Bernanke Fed Has It Right: No Magic Bullet To Housing Recovery

Last week, I had the opportunity to attend the New Jersey Bankers sponsored Economic Leadership Forum where William Dudley, President of the New York Federal Reserve, discussed the direction of the US Economy and housing market.  This event inspired my latest post on my Forbes.com page, where I discuss that there is in fact no “magic bullet” in housing, but rather its recovery lies in well thought-out actions required by banks, servicers, and policy makers, an example of which would be the creation of an HDIC. Read my full post by clicking below. I look forward to hearing your thoughts.

 

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2 Responses to “Bernanke Fed Has It Right: No Magic Bullet To Housing Recovery”

  1. Scott Gillinder says:

    Frank — Thank you for attending the ABA meeting in Fairfield on Wednesday. I have been reading quite a bit about the European debt crisis and its effects on Europe and possibly the west. I see us going down the same path as many of those counties. It appears that our Fed is trying to generate inflation in the USA without any, or with little effect. Meanwhile, our current President and Congress continue to drive up a the debt in this county to insane levels. My fear is that we will end up in a huge deflationary spiral (not inflation) when the worlds debt bubble finally implodes taking the world economies into a recession or worse. What are your thoughts about this possibility?

    • Frank Sorrentino III says:

      Thank you for your comment. While everyone should be concerned about our increasing total debt level, one must also look at which point in the cycle we find ouselves. Cutting back on spending at precisely the same time the country is in recession may not be the best answer. These “cutbacks” in spending need to occur when the economy is humming along, not when it needs support…

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