The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Les H who wrote (145900)	9/11/2008 11:04:08 PM
From: James Hutton	Read Replies (2) of 306849

The Brits haven't gone to the Bernanke/Paulson school of central banking. "The Bank of England governor, Mervyn King, yesterday warned the government not to try to artificially support the mortgage market as that could further prolong the year-long credit crunch. He also held out little immediate prospect of interest rate cuts to boost the flagging economy." I think those buying dollars and selling pounds (and euros) are assuming the opposite. "Appearing before parliament's cross-party Treasury committee, King said the Bank did not have the resources to underpin lending across the entire financial system and thereby boost mortgage lending" I wonder if the fed has an extra printing press in the basement we can lend them. Sort of a modern-day lend-lease program. "But he made clear he did not favour a state-run mortgage bank offering cheap loans, saying it would impede the commercial banks' incentive to improve their balance sheets and find fresh capital so they can resume lending." With today's letter from Congress requesting Fannie and Freddie to delay foreclosures 60-90 days, IMO, we'll end up with just what the Brits are trying to avoid.

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