SEARCH BLOG: FEDERAL RESERVE
If you search this blog on the Federal Reserve, you'll read some less-than-complimentary comments about the way the Fed tends to create more problems than it solves as it seeks to protect the banking system from inflation [although the press releases always indicate it is some vague "public" that is being protected].
Now there is speculation that the Fed's hand might be forced into lowering interest rates because of "mismanagement" in the mortgage business.
What has happened in the financing/mortgage business is the same thing that happened to tech stocks... greed and manipulation.Easy money allowed unscrupulous, greedy mortgage "brokers" to package bundles of bad mortgages to greedy "investors" who could only see the dollar signs... "tech stocks can only go up"... and screw up the housing market for everyone else.
Now the Fed realizes that it has to step in to prevent the system from imploding. The problem is the system is still in place for a repeat performance.That reminds me of government efforts that granted amnesty to foreigners illegally in the U.S. without controlling the underlying situation. Play, rewind, repeat... play, rewind, repeat....