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Plan to Solve Crisis: Let Immigrants Buy Houses Posted Mar 19, 2009 03:52pm EDT by Aaron Task Related: XHB, TLT, TOL, DHI, PHM, UUP, ^DJI The Fed's actions to lower mortgage rates 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, president of Millennium Wave Advisors and author of the popular "Thoughts from the Frontline" e-letter.
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, 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.
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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.
traditioanlly we've rarely recruited this class of immigrant... we recruit the laborers.
people that we can make home loans to must have jobs, and they have to have been here for several years to qualify...
even a US citizn like Cash cow had trouble getting a home loan cuz he was starting his own business...
well established foreigners are not likely to uproot and come here to start over without major incentives.
rich Chinese will buy here and set up business in both countries, basically taking more jobs out of the country...
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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quote:Originally posted by glassman: [b] rich Chinese will buy here and set up business in both countries, basically taking more jobs out of the country...
That is exactly what will happen
Typical short term shallow thinking here by our half witted leaders...
Lets put a band-aid on the immediate housing crisis and not worry about selling out the middle class jobs in the process...
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It's all in the timing... Posts: 4303 | From: DSA | Registered: Dec 2003
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if the price is right they will come in big numbers
the exchange rate of the yuan is not quite favorable enough yet...
it's two edge sword... they can't get enough dollars for their yuan to immigrate, and if they could exchange them? then they would not be nearly as profitable in their businesses in China...
we absorbed alot of Japanese capital and then the Japanese economy settled...
people say they lost a decade, but it sure looks to me like Toyota didn't lose anything
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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you know, it was pretty slick what happened here. The majority of the good, older homes are now in the hands of "ethnics." As some of you know, I've spent hours and hours sifting through neighborhoods to find myself a new home. The places I'd like to buy? In most neighborhoods, those good old homes are *NOT* being foreclosed. Those folk got their deals years ago, and they're hanging on to 'em. The neighborhoods rife with foreclosures are McMansions and Jr. McMansions...
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Canada has a similar clause.. To immigrate you have to be willing to invest. I forget the # but I think it was like $40,000...
Posts: 2965 | Registered: Aug 2005
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quote:Originally posted by T e x: you know, it was pretty slick what happened here. The majority of the good, older homes are now in the hands of "ethnics."
Wow Tex, no offense but that kind of sounded a little "prejudicial". Only "non-ethnics" are allowed to have good, older homes?
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Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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lol, nope--I'm saying the folks who saw a bargain jumped on 'em and kept 'em. Barbie and Ken fell in the McMansion trap, and overpaid big time for sprawling, "custom" homes that are full of crap, costly to maintain and hard to heat and cool.
quote:Originally posted by T e x: you know, it was pretty slick what happened here. The majority of the good, older homes are now in the hands of "ethnics."
Wow Tex, no offense but that kind of sounded a little "prejudicial". Only "non-ethnics" are allowed to have good, older homes?
that's what i heard, if it was prejudicial it was against the Baptist WASPs.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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