The real estate market, i.e. home ownership, has been adversely affected by government policy. The Federal Reserve Board, in all its wisdom, overreacted to inflation in the housing market by raising the Fed's funds rate 17 times. This rate directly affects adjustable-rate mortgages and indirectly affects fixed mortgages by reducing equity, liquidity, the ability to refinance and, thusly, property values. If an individual stabbed or shot someone 17 times, he would be classified as a crazed killer.
This overreaction will affect millions of people adversely by creating job loss, increasing foreclosures dramatically and creating severe hardships for many families unnecessarily. All home values drop.
Last week a Fed director stated it was not the Fed's responsibility to bail out the industry. This statement would have some merit if the Fed was not responsible for creating the problem; but it was.
It is time for the Fed to alleviate the suffering by lowering the Fed funds rate several basis points, promoting effective and logical refinancing of present loans and stemming the tide of blight that affects every neighborhood across the nation adversely.
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STEVEN N. ARISTOTELOUS SR.