Does The Housing Market Need More Oversight

housing market

Is Federal Reserve Chairman Ben Bernanke’s new found embrace of financial re-regulation  patently political? It would certainly seem so.

I think the analysis that there wasn’t enough regulation is poppycock. Low interest rates spur real estate investing. It’s a historical fact. Real estate loans increase the money supply.  Another historical fact. Increased money supply stimulates inflation, which benefits real estate investing. Historical fact. The reality of the regulation argument is it passes the blame which is a favorite thing for politicians to do. The easy way to prevent this problem is to have a Fed Chairman who isn’t in a politician’s pocket. Nobody in the Fed had the guts to put the brakes on before it blew up. Read more