Thursday, May 30, 2013

Posted Today at CNN Money Regarding Ariticle: "Foreclosure sales fall to lowest level since 2008"

Bottom line - the Government runs Fannie and Freddie and has since their inception. The SEC should have had oversight of these giants and admonished them immediately for packaging commercial, subprime and conforming debt in to one securitized asset - i.e. the cause of the credit crisis. Now here we are in 2013, the banks are holding foreclosed homes on their books (in part because the Govn't mandated it in order to avoid a glut of supply on the market and now because their balance sheets are rising with home prices going up) and the Fed is artificially keeping interest rates low. We have an oversupply of home buyers and lack of supply of homes for sale = prices are being driven up. Has nothing to do with job creation or the overall health of our economy.
Whether you are 'left' or 'right', we have a situation where the Govn't didn't have the ability to regulate and enforce the correct policy to stop the credit crisis in the first place and is now POURING more regulation and manipulation in hopes to help our economy and avert crisis. Does anyone believe that the Govn't should stay out of these matters and allow our economy to 'self-regulate' a little more - as did the Geniuses who developed the CONCEPT of our economy (Adam Smith)?