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POPSFannie & Freddie NOT included in Obama's Financial Regulations In analyzing the mortgage crisis, economist Walter E. Williams has written: “Starting with the Community Reinvestment Act of 1977, that was given more teeth during the Clinton administration, Congress started intimidating banks and other financial institutions into making loans, so-called sub-prime loans, to high-risk homebuyers and businesses. “The carrot offered was that these high-risk loans would be purchased by the government-sponsored enterprises Fannie Mae and Freddie Mac. Anyone with an ounce of brains would have known that this was a prescription for disaster but there was a congressional chorus of denial,” he added. “The financial collapse of Fannie Mae and Freddie Mac is not a failure of the free market because lending institutions in a free market would not have taken on the high-risk loans,” said Williams. “They were forced to by the heavy hand of government.”
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POPSThe Next Hit Coming for the Economy Full article has specific excellent examples. There are vast distortions in both valuations and wealth/income distribution which are extremely dangerous to the social contract! Further brief comment at http://singularitygov.blogspot.com
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POPSBank of England holds Base Rate The Bank of England (BoE) has maintained interest rates at 0.5% for the eighth consecutive month. It is also pumping a further £25bn into its quantitative easing programme. Neil Young, chief executive of Young Group, said the Monetary Policy Committee (MPC) is unlikely to make any significant change to the base rate until the economy is firmly back on track.
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