The government wants to inflate the housing market by buying up overpriced mortgages,injecting liquidity into banks etc.. Doesn't it make more sense to blow up,deconstruct the excess McMansions/tract homes that sit vacant. Once you get rid of the oversupply then home prices will correct.
Whats with this push to maintain home prices? People can't afford homes at current prices. Thats what caused this mess in the first place. Inflated real estate only helps owners that can afford or have paid off their mortgage. And it only helps the broader economy by allowing those owners to borrow against their equity and spend it. That means a much larger segment of the population can't afford homes = less homes built and purchased = smaller GDP. Why can't they afford it? Wages never keep pace with inflation. Wages never kept pace with home prices. So when home prices are kept at or near Bubble levels, millions more can't afford home ownership. Why not let Free Markets work?
Because big financial companies are on the hook holding these IOUS that were overrated by Moody's and remember the FED is composed of big bankers.
So, you would destroy a tangible asset in order to help the paper asset market? Are you nuts? A house has intrinsic value no matter the paper price.
Sure, it makes sense from the Bankers perspective. So why are you for it? You're not a Banker, are you?
YOU BASTARD!!!! Oh great and wonderful saviors of neo-socialism Ben and Hank, please hold this against this wretch who would call for sanity and free markets. May he ever be taught that markets can't go down and that you hold the power above God and anybody else who would correct the markets...sorry, couldn't resist the sarcasm ;-)