Bitter? Angry? Confused? You bet.

The man from Chicago said small-town Americans (or is it just small-town Pennsylvanians?) are bitter, so now we are discussing elitism, populism, guns and churches.

This post is about none of those things. It's about bitterness, anger and confusion over the government response to the housing slump.

Bitter and angry: Angry Renter, who does not want to pay for a foreclosure bailout, posted this video on YouTube, which argues, "Don't Bail Out Bob -- Or His Bank!"  It's only 50 seconds long, go ahead and watch it.

Truth in lobbying: Who's the Angry Man behind Angry Renter? It's former Congressman Dick Armey, who heads up Freedom Works, a conservative think tank, and who argues in this other YouTube video, "The American people are not looking for another big bailout program.")

Confused? That comes from Fed-watcher, mortgage broker and bailout supporter Lou Barnes, who argues Americans are getting fed up with the lack of a cohesive government response to the mortgage problem: "In this leadership vacuum, the American people are confused, worried, and p--ssed, which is the soul of good sense."

For the record, your blogger is neither bitter nor angry, but is often confused.

Thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo Credit: Associated Press

Comments

[E]

You? Peter Viles? Bitter and angry?

Bah.

Look at that mugshot. I don't see a bitter or angry man. In fact, you don't even look all that confused.

A little tipsy maybe. ;o)

jk

[MyLessThanPrimeBeef]

It's easy to be confused...like McCain just today or yesterday, according to the news, laid out his most detailed economy plan - I mean, why do people vote if they don't know exactly what they are getting? And this goes for all candidates. People who voted for Hilary months and months ago, and now she is just rolling out her first 100 day plan. I mean, the earlier voters didn't get a chance to vote on that, did they? Maybe there could have been more voters or less for her, who knows? And look at all those no-press allowed private fund raisers. What is that all about? Some secret promises to the Canadians, secret plans for some Chinese interests we are not supposed to know about?

Lastly, I think it's OK to be bitter or angry at people who confuse you or try to confuse you, Peter. So, if you're confused like me, it's OK to be bitter and/or angry.

[mike]

the government owes me for letting the lenders and realtors get out of hand. that is all i'm going to say. you heard it right. THEY OWE ME. I'M LOSING MY HOUSE BECAUSE OF THE GOVERNMENT, LENDERS AND REALTORS!!!!!!!!!! YOU CAN FILE ME UNDER P....SSED

[Uncle Billy]

I'm bitter, angry, and confused about Dick Armey. He comes off as such a goofball here...

http://www.youtube.com/user/FreedomWorksAction

...that you have to wonder if his "conservative think tank" is really a libreral plot to make these guys look like fools.

Start with contention # 1: This is just a sub-prime problem, and sub-prime is just a tiny bit of the market.

Either he's drunk, drugged, stupid, or...

The Angry Renter video is similar in tone to the ditech ads... wonder if it's the same company who did both.

CalculatedRisk have this as their video of the day, but they didn't comment on it from what I can tell.

[HulaGirl]

Awesome clip - succinct and to the point.

LaLand readers who agree can take up a collection so it can be aired as a commercial during American Idol.

[Tex]

I continue to be amazed that being anti-bailout is seen as a Republican position. I am a hard-core liberal Democrat but I'm still against the bailout. Democrats are *supposed* to be in favor of AFFORDABLE housing, not big tax breaks and corporate welfare for banks, mortgage companies and home builders! I am utterly perplexed at the Democrats' failure to even acknowledge the frustration of renters and would-be first-time buyers (mostly young families) for whom home ownership has become unaffordable because of these overinflated prices. While I strongly believe the government should provide the poor necessities such as food, shelter, health care and education, the privilege of "home ownership" is NOT a necessity. If poor people can't afford market prices for housing, that's why we have Section 8 and low income rental housing.

The plan being advanced by Frank & Dodd, whereby the government will refinance mortgages based on the "appraised value" and place a lien on the property if the homeowner eventually sells at a profit, may be an OK compromise -- EXCEPT I am worried about what figure the government will use for "appraised value." I'd be much more comfortable if the "appraisals" were based on consideration of recent foreclosures in the neighborhood as well as homes in the area sold through auctions. All too often, I hear realtors saying that foreclosure sales and auctions "don't count" when considering neighborhood "comps." My concern is that the lenders will just provide the feds some sort of BS overinflated "appraised value" and the government will refinance with my tax dollars based on those fantasy prices.

[JohnnyB]

"The man from Chicago said small-town Americans (or is it just small-town Pennsylvanians?) are bitter, so now we are discussing elitism, populism, guns and churches."

Wow... I thought I was reading a headline transcript from the influential and "culturally cohesive" CNN Situation Room crew for a second... spun on cue and out of context, just before a major primary.

[anonymous]

Rewind to the March 27 blog about Obama on housing

"But the American experiment has worked in large part because we have guided the market's invisible hand with a higher principle. Our free market was never meant to be a free license to take whatever you can get, however you can get it. That is why we have put in place rules of the road to make competition fair, and open, and honest. We have done this not to stifle –- but rather to advance prosperity and liberty. As I said at NASDAQ last September: The core of our economic success is the fundamental truth that each American does better when all Americans do better; that the well being of American business, its capital markets, and the American people are aligned.

I think all of us here today would acknowledge that we've lost that sense of shared prosperity.

This loss has not happened by accident. It's because of decisions made in boardrooms, on trading floors and in Washington. Under Republican and Democratic administrations, we failed to guard against practices that all too often rewarded financial manipulation instead of productivity and sound business practices. We let the special interests put their thumbs on the economic scales. The result has been a distorted market that creates bubbles instead of steady, sustainable growth; a market that favors Wall Street over Main Street, but ends up hurting both."

I live in a big city, and yes, I am bitter, too. I am also embarrassed. The way our government allowed this greed and then reacts to the housing problem is a joke.

[Laker]

I bitter and upset about the crazy inflation that is going on today and nobody talks about.
Peter, can you post a separate blog entry on this.
Just yesterday, they said on the news radio that wholesale inflation was 1.1% in March, and that is 3 times what the analyst expected. They added that it is the HIGHEST figure in the last 33 YEARS.
Did you get that, they are saying that this metric of inflation is the highest since 1975 !!!
We all know the high (today it is documented) inflation in the 1973-1980. One of the things it did was produce a double digit interest rates (of 15% or so.)
It has been known for 100s of years that the only way to fight that is by increasing interest rates.
If Helicopter Ben wants to save the economy, interest rates should be bumped by at least 1-2% and the sooner the better!

[Jerry Bennitt]

In the end, it will be Obama who will be bitter when he gets his butt kicked by McCain.

Defeat Osama, Obama & Chelsea's Mama.

[puckhead]

Laker,

Wholesale inflation jumps up and down dependent on energy prices. CPI was only up 0.3% in March and is up 4% for last 12 months. Thanks to technology and outsourcing, companies can absorb rises to wholesale inflation much better than the 1970’s. I hate to tell you this; double digit inflation ain’t coming back. The US is in the middle of a recession, you don’t tighten money supply during a recession. You do that and the recession turns into a depression. Uncle Ben is rightfully focused on the credit markets and the recession, not 4% inflation.

I find it humorous that so many people are up in arms about the RE bubble but no one has said a peep about the bubble in commodities. Does anybody think that the doubling of some commodity prices in 6 months in purely driven by supply and demand factors? Does anybody think that oil at $115 is driven by supply and demand, especially with the USofA in a recession? Sure supply and demand and the weak dollar ar factors in the rise in prices somewhat, but the bigger cause is that I banks and hedge funds are still leveraged up to their eyeballs and instead of pushing easy credit on home loans their pushing up commodity futures and they are making a killing. The govt is so far behind Wall St it’s not even funny. DC is bashing their heads in about what to do with the mortgage mess and the smart guys have moved on to the next pot of gold. You gotta love it

[Angry Renter]

More than 3,200 people have signed the Angry Renter petition. Renters Unite!

http://www.angryrenter.com/?go=6020

[mamsterla]

Tex:

Hear! Hear! The only way we are going to get back to the Democratic ideal of affordable housing is to let the market unwind the cost of the bubble. If the economy were strong and the housing prices were back to 2001 levels, I think we would have the ideal situation. I personally think the only interference should be in the "orderly" unwinding of the bubble. We should not place an artificial price floor on the market - this would just leave the taxpayers holding the bag on a potentially very large sum.

I agree with Stieglitz that the best thing for the government to do is to really focus on the right kind of economic catalysts - more money for Unemployment insurance, more infrastructure projects, etc.

[Laker]

puckhead,
CPI means sh**.
Utility bills are up 10-15%
Gas is up 25%
Food is up 20-30% on everything.
Daycare is up 15%-20%
Medical insurance is up 20%
even YMCA fees are up 10%

So you're telling me inflation is 4% ????
Inflation is about 12-15%. And the wholesale 1.1% in one month just supports this figure.

Funny that you mention the commodities bubble that is building...with this you actually prove my point. Oil at $115 is not rising....it is simply the inflated dollar that lost about 15-30% of its value....that is why you simply need more dollars to buy same barrel of oil....
Check the price of oil last year and this year in EUROs....
I think it will be very close numbers....

[puckhead]

Laker,

Where do you pull up these stats? From the hoardgoldcausetheskyisfalling.com website? A 1.1% increase in March “supports” an annual 12-15% annual run rate? So I guess the Feb rate of 0.3% supports a 3.6% run rate? Or do we only look at months that support our claims? Utilities rates are set at the local and state level, blame them for the rise in rates. Daycare is up 15-20%? Show me one reputable study that supports this? Med insurance rates up 15-20%? I wish med insurance companies had this pricing power because I own stock in United Health and I’m taking a beating. Food is up 20-30% on everything? On some items yes, but everything? Pleeeeeze. I think you need to do a better job comparison shopping. Costco and Wal-Mart are great places to buy good quality cheap food.

[DSL]

4-5% Inflation is about correct. 12%-15%!? 1979 called and they want their inflation rate back.

[Geek Seek]

Let's do an laland poll that looks at how many blog readers are angry renters.

[Steve]

When does it soak in you stay in debt and buy RE you win, you save for the down payment you loose. It is that simple

[Laker]

puckhead, Hopefully you read this:

I pull up the stats from my receipts. I never said the sky is falling, i'm just saying the fed is hyper inflation our debt so that mortgage could be paid. If (or when) housing prices drop 50% in value, many will be underwater and thus send their keys to the bank....the fed is cared from that.
A 1.1% increase in March if it continues will lead to 12-15% annual run rate. You can avareage and add the last 12 months to figure the exact number.The 0.3% from February was for the short month and probably missed some major factors but this is not the case, lets look at the numbers at the cash register....
My DWP bill is about 20% higher for the same consumption. (The trash fee was doubled) I know it is local but it is what it is.
Daycare for 2007 year was $725 per month for my kid. Starting from september, we were notified that the tuition is going to be $830. THAT IS 15%
That is not a study, it is my checking book!!!
Kaiser for my wife was $212 during the last year. Two Months ago, it was boosted to $254. That is 19.8% INCREASE !!!
Food is up 20-30% on everything? YES.
I'm a regular shopper at costco, Milk used to be $4.10 for two gallons, now it is $5.60 that's 36% up.
bread used to be two for $3.20, now it is $4.70. That's 46%. Pasta was $5.00 for the six pack, now it is about $7.00. That is 40% up.
Two trays of eggs were about $5.60, now it is about $8.00 that is 43%.
Canolla oil was $4.20, now it is $6 something. that is 40% up.
Man, I'm tired from going through my costco receipts, so i really hope you got my point. I really have no incentive to lie here (unlike the FED). Food all over the line is about 10-20% higher than last year - and that is conservative. I just mentioned the stuff that went up 40%, I'm sure there are other things that went up "only" 5-10%...but the average is at least 10-20%...
Gas is actually "only" 30% more than last year, but (please don't tell this to the Saudies) oil is up 85% from last year. So price of gas is actually cheap. I'm expecting the gallon of gas to get to $5.00 by the end of summer. no sh**.
pleeeeeeeeese give me a break, will you?

[Elliott]

Laker, I agree w/ you. Who cares about the price of car or clothes. Now I don't have any money left in my pocket after filling up gas and my stomach. How often does puckhead out there buy a tv ? Probably once a week !? This is What Lake says.

[Henry]

I feel bad for those who got into bad housing loan deals, but I also very much believe in bearing personal responsibility for one's actions. I don't understand why I have to suffer for others' financial irresponsibility. I have never bought something for which I could not afford to pay. I have had car loans, a business loan, a mortgage and I have signed multi-year business contracts with vendors, but I always read the fine print and if I didn't understand something I asked for clarification and on more than occasion I asked that the clarification be put in writing as part of the contact. I calculated exactly how much the loans would cost me by the time they were paid off before I signed anything. I am 100% debt free today, I have paid off every loan in full and I pay the full amount on every credit card statement every month. If I can't afford it then I don't buy it. I'm very sick of hearing excuses why someone "needed" to overextend their self financially. It's always someone else's fault, never their own fault for the choices they made. This country continues to devalue itself every time someone is allowed to escape responsibility for their actions. It is NOT the government's job to take care of us, it is OUR JOB to take care of ourselves. Do you really want to be ruled by Marxist socialism because that's where we're heading. It really worked out great in the USSR, didn't it? Shame on those of you who made irresponsible decisions for which all of us will continue to suffer.