tag:blogger.com,1999:blog-1110014885778996459.post9204366182529433080..comments2024-03-28T11:48:09.419-07:00Comments on Idiosyncratic Whisk: Housing: Part 163 - Some notes on Fannie MaeKevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1110014885778996459.post-38483677770822090182016-06-27T16:41:34.854-07:002016-06-27T16:41:34.854-07:00Kevin---
Access to credit (new money in the US sys...Kevin---<br />Access to credit (new money in the US system) is highly lucrative in times of rising asset values. Leverage up and huge returns on equity are possible.<br /><br />I am not a Jekyll Island conspiracy nut.<br /><br />On the other hand, federal agencies are often captured by interest groups and class perspective frames the argument.<br /><br />Sheesh the "libertarian" blogs rant about the minimum wage on a daily basis...but go mute on property zoning. Not a topic.<br /><br />The story line about predatory lending is false. The real story, that you are telling, about federal policies that direct new money away from lower income homebuyers, is not. <br /><br />In fact, if the Fed would do its job, lending on property, including low cost housing, would be relatively safe. <br /><br />Well, at least I am not blaming UFOs....Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-60907336020358344702016-06-27T09:16:31.850-07:002016-06-27T09:16:31.850-07:00Careful, though. There is a difference between a ...Careful, though. There is a difference between a loan and a transfer. But, yeah, you are right. Between credit access and the related drop in property values, the Federal government has imposed a huge cost on middle class and lower middle class neighborhoods. The irony is that the residents in those neighborhoods seem to have been convinced that the banks were at fault for loaning them money when the shock clearly came from the various developments that removed that credit access.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-55249012525324776392016-06-27T06:28:20.812-07:002016-06-27T06:28:20.812-07:00This is one of those strange circumstances in whic...This is one of those strange circumstances in which the conspiracy-monetary nuts have a leg to stand on. Who gets credit---that is, the new money?<br />We see new money creation extended to the well-connected, or the already affluent. <br /><br />No it is not as simple as that. After all some people have low FICO scores deservedly.<br /><br />But to a guy who can't get a loan....Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com