Play it Again Uncle Sam
Remember a while back when I tried to explain that the same people who were piloting this sinking ship- we call an "economy" are still on board? Well, according to Kevin Hall over at McClatchy:
More relevantly, how is it up to the government to get banks to refinance people? Yeah, I understand that it might be in the best interest of the bank and the homeowner to refinance at a lower interest rate, but look at the stupid decisions that the banks have made so far. And I know exactly what they are thinking. They are going to squeeze as much profit out of homeowners as they can because if it all goes to crap they can just go back to the government and ask for more money. It would be genius if it didn't resemble the actions of a 5 year old.
Real estate agents, mortgage brokers and lenders all want a government refinance program expanded so that more homeowners whose properties have lost value - especially in hard-hit states such as Florida and California - can take advantage of today's low mortgage rates.I'm sorry, but unless my foundation of financial economics from the University of Delaware was part of a sham to simply take money from me without providing any real knowledge or historical context, then I would venture to surmise that stirring up demand to provide yet another false floor of asset prices is simply a way of trying to create another bubble. After which, we would soon be here reading this post again in 2 years.
More relevantly, how is it up to the government to get banks to refinance people? Yeah, I understand that it might be in the best interest of the bank and the homeowner to refinance at a lower interest rate, but look at the stupid decisions that the banks have made so far. And I know exactly what they are thinking. They are going to squeeze as much profit out of homeowners as they can because if it all goes to crap they can just go back to the government and ask for more money. It would be genius if it didn't resemble the actions of a 5 year old.
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