From DailyWealth
Bernanke Can't Get a Mortgage – Big Upside in Housing
By Dr. Steve Sjuggerud
Monday, October 6, 2014
"I recently tried to refinance my mortgage," former Fed Chairman Ben Bernanke said last week, "and I was unsuccessful in doing so."
The audience laughed – but then he said "I'm not making that up."
What does it mean when Bernanke – the king of printing money – can't get his hands on any of the money that he printed?
When the former Chairman of the Federal Reserve can't get a mortgage, you know something is not quite right yet in the housing market...
The pipes are clogged... there's sand in the gears.
Bernanke stated the obvious: "I think it's entirely possible" that lenders "may have gone a little bit too far on mortgage-credit conditions."
At the height of the housing boom, lenders went a "bit too far" in the other direction... In short, if you could fog a mirror, you could get a mortgage.
Now that lenders have been burned, and regulators have made things more difficult, the pendulum has swung in the opposite direction.
The right spot is somewhere in between...
We don't need 2006's "liar" loans... And we don't need 2014's standard either, where even the king of money printing can't get his hands on any money.
Lending standards will undoubtedly loosen up from here...
Regulators don't want to prevent capable people from buying a house (which is happening today). And bankers want to make more loans (to earn more profits).
In my opinion, we still have plenty of upside in the housing market...
We just need a little WD-40 to loosen up the gears of the housing market. We need the bankers to loosen up a bit, and the regulators to do the same.
Read more from DailyWealth >>
Bernanke Can't Get a Mortgage – Big Upside in Housing
By Dr. Steve Sjuggerud
Monday, October 6, 2014
"I recently tried to refinance my mortgage," former Fed Chairman Ben Bernanke said last week, "and I was unsuccessful in doing so."
The audience laughed – but then he said "I'm not making that up."
What does it mean when Bernanke – the king of printing money – can't get his hands on any of the money that he printed?
When the former Chairman of the Federal Reserve can't get a mortgage, you know something is not quite right yet in the housing market...
The pipes are clogged... there's sand in the gears.
Bernanke stated the obvious: "I think it's entirely possible" that lenders "may have gone a little bit too far on mortgage-credit conditions."
At the height of the housing boom, lenders went a "bit too far" in the other direction... In short, if you could fog a mirror, you could get a mortgage.
Now that lenders have been burned, and regulators have made things more difficult, the pendulum has swung in the opposite direction.
The right spot is somewhere in between...
We don't need 2006's "liar" loans... And we don't need 2014's standard either, where even the king of money printing can't get his hands on any money.
Lending standards will undoubtedly loosen up from here...
Regulators don't want to prevent capable people from buying a house (which is happening today). And bankers want to make more loans (to earn more profits).
In my opinion, we still have plenty of upside in the housing market...
We just need a little WD-40 to loosen up the gears of the housing market. We need the bankers to loosen up a bit, and the regulators to do the same.
Read more from DailyWealth >>
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