Rowyn (rowyn) wrote,
Rowyn
rowyn

So Stimulating

I don’t particularly like any of the ideas aired in this article, but this excerpt just made me wince:

Bond markets have been buzzing lately about a Morgan Stanley proposal to loosen the mortgage-underwriting standards of government-owned Fannie Mae and Freddie Mac to encourage more refinancing and reduce monthly mortgage payments of homeowners. Morgan Stanley economist David Greenlaw says that could put $46 billion in the pockets of consumers.

He calls it "slam-dunk stimulus."


It is, in fact, such a slam-dunk stimulus that lax mortgage-underwriting standards stimulated us right into the current recession.  HINT: the cure for drug addiction is not TAKE MOAR. Also, the underlying problem with your pyramid scheme is NOT that people stopped investing enough money in it.

*headdesk*

Fortunately, the Treasury has already promised not to do it, although they didn’t give the real reason of HOW STUPID DO YOU THINK WE ARE?
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