FDIC To The Rescue?

Politicians are looking into all sorts of ideas for channeling aid to distressed homeowners. All of these plans however give aid and succor to those who’ve made bad decisions.

America already does more to enable mortgages than any other country in the world. Politicians want to do more.

Pols are looking back at Great Depression programs.

Foreclosures have spread way beyond subprime loans.

From SFGate.com:

With no signs of immediate recovery for the economy, it is time to do more to strengthen the beleaguered housing market at the heart of the crisis, according to speakers Thursday at a conference called “The Mortgage Meltdown, Financial Markets and the Economy,” jointly sponsored by UC Berkeley and UCLA.

“We have a long way to go before the credit crunch shows significant healing, and for that reason I think it is worth considering other types of policies to address the crisis,” said Janet Yellen, CEO of the Federal Reserve Bank of San Francisco, addressing about 200 financial professionals, professors and students at UC Berkeley’s Alumni House on the first day of the two-day conference.

Federal Reserve Chairman Ben Bernanke will address the gathering via satellite today. Speaking on a day when reports showed that the nation’s economic output had shrunk by 0.3 percent in the third quarter, Yellen said the current quarter may be even worse. “It appears likely the economy is contracting significantly” in the fourth quarter, she said. She also said the central bank might cut its benchmark rate for overnight bank loans even lower than the current 1 percent but would not reduce it as low as zero.

“The effects of the growing credit crunch have outpaced the easing of policy,” she said.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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