Sounds like Hard Left political preparation for direct government intervention.
Anyone remember yesterday?
The same folks were telling us that greedy bankers and “Loose Money” caused the greatest financial crisis since the 1930’s.
Yeh...I’m also seeing reports on MarketWatch that the banks are benefitting hughely from QE3....here we go again!
I’m a an ER physician, jtried to refi my mortgage, but because I’m an “ independent contractor” no one will give me the time of day. It’s idiotic. I get 3 or 4 calls a day from recruiters, have never missed a paycheck, could work every day of the month if I wanted to kill myself.
I was at a housing conference last week and there was a mortgage originators panel that discussed this topic. The bank standards are above and beyond those layed out by FHA, Fannie & Freddie. They are called “credit overlays” and it’s due to the banks being scarred by the financial crisis as well as Dodd-Frank and Basel III regulations and they are just unwilling to take on risk. Couple that with FHA and FHFA in disputes as to what is and is not a “Qualified Mortgage” and they are just trying to limit the risk on their side.
I think it’s something different. Our massive government debt gets paid off by high inflation and low interest rates. The only way this works is if there is a way to keep most people from borrowing money at low rates while hiding inflation with fudged numbers on the CPI. In the meantime, the government gets cheap money and inflates its way out of debt. In the meantime, savers and lenders are effectively being taxed due to the differential between the two. The inflation/low interest combo is a massive transfer of wealth from those who are lenders and own currency to those who own real inflationary property and have debt.
I think long-term loaning money (without overextending) to buy real inflationary property is going to be the best investment because that is what the government has to have to get itself out the hole it’s in.