The US government through the FHA is now the new sub-prime lender.
By Daniel at 28 November, 2009, 1:18 pm
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Lending standards have deteriorated again. And it’s no surprise that the housing market has reacted in the same way as in the previous housing boom.
But poor lending standards lead to a lot of bad loans. And when the government ends up in a big hole with big losses on their mortgage securities. Then there won’t be anyone who will bail out the government.
This is just a delay and a set up for another crash a few years later, when the US government runs out of its ability to borrow trillions of dollars every year.
Obama handed out well over a trillion dollars to prop the markets up.
Of course this is going to seem like a complete recovery. A trillion is a LOT of money after all, and the more money he throws to the fire the longer this will last.
Once the money runs out, China stops lending us money, we stop printing money, or finally raise interest rates again then the market will come crashing down.
I mean do you not see the difference between what happened to create the housing bubble vs. the crash? When interest rates were raised and lowered then lowered again?? We’re in a really tight f***ing bind, the housing market isn’t healthy, it’s not recovering like it is supposed to, because the Feds are handing out free money. Buy this bullshit if you want BI, but those of us outside of big bad NYC know whats going on and we’re not fooled by your Wall Street fluffy reports that make things all sunny so we can invest more money and prop up the system that has literally enslaved us.
The government needs to get re-elected. And US politicians don’t care how much taxpayer money they waste in order to get re-elected.
- Nick
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