I am guessing the essential thought behind this elaborate plan is to buy mortgage back securities, stop the foreclosure market, push the rates down, spur the market which will increase the home values and then the government will eventually be the winner.
If the government truly structures this right and things go as planned maybe this will all work, but chances are they won’t all align due to the stress on our dollar and the amount of debt we are pouring into the system on all daily basis.
Maybe it’s really late and I just concocted this wild idea, but it just seems like the government has a few tricks up there sleeve and freezing the foreclosure market just doesn’t make sense unless they have a plan to counteract it.
I have a better chance of winning the lottery than making the correct call on the government’s ultimate plans for our economy.
So far the score is:
Irresponsible 6
Responsible 0
And we are currently in the seventh inning stretch. We are going to have a wild ninth inning. and I hope the responsible hit a couple of grand slams!
