Fed's Evans: Forget Regulation And Let's Crank Up Those High Risk Mortgages to Stop Foreclosures!
Blah blah blah "extremely modest" recovery blah blah blah "very challenging" blah blah blah "increasingly uncomfortable" blah blah blah "lack of improvement in the labor market" blah blah WAIT, what's this?
In prepared remarks to the non-profit housing group, [Chicago Fed President Charles] Evans spoke of ways to reduce home foreclosures. He encouraged more aggressive financial literacy campaigns, suggesting educating prospective borrowers about the home-buying process might be more effective than strict regulations.
Too many regulations, said Evans, might reduce options for borrowers qualified for high-risk mortgages.
Education? Like what kind?! Most of the idiots who found themselves loaded down with a home they couldn't afford wouldn't have understood the terms even if they were written down on one sheet of paper in crayon. Homedebtors who expect their home to appreciate like a grilled cheese with the image of Jesus Christ on Ebay deserve everything they have coming, and that goes for the economists as well. For the final time, your home is not a baseball card collection nor ATM!
Recommended reading: HELOC? HELNO. via LOLFed
Anyway, we couldn't educate these people in elementary school, why should we be able to now? Sorry, Chuck, I'm all for less regulation too but this is one area that needs to be locked down like Pelican Bay. I'm also all for financial literacy but again, for someone to be financially literate, they have to be the regular sort of literate and look what they got themselves into a few years ago? And look at the Pied Piper who led them directly into the fire! That guy is an idiot too!
Instead of wasting its time and energy printing money, the Fed should invest in kitchen matches and light up half the housing supply. "Ooops! That was an accident!" and then, at last, some sort of reasonable equilibrium might be possible. Instead, I guess it's back to trying to stuff as many folks as we can into the debt yoke just to keep up.