ROSS: ENOUGH WITH THE FEDS MEDDLING WITH RESI REAL ESTATE FORECLOSURES ALREADY
Wilbur Ross talks to CNBC:
All the meddling in the real estate side of life has not fixed residential real estate. If anything I think it’s made it worse, because it’s extending out the foreclosure time lines and putting more uncertainty and more downward pressure. [Emph. added]
This is exactly right. The housing market won’t heal until bank-owned properties clear the market, but that market-clearing can’t begin in earnest as long as the government pursues its hare-brained loan-mod schemes. In the meantime, defaulted borrowers (read: incremental rental demand) get to live rent-free for months on end. How is that a good thing? The recovery process is going to be painful and take time, but government intervention sure isn’t helping. . . .
One Response to “ROSS: ENOUGH WITH THE FEDS MEDDLING WITH RESI REAL ESTATE FORECLOSURES ALREADY”
Hmmm, living rent free for months on end…..sounds like an unintentional benefit for regular folks who pretty much missed out on the bailout/stimulus.
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