Sat
30 Jul 2011
Housing Recovery? It’s The Mortgage and Securitization Reform, Stupid!
Randall S. Kroszner, Ph.D., (quoted in SecondMarket.com ) Norman R. Bobins Professor of Economics at The University of Chicago Booth School of Business, Governor of the Federal Reserve System from 2006 to 2009: "...people who are underwater now and are having difficulty paying their mortgages are likely to continue to face those challenges for the foreseeable future. So that means the foreclosures are going to be with us for quite some time...those who are out of work for long periods of time will have more difficulty repaying their mortgages....one of the things that has dislocated this market [is that Fannie Mae and Freddie Mac were] very big players and very big purchasers in the markets, but they were also trying to discourage others from coming in to compete with them for these services...Will they be public, private, merged, broken up?... That kind of uncertainty makes it very difficult for these markets to come back... being able to make markets during times of illiquidity, how to provide liquidity in market stress situations is incredibly important. It’s extremely valuable to be thinking about that in terms of any financial regulatory reform..."
Sat 30 Jul 2011 09:31 AM | (0) Comments | Permalink |
Categories: Economy | Financing | Market | Substance |
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