Worried that the foreclosure flood could further undermine the housing markets, the Federal Reserve urged Congress recently to do more for troubled homeowners.
Some Fed officials have been advocating reducing the loan principal more often for underwater borrowers, those whose homes are worth less than their mortgages. The central bank also has been urging mortgage giants Fannie Mae and Freddie Mac, kept alive by three years of taxpayer bailouts, to unload their backlogs of foreclosed properties in bulk discount sales to investors who would then rent out the properties.
L.A. Times
In my humble Smug Bastard O-Pinion - Ben's inflationary strategy has actually worked but the inflation that he wished to see take place happened in areas outside of housing. You can sqeeze a big ball of dog shit in your fist but it's awfully hard to direct which set of fingers that the dog shit is going to ooze out of... just when you think it's going to come out between your index finger and thumb as you hoped - whoopsies - the dog shit comes out between your pinky and ring finger.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.