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I spoke of the top of the show about the need for our leaders to stop using the terms.
Fixing problems and spending money on them as interchangeable.
You know -- it happens all the time.
As a matter of fact the Wall Street Journal reports today that Federal Reserve officials are beginning to think about a new program to help the struggling housing market.
By cutting mortgage rates.
Now -- the Fed doesn't directly control mortgage rates.
But it does influence them in fact Federal Reserve Chairman Ben Bernanke has been holding rates close to zero for three years.
And mortgage rates have moved to fifty year lows rising slightly only recently.
None of that effort has paid off with a rising housing market yet.
But that that may well double down on that policy.
To do that the Fed would buy mortgage backed securities those are the assets the nearly cratered the financial industry during the financial crisis.
And that means it would print money or use its own reserves to buy them.
Both of which could cost us in the long run by raising inflation.
Look I think there is widespread agreement that factor standing in the way at the housing recovery are mortgage rates.
After all thirty year fixed -- -- it at four point 818%.
While a fifteen year mortgage rate is just 3.4 7%.
The real problem for a housing recovery is the nine point 1% unemployment.
Without jobs consumers can't buy homes -- -- -- And that's the other problem qualifying for a while these days is difficult lenders want sparkling credit scores and solid employment histories.
In other words just as bank loan officers were Lucy goofy during the housing boom they are incredibly strict right now.
The Fed seems to be drifting into territory that the administration itself has failed that time and time again when we talk about hamper harper.
Any one of a number of -- MG and seem right.
None of them have worked.
And the main reason is this banks just happened wanted to -- regardless of the benefits or hurts or muscle applied by the White House.
Ultimately our housing market will have to shake off these doldrums on its own work through the downdraft.
More government spending -- more federal promises.
Aren't gonna do that.
Well that's what I.
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