about the renegotiating with mortgages and again, we have that shadow inventory and i think we have leeh way time to get rid of and people are going to refinance and i agree with john tamny. the federal reserve is trying to deflate the bond bubble. it is hard to control the ten year yield and 30 year yield when you are trying to deflate the bond bubble. it is like having a balloon whip around back wards. it is co to getting the credit markets working again. when you have a normal economy and stable dollar you have one and half million starts. housing would be helped with a normal credit market and people who understand. i have to go to john tamny. most of their wealth is caught up in people s homes. they want prices to go up and homeownership and you are
and that is shortened . that said, we do have 2.2 million homes in a shadow inventory. one group that is good for the fact of the ownership on the decline. that is investors that are taking advantage of the single family homings it is it a six percent. the fed notion that they have to print a lot of money to keep interest rates low. it ain t working, is it? no, it distorted the market and we don t know what is happening out there and what the natural homeownership rate is. that gets misallocate we pay the price for it and we are buying and selling a house .
banks are forced to lend this money, financial institutions are forced to lend people money that they otherwise would not lend money to. and then the government backs it up and then we, the taxpayer, we pay for the default that s coming ten years down the road in massive numbers. or maybe even three years down the road. we have 2.3 million homes that are still in shadow inventory that haven t even hit the market yet. because of the administration s interference in the foreclosure process in states like california and new york, for example, they re not even able to take these homes back and put them on the market yet. so we haven t even begun to see a huge wave of yet another set of foreclosures coming down the pipe and at the same time, we re going to lend to people who can t pay back the loan. this represents 8% of the people out there, the group that the obama administration wants to cover, about 8% of the borrowers, but they represent 71% of the risk. that does not make any sense.
banks are forced to lend this money, financial institutions are forced to lend people money that they otherwise would not lend money to. and then the government backs it up and then we, the taxpayer, we pay for the default that s coming ten years down the road in massive numbers. or maybe even three years down the road. we have 2.3 million homes that are still in shadow inventory that haven t even hit the market yet. because of the administration s interference in the foreclosure process in states like california and new york, for example, they re not even able to take these homes back and put them on the market yet. so we haven t even begun to see a huge wave of yet another set of foreclosures coming down the pipe and at the same time, we re going to lend to people who can t pay back the loan. this represents 8% of the people out there, the group that the obama administration wants to cover, about 8% of the borrowers, but they represent 71% of the risk. that does not make any sense.