Post by blueneck on May 2, 2007 19:02:29 GMT -6
Secretary of the Treasury Hank Paulson says,“All the signs I look at show the housing market is at or near the bottom.†The question is what is our Mr. Paulson smoking or is he just a plain liar? He believes the meltdown in subprime mortgages is not a serious problem and he thinks it is largely going to be contained. We are talking Mr. Paulson of $1.4 trillion in mortgages that should have never been made going upside down. There is no question Mr. Paulson, the Fed, Wall Street, CNBC and our government all know we face a collapse in the housing market. That is why we see Fannie and Freddie and various contributions by lenders and lender bailouts, which amount to a Band-Aid on a gapping gash. What is $35 billion when you have a $1.3 trillion overhang? Housing prices won’t recover until 2012. Paulson, the banks, Wall Street and Congress could care less about the borrowers - they are concerned the fallout will send the stock market lower and trigger a financial crisis. A market and an economy that is being held together by the bailing wire of hedge funds and derivatives. If lenders were really serious about helping people who they gave loans to who were totally unqualified, they would just give them their homes and let the shareholders foot the bill. In reality the bill should really go to Alan Greenspan and the Fed, they caused all this. This is just the beginning – wait until phase two begins and panic sets in. We are facing the biggest decline in housing values since the 1930s and nobody gets it yet. In former hot markets prices will fall 15% to 25% this year and more next year as the tragedy plays out.
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Indeed, In fact I have been saying for years that Greedspan's reliance on artificially low interest and too easy credit were responsible for many of our economic woes today, negative savings, deficit spending both macro and micro, rampant consumerism, inflated real estate values, inflated stock values, junk and predatory loans etc.
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In reality the bill should really go to Alan Greenspan and the Fed, they caused all this