Quote:
Originally Posted by homegrownmof
didnt the big banks get "un-fucked" in the QE2 stimulus? Plus they dumped all their shit pools of loans on Fannie and Freddie.
then they get to fund at roughly zero % which they can park at the Fed for positive spread or loan out. This allows their equity to improve and pay out bonuses again.
So they get re-inflated but the "common man" doesnt- he cant get a decent refi and gets double whammied by low yields on hi savings.
I think the gov't should "force" the banks to free up the 100s of billions they have sitting around doing nothing by allowing easier access to 3.5-4% refis to qualified borrowers.
puts $$$ back into consumption (bulk of the economy), lowers household debt over time and makes people less apt to bail on their current mortgage
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I'm not familiar with specifics of what pools got unloaded to whom, etc, but in finance there is no us vs them... we are all in the same boat, everything is interconnected in ways you can't even imagine,
the 85B/year loss would trickle down "common man" anyway... we would all end up indirectly subsidizing those that can't afford a mortgage now...