Another Great Society Failure!

Another Great Society Failure! www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Another great Society failure. I wrote a column several years ago,
and I argued that probably one of the most consequential
presidents in history was LBJ. The crap that he got
done as president is great society garbage we are not

(00:40):
only still paying for today literally, but figuratively as well.
You want to talk about damaging society as a whole,
LBJ up there and again the only guys like myself
and a few others will go after him because all
of his programs sounds so soft and cuddy.

Speaker 3 (01:02):
Oh yeah, it's gotta have aid for college students. Housing
and urban development, War on Poverty failure, failure, failure, failure, failure.
You're talking failures of like the Aaron Rodgers New York
Jets variety, except worse.

Speaker 2 (01:22):
Housing and urban development. Again, we're gonna help people blow
at homes. We're gonna subserve, We're gonna help people getting
at homes. Nineteen sixty seven put this together. Just two
years after they opened up the Department of Housing and

(01:42):
Urban Development, US home ownership rate was sixty four percent.
Sixty four percent nineteen sixty seven went out, what the
home ownership rate is in twenty twenty four? Sixty four percent.
That's right, that's right. You want to know how much

(02:05):
money we've blown at housing and Urban development? Yeah, oh,
four trillion plus plus if you want to include all
of the bailouts due to the funky mortgages that that
were put together by Andrew Cuomo under the Clinton administration,
that got put on steroids, that helped lead us to

(02:26):
the Great Financial Crisis. Anyway, Yeah, Lennon Johnson's Great Society Program,
Housing and Urban Development, it was there. We're gonna reduce
costs and increase home ownership, yeah, he said. Johnson promised
it would be become known as the single most valuable
housing legislation in our history.

Speaker 3 (02:50):
Yeah.

Speaker 2 (02:51):
You know, there's higher home ownership rates in the European
Union than there is here in the United States. Yeah,
We've got Ginny May, Fannie Mae, Freddie Mac, Federal Housing Administration,
Federal Housing Finance Agency, all therea we're gonna boost all ownership.
I've ever see the the offices for these places, Fanny whatnot?

(03:15):
Do you understand that the type of money, type of
money that is made if you work at one of
those places. Oh yeah, you remember that with Franklin Rains
was in charge. And what Barney Frank's gay lover was
working there too, got him a job there, making a
lot of money anyway, And you know, they make the

(03:36):
argument today was that you know, next to China, nobody medals,
nobody medals in their housing market more than we do
here in the United States. Story Today, Story Today and
Jextling the Journal would be easy to say that American
taxpayers have gotten nothing in return for our three trillion,

(03:58):
But it's worse than that. US rental and home prices
have increased faster than inflation. The average price of a
home was twenty two thousand dollars in nineteen sixty seven.
It's now five hundred thousand dollars. Home prices have increased
at five point five percent annual rate since the establishment
of HUD. Overall inflation at around four percent nineteen sixty seven,

(04:22):
the average home costs about three times and average families
income Today it's seven times, and then you also take
a look about the volatility and prices. Why well again
because of all funky mortgages that they put out there,
smaller down payments, subsidizing, this subsidizing that it causes all

(04:46):
sorts of stress. I can no longer cover the payments.
Home prices crash again. We had that happen in nineteen
eighty nine. Also happened obviously in two thousand and eight,
and again just three trillion dollars. Like I said, was
only a part of it. If you talk about the
bailing out of government backed mortgage companies Jenny May, Fani May,

(05:09):
Freddie Mac that was about five hundred billion dollars nineteen
eighty nine, cost three hundred billion dollars. They write off
twenty five billion dollars a year and bad mortgages, so
your ear over four trillion bucks since nineteen sixty five. Um,

(05:30):
make it go away, Make it go away. Oh, I know,
Let that awful free market step in and let prices
go where they must. I know, it's such a terrible thing,
the cold, cruel free market. Yeah, you got any better suggestions,
because the crap you leftis keep coming up with sucks.

(05:54):
Another failure from the Great society programs again. Baby Boomer
generation Man, the hits just keep coming from you guys.
They just never stop. Watchdog on Wall Street dot Com