With all of the toxic assets remaining on the bank books and the prospects of GDP growth looking smaller every day, it’s no wonder home mortgage lending has contracted.
Of course. Look at where “stimulus” went. While real job creating business has had to contract in the real world, $trillions went to the magical world of unsustainable government and friends which left us broker and no closer to any sustainable, real recovery.
To stop a housing double dip, our current farcical Keynesian policy would actually have to work and reconstitute our fictional “borrow and spend whilst not having a job” paradigm. Unfortunately, gravity tends to bring things back to earth, so, no level of government support will keep a housing double dip from occurring.
1 thought on “Home Mortgage Lending and Government Intervention”
Comments are closed.