According to the man who podcasts Demand Side Economics, Alan Harvey, there is just about one solution left to put a proper end to the current economic crisis in the making. That is to nationalize Fannie Mae, Freddie Mac and Ginny Mac, put together about a 20 Billion government agency and start purchasing millions of mortgages before there's a fire sale. Only in this way will a real floor for the bad loans be established.
According to Harvey, there is one genius who has predicted everything that we are seeing (we meaning people with a great deal more economic sense that I or the common man have) and knows why the Fed has been ineffective. That is NYU professor Nouriel Roubini. Apparently, Roubini knows the way out too. But I tell you that the fact that the three Critters who seem to be on top of this have last names like Dodd, Frank and Schumer make me fairly skeptical. And of course to hear all the piss and vinegar of Harvey's podcasts, it only takes a moment to realize the color commentary is serving more than the purposes of making economics sound interesting.
But in fact Dodd's Banking Committee meeting was indeed enlightening and I would be one to have a more thoroughgoing hearing on the merits of the SAFE plan which sounds almost reasonable. Maybe it's this thing - Hope for Homeowners, I can't find the specific one mentioned in the podcast but it pretty much talks about the same thing.
What I want to know, lord help me, is whether or not the bad monetary policy (given that) requires this specific kind of intervention, and what the actual consequences are coming from somebody a little less partisan than Harvey. I'll get a handle on this sooner or later...
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