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In response to
"maybe, but i'd have to also tell them they were idiots who should just back the eff off and allow the market to work.....nm"
by
tremendous machine
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I'm working from the point of view that a great deal of culpability for the property crash can be directly attributed to low interest rates which
Posted by
Loyola
Oct 18 '10, 16:00
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fuelled the property boom, together with reckless lending from the banks. I think it's unfair given these facts for the Federal Reserve to now take the tack of buying toxic mortgage assets from the banks at 100 cents on the dollar, and leaving the homeowner as is, mired in negative equity, trapped in a home they can't sell so as not to realise a loss on their mortgage, when it's the Fed in the first place that has been the root cause of the state the economy is in today. With underwater mortgages, the notion of the market finding its own level is severely hampered for a good number of years than otherwise needs to be the case; if the Fed intervened in this way under the auspices of it being they themselves that created this mess, and as such behooves them to take action to remedy it.
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