I’m neither an economist nor a psychic. As a result, I can’t tell you what I think this morning’s proposed government intervention in the nation’s financial crisis will mean to the real estate market.
Both organizations were created by the Federal Government in response to banking crisis’ in the financial and real estate mortgage markets. The former bailed out failed savings and loans which had failed largely due to risky real estate lending. The latter focused on renegotiating home loans to prevent foreclosure.
I suspect whatever entity Congress creates over the weekend will be some hybrid of the two. And ultimately, we will pay for it in the form of higher taxes. Not happy news, but certainly better than the alternative.
We’ll see what the weekend brings.