Financial Reform Bill to be Signed Today

by Marilou Long on July 21, 2010

in Credit Crisis,Fiscal Policy,Residential Real Estate

I find it ironic that the same day that the President is going to sign a sweeping financial reform bill that doesn”t address Fannie and Freddie, it comes to light that executives at both of the insolvent housing agencies received sweetheart mortgage deals from Countrywide Financial.  The corruption, asymmetric risk taking, and policy problems that led to the sub-prime mortgage implosion are not to be discussed today.

These issues are still however.  From this article in the WSJ today:

In major markets across the country, home sales are deteriorating, inventories of unsold homes are piling up and builders are scaling back construction plans. The expiration of a federal home-buyers tax credit at the end of April is weighing on the market.

On Tuesday, the U.S. Census Bureau said single-family housing starts in June fell by 0.7%, to a seasonally adjusted annual rate of 454,000. The U.S. started 1.47 million homes in 2006, before the housing bubble popped.”

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