Tuesday, May 06, 2008

Bernanke Urges More Government Intervention in Mortgage Market

No.

A rising tide of late mortgage payments and home foreclosures poses considerable dangers to the national economy, Federal Reserve Chairman Ben Bernanke warned anew as he urged Congress to take additional steps to alleviate the problems.

“High rates of delinquency and foreclosure can have substantial spillover effects on the housing market, the financial markets and the broader economy,” Bernanke said Monday in a dinner speech to Columbia Business School in New York. “Therefore, doing what we can to avoid preventable foreclosures is not just in the interest of lenders and borrowers. It’s in everybody’s interest,” he said.

Leave it alone and let the market correct.

(5) Comments
Posted by Owen at 0706 hrs
Politics + Politics - General

  1. And yet you want to spend almost 2 billion on an I-94 expansion.  Odd.

    Posted by .(JavaScript must be enabled to view this email address) on May 06, 2008 at 1611 hrs


  2. Actually, Bernanke is asking the lenders to take haircuts on the mortgages.

    Posted by dad29 on May 06, 2008 at 1722 hrs


  3. Jason, what do roads have to do with mortgage markets?

    Posted by Benjamin on May 06, 2008 at 1736 hrs


  4. You don’t play football without referees.

    Posted by .(JavaScript must be enabled to view this email address) on May 06, 2008 at 2120 hrs


  5. That little “market correction” in 1927 worked out real well, didn’t it?  For my grandparents & parents, it only took 20 years and one world war to turn things around.

    Hopefully none of your 401Ks are holding Collateralized Debt Obligations, or company stocks with Collateralized Loan Obligations. leveraged loans, or credit default swaps.  The financial industry has been pretty much given free rein to do what they want with your money - hopefully they aren’t running on “fumes”.

    Posted by .(JavaScript must be enabled to view this email address) on May 07, 2008 at 1443 hrs


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