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| Economy |
| Obama to Announce $1.5 Billion |
| 2010-02-20 |
| Later today, the President will announce administration plans to allocate $1.5 billion of TARP money toward funding state Housing Finance Authorities (HFAs) in the five states hardest hit by the housing crisis. President Obama will focus on the issue of housing at two events in Las Vegas, where he will be joined by Senator Harry Reid (D-NV). HFAs in California, Florida, Nevada, Arizona, Michigan will have access to new money. Each of those states has seen home values decline by 20% or more, according a senior administration official, who spoke about the President's announcement on background. The funds will not be allocated equally, but given out based on which states have the biggest need and whose HFAs can demonstrate they can use the money most effectively. "Primary criteria will be price declines and unemployment," the senior administration official said. The White House believes HFAs are the best way to distribute the money, because unlike the federal government, the local agencies understand the specific needs of each community. Spreads the graft around to the "community organizations" much more efficiently that way ... "They're doing lots of different things, they're deeply knowledge of the local markets," the official explained, "And they're up and running." Because the money is funded out of TARP, the White House says there will be great attention to accountability and transparency. All programs that benefit will be posted online, and the administration is encouraging HFAs to "go out and innovate." Oh sure, we can all see how the TARP money has been used ... |
| Posted by:Fred |
| #5 Duh is right. Government subsidies of housing via Fannie Mae, Freddie Mac and the CRA led directly to the current economic crisis. Government leaders should have seen it coming, probably did see it coming, would have had to be blind not to see it coming. It's as if they wanted it to come. Housing inflation is still out of control and now Obummer is attempting to perpetuate it with taxpayers' (read my money and your money) money. It is theft, plain and simple. That, of course, leads to inflation across the board. Letting it drop would be the best thing he could do. Then we could all find out what a house or a car or a day's work in this country is really worth. Maybe then we could complete with the Chinese. Sorry about those of you who bought at the top of the market but at some point every boom must bust. |
| Posted by: Abu Uluque 2010-02-20 12:51 |
| #4 Higher house affordability IS a public good. Subsidising bubbles is a complete economic disaster. You could power the world if you could harvest David Ricardo's grave spinning. |
| Posted by: Bright Pebbles 2010-02-20 08:56 |
| #3 Basic capitalism 101 That is an elective at Harvard. He was too busy reinforcing his Socialist Collective 101. |
| Posted by: Procopius2k 2010-02-20 08:43 |
| #2 Ghost author of Louisiana Purchase and Nebraska Compromise revealed? |
| Posted by: Besoeker 2010-02-20 03:32 |
| #1 HFAs are the wrong way to go. Market value of the housing is hire then the population's ability to pay. Therefore, if you didn't subsidize... housing values would fall towards the people's price-point. Basic capitalism 101. duh |
| Posted by: 3dc 2010-02-20 03:14 |