Tuesday, September 30, 2008

The C.A.R. Makes It's Position Known On H.R. 3997

I don't think it would surprise anyone in America, let alone the state of California, to know that the 175,000 member-strong California Association of Realtors (C.A.R.) is pretty pissed off that Congress didn't ignore the opinions of millions of American taxpayers this week and just pass H.R. 3997, the so-called "Emergency Economic Stabilization Act of 2008" anyway.

Congresspeople received a barage of angry faxes, emails and voicemails, in some cases 200 to 1 against H.R. 3997.

For a response, here is the C.A.R.'s president, Mr. William E. Brown:

"We are extremely disappointed that the U.S. House of Representatives failed to pass the Emergency Economic Stabilization Act of 2008," said C.A.R. President William E. Brown. "The tenuous health of the financial system called for a swift yet thoughtful bipartisan response by our elected representatives."

"Now is the time for Congress to act, and renew its efforts to craft legislation amenable to both political parties that will calm the financial markets, address liquidity issues and begin to restore confidence in our financial system. Americans deserve nothing less," he said. "C.A.R. wants to be certain that the needs of Californians are addressed, and that housing's critical role is recognized in whatever legislation ultimately is proposed. We will continue to closely monitor the situation as it develops."

Mr. Brown appears fixated on today, because he says "now".

"Do it now!"

"No down payment until January 2010!"

It's 2008. The housing bubble has burst. The American taxpayers and so-called "homeowners" (actually homedebtors) are completely tapped out. They don't have any money. Banks are following their customers and going broke too.

Yet the sheer greed of the realtor racket is so strong and so pervasive, a state association actually has gone on record to support a continuation of irresponsible lending (this time asking taxpayers to foot the bill back to the banks), and for what?

Why is it OK for American taxpayers to reward banks and mortgage lenders for ignoring proven principles of finance and sound lending practices? Why is it OK and only now that an association of real estate professionals, whose industry is in a tailspin, finally voice up and say we need to do something?

Who the hell are you people, and where do you get off asking voters and taxpayers for more, more, more?

Is it so that Realtors in California and around the nation can continue to earn their 6% off a $600K plus single family home sale? It looks that way to me.

First of all, those days of $600K plus home sales are coming to a quick end this week. Americans don't need a yes vote on this bank bailout plan to eradicate their wealth. The housing crash, resulting stock market nose dive, and lack of Washington leadership will have accomplished that already ten-fold.

Oh I know the bailout plan will be approved. It will be. Congress must appear to have done something.

But I also know that the American financial system was broken years ago. Where was the C.A.R. or Mr. Brown or the 175,000 members then? They were very busy making their sales commissions, ignoring the underlying truth of real California incomes and true home affordability and selling Americans into overvalued homes that they could never afford. Yes, the mortage broker they worked with could have said "no", but the realtors didn't say "no" either, and both happily cashed their commission checks into Lexus's, Hummers, Armani Suits and Louis Vutton bags.

Well, thank you, California Association of Realtors. And thank you, Mr. Brown.

Disgraceful. Disingenuous. Yet somehow very amusing all the same.

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