Credit in the United States is a limited commodity. Money loaned for one purpose is then unavailable for other purposes. Through its effort to take the risks out of home lending, the FHA has directed more credit into the real estate market than would have otherwise been the case. That means these funds are not available for other enterprises which may have put the capital to work in areas that may be more needed in the economy.
I tried to convince the congressmen that siphoning even more money into the housing market is not the answer. They may not have listened, but I hope they got the sense that the political winds are blowing hard on their front door. - in LR
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
