U.S. Treasury Secretary Henry Paulson, Jr. said last week the nation’s financial difficulties would last deep into 2009 and that the Bush Administration was doing all it could to right the ship of state.
I hope he meant, Bush is doing all he wants to do, which is nothing because we the solvent don’t owe the “inventive”, speculative, and foolish few our hard earned tax dollars.
But the fact remains, Paulson said, there were 1.7 million housing foreclosures in 2007 and there likely will be 2.5 million more this year.
That was last week’s news.
Now the New York Times reports Fed Chairman Ben Bernanki, Jr. yesterday coming out with an announcement dressed up as a “new revelation.” The headlines said: “Fed Sees Turmoil Persisting Deep Into Next Year.” Hurrah,or is it hooray or hoorah these days? They finally got it right. That’s not news, New York Times, that’s what Paulson said a week ago.
Most of these are cases where the Federal Government can’t and shouldn’t do anything to save the houses for these speculators.
My question is why should we? Why should 95 percent of the people who have mortgages which did not go into foreclosure throw a life-line out to the 5 percent who were reckless and bought over their heads? That’s a very bad precedent to set in a country that was founded on free enterprise.
When is the Fed going to get out in front on America’s economy?
In a much belated announcement, Fed Chairman Ben Bernanke announced that the Fed would issue long-awaited rules that would restrict exotic mortgages and high-cost loans for people with bad credit.
A little late for that rule, wouldn’t you say? This is acknowledged to be the prime reason the housing failures occurred in the first place. Where is that charlatan Allen Greenspan when you don’t need him?
One such step would extend low-interest lending programs to Wall Street’s largest investment banks into next year. The programs, one of which was set to expire in September, can continue only if the Fed issues a finding that there are “unusual and exigent circumstances” that justify them.
Mr. Bernanke also recommended that Congress grant the Fed broader authority to monitor and supervise the financial markets to assure greater stability in the future. But with time running out on this session, lawmakers are unlikely to adopt such legislation before next year.
Again, the problem with the Fed is “too little, too late.”
Today’s a great time to buy a property. If anyone is interested, today’s Ditech rate on home loans is 5.86% or 6.117 apr.