Stemming rise in home foreclosures — large factor in ending financial crisis
Posted by: in HousingFiled under: Forecasts, Housing, Financial Crisis
Just call it a case of a need to strengthen a hospital patient with IVs to make him strong enough for a much-needed operation. The Treasury and FDIC need to do more to stem the tide of home foreclosures — foreclosures that are a major source of the currently afflicting credit markets — so states an economist.
“Stress and fear, even though at lower levels, remain a pervasive feature of credit markets, with above-normal, short-term interest rates, and bank-to-bank suspicion,” economist Richard Felson stated Monday. “This stressed condition in credit markets is just going to linger until we shut off a major portion of the source of toxic assets — home foreclosures.”
Felson said the U.S. Federal Reserve and U.S. Treasury, in conjunction with their companion major central banks and governments abroad, have done “a decent job” addressing two, key dimensions of the financial crisis: maintaining market liquidity and lowering interest rates to assist the recovery.
Progress in two other areas — buying toxic assets and ending the pattern of home foreclosures — has been less impressive, he stated.
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Stemming rise in home foreclosures — huge factor in ending financial crisis originally appeared on BloggingStocks on Mon, 27 Oct 2008 12:33:00 EST. Please see our terms for use of feeds.
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