talktowen

Applauding Hank: Treasury Secretary Rejects Keynesian Mortgage Bailout

The Bush, Ben B. and Paul H. are not to be trusted. They say a strong Dollar is in the best interest of US. In the meanwhile, Ben lowered interest rate by 225bp to save banks from collapsing. Inflation based on PPI is almost 8% yoy. Yet, Ben told us inflation is under control while food, energy, healthcare and real estate price went up the roof in th e past few years. The Fed was established to maintain a stable currency, their job is to fight inflation, yet they create inflation with its loose monetary policy and low interest rate.

If Ben B. and Paul H. want a bailout, it's intention is to bailout wall St. and banks. For an average middle class living in New York, I can't even afford to buy a house nor a condo in NYC. Average price for a 2bedrm condo in Manhattan is $1.1million. In better locations in Queen or Brooklyn, a 2bedroom condo cost over $600K. Yet, these fools wants to a bailout the irresponsible lenders and borrowers. How can first time home-buyers can afford these houses. Let it come down and let some of these banks fail. Business and some home owners need to be responsible for their actions. Sadly Based on history (the S&L crisis and LTCM), the government will bailout the banks. My bets are weaker dollar, strong commodities and gold prices for years to come. Can't afford a condo for the next few years with my average NY salary even with an MBA. Just keep working....