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Originally posted by JayinAR
reply to post by mental modulator
I have little doubt that things will improve.
That isn't the point of *my* objections.
My objections are that they aren't fixing the problems at hand. They are crutching up the underlying issues and passing the buck to the next guy in charge.
This isn't about Obama. This mess started with Bush, or arguably Clinton before him.
This isn't a partisan issue. No matter how much you want it to be.
The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.
The Federal Housing Administration has been hit so hard by the mortgage crisis that for the first time, the agency's cash reserves will drop below the minimum level set by Congress, FHA officials said.
"It's very serious," FHA Commissioner David H. Stevens said in an interview. "There's nothing more serious that we're addressing right now, outside the housing crisis in general, than this issue."
Originally posted by traderjack
...extended unemployment grew by a record number...
And yes starts up, but it's on apartment buildings not single family dwellings. Pendings are up because of the tax credits. And the 2.7% increase was a result of car sales and the increased cost of consumer goods not because folks are buying more. ...
Guaranteed the worst is yet to come, it might be a month, it might be 5 years but the Piper will come calling!
I can't tell you when to get out, though.
It may not be for long. "Expect millions of foreclosures" ahead despite loan-modification efforts, Treasury assistant secretary Michael Barr told a House committee last week.
"Adjustable-rate mortgages will trigger the next wave of defaults, which will make the subprime meltdown look like a walk in the park," said Rick Sharga, senior vice president at RealtyTrac, a foreclosure-listing firm in Irvine, Calif.