cash for clunkers kills real estate market
Buyers are now finding out what a debt to income ratio means when they have already purchased the new $450.00 per month car payment plus all their other bills. The lenders are seeing an increase in loan denials for new purchasers who want to buy to get the $8,000 stimulus money and are being told they do not quailfy because the Obama administration has lured them into buying a car that will be worth hundreds when it it is paid for. The lenders are explaining that they cannot exceed the debt to incme ratio and the last car payment that they got a great incentive to buy has put them over the limit.
So the real estate market was damaged by the meddling idiots in Washington instead of letting the system work itself out they have tried to spark the economy and have shut down the real estate business. By the time the prices on housing fell to its bottom the investors could have bought up excess inventory and refurbished it and made money. Now they have to compete with the few buyers who didnt buy a new car so the investors were hurt by the obama gang.
The realtors are not selling as many so they are hurt because advertising money is thron away while the eople bought cars instead of houses.
Now the car dealers are hurting because they have esssentially eatin their young by selling cars to people who would have waited. Now the peope who were to buy in 2010 bought in 2009 whos going to buy a car now? Knowing if you cost yourself $4,500 by knot buyer when cash for clunkers was going. Car dealers have eaten their young!!!
Well as you can see if the government would keep out of business we would all be better off.
Look out insurance institutions the big brother is coming to help you next.
More by this Author
I just came back from a weekend at Wrightsville Beach in North Carolina. How do the people who own those million dollar homes afford them? What do they do that they can buy a million dollar home and let it sit 10...
No comments yet.