Wednesday, March 19, 2008

Print Print Print

Fannie, Freddie Surplus Capital Requirement Is Eased

The goal is to ``help restart the housing engine that powers our economy,'' Fannie Mae Chief Executive Officer Daniel Mudd said. There you have it. Housing, which produces NOTHING, is supposedly an engine for the economy. He couldn't have had it more wrong. Nations do well when money is borrowed to invest in products and ideas that produce profit in the future, not when the money just chases up the price of houses.

Posted by ontheotherhand @ 04:40 PM (678 views)
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3 thoughts on “Print Print Print

  • The goal is to “help restart the housing engine that powers our economy,”

    How can housing be an engine? Is wealth creation not about developing ideas, making cars or simply producing “something”.

    For too long investors, in the west, have looked for a sales mark-up, a quick turn or housing flip. I believe that’s wrong for our economies. So too do a lot of BtL people who bought last year hoping to make a rapid capital appreciation for a tiny investment – they’ve learned the hard way.

    When can we get back to engines that really “powers our economy”?

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  • Last_days_of_disco says:

    Yeah, I am tired of being treated like a second rate citizen as an qualified engineer with years of experience making the real world work while these useless bankers ponse around in vehicles they have no understanding of the workings of and use computers that they have no clue how to construct. I want people with real skills to be rewarded and these parasites can wash my car which I understand how to fix. While I hate the thought of an economic crash I love the thought of being able to use my real skills to get ahead of these charlatans.

    When will these financial whizz kids get the message. You have to add value, fiddling with numbers adds no value!

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  • I drive around my home town that used to have a thriving high tech manufacturing industry that led the world.

    Railway Locomotives exported to S.America, Asia, Australia, Africa, Europe and the Middle East, specialist steels and alloys, aircraft undercarriage, military vehicles, forklift trucks, power station design the list goes on and on.

    Now nothing of importance is made here, it’s full of BTL flats being built to the cheapest standards of construction, shopping centres, warehouses and offices full of people whose sole job is to make achieving anything from a hole in the road to engineering design work as difficult and expensive as possible.

    It’s absolutely mind boggling, if housing and its associated long term debt turns out to be the engine of the UK economy the future will be rather bleak thanks to spiv politicians, rampant short-termism and the rule of the banks and accountants who have driven UK manufacturing industry into the ground.

    It’s enough to drive anyone to binge drinking.

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