As if we aren’t already there….from The Hill this morning:
The Federal Reserve is turning its attention to reviving the ailing housing market, calling on policymakers to provide a boost to the sector and lift the broader economy.
The Fed on Wednesday sent a 26-page white paper to Congress, providing a framework — including several steps that are already in the works within the Obama administration — designed to provide greater stability for the sector and the overall economy.
Uh huh. As if there is something wrong with asset values correcting to come back into line with incomes.
And here’s the blatant return to feudalism:
The Obama administration is examining ways to reduce the number of vacant, foreclosed homes by putting together properties to sell to investors for rental units.
Sen. Jack Reed (D-R.I.) is pushing legislation that would convert hundreds of thousands foreclosed properties into rentals as demand rises for those types of properties.
Isn’t that nice? Subsidize investors (neo-Lords, many of the same culprits who caused this mess in the first place) so they can rent us (the serfs) back our own foreclosed homes without the banks taking a loss.
It goes on to explain:
“We caution, however, that although policy action in these areas could facilitate the recovery of the housing market, economic losses will remain, and these losses must ultimately be allocated among homeowners, lenders, guarantors, investors and taxpayers,” the paper said.
Here is an idea, why don’t we remove taxpayers from the line above and insert — banksters, congressmen, senators, legislative aides, lobbyist and employees of the Federal Reserve system. That way we can stick the losses onto the back of the people who caused the losses.
Now that would create real improvement in the economy.