Government initiative to slow down the housing meltdown will probably fail and make matters worse. I suspect the intent of plan by the US govt is to keep a bunch of homes from being placed on the market all at once and depressing prices.
As far as I am concerned, most borrowers should suffer the consequences of being foreclosed on. If they were too dumb to read the contract or understand it and were too cheap or lazy to hire a lawyer to interpret it for them and explain it to them, then they deserve to have their lives ruined (I know, I’m a cruel, heartless bastard). I mean, buying a home is *only* the biggest, most expensive purchase that most will ever make in their lifetime, and to claim that they signed hundreds of pages of legal documents without reading them or understanding simple terms like adjustable rates is ludicrous.
Today’s 25bp cut to the Fed Fund rate and Discount rate was clearly considered to be too little by the market. Boo hoo. Wall Street didn’t get what it wanted.
But don’t you worry, considering that Bernanke is a bitch to Wall Street, I suspect the Fed will reveal a ’surprise’ 25bp cut to the discount rate before the next FOMC meeting.
