The Fed knows that everybody knows that the housing market is being manipulated. A better title for this post would be:
Dallas Fed Admits that Manipulating Housing Market is Useless
I find it disgusting and 100% unamerican, that the mortgage market today is essentially a government operation. Even though I have approached “private” banks to finance the purchase of my residence and investment properties, these institutions have to follow Fannie and Freddie rules to decide whether to approve my loan. Why? Because the FEDERAL GOVERNMENT (i.e., us taxpayers) purchase mortgages from the banks at what essentially amounts to non-market interest rates.
I have friends who pretty much risked their lifes to escape a communist regime more than 20 years ago. They find it ironic that the economy of the great U.S. of A. is slowly becoming the bureaucratic, government-run pseudo-economy they run away from.
