Poll Queston Lacks Adequate Answers

An excellent source of information regarding the mortgage industry is found in The MReport. The MReport, self described as the pulse of the mortgage banking industry, covers the always changing components of the industry, directed by both the public and private sectors.

 

In an effort to grab the pulse of the readership, which is mostly comprised of professionals within the mortgage, appraisal and real estate industries, The MReport presents a poll regarding topics of current interest within the industry.

 

One such poll caught my eye recently, and led me down a road which elevated my blood pressure. Please see the following poll of the week, which asks what the "best course of action for the Congress to take to help improve the housing market." 

 

 

I do not know who writes the polling questions for The MReport; however, I would assume it is a member of their staff of writers, reporters or editors.  In review of the potential answers, one of two observations must be noted:

 

Either those comprised of writing the questions are borderline clueless on economic theory, or they are well familiar with economic theory and seek to nudge the readership into the acceptance that governmental interference, or as they apparently see it, helpful interaction, is a requirement in some form or fashion.

 

I find this troubling to say the least.  For those of us who champion free market capitalism, which would include our Founders I might add, there would be a few answer alternatives which we would respectfully submit.  Submitted for your review are the following:

1. Government should, at the earliest possible opportunity, exit participation in the mortgage industry, and allow the free market to find equilibrium and function in full efficiency.
2. Refrain from extensive regulatory action within the industry, eliminating attempts at engineering social justice through shaking down banks.
3. Retract Dodd-Frank, which has had significant negative affects on the banking industry, curtailing loan ability and strongly reduced the quantity demanded of potential buyers.
4. Retract The Home Value Code of Conduct, an anti free market control mechanism cast over the appraisal industry, which has had a historic ripple effect on negativism on the industry.

There is one thing Congress could do to help the housing market, and Ronald Reagan outlined it in his first inaugural address:  "Is it time to reawaken this industrial giant, to get government back within its means, and to lighten our punitive tax burden. And these will be our first priorities, and on these principles, there will be no compromise."

Immediately, several steps could be taken which give rise to employment and consumer confidence, providing a jolt to the anemic current growth levels.  Among those would be the reduction of the corporate tax rate and regulatory actions, both those employed through legislation and those implemented by executive order.  Retract all governmental interaction within the markets employed in the aftermath of the financial crisis, including the newly formed Consumer Protection Bureau.

Actions deemed supportive of a stronger workforce, the raising of the minimum wage and the new ordering of overtime payment, actually are an impediment to employment and negatively affect the marketplace and should be thwarted immediately.

Of all the ill-conceived actions interjected in the marketplace, with or without legislation, without question the most harmful to economic growth and prosperity is the implementation of Obamacare.  It fails in its publicized objective and is nothing short of a job killer, cutting freedom and prosperity off at the pass.

With such common sense applications at the finger tips of of Congress, it is apparent that the objective is not to provide elements for increasing productivity and prosperity of the governed, but in fact to implement through taxation, legislation and sadly coercion increasing control over those for whom the Congress is charged with governing.

Quoting Reagan again, "I hope we have once again reminded people that man is not free unless government is limited. There's a clear cause and effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts."

Our government lacks adequate leadership at this time, with encroachment of freedom joined by mounting financial and geopolitical problems. Under Obama, government is not only far from limited, but is both legally and illegally seizing power over the citizenry, and predictably, liberty, along with prosperity, is contracting.

Sadly, in a nation drowning in a sea of irrelevance, few recognize the dear gift being taken from them right in front of their eyes.  It should be noted that Reagan was right; "Government is not a solution to our problem; government is the problem."