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Apparently unaware of the not just today headlines, but a long string of positive economic news,...

Apparently unaware of the not just today headlines, but a long string of positive economic news, New York Fed chief Dudley remains worried about the economy. He says it's appropriate at this stage to consider more monetary easing along with further housing-market intervention. He outlines a number of steps to "solve" housing, all of which sound great sitting around a table in D.C.
Comments (7)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "More monetary easing" means taking rates, Japan-style, from .00155% to .00153%. "Intervening in the housing market" means taking mortgage rates from 3.5% down to 3.45%.

     

    "First do no harm."
    -- Yogi Hippocrates

     

    "I'd have more confidence if half of them would shut up 90% of the time."
    -- Alan G. Berra
    6 Jan 2012, 09:46 AM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Hasn't housing been solved about 14 times now?
    6 Jan 2012, 09:56 AM Reply Like
  • blueline
    , contributor
    Comments (1393) | Send Message
     
    He also mentioned the Federal Reserve getting involved in the Fannie/Freddie disaster. Ben addressed this earlier and continuing his belief that the government can print almost an unlimited amount of money, they want to buy Fannie and Freddie (debt included) with "printed" money. They will then have a blank check from Ben to buy all of the junk mortgages they want.

     

    Poof!! Problem solved.
    6 Jan 2012, 04:53 PM Reply Like
  • Tax Murderer
    , contributor
    Comments (16) | Send Message
     
    The reason why the housing market is depressed is because people (mostly the younger generation saddled with thousands in student loan debt) can't afford them. Let them keep coming down to "normal" levels so people can buy them with their depressed wages and not stretch their income. This puts the burden on people and banks who bought/sold loans when they shouldn't have, not on the people who did the right thing and didn't buy houses.

     

    This "expert's" solution is to let people who can't afford the loan be able to take out loans based on less qualifications??? Isn't that how we got into this mess the first place?!?! The only reason he wants housing to go up is for his bank stocks to therefore rise.
    6 Jan 2012, 06:05 PM Reply Like
  • WMARKW
    , contributor
    Comments (10394) | Send Message
     
    Good Lord....I can't even bring my self to read the novel of Dudley's speech. Could one of you summarize it for me? Thanks. LOL.
    6 Jan 2012, 06:52 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11135) | Send Message
     
    The last thing that should get support is a halfway popped housing market. If you want to help the economy extend a $20k zirp interest loan direct from the Federal Reserve to all small and medium sized businesses. Giving money to TBTF banks and forcing down interest rates for banks does nothing but enrich banks that don't deserve it.
    6 Jan 2012, 09:47 PM Reply Like
  • mikety
    , contributor
    Comments (35) | Send Message
     
    Qe 3 is the answer Ben.
    8 Jan 2012, 04:34 PM Reply Like
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