The week's biggest financial news
The Fed defends the housing bubble, Fannie Mae's CEO resigns, and Obama wants to convert foreclosed properties into rentals
The Fed defends the housing bubble, Fannie Mae's CEO resigns, and Obama wants to convert foreclosed properties into rentals
The Wall Street Journal Friday noted the聽lack of prescience at the Federal Reserve prior to the crisis: 鈥溾�ut Mr. Bernanke described the cooling of the housing boom as a 鈥榟ealthy thing.鈥�
鈥楽o far we are seeing, at worst, an orderly decline in the housing market,鈥� he said.鈥�
Fannie Mae鈥檚 CEO, Michael Williams, resigned this week. Said Williams: 鈥淚 am extremely proud of what we have achieved together, and I am confident that they will continue to make a positive difference.鈥� Freddie Mac鈥檚 CEO is also on the way out, by the way.
The Obama Administration announced this week that it wants to convert foreclosed properties to rentals. It is 鈥� a pilot program to sell government-owned foreclosures in bulk to investors as rentals.鈥� Since this is a partnership with government-owned corporations Fannie and Freddie, this program is likely to manifest itself as yet another investment opportunity only for massive, politically-connected enterprises. Small investors will very likely need not apply.
US Senator Jim DeMint declares in South Carolina: 鈥淚f You Don鈥檛 Listen To Ron Paul鈥he Federal Reserve Is Gonna Destroy Our Monetary System鈥澛�