IBD: Government Policy Caused the Housing Market Crash
With the thumb of government placed “benignly” on the scale of mortgage approvals, here’s what happened to that market:
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Bernanke Agonistes
The danger of doing nothing lies with the herd mentality of markets in stampede mode. Many sound financial institutions could be swept up in the crisis of confidence even though they maintain a strong portfolio with a low and acceptable level of “problem loans.” That wouldn’t be good for the economy in either the long or short run.
I tend to agree with Kudlow that some action is called for. While Will also makes sound points, there is no benefit to watching the house burn down if pumping some water could save it.
"This is what happens when you lend money to poor people"
In the midst of the "subprime" mortgage "crisis," it pays to remember the biggest losers are the investors who put up their own money so poor people normally considered "un-creditworthy"…
September 7, 2007 | Posted by Jim Addison | Comments Off