Archive for the ‘Housing’ Category

“It’s Not Rocket Science!”

It doesn’t take a rocket scientist to figure out the housing market.

The housing market is in shambles!

The brewing storm was obvious to many intelligent observers as early as 2004 yet was allowed to metastasize until it imploded.

Cautious unwinding of GSE’s (Government-Sponsored Enterprises), more specifically Fannie Mae and Freddie Mac, in this fragile housing market is critical to any recovery and the overall economy. But it should never have gotten to this point.

Low interest rates, greed, fraud and a Congress that turned a blind eye led to an unsustainable, overheated market—one destined to collapse.

And did it collapse!

Over a week ago, Timothy Geithner and the Treasury Department unveiled their proposal to correct the mess in the housing market  winding down the role of GSE’s and bringing back private capital to the market—a market manufactured and accelerated by deregulation, greed, and dishonesty; condoned by Congress, Wall Street, a tunnel-visioned Fed Chairman, and an inept Executive Branch.

Many elements fueled the overheated housing market: subprime and liar loans, securitization, and negative-am loans—all toxic products of a greedy private market. Probably criminal, but certainly stretching morality.

And not a single person has gone to prison.

How is that possible?

Read the rest of this entry »

Tags: , , , , , , , , , , , , , , , , , ,
Posted in Economy, Housing | 1 Comment »