If the government took over other industries, as it is trying to do with the health insurance industry, with an entity that will be run by the government without profit, how much money the government could save the people of this country?
If they did take over all these other industries, the profits would be gone and so would the tax revenue needed to keep the government going. This might be called a no win situation!
The new law, HVCC (home value code of conduct), which prohibits mortgage loan officers to order an appraisal from the appraiser directly, has seemed to ruin a rather large number of purchases as reported by the National Association of Realtors. The problem is the appraisals are coming in too low.
If this keeps up, real estate will tank again because refinances aren't working either. The appraisers, without knowledge of the transaction in most cases, and usually without knowledge of the area as well, cannot successfully produce a reasonable number of appraisals to make refis or cash-out transactions work. This leads to loans not being funded and transactions failing to close.
The unfair advantage General, or Government Motors has by being run by the government who can fix all the problems, financing and legacy debt to name just two, over the plethora (or actually two) of other American car manufacturers.
We could be down to a very small number of domestic car manufacturers that will make up this industry that needed to be saved. After careful calculation, I believe it would be somewhere between 0 and 2, at a cost approaching $100 billion when all the figures are added up. Is it too late to rethink this bailout?
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.
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