Probably the worst U.S. Treasury Secretary of all time, Henry Paulson, now wants to try and revive the housing market by forcing banks to cut interest rates on mortgages.
Paulson should quit now. There’s no telling how much more damage he could inflict on the economy before President Bush leaves office on January 20.
It’s worth noting that the Bloomberg News article linked to above contains a quotation from a naive staffer at Barclays Capital in New York. Rajiv Setia is quoted saying, “Over 90 percent of the mortgage universe out there would be refinancable, but you can’t force banks to lend to people.”
Not true. The government has been doing just that for decades through the Community Reinvestment Act.
Matthew can be reached at: .(JavaScript must be enabled to view this email address)
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Pursuant to Title 17 U.S.C. 107, other copyrighted work is provided for educational purposes, research, critical comment, or debate without profit or payment. If you wish to use copyrighted material from this site for your own purposes beyond the 'fair use' exception, you must obtain permission from the copyright owner.
Views are those of authors and not necessarily those of Canada Free Press. Content is Copyright 2012 the individual authors.
