Mr. President: "Why Did They"
I have a question: If the Fed and the Housing gang were so smart, then why didn’t they do a cost analysis regarding how many people could refinance if the Fed poured trillions of dollars to push rates lower?
The Fed recently published the white paper, which essentially admitted their policy isn’t working.
Any financial realist could have told the Fed and the Housing gang that spending trillions of dollars to push rates lower would not be cost effective. The reason is that lower rates would not address the real problem which is that new lending standards prevent millions of Americans from refinancing.
These new lending standards are sensible and ought to remain, because they have eliminated the sorts of loans which led to trouble in the first place.
A lack of vision and talent on the part of the Fed and the US government is revealed.
On another note, housing bulls say that in 2012 housing has bottomed. If that is the case, then lets stop all government intervention and watch to see if that bottom holds.
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