Used Cars: A Primer on Selling

An excerpt from Maria Bartiromo (my favorite) interviewing Tim Geithner:

“A lot of people say housing is missing in action in this recovery. About a half a million mortgages have been modified under the government’s Making Home Affordable program since it started almost 18 months ago. Foreclosures are still high, about 11 million borrowers are under water, and some economists say prices are likely to fall more when the banks unload the foreclosed properties they’ve been holding off the market. Do you think the administration’s programs to aid the housing markets have been a success?”

Geithner response:

“You have to judge these things against the alternatives. And what the president’s program did, alongside what the Federal Reserve did, is bring a measure of stability to house prices much more quickly than people thought. If you look at where the market thought house prices would go at the beginning of 2009, people thought they might fall another 30%. And what happened is they stabilized because we were able to bring mortgage interest rates down to very low levels, and that helped slow the pace of erosion. House prices have been reasonably stable for more than a year. Mortgage interest rates are very low. Housing is much more affordable than it’s been in a really long time. But there’s still a huge backlog of foreclosures working their way through the system. Now, we can’t reach everybody, and a lot of those foreclosures are people with a jumbo (mortgage), it’s a relatively expensive home, it’s a second home, it’s an investor-owned property or it’s a family that can’t prove income. We just don’t think it’s fair to ask the American people to use their money, their hard-earned resources, to try to extend the benefits of these programs to people who ended up just living way beyond their means. I do not agree with people who think that we should be stepping back from the housing market. That would be a mistake. It would be really unfair to all the innocent victims of this crisis.”

All I could think of? The film ‘Used Cars’:

A classic scene:

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4 thoughts on “Used Cars: A Primer on Selling

  1. Tim Geithner knows nothing about how markets work, especially the housing market. Proof? When he moved to Washington to take the Treasury job, he put his house on the market, but he didn’t list it for market based price but a for price that would cover his 2004 bubble inflated cost plus realtor commission so he wouldn’t have to take loss. Last time I heard, it was still on the market because he would rather pay taxes and mortgage on an unoccupied house than admit he overpaid and take a loss. Anybody have an update?

    http://www.luxist.com/2009/03/10/timothy-geithner-in-new-york-estate-of-the-day/

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