D. McHattie

Despite Fed, Money Supply Contracting

If I understand correctly, until banks sell the foreclosed homes they can still pretend they are worth the original mortgage amount. So there is a perverse incentive for banks to not do what needs to be done to clear up this crisis.

Meanwhile, productive young people are putting their lives on hold as decent housing remains indecently overpriced.

Once again, government and banks act opposite to the best interests of the electorate.