent was major – but in 2006 values went
up 35% over 26% in 2005 followed by a 5% dip in 2007 and
19% in 2008).
In any event, homeowners in Manassas may want to review the report.