According to an AP article dated August 29, Federal Reserve Chairman Ben Bernanke proposed the most creative solution to the foreclosure crisis to date: “Let’s do it all over again.” Of course those are not his words, God forbid a Fed Chairman should speak clearly! Instead, he “suggested that policymakers look for ways to encourage a wider range of mortgages geared for low income and other borrowers who have been hard hit by the housing slump and credit crunch.”
Hey! That’s such a great idea! Let’s create some even more creative mortgages. After all, when the new bomb explodes it is going to explode in the face of a new administration and the borrowers will not know what on earth hit them. At least you can tell that, unlike most politicians from both sides of the aisle, he understands the financial intricacies of the current financial crisis. His solution to the credit crunch is to create more liquidity by ways of creating new borrowing instruments.
“The Congress might wish to consider FHA reforms that allow the agency more flexibility to design new products and to collaborate with the private sector in facilitating the refinancing of creditworthy subprime borrowers facing large resets,” Bernanke said.
If you think that’s ridiculous or impossible, just take a look at the social structure of most of
This article is part of the series "Documenting The Hyperinflationary Genesis"
- Bernanke’s creative solution: Let’s do it again
- At a financial crossroads
- How to survive hyperinflation
- Let the party begin. We will be dead tomorrow
- I have $ 100,000,000,000 and yet I can’t retire
- Is the Dow Jones at a new high?
- Stagflation: This Time It Is Different
- The Myth Of Gold as Inflation Hedge
- Is Gold a Hedge Against Excess Liquidity?
- Disposable Personal Income Shows Disturbing Historical Trend
- Things That Go Bump in the Night
- Greenspan: Give Homeowners Financial Aid: Financial News – Yahoo! Finance
- Black Swans, Bell Curves and Stagflation
- The Gold Scam
- And Now They Tell US
- Some Historical Perspective on the Current Recession
- Gold Correction Seems Over
- Gold Chatter
Franklin @ August 30, 2007