Comments on: Fannie and Freddie, The Rich Grew Richer: A Case for a National Mortgage Bank http://inspiredeconomist.com/2008/12/29/fannie-and-freddie-the-rich-grew-richer-a-case-for-a-national-mortgage-bank/ Discussing the people, ideas, and companies that redefine capitalism and inspire positive change Thu, 09 Feb 2012 21:43:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Can “Cram Downs” Reduce Foreclosures and Improve The Economy? : The Inspired Economist http://inspiredeconomist.com/2008/12/29/fannie-and-freddie-the-rich-grew-richer-a-case-for-a-national-mortgage-bank/comment-page-1/#comment-2407 Can “Cram Downs” Reduce Foreclosures and Improve The Economy? : The Inspired Economist Tue, 20 Jan 2009 23:30:09 +0000 http://inspiredeconomist.com/?p=1024#comment-2407 [...] Fannie and Freddie, The Rich Grew Richer: A case for a National Mortgage Bank [...] [...] Fannie and Freddie, The Rich Grew Richer: A case for a National Mortgage Bank [...]

]]> By: Joe Casey http://inspiredeconomist.com/2008/12/29/fannie-and-freddie-the-rich-grew-richer-a-case-for-a-national-mortgage-bank/comment-page-1/#comment-1875 Joe Casey Fri, 02 Jan 2009 18:17:27 +0000 http://inspiredeconomist.com/?p=1024#comment-1875 The almost unreported factor in the Mortgage Mess is the land value factor. Historically, land value was 10% to 20% of the price of a house. In 2006 land value was bid up to 60% -70% of the house price. The regulator of Fannie and Freddie had this information available and ignorred it (land value is recorded in every standard real estate appraisal). Widely reported is the statement that house prices never declined before. This is false! Aggregate figures for nationwide measures of house values never declined,but individual prices and regional prices have declined to zero. Collateral is individual properties wirh individual market values. Land values collapse on avergage every 18 years. Lending policy must consider this fact. Equity should finance land sales. The almost unreported factor in the Mortgage Mess is the land value factor. Historically, land value was 10% to 20% of the price of a house. In 2006 land value was bid up to 60% -70% of the house price. The regulator of Fannie and Freddie had this information available and ignorred it (land value is recorded in every standard real estate appraisal). Widely reported is the statement that house prices never declined before. This is false! Aggregate figures for nationwide measures of house values never declined,but individual prices and regional prices have declined to zero. Collateral is individual properties wirh individual market values. Land values collapse on avergage every 18 years. Lending policy must consider this fact. Equity should finance land sales.

]]> By: Joe Casey http://inspiredeconomist.com/2008/12/29/fannie-and-freddie-the-rich-grew-richer-a-case-for-a-national-mortgage-bank/comment-page-1/#comment-37820 Joe Casey Fri, 02 Jan 2009 18:17:00 +0000 http://inspiredeconomist.com/?p=1024#comment-37820 The almost unreported factor in the Mortgage Mess is the land value factor. Historically, land value was 10% to 20% of the price of a house. In 2006 land value was bid up to 60% -70% of the house price. The regulator of Fannie and Freddie had this information available and ignorred it (land value is recorded in every standard real estate appraisal). Widely reported is the statement that house prices never declined before. This is false! Aggregate figures for nationwide measures of house values never declined,but individual prices and regional prices have declined to zero. Collateral is individual properties wirh individual market values. Land values collapse on avergage every 18 years. Lending policy must consider this fact. Equity should finance land sales. The almost unreported factor in the Mortgage Mess is the land value factor. Historically, land value was 10% to 20% of the price of a house. In 2006 land value was bid up to 60% -70% of the house price. The regulator of Fannie and Freddie had this information available and ignorred it (land value is recorded in every standard real estate appraisal). Widely reported is the statement that house prices never declined before. This is false! Aggregate figures for nationwide measures of house values never declined,but individual prices and regional prices have declined to zero. Collateral is individual properties wirh individual market values. Land values collapse on avergage every 18 years. Lending policy must consider this fact. Equity should finance land sales.

]]> By: Joshua Vincent http://inspiredeconomist.com/2008/12/29/fannie-and-freddie-the-rich-grew-richer-a-case-for-a-national-mortgage-bank/comment-page-1/#comment-1801 Joshua Vincent Tue, 30 Dec 2008 14:20:25 +0000 http://inspiredeconomist.com/?p=1024#comment-1801 Very good and concise piece. A national version of the Pennsylvania land value tax experience (not to mention the much more widespread application in New Zealand and Australia) makes all the more sense when we realize that the real estate bubble is actually a land bubble, and those bubbles and "pops" thereof are the precursors of each boom and bust. The money went somewhere, and we'll never get it back, this time. Private pocketing of public economic land rent is a huge swindle, but economic rent is easily detected and found. We need the political will to give back to the community that which the community creates. Thank you again. Very good and concise piece. A national version of the Pennsylvania land value tax experience (not to mention the much more widespread application in New Zealand and Australia) makes all the more sense when we realize that the real estate bubble is actually a land bubble, and those bubbles and “pops” thereof are the precursors of each boom and bust.

The money went somewhere, and we’ll never get it back, this time. Private pocketing of public economic land rent is a huge swindle, but economic rent is easily detected and found. We need the political will to give back to the community that which the community creates.
Thank you again.

]]> By: Joshua Vincent http://inspiredeconomist.com/2008/12/29/fannie-and-freddie-the-rich-grew-richer-a-case-for-a-national-mortgage-bank/comment-page-1/#comment-37819 Joshua Vincent Tue, 30 Dec 2008 14:20:00 +0000 http://inspiredeconomist.com/?p=1024#comment-37819 Very good and concise piece. A national version of the Pennsylvania land value tax experience (not to mention the much more widespread application in New Zealand and Australia) makes all the more sense when we realize that the real estate bubble is actually a land bubble, and those bubbles and "pops" thereof are the precursors of each boom and bust. The money went somewhere, and we'll never get it back, this time. Private pocketing of public economic land rent is a huge swindle, but economic rent is easily detected and found. We need the political will to give back to the community that which the community creates. Thank you again. Very good and concise piece. A national version of the Pennsylvania land value tax experience (not to mention the much more widespread application in New Zealand and Australia) makes all the more sense when we realize that the real estate bubble is actually a land bubble, and those bubbles and “pops” thereof are the precursors of each boom and bust.

The money went somewhere, and we’ll never get it back, this time. Private pocketing of public economic land rent is a huge swindle, but economic rent is easily detected and found. We need the political will to give back to the community that which the community creates.
Thank you again.

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