REIV Recommendation is Housing Suicide
What caused the recent ‘financial meltdown’? In simple terms it was people being given financial assistance with taking on assets which they couldn’t actually afford. Remember Freddie Mac and Fannie Mae? Well these two home loan giants are government derived organizations which were instrumental in assisting people to get mortgages for houses which they couldn’t afford.
Well here in Australia the Real Estate Institute of Victoria (REIV) is saying the government should be giving more assistance to people to buy houses. Hold on a second, isn’t government intervention in the housing market what caused financial problems in the first place. The problem is that easy finance artificially inflates house prices … and REIV wants more of the same. WTF!
HP Rewards Executives for Poor Performance | Gary Eckstein
Sep 23, 2011 @ 11:13:50
[...] Certainly some governments have looked into interfering with these rewards of failure in business. For example, a decade back the UK House of Commons Trade and Industry Committee issued a Green Paper as “it appeared [that] directors who had presided over a significant loss in the value of a company had left the company with an exceptionally large redundancy package. The impression given was that they had been amply rewarded for failure”. I certainly don’t believe that the government should be interfering in business as just look what happened when the US government interfered in home loan markets. [...]