Plan to Solve Crisis: Let Immigrants Buy Houses
Posted Mar 19, 2009 03:52pm EDT by Aaron Task <http://finance.yahoo.com/tech-ticker/author/Aaron-Task>
Related: XHB <http://finance.yahoo.com/q?s=XHB> , TLT
The Fed's actions to lower mortgage rates <http://biz.yahoo.com/ap/090319/mortgage_rates.html?sec=topStories&pos=3&asset=TBD&ccode=TBD> won't stop home prices from falling, because lower rates aren't enough to sop up the huge supply of excess housing inventory, says John Mauldin
Instead, Mauldin believes the U.S. government should pursue a controversial idea that's been floated a few times in the past year, including here by Gary Shilling <http://finance.yahoo.com/tech-ticker/article/149374/How-to-Solve-the-Housing-Crisis-Let-in-More-Immigrants-to-Buy-Houses?tickers=%5Edji,%5Egspc,XHB,TLT,TOL,DHI,PHM> , among others: give immigrants a pathway to citizenship if they buy a house.
The economic benefits of this concept are potentially powerful:
An inflow of foreign money into the U.S. economy, which will both boost the dollar and the economy because of related spending.
Help sop up the supply of excess homes on the market, which will help put a floor under prices and revive the construction industry, creating jobs.
Help shore up America's middle class. This assumes most immigrants with the money to buy a home are educated, white-collar workers who can help do what immigrants have done throughout U.S. history - energize the country as they pursue the American dream.
Note: Mauldin doesn't support giving financial incentives to immigrants or making citizenship automatic with a home purchase. We discussed whether this idea could ever fly politically. Mauldin believes that many Americans would welcome hard-working individuals into their neighborhoods to put a floor on their own housing prices and make the local economy thrive. What do you think?
Saturday, March 21, 2009
Plan to Solve Crisis: Let Immigrants Buy Houses
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1 comments:
Dr Angela Valenzuela :
You ask :
"Mauldin believes that many Americans would welcome hard-working individuals into their neighborhoods to put a floor on their own housing prices and make the local economy thrive. What do you think?"
If there is a depression in the housing market and the values are falling then entering more people to buy homes is a good idea.
I am not considering social issures, just common sense, and a little mathematical thinking.
I have always believed that expulsing people from a country or area because of bias is poor business.
That happened to Spain after 1492 with Jews and Moors. It slowly ruined Spain.
It happened with Russia and her Progroms to dislodge and disposses the Jews.
And the killing of Jews in Germany and Eastern Europe should have caused an economic impact.
Someone in the New York Times wrote that Immigrants, even if ignorant of English, were very good workers highly motivated and competitive against natives.
So, if you expulse those that are ready for very hard work, then salaries will go up, but motivation to do hard work will go down. Is that good for an Economy ??
Expulsion of People - Is that good for Supermarkets ???
Of course not !
Milenials.com
Vicente Duque
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