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alstry (35.07)

10:54 a.m.Fed bans risky mortgage practices

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July 14, 2008 – Comments (1)

The above headline from MarketWatch 

FINALLY!!!!!!!!

There goes a bunch of future home sales.  We should eventually find out what people really can afford to pay based on verifiable income.

The problem is that we have trillions of inflated loans out there based on unsustainable pricing.  The next few years could be really tough as we wash out the toxic debt and bring back realitistic pricing.

Just another example of it getting harder and harder to borrow money.  Expect home sales to plunge for a while.  In the end we will be better off.....I think.

1 Comments – Post Your Own

#1) On July 14, 2008 at 11:21 AM, Nainara (< 20) wrote:

Deceptive lending practices should be banned. Risky lending practices should not be regulated. Capitalism's creative destruction mechanism will see to the ending of unsustainably risky lending, along with the institutions that practice it. The government, IMHO, has no business regulating lending practices based on risk.

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