So, let me get this straight. We're in an economic downturn because of the mortgage crisis. So, to alleviate that economic downturn, the Bush Administration has:
(1) reduced the amount of capital that Fannie Mae & Freddie Mac are required to have in reserve to cover losses; and
(2) increased the amount of bad loans that mortgage companies are allowed to invest in.
Isn't that a little like taking out a loan to pay off your credit cards so that you can go out and charge more?
Oh, this makes my head hurt.
http://www.bloomberg.com/apps/news?pid=20601087&sid=arPWF4k4slUE&refer=home
No comments:
Post a Comment