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)?
www.FirstAmericanMortgage.net
No comments:
Post a Comment