The speeches by FOMC GOVERNOR TARULLO and Vice Chair Yellen were followed up with an Obama speech on a “major” REFI operation and many articles in the media. In today’s Financial Times, Larry Summers just happened to have a piece titled, “WHY THE HOUSING BURDEN STALLS AMERICA’S ECONOMIC RECOVERY.” It seems that the administration has awakened to the fact that the credit crisis has been wrapped in a housing crunch that has kept consumer demand lackluster at best. (Also known as the Geithner plan: Aid the banks first and maybe help the debt-laden consumer/homeowner somewhere down the line.)
Posts Tagged ‘Freddie’
Notes From Underground: Housing Is Making It As the Foundation of Obama’s Domestic Agenda … Why Hasn’t Geithner Been Replaced?October 24, 2011
Many times NOTES FROM UNDERGROUND warned that Chancellor Merkel had made a grave error by failing to push for Axel Weber to assume the Presidency of the ECB after Jean-Claude Trichet. I argued that the German populace would be a more willing participant in an enhanced bailout facility if a strong anti-inflationist from Germany was at the helm of the mechanism of financial bailouts for the PIIGS. It seemed that President Sarkozy had “bested” Merkel and the German Chancellor was forced to abandon Weber and agree to a compromise, ECB President Mario Draghi. Friday’s announcement by Juergen Stark that he was resigning his position on the ECB Executive Board and Governing Council gave the markets a scare and led to a large selloff in the EURO and global equity markets.