Lopsided Efforts to Stabilize Economy
Wednesday, March 26, 2008John Taylor told Bloomberg TV today that efforts to ensure liquidity in the market won’t be effective without concurrent interventions to assist homeowners to avoid foreclosure. At least $280 billion has been provided in short term liquidity for banks, but little assistance has been offered to homeowners. Efforts to ensure liquidity in the market won’t be effective without shoring up the deteriorating housing assets that caused the liquidity problem in the first place. From NCRC’s press release today:
Washington, DC – Recent interventions to provide hundreds of billions of dollars in liquidity to the market will not dampen the growing housing crisis. Hundreds of billions of dollars in short term liquidity has been made available, but almost no effort has been taken to shore up deteriorating housing assets and prevent millions of Americans from losing their homes.
Enhancing liquidity is important. But the current liquidity problem stemmed from deteriorating housing assets. “It’s like trying to put out a fire by spraying water on the building next door,” said John Taylor, NCRC’s President & CEO.
Read the full press release here.
- Posted in Foreclosure, Homeownership, Policy, Wall Street
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