http://online.wsj.com/article/SB121001844532568435.html?mod=hpp_us_whats_news The program seems like it is working just fine according to this chart: http://countrywide-foreclosures.blogspot.com/ They really don't get it, prices are at unsustainable levels and short of putting the whole society in vastly more debt to keep home prices inflated nothing other than price stabilization at lowers levels will bring confidence and buyers back to the housing markets and more importantly the housing backed debt. This guy knows what he is talking about and I agree that home prices are just not at levels were supply and demand are in equilibriium in this new tighter and more realistic credit environment. http://www.youtube.com/watch?v=1PDeMZYRjLQ http://mrmortgage.ml-implode.com/ $70K income can't and shouldn't be buying a $700K house as they have been as we have clearly seen it is unsustainable. Maybe Paulson and Bernanke need to look up the word unsustainable in the dictionary. Whats more it isn't in the greater economic interest to have a lot of people house poor and unable to spend any money for obvious reasons.
Jim Grant has stated many times that he has never seen any country or society sustain unlimited prosperity.
I'm surprised that so many traders have no understanding of basic economics. It is actually quite sad. Bernanke may have have literally saved this country from another Depression. Maybe the OP should study the Great Depression like Bernanke did and then maybe they would have something intelligible to say on the topic. Until then take comfort in the fact that smarter men then you are dealing with this problem.
This is the exact mindset that is so dangerous. The fed is the wizard of oz. Would the USSR still be around if it just tweaked its interest rates right?
He a thorough egg-head who writes well and over charges and could not make a dime in the financial markets if it weren't for Vanguard Index Funds.
Yeah, I should really brush up on central planning, because that's very nearly what Bernanke engaged in. I have a great respect for Buffet, because he keeps things simple, but his approval of Bernanke's actions in cherry picking BSC to save (out of an allegation he was trying to save the world financial markets) is pure crap. Will you teach me basic economics? Milton Friedman really disappoints.