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Housing Subsidies for the Poor Threatened by Cuts in U.S. Aid







Housing Subsidies for the Poor
Threatened by Cuts in U.S. Aid

Housing Subsidies for the Poor
Threatened by Cuts in U.S. Aid
05/04/2004 01:03 AM

The possible loss is a result of a recent regulatory change which affects the government's primary housing program for poor Americans.




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Housing Subsidies for the Poor Threatened by Cuts in U.S. Aid

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The possible loss is a result of a recent regulatory change which affects the government's primary housing program for poor Americans.

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I've got a column in the January Wired (not yet online) attacking farm subsidies. Actually, more precisely, attacking farm subsidies when, simultaneously, in the name of "free trade" we demand developing nations protect our IP. (You must protect the market for our Mickey, while we destroy the market for your wheat.) This has excited a flurry of farmers to write angry letters about national security (yep, bin-Laden is terrified by cheap wheat). Indeed, one "film maker - farmer" wrote to say it was more important to protect farmers than IP. Anyway, when the article appears online, it won't include an error that is in the printed edition. I was drafting between attacking the policies of industrialized nations in general, and America in particular, and the statistics got mixed in the end. It is the industrialized nations together that spend $300 billion a year on farm subsidies -- six times the aid to developing nations. Obviously, the US doesn't spend that much alone. I apologize for that stupid error, which is totally my fault. But I won't apologize for attacking farm subsidies.

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Lessig points out that the US spent a hundred years ripping off everyone else's copyrights and now expects that no one else will ever do the same: moreover, we're demanding onerous IP regimes from developing nations in the name of "free trade" even as we engage in unfair trade subsidies ourselves.
The dirty little secret, however, is that we don't respect the free trade rules that we impose on others. While the US sings the virtues of free trade to defend maximalist intellectual property regulation, we poison the free trade that developing nations care about most - agriculture - by subsidizing farming in the industrialized world to the tune of $300 billion annually. Rhetoric about family farmers aside, most of that money passes quickly to agribusiness. This is not Adam Smith; it is corporate welfare par excellence...

A block of powerful developing nations should first take a page from the US Copyright Act of 1790 and enact national laws that explicitly protect their own rights only. It would not protect foreigners. Second, these nations should add a provision that would relax this exemption to the extent that developed nations really opened their borders. If we reduce, for example, the subsidy to agribusiness by 10 percent, then they would permit 10 percent of our copyrights to be enforced (say, copyrights from the period 1923 to 1931). Reduce the subsidy by another 10 percent, then another 10 percent could be enforced. And so on.

Link

WTO OKs Plan to End Farm Export
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WTO OKs Plan to End Farm Export
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08/01/2004 03:36 AM
AP Financial News - World Trade Organization members approved a plan Sunday to end export subsidies on farm products and cut import duties across the world, a key step toward a comprehensive global accord that has been discussed since 2001, trade officials said.

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Expatica
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DUBAI- Al-Qaeda's frontman in Iraq, Abu Musab al-Zarqawi, vowed to defeat "infidels and apostates" in response to a Madrid conference on terrorism.

"We tell the infidels and apostates, the enemies of God: whatever you do, you will be defeated. God promised us victory," read the statement from the Organization of Al-Qaeda of Jihad in the Land of Two Rivers, in a statement published on the Internet.

The authenticity of the statement could not be verified.

"How many times will the infidels and apostates meet to fight against Islam and combat the Jihad... They have other worries than to fight the Muslims and mistreat them," it said.

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underwater_bag.jpg image

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Read [mit.edu/~tim via GeekDIY]


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  • Mercury News: As offers pour in, cutthroat market a boon for sellers. The fast-paced, competitive nature of this spring's Bay Area housing market has participants and observers alike speculating on the reasons -- particularly after three years of severe job losses.
  • The story goes on to offer all the usual reasons, such as a shortage of houses and low interest rates. But there's another very good explanation: rampant speculation of another kind, inducing panic buying like the kind that occurred in the stock market in the late 1990s. This is a bubble that will deflate eventually. It's happening elsewhere, as this NY Times story notes today. The mania will end here, too, and it'll be ugly.


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  • Mercury News (reg req): Median home prices pass half-million mark. The median price of resale houses sold in the Bay Area reached $520,000 last month -- the first time that figure has exceeded the half-million point.
  • Lunacy.


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  • Mercury News (reg req): Economy boosts valley home prices. The median price of a home in Santa Clara County reached $590,000, up 20.2 percent from May 2003, according to DataQuick Information Systems. A total of 2,149 resale houses changed hands in the county last month, a nearly 30 percent increase from a year earlier.
  • It's much more than the economy at work here. It's a mindless, dangerous bubble that shows what a short attention span human beings have when they are infected with greed and/or panic. This particular news story ends witha local public defender who found a lender that offered a "zero-down" loan -- that is, loaned the full selling price with no down payment. I can understand the borrower's motive, though I think it's an incredibly risky move, but the bank making this loan is just irresponsible. So is the real-estate industry that promotes this kind thing, but that's par for the course. Of course, the lender will now push this mortgage into the national market, offloading it to some other company. This is how we have such liquid markets, and the system was a boon in the past, greased as it has been by the likes of Freddie Mac and Fannie Mae, the giant federal home-loan operations that act as though they have the full faith and credit of the U.S. taxpayer behind them even though they do not. But it is not sustainable, yet nobody in power dares mess with this machinery. What we'll see eventually, if we don't find a way to slowly deflate this bubble, is a massive collapse of the housing market that will in turn spark a severe recession. The truly scary scenario, still not the most likely but growing in probability every day, comes when falling prices for housing lead to massive collapses in the financial industry. But if that occurs, the Fannie Maes and Freddie Macs and the money-center banks with big exposure will be considered too big to fail. We taxpayers will bail them out to the tune of several trillion dollars, an amount that'll make the S&L bailout of the 1980s seem tiny. And the only way that will work will be to re-ignite inflation on an absolutely massive scale, because the only way to make it work will be to ratchet up the money supply in unprecedented fashion. This is a bubble. It will deflate. If it doesn't deflate gently, the nation is in for the worst kind of pain.


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    Pop Goes the Global Housing Bubble


    Pop Goes the Global Housing Bubble 06/17/2005 04:21 PM
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    No compassion in housing proposal


    No compassion in housing proposal 09/22/2004 10:33 AM
    Funny, we didn't hear any of the Republicans who used New York City as the backdrop of their convention last month talking about the administration's plans to fo rce poor families to either pay hundreds of dollars in extra rent or go homeless. But we're sure George Pataki, Michael Bloomberg, and Rudy Giuliani are going to talk to their Republican friends in Washington and take care of this pronto.

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    Freddie Mac: No Housing Bubble 07/30/2004 12:20 PM
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