The Fed flexes its muscle; will it fix housing?
Remember the slogan “Fix housing first? The Federal Reserve might have finally caught on and is hoping to boost home sales and home refinances by buying billions of dollars of mortgage-backed securities.
We asked readers if this was a good idea. Here’s what we heard.
“It’s wonderful that the Fed thinks it can fix housing and then the economy. It can’t. All it has done is ensure a new housing bubble that will once again pin the losses on the taxpayer."
— Jim Taft
“I think it is a poor idea. Why should my tax money help the people who bought houses that they could not afford? Being in the building industry myself I have had to change my lifestyle. I have seen many material-supply houses close their doors and have not seen the government help them out.
"If government wants to boost the economy, why not give the money to taxpayers who are paying their bills and taxes? These people would in return buy products and services, which would put people back to work. We can give companies all kinds on money to bail them out, but if the general public does not have money to buy goods and services then there is no reason for companies to make products. It is simple economics when people have money, they will support the economy.”