July 13 (Bloomberg) — Neil Barofsky, former special inspector for the U.S. Treasury’s Troubled Asset Relief Program and a Bloomberg Television contributing editor, talks about regulators’ response to the rate-rigging scandal that led to Barclays Plc being fined a record 290 million pounds ($448 million). He speaks with Stephanie Ruhle, Scarlet Fu and Christine Harper on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)
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Bloomberg TV | Government Lack Leverage Over Banks, Barofsky Says
It seems as if the banks release their foreclosures their stock may drop but likely it would only be temporary. The govenment ideas to assist homeowners underwater are great ideas if the market has dropped slightly but the ideas are not as welcomed in a market that has dropped significantly. This is why, I believe many homeowners are not repsonding to the principal reductions and the loan modifications. Real estate inventory employs a huge number of professions and those employed would make the economy stronger. Also, the low inventory of homes on the market is inviting a significant amount of mulitple offers but the banks can still release a great deal more inventory and receive multiple offers and the market can continue to go up. The government programs being offered at this time seem not to be cost effective in relation to the time and expenditure versus the response. The market should be allowed to correct itself without intervention and I believe our economy would improve significantly.
If banks release shadow inventory and the bank stock drops, it may be significant but most likely temporary. The programs offerred by the government are great ideas in a market that has fallen a little but the housing market has fallen too significantly for the programs to be desirable to many homeowners, thus the lower than expected response from homeowners under water, receiving offers to partake in the government programs. Releasing foreclosures employs a huge number of professions and it seems like it would bolster the economy. The inventory is so low and the offers so multiple on any given property that releasing more inventory would likely still invite multiple offers and continue to drive prices up. The economy would probably correct itself given the opportunity. The current government programs offered don’t seem like enough help at this time to warrant the effort or govenment expenditure if homeowners are not taking advantage of them. It seems a good idea to allow the market to correct itself.
There is a massive backlog of homes. Banksters are sitting on millions of homes that aren’t even showing up in “shadow” inventory listings. Banksters are intentionally keeping the market in the doldrums, to say nothing of the intentional harm they are inflicting on millions of us. If we had a functioning Government that didn’t coddle to Banks we would rip this inventory out of their hands and bring help to people who are suffering! Enough is enough!
So let me get this strait, no prosecutions because the the banks are too big to fail and too big to jail. Sounds like the banks have wrecked econimies all over the world and in the US and will continue to do so. They are holding our ecnomy hostage. Don’t look now but there has never been a an econonic recovery without a housing recovery, that is a fact. So either the regulators are stupid or complicent. This much I know, the PEOPLE are getting so tired of this they will eventually take matters into their own hands. This does not bode well for Mr. Obamas re-election plans. Stop blaming the victims or else……