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Visas 4 Sale - Two years late
Two and a half years ago I wrote a proposal that would have addressed a portion of the overhang of residential real estate in the USA. Pretty simple idea. Swap a US visa for a foreign national's purchase of a property in the US.
Today we have Chucky Schumer, Senator, NY on the airways and in print with exactly the same proposal as I made back in 09. From the WSJ (Link):
Way back then I sent my proposal to all sorts of folks in government. Given that Schumer is my Senator I sent a copy to him and never heard a word.
I don’t think that this concept is really going to change the direction of RE values, but it would have made some difference these past few years. There would have been fewer defaults, smaller losses on housing values and significantly less red ink at Fannie and Freddie (now$140b and counting). If the proposal had been adopted, economic activity would have been somewhat higher over the past 30 months.
I’m left wondering what Chucky did with my letters to him. I’d like to ask him why he waited so long to come forward with this plan. Maybe he does not read his constituent mail. I hope that he does not try to sell this as an original thought. It’s been in his in box for years.
The original article can be found here (link). I cut and past a copy below.
A Proposal to Stimulate the US Housing Market
In order to stimulate demand for residential housing the United States expands the existing EB-5 visa program to include immigrant investors who purchase a home in the US with a value of not less than $250,000.
The demand for this type of visa from non-residents could be substantial. It could exceed 100,000 per year. The current volume of unsold homes is in the range of 2,000,000. Therefore this proposal will address 5% of the problem per year. This by itself would be a significant source of stability for housing prices. Stability must come before recovery.The following is a description of the existing EB-5 visa program.
Congress created the EB-5 immigrant investor visa category in the Immigration Act of 1990 in the hopes of attracting foreign capital to the US and creating jobs for American workers in the process.
There are three basic requirements as follows:
• First, the alien must establish a business or invest in an existing business that was created or restructured after November 19,1990
• Second, the alien must have invested $1 million ($500,000 in some cases) in the business
• Third, the business must create full-time employment for at least 10 US workers
This language could easily be amended/expanded to create demand for housing. The framework is there. This proposal re-directs the objectives but not the intent of Congress.
The devil will be in the details. If there was a will in Congress it could be done in a week. These laws already exist. We do not need a new Bill to do this. This proposal only addresses legal immigration.
There is another advantage to this approach. This proposal will not cost us a cent. That would be a first.
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We are being diluted and being dragged down to lowest common denominator now because only profit matters.
Well, given that in a functional economy, profit arises from successfully solving human needs, it is a good thing. Besides monetary profit is not the only form of profit. There is also psychic profit, which drives people to action, as it makes them feel good. Mises writes about it here, in Human Action.
http://books.google.com/books?id=bqhZRn5zWA4C&pg=PA287&lpg=PA287&dq=psyc...
Agreed, but profit doesn't stand alone, it is always in context.
Bruce,
This will never happen because it's actually constructive and would be a positive for the U.S. economy.
Regards,
Thunder
If the mechanisms to tax the shit out of such policies and further enrich the kleptocrats can be put in place, it will happen. Never mind the structural problems that have not been addressed or the fact that many U.S. states and cities do not have the energy infrastructure or even the fresh water resources to support their current residents and businesses now.
How about using the US Corp's repatriation of dollars to specifically purchase real estate?
Like these corps don't have enough of a hard time succeeding in their core businesses without the burden of needlessly tying up capital in RE. Yeah, that should work.
Donald Trump thinks buying real estate right now is a pretty good idea. Don't dismiss this as a decent investment that these firms could easily enter int to at these prices. Remember, the best solution for lower prices is a lower price.
• First, the alien must establish a business or invest in an existing business that was created or restructured after November 19,1990
My friend Whalid owns such a business.
• Second, the alien must have invested $1 million ($500,000 in some cases) in the business
The sheikh says it would give him great pleasure to part with these "dollars".
• Third, the business must create full-time employment for at least 10 US workers
Surely. Just keep packing these semtex loads and make sure to bill the DoD for them.
I will personally laugh my ass off when all these "businessmen" queue up at the bottleneck of DHS.
Bruce, seriously? Bruce, this is manifest desperation.
I have a better idea. Put a bounty on illegal chili-bellies, and a bounty on phat phuck kleptocrats.
Why should I have to live in the same country with parasite social engineers like Bruce? Why do parasites get to vote?
You libtards have stolen too much, Bruce. There is nothing left to steal.
Under this program China could simply sell its US treasuries, buy a home for all its homeless residents, ship them here, and own the US.
Great idea.
as a Brit who works for a US oil co. I think this is a great idea.
I love the US and and most Americans I ever met and want to buy a second house there but I can't put up with all the associated visa crap etc.+ the place has become generally more hostile to all foreigners since 9/11( we are all terorists or gay limey fags...or something in between :))
+ never mind VISA , the property taxes are to high
And you get -2 for stating your love for this country!
Does that tell you something about how fucked up the collective mind has become around here?
BTW, you're absolutely right about how bad the visa shit has become since 9/11; and no! I don't give a shit if that offend the nativists around here.
fuck this dual citizen fucking piece of shit .........and fuck your stupid idea too, bruce
Seasmoke, CHILL man ! Disagree if you will but have some manners and tone down the hostility.
Anger is the TRUE enemy.
Anger is the only rational response to those who use government guns to abuse power.
Lefties love guns, as long as they are government guns pointed at the heads of the taxpayers.
what a slap in the face for folks who get here the correct way - getting degrees, qualifications and finding jobs just like everybody else. Now some thug with 500k could set up shop here..
Yeah, better to have those Visas go to poor Hatians, poor Mexicans (400,000 standing in line) and refugees of the world? That will stop the destruction of America? The idea has merit so long as we profile in hard working Asians and Mexicans and profile out criminal oligarchs and Shia Muslims.
Lets see some of that Detroit RE priced in Renminbi !
Time Shares !!! Just think about the margins !!!
You can buy 500,000 houses for $500,000 here in Detroit. Sorry china, gota watch out for the kids in the streets here though ....... commy scum.
the chinese are already stone cold buying up every delapidated property they can in the city.
"Negro peasants of amerika, we welcome you. Together, we will struggle to create a new Michigan dynasty which will last a thousand years!"
My guess is the Chinese government will settle the trade deficit one day by taking title to Phoenix, and renaming it the Far, Far-East.
I would not be bragging about coming up with this idiot idea first, Bruce. It does not surprise me that this idea is getting legs as it fits in with the continuing destruction of America. You have lost your way as have many others who will do anything to prop up housing and banks, overloading America with debt, transferring jobs overseas, etc.
word. I just lost about 50% of my respect for Mr. K
Bruce, your "I am a paper pushing fucknut" stripes are showing again. Stop fucking with "free" markets douchebag.
Please stop associating your work with the likes of chuck, it does not do anything for your credibility.
riiight.... let's EXPAND the domestic TOP 1% with foreigners....
Cool. I bet I can sell 1 million of these in China in the first 3 months.
All your McMansions are belong to us.
Sell the visas to raise revenue.
Sell the houses, and sell the bussinesses,..................Welcome to the Mall America.
Once you get here with the new and improved visa, you can buy, buy, buy!
Buy some stuff; its imported ! Buy some politicians; we have all the brands !
Buy a McMansion ( Specials this Month), bring your family and freinds, and chickens !
Use your worthless Treasuries for an extra 10 % OFF !!!!
Remember all of our tax payers are here to serve you.
To those that come I hope you are really wealthy because there are no jobs here.
Bloody good sarcasm. Exactly, now where is energy going to come from to power that mall again? Moreover, how does that fix the trade imbalance and loss of jobs (that the mall customers need to pay their bills)?
Fucking right about McMansions and chickens. Many folks are already rasing chickens behind their properties - WINNING!
I'm getting old. Sometimes I just wake-up pissed off. Retailers, lawyers, grocery clerks all seem to respond quickly to my concerns when I'm pissed. Never happened when I was young. ;)
The big problem is if this is the new mall of america, expect 50% of those shoppers to return what they bought. It will used, tag missing, wrong tag, broken, and asking for full retail cash return. I demand to see your manager!!
I am so sorry. Our Manager-in -Chief can't see you until.............and I see your visa will then no longer be valid.
If you would like to stay; citizenship packages are available.
Chucky must have a home valued at around $500,000.
Simple solution to the housing oversupply: Bulldoze forclosures and let the banks take the losses! That has been my idea since '08. Not sure how it would have been implemented but it would have all of those getting extended unemployment something to do AND would make the banks clean up their own mess.
Bulldoze foreclosures?? In which way is this less fucked up than Schumer's approach? And what do you propose next, shoot people who are declaring personal bankruptcy?
Having a stupid idea three years earlier doesn't make it any less stupid.
The only "help" we should be giving home sellers (whether they are banks or individuals) is the same I get whenever I want to sell something: lower your price.
Can't sell your home? Lower the price. Problem solved. There's even an added benefit to other Americans. Somebody gets to own a home for a mortgage payment that is likely sustainable for 30 years, thereby preventing a similar mortgage "crisis" in the future.
Oh, and I had this idea 25 years ago.
Having a massive influx of paper and paper and paper pushing, while ignoring trade imbalances and numerous structural problems, is in fact a fucking stupid idea. But I digress, Bruce made his living as a paper pusher, you should not be surprised by his commentary. More paper-pushing is good in his view of the world.
Leave these supposedly "free" markets alone Bruce, you fucknut. Plenty of people still come to this country and buy property already (I have two working for me and my machanic is from Romania), there are many avenues already available for smart, innovative people to buy property etc.
Bruce will do anything to accelerate paper pushing, that is how he makes a living. Fuck him.
"Let the price drop until the market clears"---That is SO last century.
No, we need all prices to be propped up artificially. Except the price of money; interest rates have to be held DOWN artificially.
Too many houses making you feel poor? Just bulldoze a million or two; that's how nations get richer, by borrowing money to buy expensive things which they then destroy. Soon, you'll be rich beyond your wildest dreams.
Or else you'll have some guy named Achmed Hosni Nasrallah buying a house in Detroit for twenty bucks in exchange for a Visa.
I have Visas for sale, too. And a Mastercard and a Discover.
You had the idea 25 year ago, but you think it is stupid today. So I guess you had a change of heart?
Wake up, Bruce - this is a HORRIBLE idea. Since when are you in bed with the central planners? I'm horribly disappointed in you.
Bad news proposal ...again.
$250k for an EB5
what, is this a Groupon promo?
It's really much less than $250K. Most of it can be borrowed in the U.S.
Ha-ha. Nice.
Hysterical on the Groupon Promo.
Why would you want to continue to try to prop up an already-inflated real estate market??
You people are insane....
Chuck wants a $200,000 house to stay at present value and possibly appreciate.
This is what he says.
A loaf of bread would unfortunately appreciate must faster.
This is what he knows.