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Politics : Politics for Pros- moderated
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To: Steve Lokness who wrote (215273)8/10/2007 3:49:25 PM
From: LindyBill  Read Replies (2) of 794009
 
Does the taxpayer - by way of the fed - then get stuck with the cost of these under performing loans?

The Fed provides liquidity during a credit shortage. It's not that these mortgages are worthless. It's just that the market is scared and the normal credit function is not working well.

If there was a real shortage of short-term liquidity, you would see short term rates go up. That's not happening.

As far as what the Presidential Candidates are concerned, all they can do is screw it up. A few years ago, the Left was demanding that loans for women and minorities be increased. They were, and now that the delinquent rate for these types has gone up, as it should, the same jerks are demanding special deals for the same people. They should all "butt out!"

The last 100 years of Politicians interfering with the market has been a disaster. But they love to jump in.
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