It's now officially HousingPANIC Time (HPT), as the US Treasury Secretary admits that a significant real estate crash is underway and will not be going away soon.
But if one f*cking taxpayer dollar is spent bailing out housing gamblers and failed flippers, or the reckless lenders who made the stupid loans, then the government of the United States will no longer have the moral authority to govern.
Here's Paulson's housing mea culpa today, with some confused language regarding a bailout. "We should help" combined with "I have no interest in bailing out lenders or property speculators".
Walter - you can't have it both ways. Pull your head out of your ass and stay away from this mess.
Paulson: Aggressive Action Needed for Housing Crisis, Which Is 'Significant Risk' to Economy
WASHINGTON (AP) -- Treasury Secretary Henry Paulson called Tuesday for an aggressive response to deal with an unfolding housing crisis that he said presents a significant risk to the economy.
In the administration's most detailed reaction to the steepest housing slump in 16 years, Paulson said that government and the financial industry should provide immediate help for homeowners trying to refinance current mortgages before they reset at much higher rates.
"Let me be clear, despite strong economic fundamentals, the housing decline is still unfolding and I view it as the most significant current risk to our economy," Paulson said in a speech delivered at Georgetown University's law school. "The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."
"We must help as many able homeowners as possible stay in their homes," Paulson said. "Foreclosures are costly and painful for homeowners."
But Paulson also stated, "When investors are relieved of the cost of bad decisions, they are more likely to repeat their mistakes. I have no interest in bailing out lenders or property speculators."