4 ms·

The great American ‘homewashing’ is happening under our noses

69 points by whack 4y ago

paulryanrogers 4y ago
Well intentioned services with insufficient oversight feed the fraud industry. Of course too much fiction can lead to only the most desperate or motivated seeing the benefit. Often those are borderline fraudulent actors who've grown familiar with the procedures and documentation required.
- culi 4y ago
  sounds like the military. The pentagon just failed it's fifth audit in a row. It was only able to account for 39% of the $3.5 trillion in assets it's been given Where did $2.14 trillion dollars go? I think we all know
techdragon 4y ago
I wonder how gradual the transformation was from well intended government subsidisation program, into the present form where it reduces consumer savings account rates, provides fat sinecures for executives, and overall looks (at least based on the information in this story/article) like it does next to nothing of what it was intended to do. Did it accelerate with the spiral that lead to 2008 ? or was it after ? or long before perhaps? Just when did it begin to transform and how fast did that happen? is this some long surviving vestige of 80s corporate greed?... anyone got more financial system history here? (Or do i just need to wait and track down the results of that 100 year review)
miguelazo 4y ago
This is especially infuriating: "Banks that take advances from their FHLBs, that is most banks, do so in lieu of paying higher interest rates to their own customers. You’ve probably asked, “How can banks get away with paying on average 0.19 percent on savings accounts when the yield on 1-year treasuries is 4.75 percent?” The answer lies largely with the FHLBs." I wonder how much of this very low cost credit finds its way into housing speculation-- the antithesis of building affordable housing.
- sokoloff 4y ago
  These subsidies on home mortgages affect owner occupants and leased properties in similar ways. The affordability problem has to be looked at with at least one eye on the competition among marginal buyers, whether prospective owner-occupants or landlords. If a prospective owner-occupant has less financial resources than the typical “competition” for a given type of house, they’re going to get outbid in a supply-constrained market, whether mortgages are 3%, 13%, or 23%.
tjpnz 4y ago
>The views expressed by contributors are their own and not the view of The Hill What is the view of The Hill?

69 points by whack 4y ago

Well intentioned services with insufficient oversight feed the fraud industry. Of course too much fiction can lead to only the most desperate or motivated seeing the benefit. Often those are borderline fraudulent actors who've grown familiar with the procedures and documentation required.

culi 4y ago
sounds like the military. The pentagon just failed it's fifth audit in a row. It was only able to account for 39% of the $3.5 trillion in assets it's been given Where did $2.14 trillion dollars go? I think we all know

techdragon 4y ago

I wonder how gradual the transformation was from well intended government subsidisation program, into the present form where it reduces consumer savings account rates, provides fat sinecures for executives, and overall looks (at least based on the information in this story/article) like it does next to nothing of what it was intended to do. Did it accelerate with the spiral that lead to 2008 ? or was it after ? or long before perhaps? Just when did it begin to transform and how fast did that happen? is this some long surviving vestige of 80s corporate greed?... anyone got more financial system history here? (Or do i just need to wait and track down the results of that 100 year review)

miguelazo 4y ago

This is especially infuriating: "Banks that take advances from their FHLBs, that is most banks, do so in lieu of paying higher interest rates to their own customers. You’ve probably asked, “How can banks get away with paying on average 0.19 percent on savings accounts when the yield on 1-year treasuries is 4.75 percent?” The answer lies largely with the FHLBs." I wonder how much of this very low cost credit finds its way into housing speculation-- the antithesis of building affordable housing.

sokoloff 4y ago
These subsidies on home mortgages affect owner occupants and leased properties in similar ways. The affordability problem has to be looked at with at least one eye on the competition among marginal buyers, whether prospective owner-occupants or landlords. If a prospective owner-occupant has less financial resources than the typical “competition” for a given type of house, they’re going to get outbid in a supply-constrained market, whether mortgages are 3%, 13%, or 23%.

tjpnz 4y ago

>The views expressed by contributors are their own and not the view of The Hill What is the view of The Hill?