Great news! Obama Administration doubles down on poor housing policy!
By Rizzuto

Mon Sep 28, 2009 - Instead of allowing the market to function as it should, the Obama administration is committed to doubling down on the same path that got us into this in the first place by artificially inflating the housing market. This from Reuters :
The Obama administration is expected to announce a program this week to aid low- and moderate-income U.S. housing markets by funding state housing agencies, officials said.

The Wall Street Journal reported that the program would total $35 billion, with government-controlled housing finance giants Fannie Mae and Freddie Mac buying up to $20 billion in bonds issued by the state housing agencies. Another $15 billion in funding would come from the Treasury under authorities granted under housing rescue legislation passed in July 2008.
Can someone please grab these geniuses in Obama’s cabinet by the scruff and shake them till they understand that the housing market needs to bottom out in order for prices to return to market value?

The irony is that while these policies are meant to help low and middle income families, they’re the ones who are going to suffer the most as housing prices remain high and out of reach for those on the lower rungs of the ladder.





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