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Originally Posted by poboys 94  "The magnitude of the housing bubble is shocking and unprecedented. According to the Federal Reserves own figures, “The total amount of residential housing wealth in the US just about doubled between 1999 and 2006 up from $10.4 trillion to $20.4 trillion.”(Times Online) This tells us that the Fed had a clear idea of the size of the equity balloon their low interest policies were creating, but decided not to take corrective action.[COLOR="Red"] THE FEDERAL RESERVE IS NOT PART OF THE GOVERNMENT........................................ ....... |
I’m with you for the most part on the Federal Reserve, but that in no way diminishes the Govt’s role in pushing the lending institutions to make loans their business sense would have other wise disqualified.
Govt intervention/regulation often creates more problems than it solves. I’d be for some sort of common sense rules that are business and consumer friendly, but asking for common sense from the Govt. Is wishful thinking at best.