Greespan lobbying for cash to bailout subprime. How is this not propping up the price of housing?
“Dec. 16 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan said he favors spending U.S. government money to bail out mortgage borrowers who risk losing their homes because they can’t make payments.
Greenspan, speaking on ABC’s “This Week” program aired today, said cash bailouts, while creating a larger budget deficit, have the advantage of helping homeowners without distorting property prices or interest rates on mortgages.
“Cash is available and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this,” Greenspan said. “It’s far less damaging to the economy to create a short-term fiscal problem, which we would, than to try to fix the prices of homes or interest rates. If you do that, it’ll drag this process out indefinitely.”
So basically instead of letting people who took the risk suffer the consequences, let’s have everybody else’s money deteriorate to the point when current insane prices start making sense.
So basically instead of letting people who took the risk suffer the consequences, let’s have everybody else’s money deteriorate to the point when current insane prices start making sense.
So basically instead of letting people who took the risk suffer the consequences, let’s have everybody else’s money deteriorate to the point when current insane prices start making sense.
So basically instead of letting people who took the risk suffer the consequences, let’s have everybody else’s money deteriorate to the point when current insane prices start making sense.
So basically instead of letting people who took the risk suffer the consequences, let’s have everybody else’s money deteriorate to the point when current insane prices start making sense.
I don’t understand. Does this mean the government using tax dollars will pay or offset sub-prime borrower’s mortgages. If the borrower’s mortgage is $2k a month, the government will pay $1k of it or is it help in a more indirect way?
I don’t understand. Does this mean the government using tax dollars will pay or offset sub-prime borrower’s mortgages. If the borrower’s mortgage is $2k a month, the government will pay $1k of it or is it help in a more indirect way?
I don’t understand. Does this mean the government using tax dollars will pay or offset sub-prime borrower’s mortgages. If the borrower’s mortgage is $2k a month, the government will pay $1k of it or is it help in a more indirect way?
I don’t understand. Does this mean the government using tax dollars will pay or offset sub-prime borrower’s mortgages. If the borrower’s mortgage is $2k a month, the government will pay $1k of it or is it help in a more indirect way?
I don’t understand. Does this mean the government using tax dollars will pay or offset sub-prime borrower’s mortgages. If the borrower’s mortgage is $2k a month, the government will pay $1k of it or is it help in a more indirect way?
